Final answer:
Mergers and acquisitions often lead to increased conflict as different corporate values and beliefs clash during the integration process, although it depends on how the conflict is managed.
Step-by-step explanation:
Mergers and acquisitions can indeed increase conflict due to the integration of different values and beliefs. When two companies merge or one is acquired by another, there is often a duplication of services and staff, which can lead to reductions and restructuring. This process necessitates adjustments to the organizational culture and can cause stress among employees as they adapt to new ways of working and different corporate values. Moreover, the merging of disparate company cultures can create conflict because it challenges the existing norms and may lead to clashes between different ways of doing things. However, it is not always the presence of conflict that is detrimental, but rather the way it is managed. Proper handling of conflicts can lead to learning opportunities, growth, and innovation within the new combined entity.