To examine the impact of mergers and acquisitions on return on assets (ROE) To examine the impact of mergers and acquisitions on earning per share (EPS) To examine the impact of mergers and acquisitions on Net profit margin (NPM 2. List twelve conditions required to merge. Keywords: mergers, acquisitions, post-mergers, employees, employers, culture, morale, leadership, All content in this area was uploaded by Claudia Sigamoney on Sep 10, 2020. 3. Chances of losing key personnel are very high in the event of low employee morale. Organisations are encouraged. the major age group affected by the mergers is between 25 and 34 years of age. with organisational infrastructure, down-sizing, and changes in. This paper intends to contribute its findings on how employee morale is vital to the success of mergers in modern world. Challenges in Retaining Talent Post Merger & Acquisition in India: A Literature Review, Role Of Hr To Incorporate Emotional Intelligence To Enhance Organization Effectiveness. Many organizations reserve a pool to fund merger-related retention incentives. the most ideal candidates are selected for interviews. MERGERS AND ACQUISITIONS LEARNING OBJECTIVES: After studying this chapter you will be able to: 1. 65-76. endobj opinion, and the reliability of the results was confirmed by applying Cronbach’s alpha test. Mergers and acquisition end up having an unfavorable effect on employees who experience difficulties in working together with the new addition to the workforce. It may even lead to non-cooperation with the other merging company’s employees. A corporate merger or acquisition can have a profound effect on a company’s growth prospects and long-term outlook. The limitation of this research paper is that the challenges faced by organizations post-merger and acquisition are focused to talent retention only. THE IMPACT OF MERGERS AND ACQUISITIONS ON EMPLOYEE MORALE: AN EVALUATION OF H&S NETWORKS IN SOUTH AFRICA, Most mergers have placed focus on economic and political uncertainty in view of profitability, This paper intends to contribute its findings on how employee morale is vital to the success of. Social media is an influential medium for various stakeholders in the business domain. They are being talked of and promoted the world over. Many mergers and acquisitions carry out for market dominance and reaching economies of scale (Schuler et al., 2001). 1.1.1. styles, with an end goal to make the transition smoother. The target respondents were eighty seven (87) employees from former UT and Capital Bank now Ghana Commercial Bank employees after the acquisition… x��=�r7�wG��4�!� responsibilities that they have, while 40% of the respondents are. Considering the criticality of M&A as a strategic tool, the methodology used for this research was to study the research conducted by firms as well as researchers in the line of talent retention post M&A. Generally, enterprises that merge or that are acquired base their success on the capability of the involved employees. Acquisitions are undertaken to achieve vertical and horizontal operational synergies (Sherman, 2010). Financial institutions, which are under-resourced generally, have no capacity to pursue defaulting clients. Figure 19: My Job Means More to Me Than a Salary. where there would be fewer pre-requisites. 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Define mergers. %PDF-1.5 This research focuses on assessing the effectiveness of South African debt collectors and the overall management training methods of the industry. rather than non-logical research techniques. employees are already demotivated and that their morale is low. The effects of mergers and acquisitions in the banking industry of Nigeria on employee morale can be significant if the reorganization of the business is not handled effectively. how the progressions will influence singular workers, as they can. 3 0 obj Good leadership and honest and open communication were considered vital to ensuring a smooth merger process. <>>> examining the effects of mergers and acquisitions on employee morale. The retention of key personnel is an increasing concern of employers (Awad and Saad, 2013:170-174). environment, believing it to be inadequate. Examples disclosed in public filings related to large acquisitions appear in Table 1. But while an acquisition can transform the acquiring company … The emotional intelligence must play an important role in satisfying the needs. In the event of demotivation of employees, Figure 6 depicts the length of time spent in a job position relative to the. in retaining talent post-Merger & Acquisition in India .During the M&A, It is one of the key objectives is to retain talent of an organization.One of the most critical issues facing organizations today is how to retain the talents they want to keep. Downsizing and Its Impact / 10 . The crucial aspects in this regard are how debt collection is approached and other issues which are fundamental in terms of debt collection. Concerned employees might lose productivity, increase stress, or choose to leave the organization. 1 0 obj This research is primarily centred on examining the impact of mergers and acquisitions (M&A) on the business performance of the banking organisations in Hong Kong along with assessing … In contrast, we use human capital theory to model these events as transactions that simultaneously have cross‐level, real effects … endobj International Journal of Innovative Research in Computer and Communication Engineering. There are several primary rationales that determine the nature of a proposed merger or acquisition. It is important to ensure that employee morale is maintained as motivated employees ensure productivity, which is essential to the organisations’ success following the merger and acquisition process (Petsa-Papanicolaou 2007:1). From Figure 1, it can be ascertained that 50% of the respondents are between 25-34 years old. acquisitions, namely: stress, fear of job loss, and competitiveness. respondents are not likely or not at all willing to leave the company. The leadership approach: Communicate with employees. The effects of mergers and acquisitions on employee morale can be significant if the reorganization of the business is not handled effectively. Mergers tend to have a negative impact on how employees view their employers. of business-related issues is vital for the organisation to improve employee morale. arising. 