Challenges of Organizational Spin-Offs/Mergers: An Example in Brazilian Culture

By Valderez Ferreira Fraga.

Published by The Organization Collection

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

Reactions and challenges due to risks of disorganization in an incorporation process are investigated seeking for productive an safe management possibilities to face market demands.

Keywords: Spin-Off/Merger, Organizational Culture, National Culture

International Journal of Knowledge, Culture and Change Management, Volume 5, Issue 9, pp.71-80. Article: Print (Spiral Bound). Article: Electronic (PDF File; 1.902MB).

Dr Valderez Ferreira Fraga

Dr Valderez F. Fraga, is a The George Washington University (USA) former student, where she was granted a Master degree in Education and Human Development. The Doctoral degree was granted from the Federal University of Rio de Janeiro, Brazil. She served as an Education and Human Development Coordinator at The Technologic Institute of Aeronautics, still serves as a lecturer in Cross Cultural Development for International Commerce at the Institute of Economics of the Federal University of Rio de Janeiro, and also as a lecturer in Phenomenology at FGV/EBAPE in Doctoral and Master programs in Administration and Management. She works as a consultant in Culture and Ethics at several public and private services organizations, in finances, health care, air transport and high tech industries as well. Her book presenting some possibilities of a phenomenological approach for administrators and managers who look for better results simultaneously to better consequences in their actions was published in 2003. Several of her papers and articles were published in proceedings, academic journals, business magazines and news papers in her country and abroad.

Reviews:

Challenges of Organizational Spin-Offs/Mergers An Example in Brazilian Culture
2007/05/22
By Fabiano Oliveira

The article is particularly interesting, considering the moment we are passing through. Many big companies from all over the world are becoming interested in countries like Brazil, India, China and Russia, and to enter these markets, a merger with a local company looks like a great strategy. The local companies, in many cases, to answer to the threat of the multinational corporations operating in their markets, are merging with other local companies, to improve competitiveness, and to raise their market share. These countries have in common, besides a fantastic economic growth and potential, a continental size, which means they have a mix of different cultures. In this scenario, not only the intercultural differences, but also the intracultural differences need to be observed, to avoid loosing performance and raising uncertainty about the future. Thus, Professor FRAGA’s work comes to bring some light (through the phenomenology approach) to the spin-off/mergers process, making it more transparent, and considering the human problems too, instead of looking only after the financial and legal issues, which would not be enough to succeed.

Name: Fabiano Oliveira
Undergraduate in Business Administration , UNIVILLE University – year 2003; MBA in Business Management, Getulio Vargas Foundation – FGV – year 2005; Regular Graduate Student in the Master Degree Program in Business Administration, at FGV – 2007-2008. State of Rio de Janeiro, Brazil.
Executive Manager of Administration and Finances at Projeção Construtora e Empreendimentos Ltda.
Instructor in Undergraduate classes and MBA courses at SOCIESC/IST and FGV, in the State of Santa Catarina, Joinville City, Brazil



Challenges of Organizational Spin-Offs/Mergers An Example in Brazilian Culture
2007/06/05
By Kathryn Otte

Review by: CLÁUDIO N. ALFRADIQUE. MARCONI C. BRASIL ; PAULO B. REIS JÚNIOR

We are recurring to that article as a reference while studying organization’s sciences, during our master degree program in public administration and management, on the topic of enterprise merges, especially within the public sector. We understand that it shows a clear cut of that reality in which we all work and study. Besides we found that text is of great help for those wanting to learn about how the human dimension is involved in spin-off/mergers of that kind of organizations due to its peculiarities confronted by recurrent critical situations.
The article emphasizes Hofsted´s research contributions for a better understanding the implications related to cultural and sub-cultural differences. He points out the importance of the worker’s value system for the construction of a new and cohesive organization. The paper shows that spin-offs/mergers always involve a certain degree of violence, since each bureaucracy tend to react in indifferent directions for cultural self protection such as: its values, faiths, ways of thinking, problem solving and many other aspects that are related to its performance. The article reinforces the idea that organizational culture is a category of analysis in itself, although linked with its own country’s culture, a question which deserves much attention in the global era we are all experimenting The author concludes her work by using a statement made by the President of the new enterprise which we take as a key point to reflect and suggest in similar cases and actions: to merge two mature organizations demands the creation of mechanisms capable of permitting integration of the two cultures, appreciating and assuming the positive attributes of one another.

