Preview

Impact of merger and acquisition on employee motivation

Powerful Essays
Open Document
Open Document
12261 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Impact of merger and acquisition on employee motivation
Impact of Mergers and Acquisitions on Employee Motivation- Telecommunication Merger in the UK

A case of T-Mobile and Orange Mobile Merger

Abstract
Over the past one decade, mergers and acquisitions increased at a record rate globally, especially in the United States. The telecommunication sector experienced no exclusion to this phenomenon and the three major telecommunication mergers included MCI and Verizon, Sprint and Nextel, and BellSouth and AT&T. As a result, the telecom playfield faced a whole new level of competitiveness and consequential obstacles. Similarly, the Telecommunication sector in the United Kingdom has also seen several mergers and acquisitions in the past decade. Despite the sudden popularity of mergers and acquisitions in the corporate backdrop, research suggests that the success rate of M&A’s is typically disappointing in terms of meeting the premerger strategic goals

Cartwright & Schoenberg (2006) saw the failure of M&A’s a result of various human resources factors such as cultural disparity, loss of talent, poor motivation, and mismanagement. Owing to this consideration, this research study will examine the impact of mergers and acquisition on employee motivation, taking the example of a recent merger between two telecommunication conglomerates based in the United Kingdom.

Acknowledgement
I would gratefully like to acknowledge the following people for being a source of guidance and support through the course of this research. I thank you all for your time, patience and energy to contribute majorly to the study and its results:
My teachers who guided me to work towards such an objective and contribute in some way to the society
The members of the Communication Workers Union for patiently responding and honestly participating in the survey
My family for being patient with me during this research period and understanding my priorities
Miss Edwards for forming the basis of the Morale and Turnover Intention Survey,



Cited: Abrahamson, Eric, 2004. Change Without Pain: How Managers Can Overcome Initiative Overload, Organizational Chaos, and Employee Burnout. Washington: Harvard Business Press. Abratt, R. & Pitt, L.F., 1989. Selection and Motivation of Industrial Distributors: A Comparative Analysis. European Journal of Marketing, 23(2), pp.144-53. Ajzen, I., 1991. The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), pp.179–211. Albert, S. & Whetten, D.A., 1985. Organizational identity. An annual series of analytical essays and critical reviews, pp.263-95. Albrecht, S. & Carpenter, K.E., 1976. Attitudes as Predictors of Behaviors versus Behavioral Intentions: A Convergence of reserach Traditions. Sociometry, 39, pp.1-10. Alvesson, M., 2002. Understanding Organizational Culture. SAGE Publications Ltd. Anderson, J.K., 1999. People management: the crucial aspect of mergers and acquisitions. California: IRC Press. Anon., 2004. Unlocking profitability. Research. Mercer Management Consulting. Arango, T., 2010. How the AOL-Time Warner Merger Went So Wrong. [Online] Available at: vhttp://www.nytimes.com/2010/01/11/business/media/11merger.html?_r=1&pagewanted=all [Accessed 2012 April 5]. Armitage, C.J. & Conner, M., 2001. Efficacy of the Theory of Planned Behaviour: a meta-analytic review. Journal of Applied Social Psychology, 40(4), pp.471-99. Armitage, C.J. & Conner, M., 2001. Efficacy of the Theory of Planned Behaviour: a meta-analytic review. British Journal of Social Psychology, 40(4), pp.471-99. Ashford, S.J., Lee, C. & Bobko, P., 1989. Content, Causes, and Consequences of Job Insecurity: A Theory-Based Measure and Substantive Test. The Academy of Management Journal, 32(4), pp.803-29. Ashford, S.J., Lee, C. & Bobko, P., 1989. Content, Causes, and Consequences of Job Insecurity: A Theory-Based Measure and Substantive Test. The Academy of Management Journal, pp.803-29. Astrachan, J.H., 1992. The Family Business Market: A Conversation with Laura Yanes. Family Business Review, 5(1), pp.79-84. Astrachan, J.H., 2004. Organizational Departures: The Impact of Separation Anxiety as Studied in a Mergers and Acquisitions Simulation. Journal of Applied Behavioral Science, June. pp.91-110. Babbie, E., 2005. The Basics of Social research. 3rd ed. Belmont: Wadsworth. Balmer, J.M.T., 1995. Corporate Identity: The POWER and the PARADOX. Design Management Journal , 6(1), pp.39–44. Bentley, J.C., 1996. When Rivals Become Partners: Acculturation In A Newly Mergeed Organization. International Journal of Organizational Analysis, 4(2), p.135. Borland, J., 2000. Despite breakup, AT&T continues to reshape telecom landscape. [Online] CNET Available at: http://news.cnet.com/2100-1033-247584.html [Accessed 2013]. Brewer, M.B. & Gardner, W., 1996. Who is this "we"? Levels of collective identity and self representations. Journal of Personality and Social Psychology, 71, pp.83-93. Brockner, J., 1992. The influence of prior commitment to an institution on reactions to perceived unfairness: the higher they are, the harder they fall. Administrative Science Quarterly, 37, pp.241 - 61. Brockner, J., Grover, S., Reed, T.F. & Dewitt, R.L., 1992. Layoffs, Job Insecurity, and Survivors ' Work Effort: Evidence of an Inverted-U Relationship. The Academy of Management Journal, pp.413-25. Buono, A.F. & Bowditch, J.L., 1989. The Human Side of Mergers and Acquisitions: Managing Collisions Between People, Cultures, and Organizations. 1st ed. San Francisco: Jossey-Bass Publishers. Buono, A.F. & Bowditch, J.L., 2003. The Human Side of Mergers and Acquisitions: Managing Collisions Between People, Cultures, and Organizations. London: Beard Books. Cartwright, S., Cartwright, S. & Cooper, C.L., 2000. HR Know-how in Mergers and Acquisitions. London: CIPD Publishing. Cartwright, S. & Cooper, C., 1995. Organizational marriage: “Hard” versus “soft” issues? Personnel Review, 3, pp.32-42. Cartwright, S. & Cooper, C.L., 2001. HR Know How in Mergers and Acquisitions. London: CIPD. Cartwright, S. & Schoenberg, R., 2006. 