Social Identity Crisis amongst Employees in Mergers & Acquisitions

Abstract

The process of mergers and acquisitions has gained substantial importance in todays corporate world. During mergers and acquisitions, organizations as well as employees experience several emotional and social challenges. The social identity theory of intergroup behavior (Tajfel and Turner, 1979) emphasizes that an individuals wants to hold a positive self-concept through personal and social identity. The study analyses the emotional and social dimensions of employees involved in mergers and acquisitions from the perspective of social identity theory. The study is a qualitative study of the emotional and social challenges faced by employees in mergers/acquisitions, using the framework of social identity theory. The data for the study was collected from a sample of HR managers and employees of the organizations which have undergone merger or acquisition via personal interviews. The study suggests key elements of human resources required for smooth transition in mergers/acquisitions. The study also looks into the effective management of emotions during mergers/acquisitions, eventually leading to emotional well-being of an employee. Keywords: Merger and Acquisition, Social Identity Theory, Self-Concept, Emotions

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