Mergers are mostly making the business firms and commercial institutes to excel in their resource in the time of financial crisis. When a company finds benefits in combining its business operations with another company its call merger of the companies. Large companies make mergers with small companies to diversify their business risk and they want to inter in new business fields. The reasons of small companies merger are that they want to grow, to save themselves from bankruptcy, achieve economies of scale and want to get the financial resources because large companies have better access to financial resources.
In the same way school, colleges and universities merges with each other to get benefits. Creating universities in developing nations has become a central focus of any government that tries to educate its people and cover the needs of the labor market. Higher education institutions strategically merge or formally combine with the aim of getting competitive advantages and mutual growth.
The number of countries decided to take initiative of merger of universities and try to solve the problems of institutions. . Our study is about the amalgamation of University of Wales in Newport with University of Glamorgan. This study focuses on the important features of these universities merger and knows about positive as well as negative aspects of this merger. This study also aims to make a proper management plan to deal with this project, with clear strategic objectives.
The Walsh Government charges the Higher Funding Council to make proposal for higher education for Wales. This proposal consists on large number of recommendations that suggested mergers and strategic relationships for all the universities in Wales. This plan clearly outlines to reduce the number of universities in Wales. There are lots of small institutions in Wales and that may only be achieved via a merger to bring significance to the over the education process. The Minister of education is responsible to consult the plan with higher education and present recommendations to Government of Wales. The proposal that the University of Wales should transform itself through merger was accepted and higher education restructuring is also approved the Government of Wales. The Wales Higher Education System has undergone a restructuring process of merging universities, technicians and colleges.
The University of Wales and University of Glamorgan start their discussion regarding to the mixture of two institutions and making a new University with mutual goals and objectives, which support the students, communities means all the stakeholders and economy of Wales.
Merger comes with lots of benefits but sometime merger leads the organization towards fail. There are many reasons behind the failure of mergers sometime these mergers are not suitable for human resource. Research shows that from 55% to 70% mergers are fail due to issues of human resource. Many educational mergers are fail in South Africa due to issue with human resource.
So in short the mergers of higher education are very complex, time-consuming, difficult to process and plan. The main reasons are thought to be leadership and effective project management implementation. Furthermore during the execution of the merger effective management performs a significant part in ensuring the implementations of change according to the plan and reduces all the difficulties in the way of university merger. If leading managers is committed and able to transfer a clearer vision with details of mission while explaining the nature and purpose for the organisation merger. In addition to these concentrating to personnel anxieties, and correspond clear guidelines of how the process will continue in the light of changing environment. If clear mission is communicated the employees will respect the organizations decision and will be willing to cooperate.
The level of concerns and conflict with respect to educational development depends on the kind of strategy that has been chosen. The modification strategy is generally more positive than the combination strategy.
The researchers have differentiated amid strategies for merger strategies like bottom up process or it can be a top-down process while the process can also be combination of both.
Merger processes that use a strategy with a high degree of “bottom up” input are often smooth and successful. There are a lot of reasons for this: first, the newly merged institution has a better chance to create agreement among partners, and the second viable option is to try and create a common identity among staff to ease the process through change. As contributors in the process, they are intensely motivated and charged to gain agreement for the future goals of the new institution. However, academic staff is often more committed to their work and their professional identity than their HEI.
The degree of voluntariness also seems to have an impact on the mergers. Experience has shown that the voluntary mergers usually are more successful than forced mergers. This is often mainly due to the fact that state-initiated mergers are initiated by educational authorities and not requested as such by the employees.
Another characteristic of a merger process is that it is time consuming; it often takes place in the situation of a tight time frame. In a merger a problem can occur while triggering a chain reaction turning the process in to a crisis like situation. Results from this study could influence managers of troubled merged institutions to improve the strategic management and project management of their institutions.
Objective #1: Using Project management Principles to design an effective merger process
- It is identified in our research that the mergers in higher education are very complex, time consuming and difficult to process and manage. Effective Leadership and project management can make the mergers successful. Furthermore, effective management plays an important role in merging process according to project management and reduces all the hurdles in the way of restructuring.
- The ability of the leader matters a lot in merging process, a leader transfer vision and mission of merging project clearly, concentrate on employee concerns, communicate the procedure to employees how this change could be done, then employees should respect and take full part in the restructuring process.
- It is analyzed from research that with the help of project management, institutions can developed and educate project managers to manage and overcome the problems throughout the project.
- Government should take initiatives that deal with the problems in project for strong institutional mergers with clear strategic goals and objectives.
- By using the project management approach, the project manager, which is the most important person of the whole process, can properly identify and analyze the issues in the merging process.
- Project management approach selects the teams for the tasks and assigns tasks to them in their respective areas according to rules and instructions for the better resultant outcomes.
- It revealed that project manager by using the project management approach can handle the whole process under the appropriate manner with overall established objectives.
- Project manager is responsible for the overall process, no one allow to work without the guidance and instructions of project manager.
- It is found in interviews that there are some problems such that staff and students were feeling left out. They feel that they were being told at the very last time, not much notice. These problems now considered to be and start improving slowly. It is also found that communication system has also need to made better. It is analyzed that by using the project management principle, all these issues can be solved easily.
