An empirical study of the effect of a merger on organisational climate.
The issue of mergers and, in particular, the effect of mergers on employees is an important one due to the alarming number of mergers taking place at present both globally and in South Africa. Only recently have researchers begun to study the impact of mergers on employees. Many authors argue that this element is critical in determining the success or failure of a merger. The study examines a company, which recently experienced a merger and attempts to establish whether or not the merger had a detrimental effect on organisational climate. The study achieves it's aim by reviewing the literature and administering a self-completion questionnaire to the entire operational staff at three hierarchical levels, namely; store manager, sales administrator and sales person of the organisation in the KwaZulu Natal region. The study thus constitutes a census of all employees at the aforementioned three levels. The questionnaire administered includes both an organisational climate measuring instrument (an existing eighteen item scale was used) and an attitude to mergers measuring instrument, made up of twelve items, which was constructed for this study. The data was then analysed utilising both descriptive and inferential statistics.