Department of Industrial Psychology

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Browsing Department of Industrial Psychology by Subject "Academic institutions, Merger of -- South Africa -- Employees -- Attitudes"

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    Academic staff perceptions and the identification of critical success factors in a merger of two academic institutions
    (Stellenbosch : University of Stellenbosch, 2010-12) Stephen, David Ferguson; Du Toit, M. K.; University of Stellenbosch. Faculty of Economic and Management Sciences. Dept. of Industrial Psychology
    ENGLISH ABSTRACT: The aim of this investigation is two-fold: to ascertain the perceptions and reactions of academic staff to a merger, and its impact on them; and secondly, to identify factors which are critical to merger success. Although the two institutions had agreed on some form of closer relationship, the process was accelerated by a decision by the Department of Education to use mergers as a means of initiating change in South Africa’s post-school education system. Despite many superficial similarities, the two institutions were dissimilar. Only operational and financial factors were considered. The human factors were ignored. This was critical as the two institutions were totally different with regards to organisational culture and academic standards. The resulting clash in these areas proved to be a major stumbling block to the success of the merger. Technikon A, regarded as the institution of choice, had been subjected to a variety of rapid environmental changes in the few years immediately prior to the merger. These changes had sapped staff morale. In addition, significant financial mismanagement had almost crippled the institution. While the staff of neither institution was in favour of the merger, and both staff associations approached the Department of Education to stop it, the merger went ahead. However, the staff association of Technikon B publicly and vociferously opposed the merger, based on their fears that Technikon A’s incompetent management and weak financial position would impact negatively on them. Instead of integrating “best practice” systems, the weak Technikon A management allowed Technikon B to “make the running” and introduce only their systems into the merger. In effect, this turned the merger into a hostile take-over and allowed for the total deculturation of Technikon A. The perceptions of a sample of Technikon A academic staff were canvassed, both pre- and post-merger. The pre-merger predictions were accurate and there was almost unanimous consent as to the outcomes of the post-merger environment. Comparisons were made with other academic mergers in South Africa and overseas – notably Australia – and parallels drawn with the merger in question. In all cases, the perceptions of staff were very similar. From the literature, a list of critical merger success factors was compiled, against which the present merger was compared. Given that this merger failed to successfully address almost all of the success criteria, the merger must, therefore, be regarded as a complete failure.