Managing Emotions in Mergers and Acquisitions

Managing Emotions in Mergers and Acquisitions

New Horizons in Management series

Verena Kusstatscher and Cary L. Cooper

This fascinating book explains how managerial behaviour and communication styles influence the emotions of employees and affect their readiness to contribute to a successful post-merger integration. It combines emotion theories from other disciplines with recent M & A findings, and offers practical implications through illustrative case studies.

Chapter 10: M & A Outcomes

Verena Kusstatscher and Cary L. Cooper

Subjects: business and management, organisational behaviour


10. M&A outcomes 10.1 EMPLOYEES’ IDENTIFICATION AND COMMITMENT In theory, identification and commitment can be considered as two separate concepts. In the interviews, however, commitment implied identification. Most of the time, identification was expressed through commitment. Here, in the empirical part of the work, the two concepts identification and commitment will therefore be presented together. The interviews revealed that in many cases organization members identify with their pre-merger company. It takes a long time until the employees of the two companies really feel committed to the newly merged company, and until they develop a ‘we’ feeling: ‘We have a working colleague – it took her more than two years to say, “I am a Sportler-member”, in the sense of having internalized it. Superficially she had already tried to say this earlier’ (I–9, §31). Most of the interviewees did not express ‘we’ identifications when talking about the whole merged organization. Zumtobel and Staff are an exception. Two interviewees estimated that more then 80 per cent of the members would identify with Zumtobel Staff as a whole. However it took them ten years to come to this common identity, and there are still a few members in both organizations who differentiate between ‘we’ and ‘them’. Respondents also claimed that the process could have happened much faster. The dramatic interventions and the changes only happened five years after the announcement. Five years for undertaking the first big steps towards integration was considered far too long....

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