Coping Throughout a Merger : a Case Study on Employee Appraisal, Stress, and Organisational Culture in a Finnish Post-Merger Integration

Abstract

This study examines how employees experience and manages stress during post-merger integration (PMI) phase. The study was conducted as a qualitative single case study within a Finnish and Swedish company that underwent a horizontal merger. We interviewed 16 employees who worked in the two organisations before the merger, as well as those who were hired afterwards. The theoretical framework is based on Lazarus and Folkman's Theory of Stress and Coping, supplemented with Schein's theory of Organisational Culture. We used precoded thematic analysis to identify patterns in the collected data. The study was conducted deductively to test these theoretical lenses in a merger context. The results show that employees from the acquired company more often experienced the merger as a threat, while some saw it as an opportunity. Differences in language, culture, and leadership style affected how stress was experienced and managed. Common coping strategies were focusing on work tasks, appraising the situation, and seeking peer support. Line managers were also seen as very important coping resources in the PMI phase. The study shows the importance of understanding a merger's psychological and cultural aspects in a Nordic context where linguistic and cultural differences can play an important role. The study contributes valuable information on how organisations can plan PMI processes and support their employees during and after a merger.