Organizational Behavior
The law teaches us about the legalities that occur when there is a consolidation, but we must recognize that when a consolidation occurs, there are going to be changes in the day-to-day operations of the companies involved. Once employees even hear rumors of a consolidation, there may be pockets of resistance to the resulting change. For a merger or consolidation to go smoothly, the key players involved in the transaction need to remember what they learned in their organizational behavior classes about resistance to change because how key managers and employees respond to the changes brought about by the consolidation will play a key role in whether the new company thrives. Remember that a number of the reasons people resist change are fear of the unknown, insecurity, a belief that there are no reasons for the change, and a lack of good information. Therefore, managers may reduce the disruptions caused by the consolidation by letting employees know (1) how the change will benefit the employees being asked to change and (2) how the change is compatible with existing values of those who are going to be forced to change. To the extent possible, employees whose duties may change as a result of the consolidation should be given as much information as possible as soon as possible, be given the necessary support to make changes in operating procedures, and be given the opportunity to participate in decisions about how changes are to be implemented.

Source: Schermerhorn et al., Organizational Behavior, 6th ed. (New York: John Wiley & Sons, 1997).