Mergers and acquisitions has become an important part of the American commerce, which communication plays an important role in reducing the negative impacts. While Schweiger agrees that failure to communicate with employees during a merger will increase employee uncertainty and anxiety, he highlights that previous researchers (Napier et al., 1989) did not measure uncertainty nor any of the supposed dysfunctional outcomes said to follow uncertainty.
Communication is also suggested by others to be avoided, as it might alert competitors or cause employees to leave an organization rather than endure painful changes (Buono & Bowditch, 1989). It can also threaten management’s ability to respond flexibly to changes during a merger or acquisition process (Eisenberg and Witten, 1987).
To examine the impacts of a merger and determine if communication with employees could mitigate the expected negative effects of mergers and acquisition on them, a field experiment was conducted with the focus to provide a clearer picture of the effects over time of the merger and communication with employees.
Two non-unionized companies were chosen for the experiment. Employees in the experimental plant were given information and media tools, held weekly meetings with regards to the merger - how it would affect them, and answers to questions regarding restructuring. Employees in the control plant were only given information that was normally distributed by the CEO. No other formal communications was given to the employees or the plant manager, and were only told information will be given “as soon as it was available”.
Initially upon merger, employee uncertainty and dysfunctional outcomes in both plants increased rapidly as predicted. However, as time passed...
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Cost cutting, discontinuation of product or services ,technological changes, and consolidation due to mergers and acquisitions are commonly legal ac...
In the year of 2005, the companies eventually found a way to make it easier for the companies to combine without having any major issues or problems. Unfortunately, around the year of 20010 the merging com...
A healthy flow of upward and downward communication ensures that the communications between managers and employees is complete. For example, in 2010, Kroger surveyed over 200 thousand employees in its “Associate First Tracker survey” and found the feedback both invaluable and “humbling.” Kroger then communicates the findings with their employees who participated which will then generate a new dialog in regard to what the next steps should be (Orgel, 2010). The final channel of communication is the use of horizontal communications between coworkers. This can...
A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate clinical and managerial interventions.
The purpose of this paper is to analyze a specific, hypothetical employment situation encountered and to include the information regarding employment conflicts, questions, grievances, lawsuits, etc., in terms of how the situation was handled or resolved. Employment conflicts are a constant issue everyday in any organization; it is how you handle them both legally and professionally that counts.
Riaz, M. & Junaid, F. (2011). Types, Sources, Cost and Consequences of Workplace Conflicts. Asian Journal of Management Research. 2(1), 600-611.
...dditionally, the merger can take place in smaller phases. For instance the first phase may include change of the physical look of the branches and the signage - – so as to convey a consistent view and experience for its customers. This phase may also include effective communication to the employees to educate them about the merger, ensure them of their positions and encourage them to participate in the merger. Second, the firm can totally combine the bank’s technology and the information systems which will allow the merged firm to operate as a single entity and to become fully operational. The management should implement the merger with care and prudence, aiming for minimal disruption for the customers and should communicate extensively to ensure all its stakeholders are kept fully informed as they make changes.
... employees trust going into such a merger is instrumental in influencing their decision to approve of such a merger.
Experts and analysts had mixed opinion about the merger in 1998. Though the companies sounded positive with their synergies at the time of merge, the cross cultural working and at...
BT’s changes in management programs are key to its policy for managing the integration and assignation of people following mergers and acquisitions. HR’s roles were clearly defined in this process. The project management of mergers and acquisitions focuses on operating the activity, based around a business case for change. BT predictable the barriers to the introduction of such challenging plan because senior managers had to be wholehearted of the essential role of strength in business success. There were also extensive resources required to make the programs successful, as they required time for people to be released for training. These were the steps taken by BT’s higher managing people to keep them floating and leading in the Telco market.
Marks, M. L., & Mirvis, P. H. (2011). A framework for the human resources role in managing culture in mergers and acquisitions. Human resource management, 50(6), 859-877. doi: 10.1002hrm.20445
It is difficult when acquiring intangibles, such as intellectual capital, to motivate employees of the target to stay on post-merger. Employees of the target may feel alienated or threatene...
When entrepreneurs plan their business future they will consider how they can increase their business size or profit in a short period. Entrepreneurs may consider growing their business or company by using a merger or an acquisition. These methods can be a speed up tool and a short cut to enlarge their business. (Burns, 2011) Also they can reduce competition, make it easier for entrepreneurs to think about the market and product development and risk reduction. Furthermore, some lesser – known companies can improve their firm’s image and market power by using merger and acquisition with larger firms. However, there may be risks associated with merger and acquisition related to lack of finance and time. (Burns, 2011) This essay will discuss more deeply the advantages and disadvantages of using mergers and acquisitions, showing how it can affect firms and market with the case study.
Unfortunately, most change managers may feel reluctant in sharing information with employees as they fear the unexpected events that may occur and threaten outcomes. Change managers are also apprehensive in communicating as they are scared their competitions be on alert or employees may leave due to fear. Hayes (2014), advises change managers to develop a communication strategy in order to better communication with employees. He identifies steps to take in order to create a communication
The primary research and research done afterward was evident enough that the countries have different cultures and those cultures impact the standardization of way of work within the large organizations. The examples quoted by Hofstede demonstrate the difference of cultures among different countries. These areas were overlooked before by other researchers and practitioners but these were the main factors to consider. According to a KPMG study, "83% of all mergers and acquisitions (M&A 's) failed to produce any benefit for the shareholders, and over half actually destroyed value. Cultural preferences have been identified as an often overlooked barrier to the effective implementation of mergers and acquisitions. In the following the four factors are briefed in