The Reciprocal Relationship Between M&A Strategic Decision-making and Well-being

Abstract

Strategic decisions leaders make involving organizational changes such as mergers and acquisitions (M&A), divestitures, and downsizing, which can influence and/or interact with other organizational factors. For example, within the context of M&A, changes impact financial performance, firm behaviors, and organizational culture. In addition, strategic decisions for these types of change can also interrelate with other more intrapersonal factors, including both leaders’ and employees’ health and well-being. Employee stress, also referred to as “merger syndrome,” outlines individual negative impacts of the changes including, but not limited to, cynicism and distrust, change wariness, and burnout, all accumulating to psychological effects including increases in detachment to work, stress, and sick leave. In this chapter, the authors outline the different impacts M&A phases have on stress and well-being and how they interrelate with the strategic decisions leaders make. The authors also outline future research opportunities and practical implications for how leaders and employees could better manage future major changes such as M&A activities.

Citation

Irwin, K. and Willis, C.H. (2023), "The Reciprocal Relationship Between M&A Strategic Decision-making and Well-being", Harms, P.D. and Chang, C.-H.(D). (Ed.) Stress and Well-being at the Strategic Level (Research in Occupational Stress and Well Being, Vol. 21), Emerald Publishing Limited, Leeds, pp. 17-43. https://doi.org/10.1108/S1479-355520230000021002