30 years or mergers & acquisition research: recent advances and future opportunities. British Journal of Management, 17(1), pp.S1-S5. Chang, S.J., 1998. AN EVOLUTIONARY PERSPECTIVE ON DIVERSIFICATION AND CORPORATE RESTRUCTURING: ENTRY, EXIT, AND ECONOMIC PERFORMANCE DURING 1981–89. Strategic Management Journal, pp.587–611. doi: 10.1002/(SICI)1097-0266(199610)17:83.0.CO;2-1. Crandall, R.W., 1991. After the Breakup: U.S. Telecommunications in a More Competitive Era. NewYork: Brookings Institution Press. Daniel, T.A. & Metcalf, G.S., 2001. The Management of People in Mergers and Acquisitions. London: Greenwood Publishing Group. Davy, J.A., Kinicki, A., Kilroy, J. & Scheck, C., 1988. After the Merger: Dealing with People 's Uncertainty. Training & Development Journal, 42(11). Deal, T. & Kennedy, A., 1999. The new corporate cultures: Revitalizing the workplace after downsizing, mergers, and reengineering. Perseus Books. Deighton, J., 2002. How a Juicy Brand Came Back to Life. [Online] Available at: http://hbswk.hbs.edu/cgi-bin/print/2752.html [Accessed 5 Apr 2012]. Deighton, J., 2002. How Snapple Got its Juice Back. Harvard Business Review, pp.1-10. Dick, V., U, W.R. & G, L., 2004. Research note: The winds of change: Multi Identifications in the case of organizational merger. European J. Work Org. Psychol., 13(2), pp.121-38. Dick, R.v., Ullrich, J. & Tissington, P.A., 2005. Working under a black cloud: How to sustain organizational identification after a merger. Journal of Management Studies, 42(9), pp.1549-69. Dixon, I.E. & Nelson, N.C., 2005. Culture Management and Mergers and Acquisitions. New York: SHRM SHRM. Dooney, J., 2006. The Look and Feel of Strategic Human Resource Management: Conversations with Senior HR Executives. SHRM. Dutton, J.E., Duckerich., J.M. & Harquail., C.V., 1994. Organizational images and member identification. Administrative Science Quarterly, 39(2), pp.239-63. Eagly, A.H. & Chaiken, S., 1993. The Psychology of Attitudes. Fort Worth, TX: Harcourt Brace Jovanovich. Eagly, A.H. & Chaiken, S., 1995. The psychology of attitudes. Psychology & Marketing, 12(5), pp.459–66. Edwards, J.R., 2001. Multidimensional Constructs in Organizational Behavior Research: An Integrative Analytical Framework. Organizational Research Methods, 4(2). Edwards, R.L., 2001. The morale and satisfaction of midlevel administrators: Differentiating the constructs and their impact on intent to leave. Doctoral Dissertation. University of Hawaii at Manoa. Fazio, R.H., 1990. Multiple processes by which attitude guide behavior: The MODE model as an integrative framework. Advances in exparimental social psychology, 23, pp.75-109. Flynn, F.J., 2005. Identity orientations and forms of social exchange in organizations. Academy of Management Review, 30(4), pp.737-50. Flynn, F.J., 2005. Identity Orientations And Forms Of Social Exchange In Organizations. Academy of Management Review, pp.737-50. Fulmer, R.M. & Gilkey, R., 1988. Blending Corporate Families: Management and Organization. Academy of Management Executive , 2(4), pp.275-83. Fulmer, R.M. & Gilkey, R., 1989. Blending Corporate Families: Management and Organization Development in a Postmerger Environment. The Academy of Management Executive, 2(4), pp.275-83. Gaughan, P.A., 2002. Mergers, Acquisitions, and Corporate Restructurings. New York: Wiley. Gaughan, P.A., 2007. Mergers, Acquisitions, and Corporate Restructurings. NewYork: Cengage Publishsing. Gray, E.R. & Balmer, J.M.T., 1998. Managing Corporate Image and Corporate Reputation. International Journal of Strategic Management, 31(5), pp.695-702. Greenberg, L.S., 1999. deal psychotherapy research: A study of significant change processes. Journal of Clinical Psychology, 55(12), pp.1467–80. Greengard, S., 1999. Merger Due Diligence The Devil in the Details. Workforce, 78(10), pp.68-74. Hambrick, D.C. & A.A. Cannella, J., 1993. Relative Standing: A Framework for Understanding Departures of Acquired Executives. Academy of Management Journal. Hambrick, D.C. & Jr., A.A.C., 1993. Relative Standing: A Framework for Understanding Departures of Acquired Executives. Academy of Management Journal, 36(4), pp.733-62. Hitt, M.A., Hoskisson, R.E., Ireland, R.D. & Harrison, J.S., 1991. Effects Of Acquisitions on R&D Inputs and Outputs. Academy of Management Journal, 34(3), pp.693-706. Huselid, M.A., 1995. The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance. The Academy of Management Journal, 38(3), pp.635-72. Jackson, R.S.S.a.S.E., 2009. HR issues, activities and responsibilities in mergers and acquisitions. New Brunswick, NJ, USA: Rutgers University School of Management and Labour Relations. J, L., E, O.M. & M, M., 2004. Perceived procedure justice and employees response to an organizational merger. European Journal of Work Organizational Pdychology, 13(3), pp.391-413. Jones, C. & Volpe, E.H., 2010. Organizational identification: Extending our understanding of social identities through social networks. Journal of Organizational Behavior. Kanter, R.M., Stein, B. & Jick, T., 1992. The Challenge of organizational change: How companies experience it and leaders guide it. New York and Toronto: Free Press. Kroger, F., Habeck, M.M. & Tram, M., 2000. After the Merger. Financial Times Prentice Hall. Krug, J. & Aguilera, R., 2004. Top Management Team Turnover in Mergers and Acquisitions. Leana, C.R. & Feldman, D.C., 1988. Job loss: Individual perceptions, reactions, and coping behaviors. Journal Of Management, 14, pp. 375-390. Leedy, P.D. & Ormrod, J.E., 2005. Practical research: planning and design. 