Asked by Jazmin Blanco Ferrufino on May 19, 2024

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Identify an organization you are familiar with that is embarking on a merger or acquisition (such as from your work experience or from your textbook).Discuss the impact of the merger or acquisition on human resources (the impact on the employees).

Human Resources

The department within an organization that deals with the management, administration, and training of its employees.

Merger or Acquisition

The process by which companies combine (merger) or one company purchases another (acquisition) to expand their operations or market share.

  • Understand the influence of mergers and acquisitions on workforce dynamics and HR strategy.
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Michelle MartinezMay 20, 2024
Final Answer :
The real costs of a merger may be hidden, that is, not evident when analyzing financial records. Takeovers result in human displacement, and the cost of losing the best sales rep, who either is anxious about her job or does not wish to work for the acquired company, cannot be measured in accounting terms. The time involved in replacing this employee with a new one represents a cost to the employer. Research has shown that that M&As cause increases in work, less affective commitment, and a loss of trust in the firm and its top managers. This is particularly true in hostile acquisitions.
The feeling among those experienced in M&As is that, while mergers are forged for strategic and financial reasons, they succeed or fail for human reasons. Experts estimate that employee issues are responsible for the failure of one-third to one-half of mergers. These issues include the difficulty in blending cultures, reduction in service levels, poor motivation, loss of key people and clients, and loss of focus on longer-term objectives,