- It is identified from the interviews that poorly managed projects is the major cause of the failure of the expectations of the merger.
- It is analyzed that major cause of the failure of the mergers are lack of appropriate planning, poor strategy and management.
- Some of the other reasons of failure we have determined are the lack of open communication and a clear vision and number of people and culture issues.
- Project manager can overcome all these problems by communicating the task teams of all the departments that are representatives of the whole department.
- It is found that pre merger and post merger approach according with project management can positively manage the whole process before the mergers when institutions are required to fulfill the legal requirements and throughout the project from office establishment of the new institution and appointment of the employees to the required management positions.
Objective #2: To conceptualize a collaboration framework in a merger setting
Higher education systems have various models and mechanisms to enhance the level of collaboration among merging institutions to achieve the restructuring. The important drivers of this framework are to increase the efficiency and effectiveness in coping with the substantial and rapid growth of the student number in institutions.
The current research has determine some findings regards with collaboration in merging institutes
- Collaboration is the key factor for expansion of small systems of higher education to the mass higher education
- It is identified from different interviews sound collaboration, competent management and transparent institutional quality processes are the agendas of both of the merging institutes.
- It is found that this is the merger of equals and both of the institutions cope with the major challenges of the restructuring process with the help of mutual collaboration.
- It analyze that majority of the respondents were of the view that the mergers of both the universities are the right thing to do. Both of the higher education institutions agreed with the merger of universities and also with the time of bring change.
- It has seen the mutual cooperation and collaboration among the institutions as the gaps in the services of Newport side is filled under the provision from the Glamorgan side.
- Newport was very small in UK but with the merging of new institution, now there will be higher education provision in Newport.
- It is found throughout in our research that asset disposal was seriously monitored during the project. It is not occurred and allowed in the whole project because of collaboration among merging organizations.
- Organizations can better their performance in the process by mutual collaboration and ensure the issues in the process.
- It is analyzed that memorandum of agreement is very vital for both organizations that will benefit both of organization for relationship and collaboration.
- The complexity of the issues can be solved by the mutual cooperation with the help of the agreement and better sense of collaboration among merging institutions can overcome the complexity of the mergers.
- It is revealed that communication among the institutions at a wider scale results in mutual consultation and review has been taken place in case of any query.
- Institutions can batter manage the gathering of information, planning and subsequent implementation with the help of mutual collaboration.
- Collaboration among all stake holders including students, senates, student councils, employees and institutional forums results in building confidence among them and they participate intentionally in the merging process.
Objective #3: To define effectiveness of merger to achieve increased efficiency
It is analyzed from research that effective mergers have such efficiency that make them more likely to be successful than others. Effectiveness of mergers can make them prior to other organizations by developing its planning, new institution strategy and its human and cultural elements. It is observed that there are significant challenges for mergers including funding, management, and communication among students, collaboration and involvement of stakeholders to form a single organization and to achieve success, competitive advantage and effectiveness of mergers.
It is revealed from different researches that percentage of successes in institutional mergers is more than that of failure. Effective merger can increase the efficiency of the organizations as we have identified from different interviewees that strength of students have been increased and modifications takes place in system also. Economy of the institutions has also increased by effective merger strategy.
There are further findings about the effectiveness of mergers are:
- Merger of both universities have started vocational education and training for getting students into employment.
- It reveals that educational mergers take initiatives for the broad public educational policies than that of corporate strategy, which is chosen to enhance the economy.
- It is found from several respondents that effectiveness of this merger is beneficial for both students and staff that mutual understanding between staff and students has increased due to several meetings takes place in the institution.
- Some of respondents were on this opinion that potential for the student experience is also developed and now they have the opportunity of partnership with external companies like Newport Leisure Centre and Riverfront local businesses to develop their skills and also make changes in the facilities of the campuses that are not good.
- Students avail the opportunity of employment as a result of this merger in reception and other duties.
- The merger of university of Glamorgan and Wales University Newport has definitely made the job much harder for the management. Effective merger strategies can make successful reforms to negotiate with mergers and incorporation for common benefit and this depends upon ability of state and effectiveness of mergers.
- Merger of Glamorgan and Wales University Newport has also increased jobs for management. They hired skill, experienced and knowledgeable top managers for better performance of merger. Ability of the top manager can positively influence the internal working environment and it is significantly correlated with the success of merger.
- It is identified from large number of the interviewee were of the view that after the merger of both universities the system of organization’s become more responsive and relative. Merger has developed their skills and their capacity to target the most of the students and ensure quality education for them.
- According to the opinion of interviewees this institutional merger has resulted in significant increase of student graduates and enrolment.
- It is analyzed that effectiveness of merger can increase cohesion, standardization and access of education with high quality of educational programs.
- Effectiveness of mergers can also overcome on the reduction of administrative expenses and reduction of overhead cost. Sharing of resources and expertise, chances of greater access to programs and services are also observed in merger during the research.
It has also provide the opportunities for skill building, chance for better practice and mobilization in higher education for planning and control have also been reported.