Internal Communication and Employee Perceptions during Acquisitions

Abstract: The purpose of the thesis was to research how management used internal communication during acquisitions and if it affected the perceptions amongst the employees. Internal communication happens at all levels of every organization and underpins organizational effectiveness. Internal communication is a powerful tool available for managers, but is difficult to master as employees have demands regarding channels, frequency, richness and meaning. During an acquisition the use of internal communication is even more important and harder to handle. Employees hold different perceptions about the acquisition based on partner attractiveness and target responsiveness. These perceptions will make employees perceive the acquisition as an opportunity or a threat. The communication owner must be aware of the perceptions and take them into account when crafting a strategy for internal communication. Employees in the two case organizations studied held negative perceptions in the early stages of the acquisitions. Our results showed that it was possible to alter employee perceptions regarding the acquisitions from threatening to opportunistic by internal communication and managerial involvement.