M.COM SEMESTER I ROLL NO.

41

PROJECT REPORT

COLLEGE
JAI HIND COLLEGE
A ROAD, CHRUCHGATE, MUMBAI 400020, MAHARSHTRA

TITLE OF THE PROJECT

THE EMPLOYEE PERSPECTIVE: MERGER AND ACQUISITION

ADVANCED FINANCIAL MANAGEMENT

M.COM Part II
SEMESTER IV 2017

PROJECT UNDERTAKEN BY:

HARSH TANWANI
MASTERS OF COMMERCE ADVANCED ACCOUNTANCY
SEMESTER IV
ACADEMIC YEAR 2016-17
JAI HIND COLLEGE, MUMBAI.

UNDER SUPERVISION OF:

PROF. RUCHI CHATURVEDI

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M.COM SEMESTER I ROLL NO. 41

CERTIFICATE
This is to certify that MR. Harsh Tanwani of M.Com (Advanced Accountancy)
Semester IV (Academic year 2016 17) has successfully completed the
project titles The Employee Perspective: Merger and Acquisition under the
guidance of PROF. RUCHI CHATURVEDI

DR. ASHOK WADIA PROF. RUCHI CHATURVEDI

(PRINCIPAL) (COORDINATOR)
DATE:15th FEBURARY 2017 DATE:15th FEBURARY 2017
PLACE: MUMBAI PLACE: MUMBAI

Signature of External PROF. RUCHI CHATURVEDI

Examiner (SUPERVISOR)
DATE:15th FEBURARY 2017 DATE:15th FEBURARY 2017
PLACE: MUMBAI PLACE: MUMBAI

COLLEGE SEAL

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M.COM SEMESTER I ROLL NO. 41

DECLARATION

I, Mr. Harsh Tanwani, hereby declare that I have successfully completed the
project titles The Employee Perspective: Merger and Acquisition. is an
original work and is being submitted in partial fulfillment for the award of
Masters Degree in Commerce (M.Com) from the University of Mumbai.

Signature of External PROF. RUCHI CHATURVEDI

Examiner (SUPERVISOR)
DATE:15th FEBURARY 2017 DATE:15th FEBURARY 2017
PLACE: MUMBAI PLACE: MUMBAI

HARSH TANWANI
(STUDENT)
DATE:15th FEBURARY 2017
PLACE: MUMBAI

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ACKNOWLEGDEMENT

In the course of writing this project as partial fulfillment of the requirements

for the award of the Degree of Master of Commerce from the University of
Mumbai, I am indebted to a few, those who have helped me tremendously to
complete this work.

First and foremost, I am thankful to my research guide (PROF) RUCHI

CHATURVEDI, without whom this work would not have taken shape. I am
truly thankful to him, for his inspiration and co-operation to take up such a
study, persuade me to continue with the work and provided me most effective
guidance.

Further, I would like to thank the faculty of Jai hind College, without their
cooperation I would not have ventured into such a study.

I express my deep gratitude to my entire college friends and my family

members whose efforts and creativity helped me in giving the final structure
to this project work.

I am also thankful to all those seen and unseen hands and heads, which have
been of help in the completion of this project work.

DATE:15th FEBURARY 2016 HARSH TANWANI

Place: Mumbai (Signature of student)

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M.COM SEMESTER I ROLL NO. 41

Table of Contents

RESULTS AND DISCUSSION

CONCLUSION

SCOPE FOR FURTHER RESEARCH

RELEVANCE OF THE STUDY

LIMITATIONS

BIBLIOGRAPHY

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1
RESULTS AND DISCUSSIONS

Q.) I believe the recent changes will make the company a better place for my professional
growth.
Strongly Agree
Agree
Neither Agree or Disagree
Disagree
Strongly Disagree

18
16
14 17
12 14
10
8
6 9
4 7
2
0 3

Discussion:

From the data collected we can see that majority of the employees neither agree or disagree
if the changes after merger have positive impact on their professional growth followed by
options of agree and disagree. This shows that merger has somewhat neutral effect on the
professional growth of employees.

