Factors affecting employee cohesion in Post-Merger enterprises

Human resources are invaluable assets of any organization. Employee engagement will bring many benefits to the organization. Even in difficult times, employee cohesion is an important competitive different factor of organizations.
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Factors affecting employee cohesion in Post-Merger enterprises VNU Journal of Science: Economics and Business, Vol. 35, No. 5E (2019) 51-59 Original Article Factors Affecting Employee Cohesion in Post-Merger Enterprises Van Thi Bich*, Tran Thi My Huong Faculty of Administration - International Economics, Lac Hong University, 15/3B Huynh Van Nghe, Buu Long, Bien Hoa, Dong Nai, Vietnam Received 05 November 2019 Revised 20 December 2019; Accepted 26 December 2019 Abstract: Human resources are invaluable assets of any organization. Employee engagement will bring many benefits to the organization [1]. Even in difficult times, employee cohesion is an important competitive different factor of organizations [2]. Findings from a survey sample of 289 employees in post-merger enterprises in retail and pharmaceutical industries showed influences impact on employee commitment, including (i) Job satisfaction, (ii) Leadership styles, (iii) Cultural conflict, and (iv) Job stress and pressure. The results of this study provide a foundation of theory and practice for post-merger or acquisition businesses can efficiently exploit the human resource for the development in the next period. Keywords: Culture conflict, organizational commitment, job satisfaction, leadership style, post- merger, job stress, pressure.1. Introduction * where competition is taking place so fiercely that the result may be the acquisition of large Organizational behavior is playing an businesses for smaller businesses that often takeimportant role in supporting, promoting place. Besides, the merger is also a veryworking results of human resources in the important strategy for businesses to desire toorganization, in which the commitment expand the market size or market share, accessbehavior of employees in the organization to desired technology, products, distributiongenerally and enterprises after the merger is channels and market position [3].very important especially in the context of Organizational change, such as merger andvibrant economic development in Vietnam, acquisition (M&A) activity, continue to occur_______ at a high rate in organizations [4]. However, in* Corresponding author. organizational change literature, M&A failures E-mail address: bichvt@lhu.edu.vn range from a pessimistic 80% to a more https://doi.org/10.25073/2588-1108/vnueab.4296 5152 V.T. Bich, T.T.M. Huong / VNU Journal of Science: Economics and Business, Vol. 35, No. 5E (2019) 51-59optimistic, but still disappointing, 50% [5]. 2. Review of literatureThere is undoubtedly a range of contributing According to Enterprise Law of Vietnamexplanations of these high M&As failure rates, (2014), a merger of the enterprise was one orhowever, recently there has been growing several companies that can be merged intoacceptance among management researchers that another company by transferring all legalthe neglect and mismanagement of the human assets, rights, obligations, and benefits to theaspects during and following the actual merger merged company, and at the same time stop theor acquisition are significant determinants of existence of the enterprise merged.merger success or failure [6]. M&As have come Commitment is widely defined as the extentto be associated with outcomes such as lower of an individual’s loyalty and attachment to anmorale and job dissatisfaction, acts of sabotage, organizatio ...