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 11: Discussions

Verena Kusstatscher and Cary L. Cooper

Subjects: business and management, organisational behaviour


A boom in merger activities has characterized the world economic scene in recent decades. This picture was dominated by cheerful and hyped-up messages regarding strategic and operational benefits of newer and bigger organizations. However the analysis becomes somewhat gloomy when considering the high degrees of merger failure and the negative implications for those affected by the M&A. The traditional literature is mostly concerned with organizations as rather logical and rational entities, failing to appreciate that highly emotional events such as M&As interfere with logic and rationalism. This book calls for an increasing awareness of emotions and of appropriate forms of managerial communication to deal with organizational changes. The present work highlights the significance of managerial communication and management behaviour towards their employees in a comprehensive conceptual framework. The combined impact of these dimensions on employees’ emotions is stressed for periods of significant organizational change. Five outcome dimensions, employee identification and employee commitment to the newly merged organization, job satisfaction, the development of relationships and perceived performance, were investigated in a qualitative study involving four companies. The results provided support for the framework. The development of this conceptual framework can be seen as a major contribution of this study. Furthermore the development of an instrument that is suitable for a survey of emotions in the M&A context is considered unique. 11.1 11.1.1 RECAPTURING EMOTIONS IN M&As Cross-sectional versus Longitudinal Study The literature recommends investigating M&A phenomena relatively soon after the announcement....

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