Mergers and acquisitions has become an important part of the American commerce, which communication plays an important role in reducing the negative impacts. While Schweiger agrees that failure to communicate with employees during a merger will increase employee uncertainty and anxiety, he highlights that previous researchers (Napier et al., 1989) did not measure uncertainty nor any of the supposed dysfunctional outcomes said to follow uncertainty.
Communication is also suggested by others to be avoided, as it might alert competitors or cause employees to leave an organization rather than endure painful changes (Buono & Bowditch, 1989). It can also threaten management’s ability to respond flexibly to changes during a merger or acquisition
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The preview of the experiment was deemed effective that the vice president of the human resource immediately introduced it to the control plant at the end of the experiment. As opposed to Buono & Bowditch’s worry that employees will be unable to cope with the change and thus resign, only two employees resigned from both plants, out of the 126 employees employed in the experimental plant and 146 employees in the control plant.
Schweiger concluded that communications can help employees cope with the effects of mergers and acquisitions to reduce the negative impacts to the organizational effectives, as should it be left unchecked, it could become costly to an organization and undermine the initial aspects and objectives of the merger or takeover.
The case study talks about the proposed takeover of Bushwhacker Mining Pty. Ltd. by Coongan River Ltd. (CRL). With the decline in gold prices, CRL has considered the option as Bushwhacker’s success in the gold industry was due to its highly skilled management team. Majority of the Bushwhacker staffs were formerly CRL staffs, which had left CRL because they did not like the way CRL was structured, in addition to its culture. The senior HR Manager of CRL, Bob Cowdrey, is aware of Bushwhacker’s management, and plans to use the takeover as a catalyst to make similar changes to other divisions within CRL. However, to achieve an effective takeover, Bob must resolve several issues that could affect the outcome of the
While his coworkers constructed his designs, what hobby did Bernini pursue? Answer Selected Answer: Correct Answer: Writing plays and designing stage sets Writing plays and designing stage sets
Internal communications plays a vital role in creating a unified sense of purpose in institutions. Clear and effective internal communications are especially important during periods of relative uncertainty, such as corporate mergers or restructuring, serving to boost employee morale and keep investors, partners and stakeholders up to date with developments. (Brown, 2002)
Sharing information and keeping the lines of communication open with the existing employees and new employees is going to be a vital requirement for this merger. Mergers tend to leave employees anxious which create increased stress and lower productivity rates among employees (Bhaskar, n.d.). An effective communication plan can help mitigate this problem and quickly return the company to full production when the merger has been completed. Starting communication lines early also help reduce the amount of speculation employees have. Even with before a merger deal is completed employees might get a sense of what is going on through a number of different channels. This can lead to
When information is shared between the two companies it makes the whole organization better. Utilizing programs to show how effectively the company is operating can help show areas of concern. These can be accessed and addressed in a timely fashion . Because each side would like for the company to thrive, they work together . During this merger roles of the employees / department should be clearly defined . As with anything the lack if knowledge or understanding is what cause failure. As I have started before knowing when employees are aware of their roles and how to do them effectively thing run much more smoothly and are done to standard. (work by rote) .when the employee fails to understand the organization Does as well . While it s the employees job to stay well informed it is also up to management that these things be made clear. During a merger the by learning different ways of comp,eying task employees learn and management s able to vine up with new techniques.
The purpose of this paper is to reflect on the “Change” video from the required Hot Seat Case Study. In this video we watched MediaWorld, Vice President of Marketing (Carlos Alarcon), Associate Director of Advertising (Rita Finch), and Creative Director (Juan Rayes) meet with each other to confront Rita and Juan concerns. Their concerns were regarding their frustration with their new coworkers from the recent merger company, between Franklin/Warner and MediaWorld, but the meeting ended shaky (McGraw-Hill Global Education Holdings, LLC., 2018). Having the ability to make yourself accessible to your employees is vital, especially when your company is in a recent merger. Without effective communication and employee accessibility, communication can result in unhappy employees. It’s also important as a leader of a company or organization to provide support to your employees, as well as making sure they feel valued. As we analyze the case regarding the Franklin/Warner and
What comes up on mind when someone think about two cultures colliding? Sure they get a lot of negative thoughts about it. Well, culture collisions are not always something that can ruin your life. It can also give out some positive effects. Some people get destroyed from it while others learn or find something new from it.
Great post about Wellcome Israel! I agree that effective communication is imperative to an organization’s success. Ofra Sherman and her team were unaware of the merger, as well as the vision for the company. She felt alone, betrayed, confused, and left in the dark. She experienced what Olsen and Stensaker (2014) referred to as strategic and structural uncertainty. Strategic uncertainty involves uncertainty regarding issues related to reasons for the change, the future success of the organization, and characteristics of the organization’s competitive environment. Structural uncertainty relates to organizational operations and reporting structures, as well as, functions of different work units. Conversely, management could have helped lessen
Due to these studies, it is now emphasised that good communications are vital for good management. With a standard of
Workplace communication: Employee speculation, which can attribute to rumors and gossip, can be avoided if there is transparency in the organization. Workers should be informed of any changes which could affect the company and it 's workers..
Even mergers and acquisitions with high combination potential were more successful with robust organizational integration efforts (Larsson & Finkelstein, 1999). Malhotra and Sharma (2013) mentions that financial gain is often the crux of the matter when merger and/or acquisitions are considered. Corporations hardly consider the impact on the employees and related human resources changes, issues or outcomes. People and indeed their compensation is mostly placed in a marginal position with most of the due diligence done around financial and strategic planning.
A publicly traded corporation is obligated under Federal law to disclose any changes. Therefore, a merger with another corporation is a major development that must be disclosed to everyone involved with the corporation based in California. In order to make this merger a smooth transition, it is important to have the both corporations and their executive teams meet to discuss the phases of the merger and how to divisively announce changes to their stakeholders. After the board of directors pass the decision to merge with one another, both of the involved corporations’ CEOs, public relations teams, human resources teams, and legal teams need to meet and
Today’s business world hosts a phenomenon, a way to expand business activities by consolidating or buying another company, so called Mergers or Acquisitions (M&A’s). M&A’s is a corporate strategy that was introduced in the 1960s. It has experienced ‘waves’ of popularity and success while at the same time suffered criticism due to numerous failures. In today 's global, competitive environment, mergers are sometimes the only means for long-term survival. Mergers can be categorized as either horizontal, vertical or conglomerate. They also exhibit other characteristics, for example, they can be complimentary or supplementary in nature.
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.
John (1999) said that one of the biggest problems faced by those managing the merger and acquisition process. The world of business has transform from an industrial to an intellectual basis, and while those managing M&A 's are still busy studying all the old parameters, they are missed out all the new important point.
Generally, during an acquisition or merger the company can expect to have positive and negative effects. According to Nancy Hubbard, there are two main reasons for companies to fail during an acquision; process or fit issues. Process refers to negotiation issues, lack of planning, lack of communication, insufficient information gathered, implementation issues. Fit refers to size issues, diversification, previous acquisition experience, organizational fit, strategic fit, cultural fit and other demographic factors. (Hubbard, 2001)