In the context of mergers, what is likely to happen to existing jobs?

Prepare for the SQA Higher Business Management Exam. Enhance your skills with dynamic flashcards and practice questions. Explore hints and explanations to ace your exam!

Mergers often aim to enhance efficiencies and create synergies between the two companies involved. In many cases, this involves the retention of key personnel from both organizations to maintain talent and knowledge that are crucial for the merged entity's success.

Option B reflects the reality that, while some positions might be eliminated due to redundancy, many existing jobs will likely be maintained to preserve the companies' operational capabilities. The focus post-merger is often on consolidating functions rather than cutting jobs across the board, especially in areas where both entities possess valuable expertise that is necessary for the continued operation of the new organization.

In contrast, the other options present scenarios that are less likely in typical merger situations. For instance, the total loss of jobs is usually avoided because it could lead to decreased morale, loss of valuable skills, and operational disruption. The idea that jobs will only be available in the newly merged organization ignores the fact that existing staff often brings essential value that can be utilized after the merger. Lastly, the notion that jobs will be immediately created in both businesses is unrealistic immediately following a merger, as restructuring efforts often focus on integration and optimization rather than expansion at that stage. All these factors contribute to the reasoning that most jobs are likely to be maintained.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy