An Appreciative Merger and Acquisition Team Coaching Strategy for the South African Hotel Industry

• Published in: African journal of hospitality, tourism and leisure Vol. 5; no. 1
• Main Authors: RG Visagie, MP Poggenpoel, CPH Myburgh
• Format: Journal Article
• Language: English
• Published: AfricaJournals 01-01-2016
• Subjects: acquisitions; change; coaching; mergers
• ISSN: 2223-814X; 2223-814X

The South African hotel industry needs to improve its global competitiveness and could do so to an extent by adopting appropriate globalization strategies. Mergers and Acquisitions (M&As) are a core organisational restructuring method that has been adopted by many companies to face the current economic crisis. For some it is viewed as a very efficient and rapid way to expand their market share as they engage with different markets and expand their capabilities. However, creating an M&A does not automatically ensure that the new entity will succeed in all of its objectives. Middle managers act as a buffer between top management’s financially driven M&A intent and reporting colleagues’ need for job security during M&A activities. Furthermore, M&A change creates personal and collective disharmony, posing a threat to the mental health of middle managers relevant to the change. We (authors) argue that while hotel companies need to take important steps to strengthen their position in both the domestic and international markets through M&A deals, clear and suitable post-M&A integration strategies that are responsive to the mental health needs of middle managers, are critical for M&A success. Companies often merge in terms of structural and procedural processes, but fail to merge potential human threats and possibilities that are an intrinsic part of the change process. This article extends Positive Organisational Scholarship in the hospitality industry by proposing an Appreciative M&A team coaching strategy that can be implemented by hotel companies in South Africa to improve the acquirer’s chances for successful M&A integration.