Merging two companies(session 4)

Wednesday 22/10/08

There are two companies: company Q, which is based in India and company U, which is based in the U.K. Company U, which has 15 employees, wants to merge with company Q of 200 employees.

In the case like this some emotional aspects would happen, such as:

In company U

Employees: They have to work with a new boss so they might feel unhappy. There may be some fears of reducing staffs and for losing their jobs. They will have some stress for their future position and lots of problems because of living in the new country with a different culture, doubts about their salary, environment changing, assigning new roles, changing of their work habits, a new timetable and so on. On the other hand some good feelings due to working for a bigger company.

Managers: Some bad feelings because of the fear of losing jobs or responsibilities and some as above.


Owners: They earned money so they might be happy but due to losing the company may feel sad.

Shareholders: The prices will go high so it is highly likely that they feel happy.

Customers: They feel sad and unaffected.

In company Q

Employees: They might have some fears of losing their jobs or their previous positions but they have chances of more work. They will have more responsibilities.

Managers: They may be worried about the performance.

Owners: They will have more responsibility but their business will expand so it makes them happy

Shareholders: They might have some fears for the performance.

Customers: They will feel happy.

To improve communication on each side: Training events for company U about work practices, cultures, communication skills and their new roles can help. Some social activities, get together, throwing parties can help.

Support of information technologies: Video conference, emails, phones……….

In addition to that there are some strategies to make this merging smooth:
At first they can arrange some meetings for the managers and leaders of both companies to get to know each other .They should explain to employees of both companies why they do this merging.
Company Q can give assurance to the employees of company U by saying for example we won’t fire you in the next six months, try to give them the same salary, use some of company U work experience for the new company so they will feel that they are useful. Try to give the sense to company U employees that the environment hasn’t changed. Company Q should understand company U requires and provide some equipment for them.
Company U employees should share their experience and their customers with the new company and follow the new roles and timetable and the things like that of the new company.