Name: Cláudio Nascimento Alfradique
Graduated in Economics, University of the State of Rio de Janeiro – year 1994; Regular Graduate Student in the Master Degree Program in Public Administration, at FGV – 2006-2008. State of Rio de Janeiro, Brazil.
Public Auditing of Court of Audit of the State of Rio de Janeiro, selected by public contest, since 1998.

Name: Marconi Canuto Brasil
Graduated in Architecture and Urbanism, Fluminense Federal University – 1998 ; Regular Graduate Student in the Master Degree Program in Public Administration, at FGV – 2006-2008. State of Rio de Janeiro, Brazil.
Public Auditing of Court of Audit of the State of Rio de Janeiro, selected by public contest, since 1998.

Name: Paulo Bianchi Reis Junior
Graduated in Economics, University of the State of Rio de Janeiro – 1991; Regular Graduate Student in the Master Degree Program in Public Administration, at FGV – 2006-2008. State of Rio de Janeiro, Brazil.
Public Auditing of Court of Audit of the State of Rio de Janeiro, selected by public contest, since 1998.



Challenges of Organizational Spin-Offs/Mergers: An Example in Brazilian Culture
2007/06/06
By Valderez Ferreira Fraga

Dear Fabiano.
As well as you I find the world wide open to all types of exchanges in management, international commerce and private life when culture highly matters due to the amount of solutions it entails for human kind challenging problems toward peace.
Valderez F. Fraga



Challenges of Organizational Spin-Offs/Mergers - An Example in Brazilian Culture
2007/06/12
By Gecilda Silva

That paper lead us to perceive that the need for understanding of cultural differences in organizations as well as in geopolitical regions even inside a single country, is not restricted to spin-offs/mergers processes, but vital to deal with organization or social groups in case one intends to succeed in terms of communication.
Since Tribunais de Contas Estaduais (TCE) Courts of Audit of Brazil - public agencies legally constitute to inspect financial administration - are present in every state of the federation, cultural differences may affect communication, relational and functional processes inside its internal structure, personnel teams and also in its external contacts with citizens trough its several kinds of public service duties. It would be productive to map each subculture characteristics inside that organization as the article presents specially on Table 2 because our previous discussions on that aspect were sufficient to suppose that those differences exist and that to understand how deep they may be could contribute to Courts of Audit Brazilian TCEs) better performance as a whole. Besides, in terms of external activities we have already experienced cultural differences and intuitively took them into consideration for some social and management actions. For example, when our feelings have made us to believe that peoples’ cultures in some states in the south region of the country where more participative and alert to their rights, than others, we decided to promote encounters with their mayors, local legislators, social organizations and labor association - some of them related to agriculture – in order to explain to them how to better exercise their own rights by fallowing up public finances management to verify its effectiveness and transparency. From then we are inclined to believe that a scientific research on that subject could give a significant contribution to the achievement of that public agency objectives, in accordance to the mission we are all trying to pursue.



Challenges of Organizational Spin-Offs/Mergers An Example in Brazilian Culture
2007/06/15
By Valderez Ferreira Fraga

Dear Claudio, Marconi and Paulo
It is gratifying to verify that you all who are working in such an important and sensible public services activity as Auditing in a Court of Audit have already perceived the significance of values and culture to which I would add ethics, due to the huge size of the country, the sharp regional differences, the network that public agency spreads all over the country, but in special, due to the responsibility inherent to your working actions.
Valderez F. Fraga



Challenges of Organizational Spin-Offs/Mergers: An Example in Brazilian Culture
2007/07/01
By Valderez Ferreira Fraga

Dear Claudio, Marconi and Paulo
It is gratifying to verify that you all who are working at such an important and sensible public services activity as Auditing in a Court of Audit have already perceived the significance of values and culture to which I would add ethics due to the huge size of the country, the sharp regional differences, the network that TCEs public agency spreads all over the country, but in special, due to the responsibility inherent to your working actions



Challenges of Organizational Spin-Offs/Mergers - An Example in Brazilian Culture
2007/08/24
By Valderez Ferreira Fraga

Dear Gecilda Silva

Intuition really works so it counts on management. From now, however, as a student in a master degree program in Public Administration you are adding
to your intuition gift much knowledge and scientific approaches. Reading articles is an easy way to enrich your academic and professional background even when the text is not a brilliant one, but at least a simple but intelligible and trustful research as that of mine. Thank you for your feed back.
Sincerely.
Valderez F. Fraga



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