Final answer:
Mergers and acquisitions are methods of organizational change. They involve combining two organizations or one organization purchasing another. Leaders play a vital role in managing the cultural shifts that occur during these changes.
Step-by-step explanation:
Organizational change can occur through methods such as mergers and acquisitions. In a merger, two organizations of equal power and status join together, while in an acquisition, one organization purchases another. Both mergers and acquisitions often involve duplications of services, which need to be merged and may result in a reduction of staff. These changes can create organizational processes and stresses similar to downsizing events. Leaders play a crucial role in managing organizational change by navigating the cultural shifts that occur during these transitions.