When two organizations merges?how it effects the employees??drawbacks or advantages?

Question

When two organizations merges?how it effects the employees??drawbacks or advantages?

Answer 1

In general, there are important consequences for the employees of both companies. In a hostile takeover the employees of the target company are in the worst position (sometimes it happens that the target company's employees do it so much better in which case it's labeled a "reverse takeover"), in a friendly takeover that doesn't matter.

Most takeovers/acquisition is followed by a re-organization in which the operations of both companies are merged. Like every re-organization there are opportunities for the employees. Departments and budgets are getting bigger and so are the responsibility (and wages) of the employees in charge of them. The company is larger and as such there are more different positions to fill and opportunities.

Most re-organizations also mean closing down plants, offices, ... and layoffs. There will also be a new corporate culture (in at least one of the two companies) which might be difficult to adapt (and is the major reason for mergers to fail).

Last, an acquisition creates media-attention, that might give the company a better (or worst) public image, which always reflects upon the employees.