Managing the Transition Phase of Mergers

Immediately following a merger, there is a period of anxiety, confusion and upheaval. Employee reactions during this period have been fairly well documented, and are centred on what will happen to their jobs and their careers. Following this period of confusion, there is a transition phase during which management is faced with the task of integrating the human resources of the merged firm. Not much is known about this process or about how employees respond to mergers over the longer term. To gain some insights, a survey of employee attitudes was conducted approximately two years after a merger. The study indicated that acting consistently with emergent organisational values and integrating members of the target are particularly important during transition.