4 0 obj An emergent design was used to identify the common issues and concerns of those interviewed. Figure 27: Likelihood of Leaving the Company. business/organisation in terms of loss of skill/training. The specific objectives were to assess the influence of remuneration, sense of ownership and belonging, job security and chain of command on ... Change has a direct and profound impact … diversity of culture presents itself from dierent or. stream The higher concentration resulting from mergers and acquisitions means fewer actors and this could lead to higher entry barriers for new companies. The aim with the paper is to discuss the possible effects … Describe antitrust guidelines 6. The merger and acquisition process can immediately impact the stress levels of employees involved. and productivity at large will be affected too. Mergers and acquisitions can create stress for employees and negatively impact morale. © 2008-2021 ResearchGate GmbH. The effects of mergers and acquisitions on employee morale can be significant if the reorganization of the business is not handled effectively. Recent trends in the debt collection market indicate that there has been a structural shift from the provision of secured lending to unsecured lending. Most mergers or acquisitions result in losing key personnel, thereby affecting the newly-formed company’s desired growth strategy. management, a lack of direction, and poor communication. Mergers and Acquisitions Mergers and acquisitions have hit headlines from the past as much as the present. This study focuses on the presence of “social executives,” that is, strategic leaders who actively engage in online social media, and examines their impact on corporate mergers and acquisitions … This ensures the company’s success in its ventures going forward (Lupina-Wegener, Schneider and Van Dick, 2015:60). How mergers and acquisitions affect employees. an asset to them, with a minority of 30% of respondents believing that it is. During any merger or acquisition effort, there are at least two groups of employees … better understand their manager. Those included communications, organizational culture impact, employee loyalty, leadership changes, and employee … 1, No. The ‘Them-Us’ Syndrome / 11 Facilitating Easier Transitions / 11 Conclusions / 13 ... mergers and acquisitions … This may result in high turnover, decrease in morale, motivation, productivity and consequently, merger … Conclusion The inclusion of emotional intelligence in the organization facilitates the employees to perform better, understands the emotions of oneself and others, helps in employee recruitment and retention, development of talent, teamwork, employee commitment, high morale, productivity, efficiency, revenues, quality of service, customer loyalty, help in taking right decision, assist in managing emotions, reducing stress thus leading to accomplish organization objectives in effective manner.Implications: Implementation of psychometric testing to analyze the candidate with high emotional intelligence during selection process and training on emotional intelligence could have significant impact in the organization.Originality/value: The paper reports of the result that HR plays a vital role to incorporate emotional intelligence in the organization. effectiveness. Many mergers need to be approved by local governments, attorneys general, and … 2.4 Contradictory Organisational Directions and Indistinct Roles and Responsibilities, have little direction in determining organisational priorities (W, in making the deal work. and for providing the means for business expansion. overlooked employee morale at the expense of productivity. <> respondents indicated that they feel “some motivation”. The Merger-Emotions Syndrome / 7 Employee Stress / 8 . The proper management of employees during a merger results in optimal productivity. superior and 60% of the respondents feel that they are not receiving sufficient guidance from, decisions, whereas 70% of the workers feel that they do not have the authority to do so. 2 0 obj Analysis: The two HR functions as recruitment and selection as one of the most important function would incorporate the emotional intelligence by selecting people in the organization who possess high emotional intelligence with the help of psychometric testing. detrimental if the redesign of the business is not taken care of adequately. The second HR function is training and development that could inculcate emotional intelligence in the existing employees with the help of training of EI. The nature of … 2, pp. future technologies rather than bringing the future in today. Empirical studies of mergers and acquisitions typically focus on firm‐level financial performance. Studies carried out have shown merger and acquisition … The results show that lay‐offs planned at the takeover have either no effect or adverse effects on shareholder returns. the merger or acquisition, one possible action being the initiation of other mergers or acquisitions. have found that the impact of cross-border M&A sales depends on the industry where they occur (Doytch and Uctum, 2011b). section. Join ResearchGate to find the people and research you need to help your work. What is the post-merger perception of H&K Networks? Mergers and acquisitions therefore ignore employee morale at their own peril. ?��-�b�H���� �h��zn|㙝��mgi��g���s�R�|���C�|�O���ߘ�Y٪��:}���)�6�S�|+9��N ��H�-�g��.x��b:ٽ��2,r�\�� ���[�����/����;v�� 99P:��{|,s���b�� qZ |p�9��W[����Ea���ý��eM�ʂnws���s��s =�N�ӷ��ڣ{�~>��T;�k��X�blK �RZ��{;�7n�ajV�Q��G�v�}8 �w�$,�Kݱ�y�gx����w���{��& �I��x�~4hq�|`y�lxD,.�A�P9�QtR�2��rU��%7 m��w During any merger or acquisition effort, there are at least two groups of employees … Wages growth is positively, not inversely, related to shareholder returns from the … Evaluating the Effects of Mergers and Acquisitions on Employees: Evidence from Matched Employer-Employee Data Abstract The unit of analysis in empirical studies of the employment and wage effects of mergers and acquisitions … The goal of the current paper is to examine the growth effects of mergers and acquisitions … disturbances. Organisations which fail to recognise the significance of HR in their. From the study conducted, it was found that the major challenges faced in retaining talent post-merger and acquisition are lack of employee motivation ,lack of shared vision, misaligned structures, management leadership clash, cultural mismatch ,poor communication and poor change management. ResearchGate has not been able to resolve any citations for this publication. The present study attempts to evaluate the impact of mergers and acquisitions on the returns in the … sampling design was used to select study units. Both parties in the mer, Examination of Unresolved Issues of Justice and Identity. quantitative and qualitative research stems basically from the ideas of what constitutes. 7. 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