Impact of metro-makro merger on employee Engagement at metro ravi store (Previously makro store)
Loading...
Date
2014
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
UNIVERSITY OF MANAGEMENT AND TECHNOLOGY
Abstract
Mergers and acquisitions are corporate restructuring done primarily with the aim of creating value for its shareholders over and above the sum of two companies. Revenue enhancement, cost efficiencies and many other benefits actually compel any two companies to merge thus, creating a synergy, but in practice things can go awry. This study also examines the greater challenges faced by the HR department at Metro after Makro- Metro merger. Conducted at Metro Ravi branch , where HR is has to address various employees concerns like employee engagement , dissatisfaction and demonization ,redrafting policies , division of tasks and many others in the ongoing process of establishing the cultural due diligence. The information was gathered with the help of Employee Survey Questionnaires and interviews conducted for the key executives at Director level to associate level employees of the two merged enterprises. The data collected was then analyzed with the help of statistical tools. Major findings revealed that the employee issues stemmed mainly from two different cultures integrating. The employees were generally satisfied with the merger and take pride in their work but were mostly concerned with the job security and varying educational requirements at both companies; METRO generally followed a strict compliance of standard operating procedures of international standards. To address the issues, management of METRO transferred one of its ablest managers to the Ravi road store to manage the store. Shifting the competent HR staff did improve the level of satisfaction of employees to 45%, but still stands much lower than the industrial benchmark. The paper concludes by arguing that the Management needs to work closely with the employees so that the satisfaction level reaches the industrial benchmark for Ravi road store to become a success story of the merger and for this purpose a set of recommendations has also been made.
Description
Supervisor Name: Mr. Syed Ali Hussain Bukhari
Keywords
MA Thesis, Mergers, Metro, Makro, Employee engagement