EFFECTS OF A MERGER OR RESTRUCTURING

The Effects Of A Merger Or Restructuring On Employee Moral

The Effects of A Merger Or Restructuring On Employee Moral

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 moral and confidence of the employee. Organizational behavior is essential and important for a successful merger of two very different companies.

The Effects of a Merger Or Restructuring On Employee Moral

EXECUTIVE SUMMARY2

INTRODUCTION4

DISCUSSION5

BENEFITS OF INTEGRATION6

HRM STRATEGIES7

STEPS FOR STRATEGY IMPLEMENTATION8

MAKING OF THE TELECOM MEGA-MERGER9

REFERENCES11

The Effects of a Merger or Restructuring On Employee Moral

Introduction

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 is contributory 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 employees' reactions to a merger or acquisition through various complementary lenses. This study established an additional lens through which the concept of employee commitment may be viewed as a pivotal component of employee morale and turnover intention. This study first explored mergers and acquisitions and briefly touched on the benefits of integration strategies. The second section defined and explored the history of the telecommunications industry. The third section investigated the impact human resources have on the success of M&As. The third part concentrated on employee morale and turnover. The final section uncovered the making of the telecommunication megamerger, and revealed the organizations being researched in this analysis. The purpose of this research is to provide a theoretical framework on the impact megamergers have on employee morale and turnover intention.

Discussion

Merger and acquisitions (M&As) often refer to the facet of business scheme, and management considering with the buying, trading and blending of another company. According to Banal-Estañol and Seldeslachts (2004), mergers and acquisitions are often created to expand a current organization or operation aiming for long term profitability and an increase in market ...