It is essential to include all the employees, especially peripheral ones, in the company’s processes, in M&A (Mergers & Acquisitions) situations in particular. It is vital to establish a communication process between all the employees of the organizations in the two main and most common types of transactions between companies (Engert et al., 2019). The result of the work of the entire enterprise will directly depend on the interaction of employees in the context of mergers and acquisitions (Engert et al., 2019). The problem of involving employees in the communication is relevant for many companies; the success of M&A requires correct management since it is a complex process.
This research aims to clarify the importance of communication within the company and in studying the role of employee involvement in the mergers & acquisitions process. There is enough research on the question of M&A in the scientific literature. AntimaGulia (2020) concludes in her study that mergers and acquisitions cause severe injury and damage to personnel. Employees find it hard to cope with the changes, and therefore stress arises. Informing employees about the procedure and changing their perception from negative to positive can reduce their anxiety (AntimaGulia, 2020). Khairy concludes that success depends on maintaining a high level of employee engagement in many mergers and acquisitions. Cross and Carbery (2018) have also written about the impact of employee engagement on business success. The authors pointed out the importance of paying attention to employees and taking care of their mental health. Pragyan Rath and Apoorva Bharadwaj wrote that the effectiveness of communication determines how coherent the organizational changes within a firm will be (2017). The conclusions drawn by the authors apply to the discussion of M&A transactions.
References
AntimaGulia, S. (2020). Merger and acquisition: Stress booster among the employees. Journal of Critical Reviews, 7(14), 577-584.
Cross C., & Carbery, R. (2018). Human resource management. Bloomsbury Publishing.
Engert, O., Kaetzler, B., Kordestani, K., & Koshy, A. (2019). Communications in mergers: The glue that holds everything together. McKinsey & Company. Web.
Khairy, H. (2019). How organizational merger affects employeesâ engagement and job security in the hotel industry? A pre-post analysis. International Journal of Heritage, Tourism and Hospitality, 13(2), 245-262. Web.
Rath, P., & Bharadwaj, A. (2017). Communication strategies for corporate leaders: Implications for the global market. Taylor & Francis.