Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Leadership is the most important factor in managing change
Leadership is the most important factor in managing change
How do mergers and acquisitions affect its employees
Don’t take our word for it - see why 10 million students trust us with their essay needs.
1. Summary of Article
The journal article by David and Goliath inspect on the issue on merger and acquisitions of an organisation and concerned with communication between employees and top management.
The article also examine on various collections of data that changes show beforehand results in reduced adverse effect of the merger.
Communication is the important way to help management to reduce employee’s anxiety and doubt that follows by the cause of the merger. Foreseeable change should be conveying to employees rapidly to prevent negative feelings such as stress, job dissatisfaction and low commitment to work. Studies show that communication increased employee’s performance and lessen their uncertainty.
Another customized methods are realistic job preview, the main functions is to reduce new employee’s anxiety by clarifying their performance expectation and guide them in the change to their new jobs. It provides complete and detailed information such as positive and negative aspect about the job. This make new employee feels more convinced with their job, less likely to quit and committed to the organisation. Communication plays a role in the new employees change process as well.
Even though above mentioned methods are a source of uncertainty for employees, there are no empirical evidence justify this idea.
The present study in the article was to conclude if mergers and acquisitions activity does produce uncertainty and others negative result. In this case, a communication program based on model of realistic job preview is to test the whether the program could lessen the negative effects of the mergers and acquisitions on employees.
Hence, an experiment called realistic merger preview was to provide a clear illustration ...
... middle of paper ...
...asy, Marie H. Kavanagh and Neal M. "The Impact of Leadership and Change Management Strategy on Organizational." British Journal of Management, 2006: S81-S103.
Denisi, David M. Schweiger and Angelo S. "The Academy of Management Journal." Communication with Employees following a Merger: A Longitudinal Field Experiment, 1991: 110-135.
Fishman, N. and L. Kavanaugh. "Searching for your missing quality link." Jounal for Quality and Participation, 1989: 28–32.
David M. Schweiger and Angelo S. Denisi. 1991. “Communication with Employees following a Merger: Longitudinal Field Experiment.” The Academy of Management Journal 34: 110-135.
Teh and Girardi. 2013. Organisation Development & Change: Practice Manual, Readings and Case Studies. 4th ed. Custom.Solutions. Australia
Cummings, T., & Worley, C. (2009). Organisation Development & Change. 9th ed. Singapore: Cengage Learning
Gaughan, P. A., 2002. Mergers, Acquisitions, and Corporate restructuring. 3rd ed.New York: John Wiley & Sons, Inc.
Graetz, F., & Smith, A. C. T. (June 2010). Managing organizational change: A philosophies of change approach. Journal of Change Management 10(2), 135–154.
... employees trust going into such a merger is instrumental in influencing their decision to approve of such a merger.
This paper will be broken down into six sections profiling each critical part of implementing and managing change in an organization. The sections included are; outline for plan creating urgency, the approach to attracting a guiding team, a critique of the organizational profile, the components of change, and how to empower the organization.
A healthy flow of upward and downward communication ensures that the communications between managers and employees is complete. For example, in 2010, Kroger surveyed over 200 thousand employees in its “Associate First Tracker survey” and found the feedback both invaluable and “humbling.” Kroger then communicates the findings with their employees who participated which will then generate a new dialog in regard to what the next steps should be (Orgel, 2010). The final channel of communication is the use of horizontal communications between coworkers. This can...
Cummings, T., & Worley, C. (2009). Organizational development & change (9th ed.). Mason, OH: South-Western Cengage Learning.
Palmer, I., Dunford, R., & Akin, G. (2009). Managing organizational change: A multiple perspectives approach (2nd ed.). Boston, MA: McGraw Hill
Van de Ven, A.H. and Poole, M.S. (1995) ‘Explaining development and change in organizations’ Academy of Management Review, 20/3, 510-40
Mergers and acquisitions immediately impact organizations with changes in ownership, in ideology, and eventually, in practice. There are multiple reasons, motives, economic forces and institutional factors that can, taken together or in isolation, influence corporate decisions to engage in mergers or acquisitions. The financial risks of merging with or acquiring an organization in another country and how those risks can be mitigated are important issues for corporations to conduct research on. This paper will examine the sensible and dubious reasons for mergers and acquisitions and the benefits and costs of the cash and stock transactions.
Merger activity is greater during economic expansions than during contractions, and mergers are more likely in bull markets – markets in which share prices are rising and lots of buying is going on. However, unless we believe that companies purchase other companies just because they are in a position to do so, this alone cannot explain the phenomenon.
COGHLAN, D (1994) ‘Managing organizational change through groups and teams,’ Leadership and Organization Development Journal 15(2): 18-23
Unfortunately, most change managers may feel reluctant in sharing information with employees as they fear the unexpected events that may occur and threaten outcomes. Change managers are also apprehensive in communicating as they are scared their competitions be on alert or employees may leave due to fear. Hayes (2014), advises change managers to develop a communication strategy in order to better communication with employees. He identifies steps to take in order to create a communication
Jones, G. R. (2010). Organizational theory, design, and change. 6th Ed. Upper Saddle River, NJ: Prentice Hall
Cummings, T. G., & Worley, C. G. (2009). Organization development & change (9th ed.). Australia: South-Western/Cengage Learning.
When entrepreneurs plan their business future they will consider how they can increase their business size or profit in a short period. Entrepreneurs may consider growing their business or company by using a merger or an acquisition. These methods can be a speed up tool and a short cut to enlarge their business. (Burns, 2011) Also they can reduce competition, make it easier for entrepreneurs to think about the market and product development and risk reduction. Furthermore, some lesser – known companies can improve their firm’s image and market power by using merger and acquisition with larger firms. However, there may be risks associated with merger and acquisition related to lack of finance and time. (Burns, 2011) This essay will discuss more deeply the advantages and disadvantages of using mergers and acquisitions, showing how it can affect firms and market with the case study.