Major Factors That Affect Staff During A Company Acquisition and Merger
Acquisitions, mergers and the eventual rebranding of companies have become common practices in the business world today. The motivation for these practices ranges from business diversification, to strategic growth, directed at the elimination of competitors. The reasons for the process vary, but the effect on the workforce is largely the same. Pre, during and post-mergers, employees tend to experience high levels of anxiety, stress, distrust and alienation. These negative effects on the workforce result in substantial losses in employee productivity, company output and the loss of key personnel.This research study focused on a recent acquisition, merger and rebranding that occurred at a manufacturing plant in KwaZulu- Natal, South Africa. The study was conductedquantitatively. A probability sampling technique was employed in the study, using simple random sampling. Staff at the plant were surveyed using a structured questionnaire. The study findings revealed that the factor that caused the greatest motivation and excitement among staff was the possibility of increased job security after the merger.
Key Words- Acquisition, Job-security, Mergers, Motivation, morale