1. The question is asked what are the effects of a mergers and acquisition on employees’
performance in an organization. In looking at this there are a few areas of concerns, namely; the
unity among employees, trust if leadership by employees, clear line of demarcation as it relates
to the different cultures of the different entities, communication or the lack thereof within the
organization and in this instance as it relates to changes and not only change but changes that
greatly impact employees, and the interpersonal relationship. In looking at this these are my
recommendations.
Implement penalties for managers who do not recognize employees for work done,
gratitude shown to people goes a long way in improving relationship. This will address the
rewards and recognition issue and will improve job performance and trust of leadership by
employees. Involve employees in the decision making, changes that greatly affect them and
projects. This will aid in employee engagement and involvement. An engaged workforce makes
a more productive organization. The organization needs to hold senior managers accountable for
getting employees involved and for team member engagement it is important to note that what
gets measured gets done. That is one of the weak areas identified programmes are in place but no
sanctions for senior management if they don’t meet the desired goal. Companies needs to hit
senior manager where it hurts, this will ensure that they play their part in ensuring that
employees are engaged and feel a part of the change process
Have train sessions, workshops, seminars and social to get employees familiar and a part
of the change that is about to take place, this will ensure greater buy in from employees. Also, as
revealed in one of the focus group sessions have fellow employees be trained to conduct change
management training sessions as it will help employees to become more open to change seeing
fellow colleagues adjusting as well. Be transparent, employees know when we are being
2. straight forward and when we are not. If management is unable to provide information to the
employees based on the nature of what is being done, say that. Employees will understand.
Ensure that the mission, vision, core values and policies are articulated to all employees
as well as integrated into the programmes, culture and activities of the organization. The
organization should plan team building exercises that will aid in the integration process, even
though some changes are eminent there can be a more seamless transition if change management
strategies are in place. While the different organizations will have different cultures, trust level,
communication issues, interpersonal relationships problem, and reasons for the lack of unity,
how these are managed can make the difference between the failure and success of a merger and
acquisition.
Based on research the following conclusions can be drawn; that in a merger and
acquisition that organizational culture in an organization will positively impact organizational
performance if the culture is the same or integrated. If the cultures remain divided in these
organizations a seamless transition is impossible. As difference in culture mean difference in the
way things are done and even believes, this will have an impact on organization performance.
The organizational culture has enormous and profound influence on organization effectiveness
and at the end of the day an effective organization is the aim of all companies. A good
organizational culture can increase organizational usefulness, raise productivity.
Organizational restructuring after a merger and acquisition is inevitable and a favourably
restructuring programme will influence organizational performance. It is to be noted that if an
organization has a strong and integrated culture, employees will be more devoted and work
harder to ensure that the organization achieves it goals. In addition, there is an existing
relationship between organizational culture and organizational performance. The organization
3. also needs culture that encourages restructuring and be open with employees about what mergers
and acquisition involves. The process of restructuring can be hindered because of damage to
culture and strengthened through culture, hence and integration of cultures is important to
making the process smooth. It is revealed also that open and honest communication makes
employees more trusting of its leadership.