The term Employee Engagement refers to the
individual’s involvement, satisfaction and commitment for work. Some of the
factors that are measured to calculate the EES are- job security, work safety,
benefits, work environment, work-life balance, empowerment/autonomy, career
opportunities and rewards and recognition (Aon Hewitt Engagement Model).
Mergers and Acquisitions are one of the
strategic options for organizations to secure their position in a competitive,
and globalized market place. (Faulkner, 2012). Quarter 3 (July to Sept) 2017
saw a total of 163 successful domestic and cross-border acquisitions and
disposals involving UK companies worth £86.4 billion (www.ons.gov.uk). The
merger and acquisition of organizations has a vast impact on parties involved
in the deal.
Purpose of this research is to prove that even
though EES might dip right after the merger, it will improve in long-term if
the organisation takes appropriate steps post M to help realise the
benefits planned as part of the M.
Literature Review – 400
1) The Meaning
of Employee Engagement, MACEY and SCHNEIDER (2008)
MACEY and SCHNEIDER (2008) in their study cover
more of the psychological part of ‘Engagement’. Their proposition, the effects
of job attributes and leadership as main effects on engagement, supports the
hypothesis that has been made in this research proposal as it shows the how the
conditions 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 factors
affects it substantially.
The journal offers an in-depth knowledge about
what engagement in terms human psychology, especially in relation to
satisfaction, commitment, job involvement and empowerment, is and how it drives
the bottom-line results for an organisation. (pg. 7-14)
2) ‘Measuring organisational
climate and employee engagement: Evidence
for a 7 Ps model of work practices and
outcomes’ LANGFORD (2009)
In this journal, Langford studies the strength
of psychometric properties of a survey based on the employees’ opinions to find
work practices and outcomes specially employee engagement. (pg. 185). This
journal is very valuable for this research as it puts light on two very
important aspects: first, the method of data collection via survey and second,
how the organisation climate affects the outcomes/employee engagement.
The data collection using quantitative
methodology with standard questionnaire explains primarily the selection of
variables using established tools such as ‘Organisational Climate Measure’ and
‘Gallup Workplace Audit’ and also the process used to add/delete scales as the
study progressed and primarily explains. (pg 187). As per the requirement of
the study, it explains the method of analysis used in great depth to determine
the aforementioned effects.
Study on relation between M&A and EES are
not directly available and appears to be a less explored area. This research is
expected to cover that gap and enable the management of the acquiring
organization to improve the due diligence process and to take suitable
Merger and Acquisition is a vast topic and
detailed study needs to be done on it. Kyungjin Yoo et al (2013) in their
research, analyse on a very specific area of industry- the effect of renewable
energy M&A (divided into 4 strata) on the enterprise/organisational value.
Different types of M&As-related (secure
expertise in same domain) and unrelated- (diversify using different businesses)
are identified (Rumelt, 1974). There has been active research on how
diversification affects business performance. The study has used secondary data
collection technique and sample data was based on acquirer in the M&A
process (pg. 698) which is very helpful knowledge for this proposal.
The According to the authors, in a regulatory
environment, firm M&A have a negative effect because they must be confirmed
both by the regulator and by shareholders, leading to the firm incurring
considerable costs and thereby reducing enterprise value. (pg. 7)
References on relation between M&I and EES
are not directly available and appears to be a less explored area. This research is expected to cover that gap
and enable the management of the acquiring organization to improve the due
diligence process and to take suitable corrective actions.
Aims and objectives:
A directional alternative hypothesis is made
that post-merger, EES of the combined organisation will reach the acquiring organisation’s
EES in long-term. Variable will be tracked in the questionnaire that are to be
‘scored’/ measured (work life balance, empowerment, opportunities, pay
structure etc.) to calculate the EES. It is also believed that a big difference
in the score would be observed pre and post-merger at least in the short-term. An
analysis of variance across all factors would be conducted, with all
organisations recently undergone M as the independent variable.
EES is one of the key non-financial elements
impacted due to M and hence it is very important to study how M
Collecting data of this size will need a
quantitative approach to ensure that the data captured is objective in nature
and can be analysed accurately. As Saunders et al (2016) said, ‘a quantitative
research is associated with positivism, mainly when it is linked with
structured data collection techniques’.
The research on the hypothesis will be carried out
based on the philosophy of positivism epistemology. The hypotheses defined
earlier would be tested and confirmed, in whole or part, or refuted, leading to
the further development of theory which then may be tested by further research. The data collected from the organisations would
be through a objective questionnaire and will follow a strict scientific data
collection method. This approach will focus on discovering
observable 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 universal
rules and laws to help explain and predict behaviour and events in
The research will
follow a Deductive approach:
stats with a proposition of a hypothesis and end result is
confirmation/rejection. Highly structured. Large data analysed with less
depth. Using data to test the postulated
theory that there might be a dip in EES in the short-term but will stabilise in
For a research of
this magnitude, data from a long time-period will be required. Hence both
Primary and Secondary data source will be used. The primary data set will be
obtained by asking the employees in the target set to fill out a questionnaire
and the responses will be used for calculating the score.
In this case, the primary
data will be collected by online surveys based on mono method quantitative
study and corresponding quantitative analytical procedure.. Each question will
have an agreement scale ranging from strongly agree to strongly disagree with
agree, neither and disagree in the middle
that have already gone through a merger, pre-merger data might not be attainable
through primary research and hence, secondary analysis approach will be taken. Key source of secondary date will be the
annual Employee Engagement Report. Employees are generally surveyed once/twice
a year in every major organisation and are asked to rate the key employee
engagement factors. Based on the results
of this survey, a single ‘score’ can be calculated by:
the percentages of people who select ‘strongly agree or disagree’ options for
net score by subtracting strong agreement/agreement percentage and strong
scores to response categories (e.g. ‘5’ for strongly agree).
The few key advantages of selecting
questionnaire as a preferred method of data collection are as follows:
cost and substantial reach as the questionnaire can be emailed to target
result collection with online tools
Though this is the
preferred approach, there are some limitations which must be acknowledged.
There is a
possibility that users might have differences in understanding and interpreting
the questions in the questionnaire.
capture only a snapshot moment. i.e. might not give a holistic picture.
Another key aspect to
mention is the sampling strategy that will be followed for this research. The
sampling size will be all the employees of the, for e.g., 5 recently merged organisations
and are based in the UK. This means, there will be no sampling from the
population. The questionnaire will be shared with all the employees of the
selected organisations so as to have a broad-spectrum understanding.