8th ed. Upper Saddle River: NJ: Prentice Hall. Leedy, P.D. & Ormrod, J.E., 2012. Practical Research: Planning and Design. Boston: Pearson. Lipponen, J., Olkkonen, M.-E. & Moilanen, M., 2004. Perceived procedural justice and employee responses to an organizational merger. European Journal of Work and Organizational Psychology, 13(3), pp.391-413. M., B.P. & Speckart, G., 1979. Models of Attitude-Behavior Relations. Psychological Review, 86, pp.452-64. Mael, F.A. & Ashforth, B.E., 1995. Loyal from day one: Biodata, organizational identification, and turnover among newcomers. Personnel Psychology, 48, pp.309-33. Mangion, G.M., 2011. Mergers & Acquisitions – Only A Few Are Blessed. [Online] Available at: http://www.corporatelivewire.com/top-story.html?id=96 [Accessed 8 April 2012]. Markides, C.C., 1997. To Diversify or Not to Diversify. Harvard Business Review , pp.1-7. Marks, M.L. & Mirvis, P.H., 2001. Making mergers and acquisitions work: Strategic and psychological preparation. Academy of Management Executive, 15, pp.80–92. Marks, M.L. & Mirvis, P.H., 2001. Making Mergers and Acquisitions Work: Strategic and Psychological Preparation [and Executive Commentary]. The Academy of Management Executive, 15(2), pp. 80-94. Meek, A., 1997. An estimate of the size and supported economic activity of the sports industry in the United States. Sport Marketing Quarterly, 15(21). Meglioa, O. & Risberg, A., 2010. Mergers and acquisitions—Time for a methodological rejuvenation of the field? Scandinavian Journal of Management, 26(1), pp.87-95. MergerStat, 2003. MergerStat. [Online] Available at: http://www.factset.com/data/factset_data/factsetmergers [Accessed 2003]. Morosini, P., 1998. Managing Cultural Differences: Effective Strategy and Execution Across Cultures in Global Corporate Alliances. Pennsylvania: Pergamon. Munck, B., 2001. Changing a Culture of Face Time. Harward Business Review, pp.http://hbr.org/2001/11/changing-a-culture-of-face-time/ar/1. Napier, N.K., 1989. Mergers and Acquisitions, Human Resource Issues and Outcomes: A Review and Suggested Typology*. Journal of Management Studies, 26(3), pp.271-90. Nardi, P.M., 2003. Doing Survey Research: A Guide to Quantitative Methods. Paradigm Publishers. Nardi, P.M., 2013. Doing Survey Research. New York: Paradigm Publishers. Nguyen, H., 2003. The effective management of mergers. Leadership & Organization Development Journal, 24(8), pp.447 - 454. Nguyen, H. & Kleiner, B.H., 2003. The effective management of mergers. Leadership & Organization Development Journal, 24(8), pp.447 - 454. Ojha, N., 2008. Failure Mergers. [Online] Available at: http://jurisonline.in/2008/11/failure-mergers/ [Accessed 5 April 2012]. Panchal, S. & Cartwright, S., 2001. Group differences in post-merger stress. Journal of Managerial Psychology, 16(6), pp.424-33. Panchal, S. & Cartwright, S., 2001. Group differences in post-merger stress. Journal of Managerial Psychology, 16(6), pp.424 - 433. Reardon, M., 2006. FCC approves AT&T- BellSouth merger. [Online] Available at: http://news.cnet.com/2100-1036_3-6146369.html [Accessed 2013]. Riel, C.B.M.v. & Balmer, J.M.T., 1997. Corporate identity: the concept, its measurement and management. European Journal of Marketing, 31(6), pp.340 - 355. Riel, C.B.M.v. & Balmer, J.M.T., 1997. Corporate identity: the concept, its measurement and management. European Journal of Marketing, 31(6), pp.340-55. Rosnow, R.L., Esposito, J.L. & & Gibney, L., 1988. Factors influencing rumor spreading: Replication and extension. Language & Communication. Language and Communication, 8(1), pp.29-42. Ross, P., 2000. Regulators watching AT&T breakup. [Online] CNET Available at: http://news.cnet.com/Regulators-watching-ATT-breakup/2100-1033_3-247612.html [Accessed 2013]. Rousseau, D.M., 1998. Why workers still identify with organizations. Journal of Organizational Behavior, 19(3), pp.217–33. Rousseu, D.M. & Sitkin, S.B., 1988. Not so different after all: A cross discipline view of trust. Academy of Management Review, 23(3), pp.383-404. Salter, M. & Weinhold, W., 1979. DIVERSIFICATION THROUGH ACQUISITION. Strategic Management Journal, 1(3), pp.293–94. Schuler, R. & Jackson, S., 2001. HR Issues and Activities in Mergers and Acquisitions. European Management Journal, 19(3), pp.239–53. Schweiger, D.M. & DeNisi, A.S., 1991. Communication with employees following a merger: A longitudinal field experiment. Academy of Management Journal, 34, pp.110-35.

