Effect of Merger on Employees

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EFFECT OF MERGERS ON EMPLOYEES Apoorv Choudhary IIPS-DAVV INTRODUCTION There are contrasting views on the impact of mergers and acquisitions on employees. Many times field level and management level employees react differently to a merger. Mergers are a form of consolidation where two or three companies merge and the identity of only the largest company remain intact and the smaller companies losses their identity. MERGER- The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of the stock of the merging company. In a merger existing stockholders of both companies involved retain a shared interest in the new corporation.…show more content…
These layoffs may have long lasting traumatic and negative effect on workers who have been fired as well as the workers who survive may suffer survivors syndrome. EFFECT OF MERGER: A case of SBI and SBIndore merger: Many newspaper reports during the time of the State Bank of India and State Bank of Indore merger lead us to the following facts about the perception of employees towards the big merger: -The management level employees of State bank of Indore supported merger because of the benefits proposed like pension plan and group insurance, increased salary and bonuses etc. -The clerical staff of State Bank of Indore protested the merger and even went to strike for certain demands such as the policy for union should remain unchanged as the new policy empowers the management rather than the union. For the same reason they went on a short term strike too. -After merger the employees from S. B. Indore were transferred to distant areas as a result of reshuffling of manpower. OBJECTIVES OF THE STUDY The objective of the research article is to observe how mergers affect the employees, the human resource, of the merging companies. The primary objective of the research is to study the impact of mergers on the employees

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