- 1. INTRODUCTION
The corporate sector in India has seen a considerable growth of mergers and acquisitions since the 1990’s & it’s a business strategy today for Indian corporate. The two main objectives behind any Merger & Acquisition (Hereinafter as M&A) transaction, for corporate were found to be: (i) improving revenues and profitability; and (ii) faster growth in scale and quicker time to market. The dynamics involved in the mixture process gives rise to different kinds of uncertainty and ambiguity in the process. Human resource responses arise from three factors. First, intense feeling of “we versus they” in the organization: these results in distrust, misunderstanding and poor organization. Secondly, there are tensions and hostility towards the acquiring company. Thirdly, anxieties on account of the effect it has on career plans through transfers, job loss, relocation, and loss of individual influence and culture clashes arise when dissimilar cultures come into contact with each other. The moments of cultural clashes are considered by employee stress; distrust on the part of members of one firm towards the members of other firm and negative attitudes towards each other. The negative attitudes reduce the commitment of members to successful integration of the organisations and the extent to which they are willing to cooperate with the other organization.
- 2. MERGERS AND ACQUISITIONS: SOME LESSONS
Merger is the combination of two existing companies in which all the assets, liabilities and stock of one company are moved to the other in consideration of payment either through shares, cash or both.