You May Also Find These Documents Helpful

  • Powerful Essays

    An analysis of the case reveals that the merger and acquisition greatly impacts organizational performance and organizational culture. Our analysis covers the effects of mergers and acquisition on an organizational performance, success factors in M&A as well as organizational culture change and resistance that take place in a merger and acquisition.…

    • 2202 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Tetenbaum, T.J. (1999), ``Beating the odds of merger and acquisition failure: seven key practices that improve the chance for expected integration and synergies’’, Organizational Dynamics, Vol. 28 No. 2, pp. 22-36. Retrieved 2012-02-03…

    • 999 Words
    • 3 Pages
    Better Essays
  • Powerful Essays

    Schuler, R., and Jackson, S. (2001). HR issues and activities in mergers and acquisitions. European management journal. 19.3, p. 239-253.…

    • 14821 Words
    • 60 Pages
    Powerful Essays
  • Better Essays

    Unit VIII Final Project

    • 1018 Words
    • 4 Pages

    Islam, S., Sengupta, P., Ghosh, S., & Basu, S. (2012). The behavioral aspects of mergers and acquisitions: A case study from India. Global Journal of Business Research, 6(3), 103-112.…

    • 1018 Words
    • 4 Pages
    Better Essays
  • Better Essays

    The integration of the two organizations can be challenging as well as costly. Decisions must be made on who will manage the organization, employee rationalization, vendor rationalization, facilities, and so on. Similar to an acquisition the combined financials of the new organizations must be secure enough to ensure payment of current obligations. Projected cost savings may not be realized thereby impacting the financials of the organization. An intangible threat to completing a merger is the melding of two corporate cultures who may have had very different ways of conducting business even though they were in the same…

    • 1693 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    References: Ajzen, I. (1991). The theory of planned behaviour, organisational behaviour and human decision processes, 50(2), 179-211.…

    • 4944 Words
    • 20 Pages
    Powerful Essays
  • Good Essays

    Mergers and acquisitions are often planned and executed based on perceived cost savings or market synergies; rarely are the “people” and cultural issues considered. Yet, it is the people who decide whether an acquisition or merger works. The opportunity for HR lies in the fact that customer and employee reactions determine whether the newly combined company will sink or swim.. If a convincing argument is made to senior leaders, HR may gain more power to increase the effectiveness of the organization, and may be able to mold the cultural changes instead of being pushed along by them.…

    • 2368 Words
    • 10 Pages
    Good Essays
  • Good Essays

    Final Paper

    • 760 Words
    • 3 Pages

    Chapter 4 discussed the importance of identity, image, reputation, and corporate advertising within a corporation. In the Merriam-Webster dictionary, identity is defined as the qualities, beliefs, etc., that make a particular person or group different from others. “Corporate and brand identities are an expression and reflection of an organization’s culture, character, personality, and its products and services; inspiring trust with consumers, employees, suppliers, partners and investors” (“The Importance”). The identity of a corporation helps the organization inform its constituencies who they are; it is how they differentiate themselves among other organizations.…

    • 760 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Mayer, R.C., Davis, J.H. and Schoorman, F.D. (1995). An integrative model of organizational trust, Academy of Management Review, 20(3), 709-34.…

    • 3126 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    Aol & Time Warner Merger

    • 1779 Words
    • 8 Pages

    A decade ago, America has witnessed its biggest merger of their history when AOL and Time Warner merged for an all stock deal with a combine value of $ 350 billion which also created the world’s largest media and Communication Company, but today I want to re-examine this ill-fated deal and try to explore what went wrong. In an initial statement about this merger and probabilities of new company it was stated that this merger will lead to a speedy development and growth for all its businesses. It will not only provide AOL a new broadband interactive platform, but the companies can also grow their revenue through cross marketing from movies, music, and internet to telephone.…

    • 1779 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Katz, D., & Kahn, R. L. (1978). The Social Psychology of Organizations. New York: John…

    • 1482 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Level 5 Leadership

    • 4715 Words
    • 19 Pages

    Martin, M. M. (1999). Trust Leadership. Journal of Leadership & Organizational Studies Vol.5 No.3 , 41-49.…

    • 4715 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    40. Rousseau, D.M., Sitkin, S.M., Burt, R.S., and Camerer, C.Not so different after all: A cross-discipline view of trust. Academy of Management Review, 23, 3, (1998), 393-404.…

    • 14797 Words
    • 60 Pages
    Powerful Essays
  • Good Essays

    Corporate Identity

    • 3281 Words
    • 14 Pages

    Olins (1989) discuss that all outputs of an organization contributes to the construction of its identity (van Rekom, 1997). Olins (1995) has defined corporate identity as “the explicit management of all the ways in which the organization presents itself through experiences and perceptions to all its audiences”. Therefore, corporate identity is not concerned only with customers; rather it handles perceptions and identification of corporation to all stakeholders…

    • 3281 Words
    • 14 Pages
    Good Essays
  • Best Essays

    Brief, A. P., & Aldage, R. J. (1998). The self in work organizations: A conceptual Review. Academic of Management Review, 6, 75-88.…

    • 3821 Words
    • 16 Pages
    Best Essays

Related Topics