Type: Research Essays
Sample donated: Colleen Baldwin
Last updated: May 15, 2019
Mariappan V.conducted a research on mergers and acquisitions and saw the impact on humanissues and strategies.
In this paper I learned that most of the failures inmergers and acquisitions are caused due to the difference in culturalbackground, human resource in different organisations. Cultural differencesbring an attitude of change from ‘we to they’ as there is a feelingof distrust ,misunderstanding, poorcoordination and employees also have a risk of transfers , job loss , orrelocation. Four types of ambiguities are formed in case of merger that is environmental,structural, cultural and roles. Mergers also create stress and negativeattitude in employees and challenge their commitment towards organisation. Incase of acquisitions the attitude of acquiring company towards acquired companyis not like a big brother rather more like a bossy attitude. Thisreduces their corporation towards organisation. This can be solved byunderstanding each other cultures prior to mergers and acquisitions Werhane P.
H. conducted a research on mergers and acquisitions and saw two ethical issueshappening in it. In this paper I learned that in mergers and acquisitionsemployees and shareholders are affected the most. Employees are the last one toknow about this and costs their job to them. In contrary it is arguedthat mergers and acquisitions often protect jobs by combining two organisationsand increasing capital growth.
Employees have right to information andright to freedom which gives them entitlement to leave any organisation at anypoint of time which is being violated in mergers and acquisitions. Talking aboutshareholders they have a right to do whatever they want with their shares but notat a cost of harming others. Shareholders are an important part of thecompany as the own the company they have a right to maximize their gains at anypoint of time. If shareholders have fiduciary rights and can exercisefreely and also know about the organisation then employees can also have rightsto freely decide about their jobs Arnal W. E.conducted a research on mergers and acquisitions and combined it with the Q theory.In this paper I learned that increase or decrease in stock price canalso help in merger and acquisitions.
In this Tobbin’s Q theory is used formerger and acquisitions for new investment expenditure (companies). Thisstates that in decreasing of stock price it will be beneficialfor acquiring a company. There is no use creating a new company when u canacquire one at cheaper cost. The Q theory states that when Q is lessthan one then it is beneficial to acquire as Q goes inverselywith stock market Balog J. conducted a research on why marketsreacts the way it does to mergers and acquisitions.
In this paper I learnedthat impact of stock prices is greater in reaction to mergers and acquisitions.Profit earning ratio have both quantitatives and qualitative factors . If alsoby two elements rate of change of earning per share and profitability of agiven rate of change occurring. The wallstreet react directly as mergers andacquisition go if they show positive result then increase otherwise decreaseCartwright, S.
, & Cooper, C. L. conducted aresearch on people working in mergers and acquisitions. In this research paper I have learnedthat In spite of the consideration mergers and acquisitions have gotten frommonetary and advertising strategists, the merger disappointment rate stays ashigh as ever. In light of the present flood of merger movement, it would appeara proper time to think about elective clarifications of merger disappointment,and evaluate the commitment which brain research can make to our comprehensionof mergers and acquisitions in tending to the embodiment of the action; theconstructive blend of individuals and the combination of hierarchicalsocieties.
In short I want to say mergers and acquisitions affects employeesthe most.