Employee perceptions post-M&A and why it is important
(2022) BUSN79 20221Department of Business Administration
- Abstract
- Purpose: This study aims to examine changes in the acquired company’s MCS post-M&A and how the employees perceive this change. Further, the purpose is to investigate how employees' perceptions affect the employees’ motivation and identity.
Methodology: This study follows a qualitative research approach by analyzing an acquired company in the logistic industry. Data was collected through semi-structured interviews. During the process, the authors have been able to work on-site and therefore had the opportunity to observe employees’ actions and aspects that would not be possible otherwise.
Theoretical framework: Our theoretical framework has developed form literature and theories about M&A, management control systems, the employee... (More) - Purpose: This study aims to examine changes in the acquired company’s MCS post-M&A and how the employees perceive this change. Further, the purpose is to investigate how employees' perceptions affect the employees’ motivation and identity.
Methodology: This study follows a qualitative research approach by analyzing an acquired company in the logistic industry. Data was collected through semi-structured interviews. During the process, the authors have been able to work on-site and therefore had the opportunity to observe employees’ actions and aspects that would not be possible otherwise.
Theoretical framework: Our theoretical framework has developed form literature and theories about M&A, management control systems, the employee perceptions of change in management control systems, and what effect M&A has on employee motivation and identity. Finally, the logic of the theoretical framework is summarized in a theoretical model used throughout the study.
Empirical data: The acquired company is a small logistic company that has been acquired by a larger publicly listed competitor in the industry. Six respondents represent different roles in the company, from a CEO- to an operational level. The respondents have long experience in the company and can therefore compare their perceptions before and after the acquisition.
Conclusions: In comparison to previous research, this study shows that there are cases where an acquiring company does not control the acquired company with an iron hand and implements lots of controls. Even if the acquiring company, in this case, has implemented their ways of working, which the employees have perceived as being increasingly monitored. We could see that the acquired company’s identity is very much alive because they could retain the same employees as before the acquisition. But since the main factor of why the culture and identity remain is the existing employees, the future of the company’s culture is uncertain. New people will enter the company and influence the current culture, thus creating a new identity. It turned out that it was the intentions of the acquisition and the perceptions of the acquirer which had the most significant impact on how employee motivation, the identity of the firm, and culture were affected. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9093419
- author
- Sjöblom, Daniel LU and Tannér, Sebastian LU
- supervisor
-
- Anders Anell LU
- organization
- alternative title
- A case study of how employee perceptions of controls post-M&A affect motivation and identity
- course
- BUSN79 20221
- year
- 2022
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Mergers and Acquisition, post-M&A integration process, management control systems, employee-perception and motivaiton, culture and identity
- language
- English
- id
- 9093419
- date added to LUP
- 2022-10-10 16:41:05
- date last changed
- 2022-10-10 16:41:05
@misc{9093419,
abstract = {{Purpose: This study aims to examine changes in the acquired company’s MCS post-M&A and how the employees perceive this change. Further, the purpose is to investigate how employees' perceptions affect the employees’ motivation and identity.
Methodology: This study follows a qualitative research approach by analyzing an acquired company in the logistic industry. Data was collected through semi-structured interviews. During the process, the authors have been able to work on-site and therefore had the opportunity to observe employees’ actions and aspects that would not be possible otherwise.
Theoretical framework: Our theoretical framework has developed form literature and theories about M&A, management control systems, the employee perceptions of change in management control systems, and what effect M&A has on employee motivation and identity. Finally, the logic of the theoretical framework is summarized in a theoretical model used throughout the study.
Empirical data: The acquired company is a small logistic company that has been acquired by a larger publicly listed competitor in the industry. Six respondents represent different roles in the company, from a CEO- to an operational level. The respondents have long experience in the company and can therefore compare their perceptions before and after the acquisition.
Conclusions: In comparison to previous research, this study shows that there are cases where an acquiring company does not control the acquired company with an iron hand and implements lots of controls. Even if the acquiring company, in this case, has implemented their ways of working, which the employees have perceived as being increasingly monitored. We could see that the acquired company’s identity is very much alive because they could retain the same employees as before the acquisition. But since the main factor of why the culture and identity remain is the existing employees, the future of the company’s culture is uncertain. New people will enter the company and influence the current culture, thus creating a new identity. It turned out that it was the intentions of the acquisition and the perceptions of the acquirer which had the most significant impact on how employee motivation, the identity of the firm, and culture were affected.}},
author = {{Sjöblom, Daniel and Tannér, Sebastian}},
language = {{eng}},
note = {{Student Paper}},
title = {{Employee perceptions post-M&A and why it is important}},
year = {{2022}},
}