Acquisitions
often effect harmful attitudinal changes among employees.
In this paper, three scenariosa job characteristics
change, a work relationships change and a change in
the employment contracthas been examined, to understand
the outcomes of acquisitions on employees. The first
two scenarios assume that job factors and co-worker
relationships affect overall employee attitudes. The
third scenario assumes that survival behavior is triggered
when a threshold for change is reached in an extreme
situation such as an acquisition. Employee empowerment,
visible supervision, transparent evaluation and open
communication can mitigate acquisitions' harmful effects.
The
last decade saw big ticket mergers and acquisitions
in many countries. For example, in the US alone in
2002, there were 3,000 mergers and acquisitions involving
more than $380 bn in financial assets. This merger
and acquisition phenomena has been analyzed on the
strategic and financial fit between the organizations
involved. Only recently, have the researchers begun
to study the impact on employeesan issue many argue,
is critical in determining the success or failure
of an acquisition. Acquisitions can have a potentially
negative human impact, primarily in the form of attitudinal
declines and increasing turnover. Mergers and acquisitions
can cause depression, uncertainty, loss of control,
and job insecurity.
Are
there ways to lessen attitudinal declines and reduce
undesired turnover? One possible way is to design
intervention strategies that help employees cope up
with the strong emotional upheavals often accompanying
an acquisition. For example, stress reduction training
could help employees cope during the transition period.
Employees adjust better to an acquisition when they
receive realistic communications throughout the process.
|
