The post liberalization period was of mergers and acquisitions and still it is continuing as a strategic driver for market dominance, geographical expansion, leverage in resource and capability acquisition, competence, adjusting to competition. M&As are strategic alliances. People Management plays a critical role in M&A. People issues like staffing decision, organizational design, etc., are most sensitive issues in case of M&A negotiations, but it has been found that these issues are often being overlooked.
The ability to succeed in a merger depends entirely on the people who are driving the business - whether they have creativity, capacity to innovate and ability to execute, and more importantly, whether they can do these things collaboratively. To ease the merger transition and make sure the pieces fit together as seamlessly as possible; the HR should take the initiatives in management, recruitment, structure, retention, and managing cultural change. In a merger, the employees should be put in a position to see easily that there was value in their daily work lives. It is more important for the employees to be able to say that they understand why this is happening. To achieve this understanding in the employees, the company's HR executive minimize their conventional functions as administrators and payroll experts in favor of more proactive roles as coaches and profit consultants.
Role of HR in M&A
Human Resources professional should take an active role in educating senior executives about HR issues that can interfere with the success of the merger and with meeting key business objectives.
HR professionals can play an active role in the change process by offering interventions that will help ensure a successful merger.
HR professionals can play an active role in the change process by offering interventions that will help ensure a successful merger.
Facilitates Transition Teams:
Transition teams are used to study and recommend options for combining the two companies in a merger.
To discourage decision-making based on personal agendas or politics, human resource professional that facilitate transition teams should work with team leaders to run effective meetings. This gives all team members an opportunity to contribute their viewpoints.
Transition teams are used to study and recommend options for combining the two companies in a merger.
To discourage decision-making based on personal agendas or politics, human resource professional that facilitate transition teams should work with team leaders to run effective meetings. This gives all team members an opportunity to contribute their viewpoints.
Educate Managers & Employees:
To minimize stress and uncertainty in the organization during the merger process, develop and deliver educational seminars to help employees and managers manage stress, low morale and productivity issues in work groups.
These seminars should focus on specific issues affecting employees rather than on change management in general.
To minimize stress and uncertainty in the organization during the merger process, develop and deliver educational seminars to help employees and managers manage stress, low morale and productivity issues in work groups.
These seminars should focus on specific issues affecting employees rather than on change management in general.
Develop Newly Formed Teams:
After implementation of merger as new teams are formed, they may experience problems arising due to interpersonal conflict, unclear roles and responsibilities, and confusing procedures.
A process to develop newly formed teams, review this process with managers and supervisors and offer to help launch new teams by providing consultation should be created.
After implementation of merger as new teams are formed, they may experience problems arising due to interpersonal conflict, unclear roles and responsibilities, and confusing procedures.
A process to develop newly formed teams, review this process with managers and supervisors and offer to help launch new teams by providing consultation should be created.
Reinforce the New Culture:
When two companies with vastly different cultures merge, help the management to preserve the best aspects of the old company and carry them into the new company.
Find out what cultural characteristics and values senior executives want to preserve from their respective companies, what they don't want to keep, and what new characteristics they want to introduce in the new organization.
When two companies with vastly different cultures merge, help the management to preserve the best aspects of the old company and carry them into the new company.
Find out what cultural characteristics and values senior executives want to preserve from their respective companies, what they don't want to keep, and what new characteristics they want to introduce in the new organization.