Dear Friends,
ACQUIRING a company is never easy. Thatís because it is never fully possible to buy out the core of the firm: Its people. In these days of high attrition and a vibrant job market, companies involved in mergers and acquisitions have to tread lightly when it comes to employees. They have to be reassuring about jobs, and allay all fears and concerns. Given this situation, HR departments are beginning to play a more significant role than ever before, in integrating people during M&A.
Please see the attached ppt. this may be useful for HR professionals.
Regards,
PBS KUMAR

From India, Kakinada

Attached Files
File Type: ppt HRM in Mergers & Acquisitions.ppt (444.5 KB, 850 views)

Dear PBS Kumar,

What you have written is fine. However, sooner a company is taken over manpower is purged. Latest example of this is Motorola. After taking over, Google has announced that it will lay off about 4,000 employees. This might have created sense of insecurity among the employees and before even Google tells the employees to go, they themselves start quitting. In the bargain, Google might lose talented employees who otherwise should have remained with them.

Now decision of manpower reduction is taken at the board level. If not at board level then by strategic planners. What HR can do in this case? They just have to toe the line of their bosses lest they may also end up in joining the bandwagon of those who are earmarked for ouster.

If this is the case in US, less said about India. Compared with their counterparts in western countries, HR in India is far subservient.

Oracle has taken over 35 companies in the last 5-6 years. Due to the bullish management style of Oracle, lot of employees quit on their own! No authentic study is available to calculate the cost of the attrition in a company that was taken over by some big shot.

I am thankful of sharing the ppt but then going beyond academics, you could have given some case study wherein the theory that you have written was implemented practically and how the principal company derived the benefits.

Thanks,



Dinesh V Divekar



From India, Bangalore
Dear Dinesh ji,
Thanks for your comment. But what happens after Merging the organisation is depending upon the MOU in between the two managements decision. Here the interpretation is what is the Role of HR if the Merging and Acquisition.. The HR has to work according to the managements requirements and implementation in a systematic ways. What happed after Merging SATYAM GROUP in MAHENDRA AND MAHENDRA.
Regards,
PBS KUMAR

From India, Kakinada

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