Hubbard, and Purcell, (2001) There has been wide research that suggests that the management of human factors in the post acquisition performance is important and, where it is badly managed, helps to explain why most of the acquisitions are not suppose to be successful. A central factor in this process is the management of employee expectations. That is, the way in which the acquiring company management seeks to form and then meet expectations of employees in the firm acquired could be one important aspect of the acquisition process which turn into the project to a greater chance of success.
According to this study, employees in acquired organizations have concerns that transform into expectations concerning both employees and their work group. These expectations are with respect to immediate job and employment fears to longer-term status, and behavioral and cultural concerns in the new organization. These expectations vary time to time and have different aspect depending upon the superiority of the employee, the degree of integrations sought by the acquirer and the extent to which expectations formed are proven to be realistic and reachable.
The assumption following the shaping and reorganizing of expectations is that if employee expectations were properly managed during the implementation process there would be less uncertainty and ambiguity among the employees and less damage to levels of organizational commitment. If there is a mismatch in expectations, the outcome could be expected to be undesirable for both the individual as well as the merged entity by way of higher intention to leave the organization and a loss of qualified and capable employees.
Surkund, et al., (2007) examine managing expectations of acquire emp...
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...ein: University of the Free State.
Surkund, D., Purang, P., & Gupta, M (2007). Managing expectations of acquire employees in a post merger scenario. Indian Institute of Technology Bombay. Retrieved May 30, 2010 from AABSS2009ManagingExpectationsOfAcquireEmployeesInAPostMergerScenario.
Tom. (1971). The Role of Personality and Organizational Images in the Recruiting Process. Organizational Behavior and Human Performance 6, 653-669.
Mylonakis, J. (2006). The Impact of Banks’ Mergers & Acquisitions on their Staff Employment & Effectiveness. International Research Journal of Finance and Economics, 3, 121-137. Retrieved March 24, 2010 from htttp://www.eurojournals.com/finance.htm.
Fernandes, E., Knowles, K., & Erickson, R.A. Retention after a merger keeping your employees from “jumping ship” and your intellectual capital and client relationships “on board”.
Leadership succession in a merger of equals is an article, which examines the implications of leadership succession in an extreme form of mergers, a merger of equals, can yield important findings to better understand what allows some mergers to succeed while others fail (Cheng, 2012). Mergers and acquisitions are much more common these days and only a few of them end up being successes. Even though mergers and acquisitions do not result in much success rate, many organizations still prefer it because, it is used as a cooperative strategy but nowadays it is used for cooperative development. Cultural differences and merger integration can be considered as an important factor in the failure rate, but this study mainly focused on the choice of leadership succession and merge of equals. Mergers of Equals Mergers of equals is the combination of two organizations of similar size to form a single organization.
A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate clinical and managerial interventions.
The purpose of this paper is to attempt to recompile information about the merger of two corporations; one of many taking places i...
...dditionally, the merger can take place in smaller phases. For instance the first phase may include change of the physical look of the branches and the signage - – so as to convey a consistent view and experience for its customers. This phase may also include effective communication to the employees to educate them about the merger, ensure them of their positions and encourage them to participate in the merger. Second, the firm can totally combine the bank’s technology and the information systems which will allow the merged firm to operate as a single entity and to become fully operational. The management should implement the merger with care and prudence, aiming for minimal disruption for the customers and should communicate extensively to ensure all its stakeholders are kept fully informed as they make changes.
The lack of hierarchy in the Gore organization would best suit employees with a high core self-evaluation. In addition, employees would possess most if not all of the Big Five factors. The combination of these personality traits in employees will he...
... employees trust going into such a merger is instrumental in influencing their decision to approve of such a merger.
Managers seem to inherit a strong trust in the authority of personality traits to forecast behavior at the work area. If managers thought that situations resolute behavior, they would hire individuals almost at random and assemble the situation correctly. But the employee selection procedure in most establishments places a great deal of importance on how applicants achieve in interviews and on examine through which the personality of a person can be achieved and the task distribution can be much easy varying upon the type of personality (Robbins, Odendaal and Roodt, 2001)
Discussed below are different researchers’ arguments and explanations on how personality predicts employee performance. This essay will explore both negative and positive ways in which personality can predict the performance, as well as explaining what personality is. Past research has “demonstrated that personality constructs are associated with work performance, with some traits like conscientiousness predicting success around jobs. Other linked with specific occupations e.g. extraversion correlates with success in sales and management as well as training performance supporting”, (Barrick et al., 2002, 87: p.43).
Risavy, S., & Hausdorf, P. (2011). Personality Testing in Personnel Selection: Adverse Impact and Differential Hiring Rates. International Journal of Selection and Assessment, 19(1), 18-30. doi: 10.1111/j.1468-2389.2011.00531.x
At a macro level as a result of the acquisition the combined size of Turner & Townsend Thinc was considered to be of strategic benefit to both firms. While there have been no official mass redundancies, role duplication has resulted in early retirement and resignations. However, the common problem faced after the acquisition is power struggles, excessive overhead, bureaucracy, uncontrolled layering, and decision strangulation.
Managers should understand an employee’s skills and abilities to make an informed decision on whether or not to hire him. Once hired a manager uses skills and abilities as a deciding factor for an employee’s job placement within the corporation. Secondly, an evaluation of an employee’s personality helps the manager in his leadership approach of that employee. Thirdly, perceptions can be the deciding factor of whether or not a candidate is hired and or promoted. An individual perceived as fitting in may be hired to negotiate business deals. Particularly, if the individual shows a favorable attitude through actions and deeds and has strong values and behaves
It is worth noting that an organizational change, especially in cases where consultation is inadequate, such as those involving mergers, acquisitions, relocation, downsizing or restructuring, redundancies within the organization and individual contracts have serious effects on employees (Carlson, 1998, p. xx).
Organisational change can cause stress for employees at all levels of an organisation, one of the main causes of increased employee stress during organisational change is employees’ perception of organisational change as a threat; many employees feel that there may be a threat to their job security, their status, or their ability to achieve if the conditions of their work are altered (Dahl, 2011). Employees may face changes in their written contracts and also in their implicit psychological contracts during organisational change, the change to these unwritten contracts can result in increased stress due to feelings of anger or betrayal by employees as they feel that they no longer know what to expect from their employer (Robinson & Rousseau, 1994). In addition, if employees do not feel that the organisation acts in a fair and just way they are more likely to
The first phase is introducing the change in an organization to the employee by justifying the change (Berube, 2012). Change in an organization is necessary to cope with the fast changing environment and meet the organization’s goal. The top-management is responsible to explain clearly the importance of change execute in an organization to the employee. It is necessary since there are some of experience employee is refuse to accept change and senses that change will lower their reputation and position in the working environment. As elaborated by Brown (2011), there will be criticized, ridicule and persecute in change towards any approaches used in introducing change of the organization. At this stage, la...
...nal goals structuring and implementation and establishing unshakable trust amongst all the stakeholders involved in the organization (Storey, 2007). Once this has been accomplished, the employee motivation and confidence is raised very high and the impact is translated directly into the organizational performance whereby the performance is deemed to increase. However, the challenges presented by this century make it difficult to continue using the old single approach method in promoting performance (Armstrong, 2010, Armstrong & Armstrong, 2012). There is therefore a need for a new formula that adopts effective combination of all the HRM policies (Armstrong, 2010). This formula is none other than bundling. Therefore, to maximize performance, bundling is an evitable phenomenon that helps to perfectly interrelated HRM practices for better organizational performance.