Staffing issues
Though M&A has become a widespread practice in today’s corporate world but according to experts only 30% of the se achieve the desired results. There may be many reasons for a failed M&A but one of the top reasons is poor integration of the two organizations.
After a merger, the top officials of the firm are faced with the tasks of reducing costs and eliminating redundant posts in the organization. This causes a lot of staffing issues in the newly formed entity.
To understand this issue the top management should understand
- Requirements of the business in future
- Existing skills and competency level in the two organizations that have merged.
- The level of fortitude of the existing employees as it is related to change.
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