What Is Merger and Acquisition and What Are Some Effects on Employees?
What is Merger and Acquisition and what are some Effects on Employees?
Abrom B. Cooper
BUSN601
Global Management Perspective
Professor: Brenda Harper
May 9, 2010
Introduction This research paper is about Mergers and Acquisitions and the effects and consequences it has on employees. Mergers and acquisitions are sometimes referred to as takeovers or raid. In this paper, I will attempt to elucidate some of the reasons behind M&A and some of the effects it has on employees. There are a plethora of effects and consequences that mergers and acquisitions have on the workforce. However, this paper only delves into some of the more prevalent and perverse effects they have on the labor force. Firstly, I will attempt to explain what is meant by mergers and acquisitions in the corporate world. Even though the two words (merger & acquisition) have slightly different meaning, but they are used synonymously since they produce the same effect. Another word that is also used interchangeably is takeover. Takeovers can be both friendly and hostile. According to most research done, mergers and acquisition have a very negative and pervasive impact on the employee and how they view their company. Research has shown that mergers and acquisitions weaken the employee 's confidence in the outlook of the company and could prompt many employees to leave the company. This research paper will provide evidence to support and substantiate these claims about the negative and some possible consequences mergers and acquisitions have on the workforce.
What are Mergers and Acquisitions? According to Merriam-Webster.com dictionary, merger is the absorption by a corporation of one or more others or the combining of two or more organizations. Wikipedia defines mergers and acquisitions (abbreviated M&A) as the "aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or
Abrom B. Cooper
BUSN601
Global Management Perspective
Professor: Brenda Harper
May 9, 2010
Introduction This research paper is about Mergers and Acquisitions and the effects and consequences it has on employees. Mergers and acquisitions are sometimes referred to as takeovers or raid. In this paper, I will attempt to elucidate some of the reasons behind M&A and some of the effects it has on employees. There are a plethora of effects and consequences that mergers and acquisitions have on the workforce. However, this paper only delves into some of the more prevalent and perverse effects they have on the labor force. Firstly, I will attempt to explain what is meant by mergers and acquisitions in the corporate world. Even though the two words (merger & acquisition) have slightly different meaning, but they are used synonymously since they produce the same effect. Another word that is also used interchangeably is takeover. Takeovers can be both friendly and hostile. According to most research done, mergers and acquisition have a very negative and pervasive impact on the employee and how they view their company. Research has shown that mergers and acquisitions weaken the employee 's confidence in the outlook of the company and could prompt many employees to leave the company. This research paper will provide evidence to support and substantiate these claims about the negative and some possible consequences mergers and acquisitions have on the workforce.
What are Mergers and Acquisitions? According to Merriam-Webster.com dictionary, merger is the absorption by a corporation of one or more others or the combining of two or more organizations. Wikipedia defines mergers and acquisitions (abbreviated M&A) as the "aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or
References: Brown, Charles & Medoff, James L. (1998). The Impact of Firm Acquisitions on Labor. In: Auerbach, Alan J. (Ed.): Corporate Takeovers: Causes and Consequences. University of Chicago Press. Retrieved from http://www.nber.org/chapters/c2051.pdf Conjecture Corporation (2003 – 2010) Donald DePamphilis (2010). Understanding Mergers, Acquisitions, and Other Corporate Restructuring Terminology. Retrieved from http://knol.google.com/k/understanding- mergers-acquisitions-restructuring-and-investment-banking# Gaughan, Patrick A http://proquestbus.safaribooksonline.com.ezproxy2.apus.edu/9780471705642 Gutknecht, John E, & Keys, J Bernard. (1993) International Labor Organization (2003). The employment effects of mergers and acquisitions in commerce International Labor Organization (2001). The employment effects of mergers and acquisitions in the Banking and Financial Services Sector Lehto, Eero & Bockerman, Petri (October 15, 2006). Enemy of Labour? Analysing the Employment Effects of Mergers and Acquisitions. Retrieved from http://mpra.ub.uni-muenchen.de/1812/1/MPRA_paper_1812.pdf Mapsofworld.com (1999-09) Romanek, Broc & Krus, Cynthia M. (2002). Mergers and Acquisitions. Capstone Publishing. Wikipedia (2010). Mergers and Acquisitions. Retrieved from http://en.wikipedia.org/wiki/Mergers_and_acquisitions