The term Employee Engagement refers to theindividual’s involvement, satisfaction and commitment for work.
Some of thefactors that are measured to calculate the EES are- job security, work safety,benefits, work environment, work-life balance, empowerment/autonomy, careeropportunities and rewards and recognition (Aon Hewitt Engagement Model).Mergers and Acquisitions are one of thestrategic options for organizations to secure their position in a competitive,and globalized market place. (Faulkner, 2012).
Quarter 3 (July to Sept) 2017saw a total of 163 successful domestic and cross-border acquisitions anddisposals involving UK companies worth £86.4 billion (www.ons.gov.uk). Themerger and acquisition of organizations has a vast impact on parties involvedin the deal. Purpose of this research is to prove that eventhough EES might dip right after the merger, it will improve in long-term ifthe organisation takes appropriate steps post M to help realise thebenefits planned as part of the M.
Literature Review – 4001) The Meaningof Employee Engagement, MACEY and SCHNEIDER (2008)MACEY and SCHNEIDER (2008) in their study covermore of the psychological part of ‘Engagement’. Their proposition, the effectsof job attributes and leadership as main effects on engagement, supports thehypothesis that has been made in this research proposal as it shows the how theconditions of the workplace have both direct and indirect effects on the engagement(pg. 6).
As the EES measures the value of engagement, variance of these factorsaffects it substantially.The journal offers an in-depth knowledge aboutwhat engagement in terms human psychology, especially in relation tosatisfaction, commitment, job involvement and empowerment, is and how it drivesthe bottom-line results for an organisation. (pg. 7-14) 2) ‘Measuring organisationalclimate and employee engagement: Evidence for a 7 Ps model of work practices andoutcomes’ LANGFORD (2009) In this journal, Langford studies the strengthof psychometric properties of a survey based on the employees’ opinions to findwork practices and outcomes specially employee engagement. (pg. 185). Thisjournal is very valuable for this research as it puts light on two veryimportant aspects: first, the method of data collection via survey and second,how the organisation climate affects the outcomes/employee engagement. The data collection using quantitativemethodology with standard questionnaire explains primarily the selection ofvariables using established tools such as ‘Organisational Climate Measure’ and’Gallup Workplace Audit’ and also the process used to add/delete scales as thestudy progressed and primarily explains.
(pg 187). As per the requirement ofthe study, it explains the method of analysis used in great depth to determinethe aforementioned effects. Study on relation between M&A and EES arenot directly available and appears to be a less explored area. This research isexpected to cover that gap and enable the management of the acquiringorganization to improve the due diligence process and to take suitablecorrective actions. 3) Merger. Merger and Acquisition is a vast topic anddetailed study needs to be done on it.
Kyungjin Yoo et al (2013) in theirresearch, analyse on a very specific area of industry- the effect of renewableenergy M&A (divided into 4 strata) on the enterprise/organisational value.Different types of M&As-related (secureexpertise in same domain) and unrelated- (diversify using different businesses)are identified (Rumelt, 1974). There has been active research on howdiversification affects business performance. The study has used secondary datacollection technique and sample data was based on acquirer in the M&Aprocess (pg. 698) which is very helpful knowledge for this proposal. The According to the authors, in a regulatoryenvironment, firm M&A have a negative effect because they must be confirmedboth by the regulator and by shareholders, leading to the firm incurringconsiderable costs and thereby reducing enterprise value. (pg.
7)References on relation between M&I and EESare not directly available and appears to be a less explored area. This research is expected to cover that gapand enable the management of the acquiring organization to improve the duediligence process and to take suitable corrective actions.Researchapproach – Aims and objectives:A directional alternative hypothesis is madethat post-merger, EES of the combined organisation will reach the acquiring organisation’sEES in long-term. Variable will be tracked in the questionnaire that are to be’scored’/ measured (work life balance, empowerment, opportunities, paystructure etc.) to calculate the EES. It is also believed that a big differencein the score would be observed pre and post-merger at least in the short-term. Ananalysis of variance across all factors would be conducted, with allorganisations recently undergone M as the independent variable. EES is one of the key non-financial elementsimpacted due to M and hence it is very important to study how Maffects employees.
Collecting data of this size will need aquantitative approach to ensure that the data captured is objective in natureand can be analysed accurately. As Saunders et al (2016) said, ‘a quantitativeresearch is associated with positivism, mainly when it is linked withstructured data collection techniques’. The research on the hypothesis will be carried outbased on the philosophy of positivism epistemology.
The hypotheses definedearlier would be tested and confirmed, in whole or part, or refuted, leading tothe further development of theory which then may be tested by further research. The data collected from the organisations wouldbe through a objective questionnaire and will follow a strict scientific datacollection method. This approach will focus on discoveringobservable and measurable facts and regularities, and as mentioned by (Crotty 1998), only phenomena that can be observed and measured would lead to the production of credible and meaningful data. This research will use these universalrules and laws to help explain and predict behaviour and events inorganisations.
The research willfollow a Deductive approach:stats with a proposition of a hypothesis and end result isconfirmation/rejection. Highly structured. Large data analysed with lessdepth. Using data to test the postulatedtheory that there might be a dip in EES in the short-term but will stabilise inthe long-term.
CTS1 Proposeddata collectionFor a research ofthis magnitude, data from a long time-period will be required. Hence bothPrimary and Secondary data source will be used. The primary data set will beobtained by asking the employees in the target set to fill out a questionnaireand the responses will be used for calculating the score. In this case, the primarydata will be collected by online surveys based on mono method quantitativestudy and corresponding quantitative analytical procedure..
Each question willhave an agreement scale ranging from strongly agree to strongly disagree withagree, neither and disagree in the middleFor organisationsthat have already gone through a merger, pre-merger data might not be attainablethrough primary research and hence, secondary analysis approach will be taken. Key source of secondary date will be theannual Employee Engagement Report. Employees are generally surveyed once/twicea year in every major organisation and are asked to rate the key employeeengagement factors. Based on the resultsof this survey, a single ‘score’ can be calculated by:1.
Adding upthe percentages of people who select ‘strongly agree or disagree’ options foreach factor. 2. Obtaining anet score by subtracting strong agreement/agreement percentage and strongdisagreement/disagreement percentage3. Assigningscores to response categories (e.g.
‘5’ for strongly agree). The few key advantages of selectingquestionnaire as a preferred method of data collection are as follows:1. Very lowcost and substantial reach as the questionnaire can be emailed to targetpopulation.2. Speedyresult collection with online tools3. Useranonymity Though this is thepreferred approach, there are some limitations which must be acknowledged. 1. There is apossibility that users might have differences in understanding and interpretingthe questions in the questionnaire.
2. Mightcapture only a snapshot moment. i.
e. might not give a holistic picture.Another key aspect tomention is the sampling strategy that will be followed for this research. Thesampling size will be all the employees of the, for e.g., 5 recently merged organisationsand are based in the UK.
This means, there will be no sampling from thepopulation. The questionnaire will be shared with all the employees of theselected organisations so as to have a broad-spectrum understanding.