If you are an MBA in finance you would surely have heard of Mergers and Acquisition…well you may have even done one paper on M and A.

Well this post is not about M and A…it is about what happens to the employees of  both the companies. For example when TCS took over Tata Unisys Ltd. (by that time Uniysys had left)…the then MD of TCS (Ramadorai) said “Taking 4000 people is not difficult for us…we take much more than that every YEAR…”

One employee of Tata Unisys told me in private “Well they have a choice..we do not'”…The employee is worried about a few things –

will I keep my job, what will be my salary, will I get paid at all, are you keeping me just to keep up the total morale of the organisation, if you do not rationalise, does it make sense that some people will have to go…however the THREE IMPORTANT QUESTIONS ARE THE FOLLOWING:

– will I keep my job, how will I get paid,…

read on..

http://blogs.hbr.org/johnson/2011/01/three-answers-every-employee-n.html

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  1. When acquiring a company, staff is not on always the highest priority, especially in engineering companies. However, To utilise full benefits of the acquisition, you have to try and keep the best talent for some time.Many people from thr acquired company find it dificult to make the transition in company cultures. Some redundancies are therefore inevitable.
    After the initial confusion is over, the good and valuable people are generally taken care of. One has to remember that in today’s work climate, you have to remain employable all your life. The days of joining a company to retire, are long gone. This means acquisition is generally bad news for middle aged managers who have lost touch with the company’s core technology or product applications. If managing people is your only strength, then you are in trouble as the acquirer normally have their own plans. I have been involved in such situations and can only say that it is complicated.

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