The Psychology of Mergers

For students feeling comfortable and confident with some of the core concepts involved with the BUSS4 research theme of Mergers and Takeovers, here is something to stretch you a bit further and give you an increased edge to your research in particular with reference to the effect of mergers on stakeholders and specifically employees.

During a recent lesson in which my Upper Sixth were researching in to business culture we stumbled across this excellent white paper by a human resources management consultancy called ‘People&Culture’ .

Their report entitled ‘The Psychology of Mergers’ looks at the impact of mergers and takeovers upon the workforce of an enlarged company, and how businesses and their senior leaders can best manage these impacts.

In the introduction, the writers point out that in a transatlantic survey of CEOs who had led mergers, 75% listed employee communication and harmonising culture as critical success factors. The report goes on to consider the impact of mergers upon people, the emotional journey they undertake, the importance of an effective communication strategy, the way in which culture clashes may manifest themselves and how different cultures can be brought together.

Reading the article will provide some ideas on how to go about doing it, but if you can’t stomach reading it all just head straight to the back page and the summary table under heading ‘Conclusion - Putting it all together’. This neatly summarises the key issues that affect employees and why, the impact of these issues and how leaders can address them.

A really great article for students targetting A* in BUSS4 this year and/or intending to continue business and management studies at university.