21st Century, the management of the human side of change is the real key to maximizing the value in of a deal which was neglected earlier. The uncertainty during Merger and Acquisition activity divert the focus of employees from productive work issues like job security, career path, working in new departments, working with the new teams, integration of corporate cultures, retention level of compensation, payroll benefits and reward strategy etc. As in new Millennium, M&A activity continuous to step up globally, companies involved in these transactions have the increased involvement & responsibility of HR professionals. In implementing an M&A, most of managers focus on financials. But success depends on how you deal with people issues and cultural integration. It depends on the people who drive the business, their ability to execute, Creativity and innovation. It is of utmost importance to involve HR professionals in M&A discussion as it has an impact on key people issues. By doing so, they will achieve a much better outcome and increase the chance that the overall deal is a total success. The role of HR is to identify key human assets in the target company, development of preliminary organizational designs and identification of the top three levels of management creating development plans for people to prepare them to achieve the anticipated corporate growth.
Other issues needing attention to maximize the growth synergy are deployment of appropriate resources in the new company, development of total reward and recognition programs for the combines companies, team development, and integration of benefit and compensation programs--ensuring they are competitive to attract and retain desirable employees. When mergers & acquisition are contemplated, synergy and value often depend on the effective transfer of knowledge. As knowledge becomes an increasingly important corporate asset, it's critical to capture the best practices of each company for maximum return. It starts with the relatively easy task of identifying the people and processes needed to keep the business operating as usual. It moves to training on systems, specific job skills, and procedures. Ultimately, it involves capturing the tacit knowledge and informal networks that enable an organization to get things done.
Question
1. What is the role of HR in the growth and development of preliminary organisation during merger and acquisition?