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Q.) In your experience, what is the primary cause of failed mergers?

Conflicting Goals/Strategies
Poor Communication
Conflicting Cultures
Conflict Between Management Teams

20
18
16 19
14
12 14
10
8
6 9 8
4
2
0

Discussion
From the data collected we can see that majority of the employees think that poor
communication of instructions and information is the primary cause of failed mergers
followed by conflicting cultures, conflicting goals and conflict between management teams
respectively. This shows that acquiring company should take proper steps to improve
communication within the organization.

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Q.) How Successful do you feel the integration was or has been to date?
Successful
Unsuccessful
Dont Know

25

20 22

15 17

10 11

0
Successful Unsuccessful Don't know

Discussion
From the data collected we can see that majority of the employees think that the
integration process is an unsuccessful one. This shows that company should implement
integration process more successfully.

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Q.) I feel/harbor resentment towards management after the fact that there were layoffs
after the management change/merger.
Strongly Agree
Agree
Neither Agree or Disagree
Disagree
Strongly Disagree

20
18
16 18
14
12 15
10
8 9
6
4 6
2
0 2

Discussion
From the data collected we can see that majority of the employees dont like the layoffs
done by the acquiring firm. This is something that cannot be avoided so the acquiring firm
should conduct interviews and find ways to motivate the existing employees.

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Q.) Do you (acquired employees) feel like second-class citizens? In general, do you feel both
sets of employees are being treated fairly?
Strongly Agree
Agree
Neither Agree or Disagree
Disagree
Strongly Disagree

25
20
21
15
16
10
10
5
0 2 1

Discussion
From the data collected we can see that majority of the employees think that there is no
change in the way they were treated before the merger happened followed by disagree. This
is a good sign on the part of acquiring firm as the acquired employees should not be given
less priority than any other employees.

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Q.) Has there been any change in work culture or work environment after the merger?
To a very great extent
To a great extent
To some extent
To a very little extent
To no extent at all

25
20 22
15
10
9 8
5
5 6
0

Discussions
From the data collected we can see that majority of the employees think that the work
environment or culture has changed after the merger to some extent. This is normal for any
acquired firm as the management changes. But it should be noted that it is normal as long
as it is to some extent and not to a very great extent as it can cause resistance on the part of
employees.

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Q.) Please rate how you feel about communication regarding recent company changes?
Very Informed
Somewhat Informed
Not Informed at all

30

25 28

20

15 16
10

5 6
0
Very Informed Somewhat Informed Not Informed at all

Discussion
From the data collected we can see that majority of the employees feel that they are not
fully informed about the changes that takes place after the merger. This shows poor
communication as discussed above. Acquiring firm should take steps to effectively
communicate with the employees.

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Q.) What kind of change has come in your work life balance?
Positive
Negative
Neutral

35

30 32

25

20

15
14
10

5
4
0
Positive Negative Neutral

Discussion
From the data collected we can see that majority of the employees are neutral about the
changes that have come in their work life balance followed by negative and positive
experience. Acquiring company should take steps to create better work life balance among
employees.

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Q.) I feel my job is secure.

To a very great extent
To a great extent
To some extent
To a very little extent
To no extent at all

30
25
20 24
15
10
5 9
7
5 5
0

Discussion
From the data collected we can see that majority of the employees feel that their job is
secure to some extent. This shows that employees feels lack of job security as they feel that
acquiring firm may not need them as they have their own departments to take care of
things.

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Q.) I can get the information that I need to do my job well.

All of the time
Most of the time
Some of the time
Hardly ever
Never

25

22
20

15 16

10 11

0
0 1
All of the time Most of the time Some of the time Hardly ever Never

Discussion
From the data collected we can see that majority of the employees get the information they
need to perform their job well. It should be noted that company changes should also be
communicated effectively like this.

