POST-MERGER INTEGRATION ISSUES: A LONGITUDINAL PUBLIC SECTOR CASE-STUDY

Abstract

Employee resistance to change draws on conventional knowledge and prior research. Hence resistance is presupposed before a merger. In the literature advice is given on how to minimize resistance to change. A main recommendation is to inform and communicate extensively to down-play feelings of anxiety and support involvement. Nevertheless, post-merger integrations are known to be problematic and seldom achieve the predicted success. This longitudinal case-study follows a merger from the administrators’ perspective. Prior empirical findings were promising for the post-merger implementation and showed administrators who welcomed the merger. Furthermore, they were happy with the overall merger information and found themselves fully participating in the change processes. The recent findings (after the merger) showed that the administrators experienced lowered productivity, higher fragmentation of the workday and less involvement. Furthermore, the information and communication had been changed after the merger. The human factor is important to acknowledge for preventing post-merger failure and the findings from this longitudinal case-study highlights the importance of maintaining positive employee perceptions after a merger. The longitudinal case-study aims at adding to the knowledge base on facilitating post-merger implementations. Key words: importance of information and involvement in organizational changes, merger in public sector, post-merger integration (PMI), resistance to changes.