The Research Of Application Of Infiltration Mode Of Cultural Integration On Jilin Petrochemical Company's Reorganization Project

The reorganization and merger between enterprises essentially are typical management project case. The selection of infiltration mode of cultural integration during enterprises reorganization has direct influence and is decisive to the project's cost, progress and quality, and also decisive to the project's final result. After 8 years of independent management, Jihua Group Company and Jilin Petrochemical Company ,under PetroChina's overall policy of reorganization and reform, began their reorganization and integration process on July, 2008. The reorganization and integration project is expected to be completed within 3 years, in order to improve Company's general competitiveness and reach the expected aim of 1+1>2. For the current reorganization and integration project of Jilin Petrochemical Company, a successful completion of this project relies heavily on the right choice of enterprise cultural integration idea and cultural integration mode.For right selection and good implementation of suitable cultural integration mode and ensuring that the project could be completed with high quality and efficiency, works of three aspects must be done well. This article will give detailed explanation and discussion on this project from these three aspects.The first aspect of work is to fully understand the reorganization project. That is to understand the background of project proposal and its basic requirement, to understand the two enterprises'cultural status and types, and to predict the potential cultural conflicts after reorganization.The second aspect of work is to conduct comprehensive study of various cultural integration modes during enterprises reorganization process, to know the presently popular cultural integration modes and their features, and to learn the good enterprise cultural integration experiences from successful projects.The third aspect of work is to, under the basis of above-mentioned understanding and study, decide the cultural integration mode for this project and point out the principles which should be adhered to and key points during cultural integration implementation.As for the first aspect of work, this article will give explanation and analysis in two parts.1. Giving introduction on project proposal background and its basic requirement. Given the fact that the two companies in this reorganization project all originate from the same company—Jilin chemical industrial Company, they have many commonalities. This article first gives a brief introduction on Jilin chemical industrial Company's development, then introduces the two companies'conditions before their reorganization. This article then highlights this reorganization and integration project's project proposal background and its basic requirement, clearly points out the project's strategic significance and its objective.2.Pre-reorganization culture assessment and post-reorganization potential cultural conflict analysis. In this part, the article gives detailed introduction on Jihua Group Company and Jilin Petrochemical Company's cultural status, especially on their core cultures. Meanwhile, Professor Quinn and Professor Cameron's enterprise culture assessment tool is used to assess two companies'enterprise cultures by means of questionnaire. The final conclusions are that the Jihua Group Company's enterprise culture is of hierarchy-clan mode, and Jilin Petrochemical Company's enterprise culture is of hierarchy-market mode.Based on the analysis of two company's conditions, their cultural status and cultural assessments, the article clearly indicates that the new enterprise after reorganization will face potential cultural conflicts due to four types of difference concerning spiritual culture, system culture, material culture and humanism. The article then gives detailed analysis on each of these four types of difference and points out their dangers and representations.As for the second aspect of work, a study is conducted for the cultural integration mode of enterprises reorganization project. The study is reported in this article in four parts.1.The article discusses the significance of the practice that the project is directed and designed by enterprise integration idea. The significance lies in four aspects: First, it is the guarantee for a high-quality and high-efficient completion of this reorganization project. Second, it could be helpful to minimize the risk of cultural conflicts. Third, it is helpful to put the enterprise cultural integration and innovation in a strategic position, and is also helpful to decide the best enterprise cultural integration mode for this project. Fourth, the reorganization project with enterprise integration idea as its direction and design is helpful for the enterprise's fast and sound development.2.Giving introduction on China and oversea's common enterprise cultural integration modes. The most typical cultural integration modes are the following three types: first, copy, aggregation, infiltration and reforger; Second, substitute,amalgamation,promotion,isolation;third,injection,composition,sepatation and withering. After introduction of features of all above-mentioned types, this article points out that the study on the third type of culture integration modes is classical and widely accepted. For Jilin Petrochemical Company's reorganization and integration project, the third type of culture integration modes will be taken as reference.3. Analyzing the typical enterprise reorganization and integration cases from Chinese and overseas enterprises. Under the directions of different cultural integration modes, the reorganization and integration projects may end up with different results. This article takes following cases as examples: the successful cases include the reorganization and integration between HP and Compaq, Haier regrouping case, the reorganization and merger between GE and Cisco. The typical failed cases include merger between IBM and ROLM, merger between Mercedes—Benz and Chrysler, merger between TCL and Alcatel, and the cooperation between Japanese big companies and Hollywood. The article then indicates that the successfully integrated and reorganized enterprises all paid great attention on their cultural differences. They took right cultural integration and innovation modes under their strategic positions and enterprise cultural status. As for those failed cases, the failures are essentially because of cultural conflicts. Specialists and insiders all believe that the poor handling of cultural difference and conflicts is the common reason for those failed enterprise reorganizations and integrations.4. Introducing the experiences to make a good enterprise reorganization and integration project results. The experiences are: First, paying great attention on enterprise cultural integration and innovation. Second, strengthening organization and management of enterprise cultural integration and innovation. Third, implementing right enterprise cultural integration mode. Fourth, taking practices to adapt new enterprise culture. Fifth, establishing the integrated enterprise's new core spiritual culture, such as common view of value. Sixth, actively carrying out integration process between system culture and material culture.As for the third aspect of work, the article gives analysis and discussion in three parts.1. Introducing Jilin Petrochemical Company's plan for construction of characteristic enterprise culture for its reorganization project. The construction of characteristic enterprise culture must be in accordance with reorganized enterprise's strategic development demand, guiding idea and four working principles, which are human-oriented, step by step, inheritance and innovation, and integration of commonality and individuality.2. Indicating the reason and basis for the selection of enterprise cultural integration mode for this reorganization project. Based on the analysis and research on various cultural integration modes and the consideration of Jilin Petrochemical Company's enterprise culture construction after its reorganization, it is recommended to take"infiltration mode"as the cultural integration mode for this enterprise reorganization project. The article points out that this"infiltration mode"should be as regarded as a"combination mode", which combines both integration and innovation. The article then gives detailed explanation on the selection of"infiltration mode"from following six aspects: the respective influence of two pre-reorganization enterprises'cultures, the demand of"adhering to mainstream culture and with own characteristics", the same origin of the two enterprises, politics and social stability, and business and industry difference between two pre-reorganization enterprises.3. Indicating several key points for the implementation of this infiltration mode of enterprise cultural integration. First, giving high attention on the work of minimizing potential cultural conflict risks. Second, treating the two pre-reorganization enterprises'cultures properly. Third, considering the new enterprise culture's core ideology as crucial for cultural integration and innovation. Fourth, paying great attention on human resource's integration and optimization. Fifth, works should be done step by step. Sixth, paying great attention on the communication, publicity of new enterprise culture. Cultivation and selection of individual employees, who are good to represent the new enterprise culture, should be specially promoted to publicize the new enterprise culture.