Running head: LOW MORALE OF EMPLOYEES 1

Low Morale of Employees Due to Merger

Author’s Name

Institutional Affiliation
LOW MORALE OF EMPLOYEES 2

Table of Content

1. Issue 3
2. Proposed Solution 3
3. Expected Outcome 3
4. References 4
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Low Morale of Employees Due to Merger

1. Issue
Since the business marketplace around the globe has been emerging with the changing trends in business
operations, thus, organizations have realized the importance of making themselves more competitive to
accomplish their strategic goals. Therefore, organizations are focused to adopting change in structures to
remain more competitive, productive and successful (Maidell, 2015). Consequently, many mergers have
been done being a vital element of changing business environment. However, the more important thing is
the impact of mergers on employees currently associated with such organization as well as the people
being merged with them. Mergers can be very upsetting for the existing employees causing insecurity,
uncertainty that affect on their motivation level and morale may get down as discussed by Siegel in his
article titled “Assessing the Effects of Mergers and Acquisitions on Employee Morale in the year 2010.
Due to the changing requirements of business transactions and to increase its value effectively, mergers
are performed so is the case in this research study that merger has been done but employees are not very
happy because they are feeling less secure, uncertain and their motivation level is not up to the mark
specifically because of the extended members in their organization. A detailed study has been presented
in order to avoid unwanted scenarios and keep the employees highly motivated to ensure the successful
accomplishment of strategic objectives.
2. Proposed Solution
When merger occurs, the whole internal environment of the organization fills with confusion and
ambiguity that results in the decline of employees’ morale. Therefore, certain strategies must be
implemented in order to keep the employees highly motivated and to avoid any conflict in business
operations (Croke, 2017). To overcome the barriers in employees thought process during a merger, four
steps are proposed as a solution for the case under discussion. These steps are: communicate properly to
the employees so that they may not feel shocked and unwanted. For this purpose, proper meetings must
be held chaired by the top management in which they should be kept in confidence in terms of their better
prospects while working with new members. Not only this but focus should be to make employees feel
more valuable than before by their managers. They must feel themselves as vital asset of the organization.
Lastly, organization should reveal the fact of merger honestly in front of employees so that they may be
able to realize the objectives behind this change and may stand with the trends of the firm.
3. Expected Outcome
Employees are the vital part of any organization that’s why it is a must for any organization to consider
their reservations, suggestions, and opinions with more serious approach. However, it is a fact that the
above discussed strategies to communicate properly, staying honest and real with employees, conducting
effective meetings, and gaining their trust will aid the organization to announce the big change of merger
in a subtler way avoiding any of the unwanted scenario (Desrochers, 2018). Consequently, the firm will
be able to retain its loyal employees with more positive perspective. Moreover, employees will do more
hard work in order to prove their competitive edge to the organization. Furthermore, competitors also feel
the pressure because of the merger. Not only this but due to a positive competition among employees, the
organization will be able to achieve its strategic goals and objectives in more effective manner.
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References

Croke, A. (2017). 4 Ways to Prepare Your Employees for a Merger. Retrieved from
https://www.rhythmsystems.com/blog/4-ways-to-prepare-your-employees-for-a-merger

Desrochers, M. (2018). How to Communicate During Merger and Acquisitions. Retrieved from
https://www.business.com/articles/communicating-during-mergers/

Maidell, T. (2015). Acquisition and Merger Process Through the Eyes of Employees.

Georgiades, G., & Georgiades, S. (2014). The Impact of an Acquisition on the Employees of the
Acquired Company. Journal Of Business And Economics, Volume 5, No. 1(ISSN 2155-7950,
USA). Retrieved from http://www.academicstar.us
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