INVESTIGATING THE IMPACT OF CHANGE MANAGEMENT IN THE ACQUISITION OF A DIVISION IN A FOOD MANUFACTURING COMPANY
Abstract
From expansions and diversifications to an upsurge in Mergers and Acquisitions (M&A), the corporate world is experiencing a noticeable paradigm-shift where organisations have discovered the importance of the M&A process as a method to enhance the value of their businesses. However, the dynamic changes introduced by such processes leaves employees unprepared to handle and deal with it, resulting in mixed emotions ranging from uncertainties, fear, anxiety, and resistance to these changes. With change being a sure reality required for competitive advantage and organisational survival, organisations are expected to adapt to the unstable market conditions and learn to prepare employees to be a renewing rather than a reactive workforce by finding ways to manage the changes taking place accordingly. The aim of the study was to identify the factors that impacted on the change management process during the acquisition process of a new division in the company and to assess the impact that the process had on the organisation. The results established that these changes led to both negative as well as positive effects on the employees. The study was conducted by applying the qualitative research methodology using face-to-face interviews on a sample of eight participants extracted from the target population that formed part of the manufacturing company during the M&A process. The outcome of the study revealed the importance of dealing with the human elements aspects of the change because if not addressed sufficiently, may negatively impact on the satisfaction and commitment of employees. Recommendations to ensure future M&A processes success, was that the company needed to not only create the vision for change but also focus on ensuring that it is communicated effectively. With employees being valuable intangible assets of any company, the management needed to invest more in the well-being of their workforce by making them feel appreciated and valued.
Keywords: change management; mergers and acquisitions; organisational survival.
CITATION: Vanessa, Y., & Nishika, C. Investigating the impact of change management in the acquisition of a division in a food manufacturing company. The Strategic Journal of Business & Change Management, 5(4), 1896-1910.
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.853
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