The purpose of this paper is to address issues that may arise from a merger/acquisition and the impact that it may have on the individuals within the current organization. From a managerial experience, I will discuss the human elements that may arise, the issues that I expect to face, and what I can do to motivate my employees to accept change in order to have a successful takeover. According to Stephen Robins, “Organizational behavior is concerned with study of what people do in an organization and how that behavior affects the performance of the organization.
The company shareholders have just approved a merger/acquisition of the company and I am being held accountable for maintaining departmental performance measures while dealing with human elements simultaneously. To accomplish this, I needed to synthesize an array of questions. The three questions were as follows: What can you do to motivate your employees to change? What are the issues you expect to face?
What are the human elements that arise out of an acquisition? To answer the first question, according to William S. Cottringer, “A wise manager knows the important of being somewhere in the middle of the leadership continuum to be able to use whatever approach might be must productive at the particular time. For instance, sometimes change is productive and sometimes not. ” (Cottringer, 4) In my example, communication with my employees would be of the outmost importance for a horizontal transition. With change comes the fear of the unknown, economic instability, and social psychological issues. As a manager these issues needs to be confronted with the employees.
When the workplace suffers from lack of communication and other stimuli that affect moral, the obvious effects are visible in the areas where the deterioration of motivation and job performance occur. The responsibility of a motivating work environment falls upon everyone. Motivation no longer is the sole responsibility of the manager, but the collective as a whole. There are Ten Commandments, which everyone in a working environment may find helpful: What about the actual human side to all of this?
To be an effective manager that is expected to deal with merger/acquisition, this is a side of us that will be most definitely be revealed. We must be able to take a humanistic approach in dealing with our staff and maintain departmental performance. I will most likely face employees that would be overwhelmed with fear of the unknown. This includes but not limited to the uncertainty of their jobs and the security of the company. It is my job to show compassion and empathy to address their fears and address them face-to-face with equal compassion and empathy.
Within such a management position, I am most likely to be faced with employees that will exhibit great deals of stress and perhaps apprehension at the thoughts of merger/acquisition. There will be some that will worry about things, such as, healthcare, 401k plans, and other benefits that they had over the years. It is my job as a manager to help ease these stress factors so that I am not only to deal with the human elements, but also keep and maintain performance measure. Some issues that may arise from the merger/acquisition are managerial changes, relocation, salary and policy adjustments, and the overall work environment.
Each one of these issues may directly affect the employees. Consequently, the employees may become bewildered on what the future holds in terms of their employment. This is when a confident, knowledgeable, and an approachable manager is needed to keep the employees focused and at a heightened performance level. When employees are faced with a change in management; especially management from the merger/acquisition company, the employees may experience a difficult and/or challenging readjustment.
Utilization of an effective communication with the employees and distribution of informative handouts will mitigate some of the possible anguish and answer many questions that the employee may have. Additionally, the incoming and outgoing management should exchange as much work related information as possible to make the transition more fluid and robust. However, one study suggests that even though effective communication is important to any merger/acquisition, management should be cautious in how much and what information is disclosed, “…too little or too much of a communication process is unsatisfying – if what acquired employees received did not seem “just right” to them, many were dissatisfied. ” (Cornett-DeVito and Friedman, 13)
Other issues that may be presented are relocation, salary and policy adjustments, cutbacks, and changes in the work environment. Each of these issues may pose crucial questions from employees. Negative feelings and emotions that accompany some of the questions and answers are inevitable within the organization. Therefore, positive managerial style is paramount to the success of the merger/acquisition.
The management must also devote attention in maintaining the organization. The maintenance of an organization is very important, it could very well determine if an organization succeeds or fails. Leaders play a key role in all organizations. The major functions of leaders are the creation and development of an organizations structure. An organization often silhouettes their founder’s personalities. Failure to sustain the productivity of an organization could be detrimental to the company. As a leader it is not only your duty, but your responsibility to maintain the structure of your organization.
In conclusion, the essential elements which has been defined when experiencing a merger/acquisition are complex and involved that the employees in various circumstances. The management must face motivational, human elements, and performance issues that may vary with each individual. Maintaining harmony within the entire organization, maybe extremely challenging, due to the fact, that individualism would be a detrimental factor in today’s business arena. On the other hand, by educating, safe guarding, and encouraging your employees, the merger/acquisition will be a success.
Cornett-DeVito, Merna M. , and Paul G. Friedman. “Communication processes and merger success. ” Management Communication Quarterly 1 1995: 13 Cottringer, William S. “Nice Guys Finish First. ” Security Management, June 2000, Vol. 44 issue 6, pg 24-31. 07/20/03 7:23:11 AM Hawaiian Standard Time <http://www. epnet. com/ehost/login. html>. Emmerich, Roxanne. “The 10 Commandments of Workplace Motivation. ” Occupational Hazards, Jan2002, Vol. 64 Issue 1, p69, 2p. MasterFILE Premier on-line. EBSCO Publishing. 07/20/03 7:06:27 AM Hawaiian Standard Time <http://www. epnet. com/ehost/login. html>.