Irvandi Gustari

Relationship of Organizational Culture Change and Employee Performance: in the Context of the Local Bank in the Acquisition by Foreign Investors Irvandi Gustari

In many cases the acquisition of a bank by foreign investors, many having problems at the time of the change management process. Foreign party as the new owner, considers changes in things: technology systems, human resource management system (organizational structure, talent management, remuneration systems, promotion systems), credit disbursement system, can immediately improve the level of bank profits. Handling of organizational culture is often regarded as unimportant by the foreign investors, as well as the determination of the exaptriate level executives are not well prepared, including an understanding of the organizational culture of the company and also often look down upon the prevailing local culture. Foreign investors are too focused on their total investment value. Many cases show, a lot of unrest and resistance from the employees, because they are as one asset Bank does not understand the direction and goals of the organization after being taken over by foreigners. As a result, the company's performance declined for several years after the acquisition, it could be above the actual handling of organizational culture when managed properly.