"Consequent to restructuring, more particularly through mergers, amalgamations or takeovers, the management needs to be sensitive to employees' morale". Briefly comment on the validity of the statement.

A merger can join two cultures, two sets of procedures and protocols, two sets of policies and change the employment environment and prospects of several hundreds of employees, who have been the bed rock of past successes and the key to future value. Companies need to be sensitive with regard to terms and conditions of employment specifically at senior levels in order to ward off high labour turnover. Usually, Courts would uphold terms of employment to be no less favourable than existing terms and conditions. Post-acquisition, parent company may want the acquired to adopt compensation structure of the parent entity. The Company needs to carefully handle such sensitive areas to ensure employee satisfaction and comfort, which pays in the long run in building an image apart from preventing or reducing employee turnout. At times, in support functions, allocation becomes a challenge for senior positions like CFO, HR Head, etc. A careful planning is needed to avoid overlapping, underutilization.