The multiple organizational factors impacting on a merger as well as those processes being impacted on throughout the merger process will be examined. First, the issue of constant and lucid communication and its importance throughout the merger and acquisition (M&A) process will be addressed. Second, an examination of the current corporate culture and its effects on employees when two companies merge is analyzed, while illuminating the realities of the new culture. An exploration of change in general is examined, as well as the reaction of employees (resistance) to these changes. Next, the article addresses the critical issue of stress, which is an M&A outcome within the new and uncertain environment. The article concludes with the process of managing and strategy throughout the phases. Furthermore, the five major sections (communications, corporate culture, change, stress, and managing/strategy) are sub‐divided into three sub‐sections: pre‐merger; during the merger; post‐merger.

The multiple organizational factors impacting upon a merger as well as those processes being impacted upon throughout the merger process will be examined. Part 1 of this article examined corporate culture and its affects on employees when two companies merge and considered the importance of lucid communication throughout the process. Part 2 of the article addresses the critical issue of stress, which is an outcome within the new and uncertain environment. Finally, the article concludes with the process of managing and strategy throughout the phases, giving guidelines that managers and CEOs should follow in the event of an M&A. Furthermore, the five major sections (communications, corporate culture, change, stress, and managing/strategy) are sub‐divided into three sub‐sections: pre‐merger; during the merger; post‐merger. This is intended to further assist managers and CEOs distinguish the important issues facing employees at each of the three junctures of the M&A process.

The incidence of mergers and acquisitions has proliferated throughout the world including all sectors of our society, both municipal and industrial, private and public. However, the majority (60-80 percent) of them do not reach their intended objectives owing to the fact that the merging organizations do not realize the impact of neglecting the human resource factor. Although they properly assess and address the financial and legal issues, they continually overlook this critical factor. The present literature suggests what organizations should do to reverse these negative effects and how to properly address the human resources issues. This research seeks to test this list of suggestions, in the form of a unified model, employing the single case study method. The case in question is a newly merged health centre comprised of four well-established hospitals. Rather than a set of hypotheses, sets of prescriptions were developed to test the model. Data from interviews and existing documents are used to support or modify the final model. The qualitative results utilized a cross-method analysis that supported the majority of the unified model, requiring a few modifications. This research has subsequently lead to the development of a unified human resources model for the proper and successful implementation of mergers and acquisitions. The implications of these findings for all organizations, and for mergers and acquisitions theory and practice, are discussed.