Management directly responsible for the success of the merger/acquisition should ask this question, what about the actual human side to all of this? Well, to be an effective manager, he/she are expected to deal with an array of merger/acquisition potential dilemmas and issues, but more importantly focus on relative transition of the employees. Therefore, management must be able to take a humanistic approach in dealing with the staff and maintain departmental performance.
Management must be capable to face employees that would be overwhelmed with fear of the unknown during merger/acquisition. This includes, but not limited, to the uncertainty of their jobs and the security of the company. It is primary priority of management to show and exhibit compassion and empathy, and to address their fears in a face-to-face method with equal compassion and empathy to the employee. With such a responsibility, management will be most likely faced with employees that will exhibit tremendous stress and perhaps apprehension at the thoughts of merger/acquisition transition.
More than likely, employees worry about healthcare, 401k plans, and other benefits that they currently have obtained within their original company. A manager has the responsibility to help ease these stress factors, so that they are able to maintain performance measurements. Also, 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 all of the employees.
Consequently, the employees may become bewildered on what the future holds in terms of their employment status. This is when and an approachable manager is needed to keep the employees focused and enable them to remain at a heightened performance level. When employees are faced with a change in management; especially management from the parent merger/acquisition company, the employees may experience a difficult and/or challenging readjustment during the initial transition phase.
Utilization of various effective communication techniques are powerful tools to ease employees anxieties, for example, by distributing informative handouts and other helpful material, it will mitigate some of the possible anguish and answer many questions that the employee base may have. Additionally, the incoming and outgoing management ranks 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, due to the fact, that “… 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 to management. Negative feelings and emotions that accompany some of the questions and answers are inevitable within the organization. Therefore, positive managerial style techniques are paramount to the success of the merger/acquisition plan. The management team must also devote attention in maintaining the organization. The maintenance of an organization is very important, because 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. It is important to note, that motivation, job performance, and job satisfaction exist on the same paralleled axes of business. This definition provides management with the necessary knowledge to extract key identifiers in relation to the motivational components that could stabilize and/or heighten job performance and job satisfaction within the work environment.