By Oscar Onyango
A merger occurs when two or more companies combine their business and assets. The companies lose old identities to make a new one. On the other hand, an acquisition occurs when one company acquires a given number of shares in another to get control. In either transaction, a new ownership and management structure is established.
The objects of Mergers and Acquisition (M&A) as a tool of business restructuring is to help companies acquire new technologies or products; improve processes and productivity while reducing overall expenses. While mergers and acquisition may or may not necessarily achieve all these, its effect on employees is permanent. Change is often difficult for employees, especially if they are not directly involved in decisions that impact their jobs. To this extent, organizations should strive to share as much information as possible about what is happening and, most importantly, how the changes will affect individual employees.
The most obvious concerns for employees during this process are job loss through redundancy and culture change. However, the management can mitigate the effects of M&A on employees by focusing on the following areas…Read more>>
