The Psychological Impact of Merger and Acquisition on the Individual: A Study of Building Society Managers

Abstract

The prospect of increasing profitability and market share by acquisition or merger has continued to exercise a more immediate and seductive appeal to organizations than a reliance on organic growth alone, despite the seemingly high risks attached. The human aspects of merger and acquisition and the impact such a major change event has on employee health and well being has received relatively little research attention. This article reports on a recent study of middle managers (n = 157) involved in the merger of two U.K. Building Societies. Post-merger measures of mental health suggest merger to be a stressful life event, even when there is a high degree of cultural compatibility between the partnering organizations.