Mergers and subsequent layoffs affect the cohesion of employees in the newly formed outfit. Kinanga and Cheruiyot (2015) explain that the organization has experienced a downsizing, department of human resource at the hospital is left with layoff survivors. While the merger and downsizing positively affect the bottom line of the business, there is a need to improve the status of the staff who have survived. Mukherjee, Gambhir and Yaswi (2015) further demonstrate that a multigenerational workforce which often results after a merger and downsizing requires constant motivation, morale-boosting and positive reinforcement to improve performance and address issues touching on organizational conflicts.

The situation the Department is Facing

Having been merged with another organization, the department is forced to lay off some employees to have a leaner workforce. In the process of consolidating the departments, the employees from two different organizations get to interact and form a new working relationship. According to Mukherjee, Gambhir and Yaswi (2015), mergers and layoffs introduce changes in an organization including how the staff feel secure and comfortable with one another. The change may also introduce and promote feelings of discomfort and unease that are inherent in the process.

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