Thesis (MBA)-University of KwaZulu-Natal, Pietermaritzburg, 2006. / The educational reforms implemented by the Department of Education during the last decade have resulted in a number of high profile public university mergers taking place in South
Africa. The private higher education sector has simultaneously been significantly restructured
by new educational legislation, to such an extent that a numerous private providers have been
forced to cease operations due to the onerous requirements of the new laws.
In this context, private higher education institutions are increasingly being compelled to
consider alternative strategic options in order to continue to operate as viable entities. This
study examined two private theological higher education institutions operating in Pietermaritzburg, South Africa, and considered whether a merger of the two organisations
would be advantageous in light of the pressures being faced by the institutions. The objectives of the study were to assess first, whether a merger of the two institutions would be feasible and second, whether it would be desirable. The study reviewed the literature relating to various forms of organisational co-operation ,
focusing particularly on mergers. The benefits associated with mergers were highlighted as
well as the major causes of the extraordinarily high merger failure rate experienced in
practice. The tendency of leaders of merging entities to overlook cultural and people issues
when planning and implementing a merger was noted. Attention was given to the managerial
approaches necessary to reduce the risk of merger failure. Factors specific to mergers within
the non-profit and educational sectors were considered, focusing on structural options for
multi-campus educational institutions in particular.
The methodology used to address the research objectives called for the conducting of
structured interviews with a sample of employees and Board or Council members from both
institutions, as well as an examination of various institutional records. Employees of both
institutions completed a simple questionnaire designed to provide data for an analysis of the
respective organisational cultures of the two institutions.
The findings of the study suggested that a merger between the institutions would be feasible, but that employees of the two organisations are not generally of the view that a merger would be desirable in the short term. There was however more support in principle for a merger in the medium to long term and the
study consequently recommends that a joint task team be established to prepare a roadmap for
the ultimate merger of the two institutions. In the short term it is recommended that a joint
venture or strategic alliance be entered into by the two organisations primarily in order to test
the compatibility of the two organisational cultures.
Further recommendations cover issues such as the ideal structure for the merged entity and
the process necessary to successfully manage the integration of two separate organisational
cultures.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ukzn/oai:http://researchspace.ukzn.ac.za:10413/935 |
| Date | January 2006 |
| Creators | Bishop, Michael John. |
| Contributors | Vigar-Ellis, Debbie. |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
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