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Q.) Management gives staff a clear vision of the direction in which we are going.
Yes
No
Cant Say

35
33
30

25

20

15

10 11
5 6
0
Yes No Can't Say

Discussion
From the data collected we can see that majority of the employees feel like management
does not give clear direction regarding the goals that company is pursuing. Acquiring
company should take proper steps to communicate missions, visions and goals with the
employees of the acquired firm.

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Q.) After Merger, the company has implemented policies that help adaptability to the
change.
To a very great Extent
To a great Extent
To some Extent
To a very little extent
To no extent at all

20
18 19
16
14
12
10 11
8 9 9
6
4
2
0 2

Discussion
From the data collected we can see that majority of the employees feel like the acquiring
firm takes steps to implement policies that help them adapt to the change.

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2
CONCLUSION

When corporations merge, there are usually instances of redundancy. In these

cases, redundancy can lead to layoffs, or may require shifting roles of your
employees. While layoffs most often cannot be avoided, reducing uncertainty
amongst employees is best. Those employees that are being laid off should be told
immediately and be provided with severance packages, if possible, and most
importantly treated in a respectful manner.Remaining employees should have clear
guidelines on their role within the new organization, and a development plan that
will help them adjust to subsequent changes.
All employees should be made aware of new processes, policies and procedures
that result from the merger. This will require a training plan, which may include
making employees familiar with everything from processes for submitting
purchase orders and new reporting procedures, all the way up to new technology
platforms.Your training plan can include oneonone training seminars with an
instructor, webbased training such as webinars, or newly developed or revised
training guides.
The culture of the organization is bound to be impacted, and this may negatively
affect the morale of your employees. The uncertainty can lead good employees to
seek employment with competitors, or other employees to take on an unmotivated
attitude. Either scenario can lead to disruption in the workforce. Communicate as
openly as possible, and provide employees with the vision and mission for the new
organization as early as you can. Mapping out the changes that will occur in a clear
manner keeps employees informed, reduces uncertainty, and minimizes the
disruptions. It may even help them view the changes as positive.

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3
SCOPE FOR FURTHER RESEARCH

The related fields of study that is recommended for further studies are as follows:

a) Further studies around the strategy on M&A need to be investigated. This is

particularly necessary because many studies are done around the company
strategy for M&As, but little has been done around the M&As strategy to
cater for human factors during change.
b) The theories of M&As need to be investigated.
c) The relationship between Job satisfaction and age should be investigated.
d) The role of manager in implementing adapting policies.
e) The influence of leadership executive in improving employees performance
after an acquicition.

The main outcome of the study should be to stimulate further research in the field
of mergers and acquisitions in relation to their impact on employees within an
organization. This study should enable managers, change agents, Human Resource
personnel, and HR planning and strategy departments to deploy more effective
change interventions and training programmes in the course of future mergers and
acquisitions of companies.

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4
RELEVANCE OF THE STUDY

This study is relevant for several reasons. There has been little research performed
on the effect of mergers and acquisitions on the culture of an organizational, and
more specifically, on employee morale. By this study, a number of groups can
benefit. The company will benefit, as the study involves participation on the part of
employees. This experience in itself will attempt to contribute to a more positive
experience of various employees at the company. This study will present more
opportunities for employee participation and intervention that will attempt to
improve employee morale. This study will contribute to the field of Human
Resource Development in areas of research and practice. The study will also
present various suggestions for HRD professionals when faced with the
consequences that merger and acquisition brings to an organization.

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5
LIMITATIONS

The main source of internal research error associated with this study were response
effects caused by fear of possible suspicion that responding to questions may
hinder their success within the department or company as a whole. Respondents
also feared that these may jeopardize their position, employees felt they could not
disclose some information.

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6
BIBLIOGRAPHY

Primary Data collected through questionnaire

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