A merger is the combination of businesses which occurs when two companies, more or less on equal footing, decide to join forces (Tomlison, 2005). On the other hand, acquisitions are business combinations which occur when one company takes over another company. Mergers and acquisitions can be an excellent idea for a company but employees are the most affect, while the company is expanding their markets, the employees are suffering because of stress, training and adaptation of the new workers.
While there is a merger or acquisition of companies, employees are affected emotionally. They are overwhelmed by the fact that during this period they feel threatened by their new colleagues.According to the reading “The influence of mergers and acquisitions on employee performance: a case of equatorial commercial bank” by Mary Kivuti, workers have job insecurity because as the company is in process to merge or being acquihired, the new employees tries to find their spot in the new business, and that means that the new workers seek to work in the same area they used to work or ascend to a higher position and sometimes the association need to reduce workers because they won’t have countless workers for the same job.
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