Merger and Acquisition
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Merger and procurement significantly affect the feelings of the worker. The acquisition is highly emotional, and it can have both a positive and negative impact on the organization (Gunkel et al. 2015). A positive work-related outcome might lead to the success of an organization, while a negative related work outcome will lead to the downfall of the business. The result of the workers’ response is typically ascribed to administrative correspondence, administrative help, and three social measurements on representatives’ feelings, which like this decide how the workers will respond. In the article, research has been done to determine the reaction of 158 employees from three organizations of different countries. Findings were that employees’ emotions are greatly influenced by the managerial support and also led to passive resistance (Gunkel et al. 2015). The three proposed cultural dimensions had a significant effect on the work-related outcome.h
I believe that managerial roles directly influence employees’ productivity during merger and acquisition. A merger is whereby two organization to work together. In a merger, for example, organization A and company B meet up to frame organization C. In an acquisition, one company buys a company and makes it part of its own. For instance, company D buys company E to form Company D. in both cases, and there needs to be a knowledgeable way of handling the employees in the new managerial environment (Dowling, Festing & Engle, 2016). A cross-border M & A is a situation where the company has its headquarters located in two countries that are concerned. The two human resource management from the two merged and acquired companies face the same challenges Cross border merger and acquisition involves incomplete and full possession or of investment assets and liabilities of the existing enterprise in the state by TNCs (transitional corporations) from new countries (Dowling, Festing & Engle, 2016).
Feelings assume an incredible job in cross-fringe merger and acquisition outcomes. Building on cognitive appraisal and emotion in events theory defines emotions as the condition of cerebral willingness that arises on or after mental evaluation of proceedings, social relations, or opinion. There are variables that I need to address for me to get to the actual emotions of the employees. First is the antecedent variable, which refers to the events that occurred toward the merger and acquisition events. How was the communication of the M &A? How the employees receive the information about M & a will greatly influence the way they are going to react (Gunkel et al. 2015). Communication can be internal, external, vertical, horizontal, or rumors. How and when communication is conducted is important. If the employees find out about the M & A through rumors, there is a high possibility of negative emotions. Also, managerial behavior plays a vital function in the emotions of the employees during M & A. second is the intermediary variable, which refers to the reaction of the employees upon receiving the information. Employees can show different emotional reactions; for instance, they can show fear and anxiety, insecurity, aggression, frustration, shame, guilt, pride, or joy (Gunkel et al. 2015). The third variable is the outcome variable, which is the employees’ emotional behavior after the merger. Employs may depict different emotions and attitudes such as pressure, enthusiasm, job contentment, organizational commitment, malingering, earnings, organizational citizenship behavior, cooperation, efficiency, and employees’ physical condition (Stonham, 2018).
Cross-fringe merger and acquisition happen in various stages. The first phase is the pre-M & A stage, where the people concerned in the M & A are identified. In most cases, the identification is made to the employees (Dowling, Festing & Engle, 2016). The phase also involves intensive planning in how two or more organizations are going to be brought together to form one stable organization. A working cultural and organizational fit is formulated to ensure that the employees have a new code to follow other than what they were used to in their previous organizations. The subsequent stage is the due constancy stage, which includes evaluating individuals’ related value-based cost, continuous cost, investment funds, distinguishing, and surveying social issues. The third stage is the combination arranging stage includes creating representatives’ delicate social techniques and growing new systems for new substances (Dowling, Festing & Engle, 2016). The last stage is the execution and evaluation stage, which includes overseeing continuous changes, particularly social changes and exhorting, the board on managing individuals’ issues.
After intensive research, I found out that management and culture plays an important role in employees’ emotional outcome. Management support and communication directly affect how employees react. Cultural aspects can occur in three different scenarios, individualism, uncertainty avoidance, and long term orientation (Gunkel et al. 2015). Employees’ feelings of insecurity can lead to a feeling of dissatisfaction and feeling of insecurity then leads to outcomes such as turn over the intention, active resistance, or passive resistance. Some of the questions that I need to discuss during the meeting are: what are is the best way to communicate with the employees on possible M & A? What should be done if a large percentage of employees are not responding effectively?
References
Dowling J., Festing M.. Engle A. (2016) International Human Resource Management.CHAPTER 4IHRM IN CROSSBORDERMERGERS&ACQUISITIONS, INTERNATIONAL ALLIANCES, AND SMEs. Business and Economics. ISBN 1402075741, 97814075746. P 82
Gunkel, M., Schlaegel, C., Rossteutscher, T., & Wolff, B. (2015). The human aspect of cross-border acquisition outcomes: The role of management practices, employee emotions, and national culture. International Business Review, 24(3), 394-408. https://doi.org/10.1016/j.ibusrev.2014.09.001
Stonham, P. (2018). Managing mergers, acquisitions, and strategic alliances: Integrating people and cultures. European Management Journal, 14(5), 528. https://doi.org/10.1016/0263-2373(96)88202-8