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How is the Firm Dealing with the Merger?A Study of Employee Satisfaction with the Change Process

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  • Mohammed-Aminu Sanda
  • Pearl Adjei-Benin

Abstract

The purpose of this study was to understand the degree to which employees¡¯ satisfaction with merger-induced organizational changes impact on their productivity and the merged-firm performance. This is because, the introduction of market-driven business reforms in many developing economies has seen the emergence of growth-drivers that includes the search for new markets, increasing competition in local markets, new investors¡¯ interest in emerging markets, and hence the desire for firms to merge. The results showed that human resource issues are important aspects of mergers which, if it is not well handled, may impact negatively on employee satisfaction with consequent repercussions on productivity and the success of the merger. It is concluded that employee satisfaction to a merger-induced organizational changes could be enhanced by instituting effective two way communication system and using participatory approaches in job redesign processes. By implication, merger-induced change has human factor challenges that merging firms need to understand.

Suggested Citation

  • Mohammed-Aminu Sanda & Pearl Adjei-Benin, 2011. "How is the Firm Dealing with the Merger?A Study of Employee Satisfaction with the Change Process," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 2(2), pages 28-37, June.
  • Handle: RePEc:jfr:jms111:v:2:y:2011:i:2:p:28-37
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    References listed on IDEAS

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    1. Calder, Bobby J & Phillips, Lynn W & Tybout, Alice M, 1981. "Designing Research for Application," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 8(2), pages 197-207, September.
    2. Schuler, Randall & Jackson, Susan, 2001. "HR issues and activities in mergers and acquisitions," European Management Journal, Elsevier, vol. 19(3), pages 239-253, June.
    3. Allan P. O. Williams, 2006. "Leadership in Change," Palgrave Macmillan Books, in: The Rise of Cass Business School, chapter 15, pages 200-220, Palgrave Macmillan.
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    Cited by:

    1. Ralf Bebenroth & Jose O.L. Berengueres, 2020. "New hires' job satisfaction time trajectory," International Journal of Human Resources Development and Management, Inderscience Enterprises Ltd, vol. 20(1), pages 61-74.
    2. Shawn Bolouki & Peter Lewa, 2018. "An Exploratory Study of the Impact of Top Leadership on Effectiveness of Privatization of Hospitals Through Mergers and Acquisitions in Kenya," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 9(3), pages 54-87, August.

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