Leadership Essay Example | Topics and Well Written Essays - 4500 words - 2

Leadership - Essay Example During any change there is resistance to change by the employees. Managing change requires leadership and leadership during mergers and acquisitions can be challenging. Mergers and acquisitions (M&A) are seen as long-term strategic orientation of the firm and not a one-time business tactic for short-term goals (Lin, Hung & Li, 2006). Industry consolidation and privatization, and the liberalization of economies are the most significant factors that have fueled M&A at the international level. They continue to be a popular form of corporate development and industry and firm specific factors finally govern the reason and the purpose of the mergers and acquisitions. M&As are ‘among the most important strategic decisions companies ever make’ (cited by Duncan & Mtar, 2006). However, there are many instances when M&As have failed even when the mergers take place between firms within the industry. One such example is the merger of Daimler-Chrysler – two giant automobile companies – that was supposed to be a merger of equals. Covin, Kolenko, Sightler & Tudor (1997) find that leadership style impacts post merger satisfaction and tha t leadership should be a key consideration for mergers. This heightens the importance and the role of a leader during the change management when mergers take place. Since our organization is planning a cross-border merger, it is essential to plan and implement change. While both managers and leaders are necessary for a healthy organization, leadership differs from management. While management is the "mental and physical effort to coordinate diverse activities to achieve desired results", leadership is defined as "natural and learned ability, skill, and personal characteristics to conduct interpersonal relations which influence people to take desired actions" (Handbook for Excellence, n.d.). "You lead people; you manage things" is how John Pejza expresses the difference between the two in this book. Through