Study on Acquisition and Merger and Its Effects on Employee’s Relationship With Reference To Information Technology Industries in India

Abstract

The present paper intends to study the change of business ownership and its effects on employee relationship with reference to information technology industries in India. The corporate structure all over the world is restructuring its operation through mergers and acquisitions in an unprecedented manner in order to successfully overcome challenges by globalisation. One of the striking features of the present mergers and acquisitions is the presence of a large number of cross border deals, which is an easier way of internationalisation. Mergers and acquisition are the inorganic growth strategies which have got its significance in today’s corporate world due to intensely competitive business environment. In todays globalised economy, mergers and acquisitions are being increasingly used the world over, for improving competitiveness of companies through greater market share, broadening the portfolio, to reduce risk, for entering new markets and geographies and capitalising on economies and scale. From the literature review it is found that there is no conclusive evidence about the impact of mergers and acquisitions on employee relationship. Moreover in recent period acquisition deals have gone up, hence there is a need to look into the trend of acquisitions and its effect on the employees relationship.