Effects of Merger on Employee Morale

The Effects of A Merger Or Restructuring On Employee Morale

Executive Summary
Mergers or Acquisitions are complex challenges for the management and employees too. There are major challenging employee related issues for the manager to make important decisions using organizational behavior principles. The employees need to be motivated and well informed about their future within the company. The steps for successful merger are applying various strategies discussed here to impact the merger effect as a blessing for the employee in order to boost the morale and confidence of the employee. Organizational behavior is essential and important for a successful merger of two very different companies.

TABLE OF CONTENTS

Executive Summary 2

Intrоduсtiоn 4

Diѕсuѕѕiоn 5

Benefits Of Integration 7

HRM Ѕtrаtegieѕ 8

Ѕteрѕ Fоr Ѕtrаtegy Imрlementаtiоn 11

References 13

Intrоduсtiоn
Mergers and acquisitions have been essential tools of corporate growth and have become an attractive means by which to grow an enterprise. According to Cartwright and Cooper (1996), over 50% of North American business acquisitions failed as measured by an increase in shareholder value and additional studies revealed that the human capital element impacts more so than the financial factoring among the root causes of merger and acquisition failure (Cartwright & Cooper, 1996).
As researchers narrow their focus on the issues surrounding the human capital impact on M&A success, new information is being developed in the area of employee morale and turnover intention and the impact these factors have on employees’ commitment to the new organization. Exploring how an acquisition impacts the employees of the acquired firm contributes to an understanding of how human capital impacts the success or failure of the acquisition (Luecke, 2003). With the increased M&A activity over the past years there have been an increasing number of studies conducted that have looked at acquired

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