oa Educor Multidisciplinary Journal - The impact of mergers and acquisitions on employee morale : an evaluation of H&K Networks in South Africa - research

Volume 3 Number 1
  • ISSN : 2520-4254
  • E-ISSN: 2663-2349



With a view to the profitability of their businesses, most mergers have placed their focus on economic and political uncertainty, while ignoring employee morale and well-being during the process of transition. Human capital is often overlooked during and after a merger. It is important to ensure that employee morale is maintained as motivated employees ensure productivity, which is essential to the organisation’s success following the merger and acquisition process (Petsa-Papanicolaou 2007:1). This paper intends to demonstrate how employee morale is vital to the success of mergers in modern world. Special focus will be placed on H&K Networks in South Africa. Most mergers or acquisitions result in losing key personnel, thereby affecting the newly-formed company’s desired growth strategy. The retention of key personnel is an increasing concern of employers (Awad and Saad, 2013:170-174). Mergers and acquisitions therefore ignore employee morale at their own peril. Generally, enterprises that merge or that are acquired base their success on the capability of the involved employees. This ensures the company’s success in its ventures going forward (Lupina-Wegener, Schneider and Van Dick, 2015:60). The proper management of employees during a merger results in optimal productivity.

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