Business Mergers’ Effects on Employee Loyalty


The ethical dimension of business is often deemed as less relevant than the issues associated with the attraction of new customers and increase of a company’s profits, yet compliance with basic principles of Social Corporate Responsibility (CSR) and similar ethical standards allows a firm to gain an impressive competitive advantage. Herein lies the reason for selecting the topic of personal and social responsibility in business projects. The emphasis on intercultural communication and collaboration is justified by the recent increase in the levels of diversity observed in the business setting. Due to the need to introduce innovative solutions and promote knowledge sharing, most companies support multiculturalism, which invites opportunities for active learning, yet also creates premises for confrontations due to culture clash (Karimi 41). Therefore, there is a strong need to study the strategies for addressing ethics and responsibility in the workplace, as well as seek the approaches toward effective and conflict-free cross-cultural collaboration.

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The importance of evaluating the role of personal and professional responsibility in the context of a business merger is quite self-explanatory. Given the vast number of alterations through which an organization is expected to go, it is critical for a company to be supported by loyal and responsive staff members. During a merger, the threat of losing employees’ loyalty grows exponentially since the new challenges and responsibilities, as well as a shift in the corporate hierarchy, make employees question their ability to handle the new challenges (Karimi 42). The loss of loyal staff members, in turn, is likely to cause an organization major losses due to a drop in the quality of production and the efficacy of the delivered performance (Karimi 44). Consequently, examining the strategies that allow an organization to keep the levels of employee retention high and ensure that people working in its setting remain loyal and enthusiastic is critical.


Keeping the levels of employee engagement high at all times despite the shift in roles, responsibilities, values, and performance standards that a merger suggests will require a substantial effort. A company experiencing a merger will have to deploy an incentive-based approach and a people-oriented HRM strategy to help employees to feel secure and confident in the changing organizational setting. In order to study the opportunities for supporting staff members and encouraging cross-disciplinary cooperation between the members of the merging firms, one may need to consider the study by Karimi. Karimi delineates the challenges that organizations experience in managing the roles and responsibilities of their staff members during a merger, as well as suggests viable strategies for confronting the issue (46). By studying some of the solutions suggested by the authors, such as the focus on collaboration and the introduction of negotiation-based, cross-cultural approaches, one will avoid possible confrontations in the workplace. Similarly, the problem of inconsistencies in the hierarchy of merging organizations will be addressed.


Finally, establishing a homogenous leadership framework should be regarded as a critical step in addressing the concerns raised by a merger between two companies. As soon as the tools for motivating staff members and arranging their work are outlined and used consistently by managers, a platform for cooperation and making a collaborative effort will be built. As a result, emerging conflicts caused by differences in the perception of workplace responsibilities will be easily managed. Moreover, employees will be able to draw important lessons concerning communication in the workplace based on the outcomes of the conflicts.

Work Cited

Karimi, Kirima Lucy. “Effects of Business Mergers on Employee Loyalty in Selected Companies Listed at the Nairobi Securities Exchange.” Global Journal of Management and Business Research, vol. 1, no. 1, 2019, pp. 41-48.

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