Study On Integration Of Employees' Psychological Contract In M&A

M&A is always an important way for enterprises to enlarge scale and integrate resource fleetly. Obviously, M&A is propitious to enterprise growth with high profit. However, it is a high-risk business activity. It is shown that 80% of M&A are unsuccessful. One of the main reasons is inefficiency integration in M&A, especially the failing integration of employees' psychological contract. Base on the integration of employees' psychological contract in M&A, This paper studies how to integrate the employees' psychological contract in M&A in order to give a reference to the practice of M&A. The primary study contents of this paper are as follow:The first part introduces the research background and significance of this paper. The content, research method and the source are indicated in this part as well.In the second part, related theories of psychological contract and the psychological contract integration are summarized. After expatiating on theories of the conception, content, effect, forming, breach, violation, construction and reconstruction of psychological contract, along with the domestic and overseas research, the conception of "integration" is proposed. It means that enterprises should reconstruct the broken employees' psychological contract and then maintain the new one after M&A.Based on the defination and explaination of the meanings, characters of psychological contract and the meanings of psychological contract integration, the third part analyzes the relationship between M&A and employees' psychological contract, along with its integration, to show the importance of the integration of employees' psychological contract for M&A. The favorable psychological contract is one of the key factors for enterprises to achieve M&A goal and realize M&A value. Generally speaking, M&A breaks the primary employees' psychological contract inevitably and results in bad effects. Only by integrating the employees' psychological contract can human resource come into effect, to improve efficiency of other resource integration and guarantee the success of M&A. The fourth part analyzes the influence on the primary employees' psychological contract caused by M&A. Firstly, from the perspective of enterprise system, enterprise culture, and organization agency promises, it analyzes how these three areas changes caused by M&A brings on the changes of the foundation of employees' psychological contract. Then, it analyzes how the employees' psychological contract to be out of balance from the mental pressure of employees. Finally, the mechanism and result of the psychological contract breach and violation are analyzed deeply. Based on three steps above, this paper depicts the mechanism and process of the changes of employees' psychological contract by a dynamic change model which includs the basic change, loss balance, breach and violation.According to the change process of the employees' psychological contract in M&A, the process model on integrating employees' psychological contract is schemed out in the fifth part. Firstly, stabilizing the constitution base of the employees' psychological contract. Secondly, adjusting and rebuilding the employees' psychological contract. Thirdly, protecting and cementing the new employees' psychological contract. Base on this process model, combining with the domestic and overseas cases, the relevant countermeasures of this issue are proposed.