Effects of Mergers/Acquisitions on Human Behavior and Motivation

Org 502 - Human Relations and Organizational Behavior

This paper will take a look at the impact of two motivational theories on a group of seven employees who completed the Work Motivation Survey. It will also look at how individual differences among the survey participants could create workgroup conflicts. It will also assess the impact on this data on job satisfaction and motivation. The data will also relate back to the merger/acquisition transition with the goal in mind of maintaining acceptable levels of individual performance.

Effects of Mergers/Acquisitions on Human Behavior and Motivation

According to the American Management Association, between two-thirds and three-fourths of all corporate mergers and acquisitions fail. Additionally, one in three acquisitions are sold off within five years (Organizational Dynamics, 1992).

With odds like that, why do companies even try to merge? What is it that goes so ho

12. I enjoy belonging to groups and organizations. 3.71

The second motivational theory, Goal Setting is more modern. Edwin Locke and Gary Latham published the theory in 1990. Paul Hershey and Kenneth Blanchard also postulated a similar theory in Management of Organizational Behavior in 1993. They called it Motives, Goals, and Activities. The theory basically states that intentions – expressed as goals – can be a major source of work motivation (Organizational Behavior, 2001, p. 114). A goal reflects a person’s purpose and gives them something to work toward thus improving their motivation. In both versions of the theory, specific, attainable goals bring about better results than vague, generalized goals. In our merger situation, managers need to get to know their people, and through this knowledge help employees to establish work goals based on their new situation. Without specific, challenging goals, employees will not have the direction they need to regain their focus and motivation. They will be left floundering, uncertain where to focus their energies in their new culture. This further supports the need for a clearly communicated vision and strategic plan for the merged company. In the face of a carefully constructed strategic plan, managers and employees can create new goals for themselves based on the overall goals of the new company. Managers can then help their workers to build specific and challenging goals so both the company and employees will enjoy high motivation and high productivity.

There are things that can be done at the beginning of the merger process to ease the pain for all and create more of a win-win situation. When it becomes clear two companies are about to merge, the leadership of the company’s involved need to start a joint strategic planning process to prepare for the transition. Steps leadership needs to take to get ready for the actual merger will be discussed in the Merger/Acquisition Transition Plan next week. This paper will concentrate on human motivation factors to be considered in the merger process.

The first step in handling employee conflicts is to recognize and accept that conflicts will occur. Once this is realized and accepted, a strategy for handling conflict needs to be developed. In the case of our seven employees, such self-assured and self-motivated people may not appreciate new direction from the new company interlopers. More than likely, they will not appreciate the perceived interference of the new leaders, managers, and employees in their work processes. With a group of obvious leaders like ours, power struggles and turf wars are highly likely to occur with the other company’s employees. Managers can try a strategy of, 1) anticipate conflicts, 2) gather the facts when conflict does occur, 3) do not take sides until all the facts are gathered, 4) control their own emotions, and 5) make a fair decision based on facts and stick to it (Pollock, Oct 99). The manager’s goal is to build a team out of the new players through gaining their confidence, trust, and respect. Once the new team starts functioning together, productivity should meet or exceed pre-merger levels.

Some topics in this essay:
Maslow’s Hierarchy, Organizational Dynamics, Organizational Behavior, QUESTION AVERAGE, Average Female, Acquisitions Inc, Motivation Survey, Transition Plan, Pollock Oct, University Phoenix, merger process, organizational behavior, levels pyramid, motivational theories, human behavior, merger/acquisition transition, strategic plan, mergers/acquisitions human behavior, seven employees, question average, motivation productivity, motivational theories applied, specific challenging goals, effects mergers/acquisitions human, organizational behavior 2001,