The human resource effects of mergers and acquisitions in small to medium wholesale and retail enterprises : a qualitative case study of FBS (Marketing) Ltd.

Abstract

This qualitative study builds around Ashforth & Mael’s (1989) theoretical framework of Organisational Identification Theory. It sets out to explore the psychological effects present that employees undergo when going through a business acquisition. In furtherance to this, this study seeks to understand better whether not taking steps to cater for such psychological effects tends to lead to employees becoming disengaged with the organisation. This study, in fact, looks into how those who experience a business acquisition can become disengaged with that organisation for a number of different reasons. To better understand these issues and reach the objectives of this study, ten semi-structured interviews were held with employees of Francis Busuttil & Sons (Marketing) Ltd. The data that was subsequently collected was analysed using the Thematic Analysis approach (Braun & Clarke, 2006). Participants’ ages ranged between 26-46, and they came from different social strata within the aforementioned organisation. They ranged from managerial and non-managerial roles to being part of both the acquirer and acquiree team. From the questions posed it became clear that the business acquisition process had effects on them during its three main stages of; pre-merger, during the merger and post-merger (Appelbaum, Gandell, Yortis, Proper, & Jobin, 2000). Throughout all these different stages, different thoughts, emotions, and psychological considerations bore varying degrees of weight on their minds, which was also determined to some degree by the level of involvement they had in the process itself. Communication emerged as one crucial element that needs to be strong and effective to quell potentially negative thoughts of ambiguity, which could lead to feelings of uneasiness and fear, further leading to an unsuccessful merger and acquisition outcome. Behavioural changes amongst colleagues became apparent through this research, which revealed how the merger and acquisition changed employees in some way or another. In fact, this research has shed light on the importance of having a solid management team in place that is united and uniform in its dissemination of information and availability to those seeking it during a relatively turbulent time.