Hubbard, and Purcell, (2001) There has been wide research that suggests that the management of human factors in the post acquisition performance is important and, where it is badly managed, helps to explain why most of the acquisitions are not suppose to be successful. A central factor in this process is the management of employee expectations. That is, the way in which the acquiring company management seeks to form and then meet expectations of employees in the firm acquired could be one important aspect of the acquisition process which turn into the project to a greater chance of success.
According to this study, employees in acquired organizations have concerns that transform into expectations concerning both employees and their work group. These expectations are with respect to immediate job and employment fears to longer-term status, and behavioral and cultural concerns in the new organization. These expectations vary time to time and have different aspect depending upon the superiority of the employee, the degree of integrations sought by the acquirer and the extent to which expectations formed are proven to be realistic and reachable.
The assumption following the shaping and reorganizing of expectations is that if employee expectations were properly managed during the implementation process there would be less uncertainty and ambiguity among the employees and less damage to levels of organizational commitment. If there is a mismatch in expectations, the outcome could be expected to be undesirable for both the individual as well as the merged entity by way of higher intention to leave the organization and a loss of qualified and capable employees.
Surkund, et al., (2007) examine managing expectations of acquire employees in a post merger scenario. Researcher constructed Questionnaire method and interviews. This study shows that across the entire research the following five expectations were found to be more important long-term job security, competitive compensation, opportunities for promotion and advancement, closeness of work location to place of residence and safe working environment. Here, it was seen that the factor safe working environment was being referred to security in the event of fraud committed on the organization by its customers without the knowledge of the employees.
Purpose of this study was to inspect the psychological contract post-merger by identifying factors, which could shape expectations and thus transform this psychological contract. To examine the expectations involved in a psychological contract in a post merger scenario as well as to determine which of these factors were more important to the acquired employees, if apparent to be fulfilled, would help organizations retain key employees thereby helping increase the chances of success in a merger.
Huselid, (1995) study provides broad evidence in support of this statement. Across a wide range of industries and firm sizes, Researcher found...