Analysing the effects of a realistic merger and acquisition on attitude and behaviour of employees in India

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TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

M&A & Technical skills1

M&A and market share2

M&A and Supply chain2

Horizontal or vertical M&A in India3

Success or failure in M&A3

Cultural way of M&A in India4

Research aims & objectives5

Research Questions5

Hypothesis6

CHAPTER 2: LITERRATURE REVIEW7

Introduction7

Recent M&A in India7

M & A impact8

Employee behaviour in M&A8

Social identity approach9

Employee identity11

CHAPTER 3: METHODOLOGY13

Overview13

Data collection (Web based survey)13

Sampling and size13

Data analysis14

Limitations14

Ethical consideration15

REFERENCES16

APPENDICES23

Questionnaire23

CHAPTER 1: INTRODUCTION

M&A & Technical skills

M&A allows one to build a more comprehensive model that addresses investments of the acquirer in the efficiency of the target. Of interest is here how the managerial and technical skills and the capital resources of the acquirer are used to transform the target firm to Indian standards. Internally, organizations in these societies are more likely to incorporate into their structure methods such as technology, rules, and rituals for coping with environmental uncertainties such as volatility, which may disrupt the technical core of the organization.

In early studies on the environment, researchers tended to classify organizational environments as either institutional or technical. In these studies, institutional environments were defined as those organized around rules and structures while technical environments were organized around the exchange and output of goods and services. Resource dependence theory, with its focus on adaptation, argues that external organizations will attempt to bridge these barriers in order to reduce environmental uncertainty and increase their chance of survival.

In a similar vein, institutional theory concurs with the argument that organizational structure and change are not necessarily based on technical efficiency. Drawing heavily from Deal & Kennedy (2007) idea of socially constructed reality, institutional theory examines how organizations adopt structures and processes that the environment defines as rational. This environmentally imposed rationality may differ substantially from what is technically rational, but the 'myth' is implemented to secure resources, to appear legitimate, and to increase the chance for survival (Deal & Kennedy 2007, p.24).

M&A and market share

Indeed, the companies in India in charge of favour related acquirers because they expect them to better be able to provide the necessary technology and management transfers to the acquiring firm. The foreign direct investors in India have mainly looked for acquisition as a means to achieve market share for their existing products, for instance by building on the trade relations and distribution channels.

Additional evidence of the high failure rate of M&A is provided by Deal & Kennedy (2007) who found that of 168 deals between 2000 and 2010, two-thirds of M&A underperformed in the stock market. Similarly, Business Week reported that half of 150 big deals worth more than $500 million eroded shareholder returns. Why does more than half of M&A fail to meet their initial expectations, and sometimes perform at levels that are even less than market average?

M&A and Supply chain

A vertical merger or acquisition unites one or more organizations engaged in the production of a given product at different levels or stages of the production process. Frequently the merging or acquired organizations have ...