Exploring HR's Role in Mergers: Beyond Policies and Benefits – Seeking Your Advice

Hello, I am an MBA student doing my project on a merger. This is the first time I am writing on this site. I want to know what the role of HR is in merger activity and what should be done in this process besides studying the policies and benefits of the two merging companies. I am looking forward to sincere advice. Regards

Hi,

The main work of HR under a merger would include:

- Change management
- Attrition control
- Manpower forecasting
- Internal/external marketing

More tasks could also fall under the purview of HR, but this would depend on the specific needs of the companies.

Remember, HR plays a crucial role in ensuring a smooth transition during mergers and acquisitions.

Hi,

In a merger, HR plays a major role in different phases. It starts with pre-merger preparation where HR has to study:
- Cultural aspects of the organization
- Designations and work processes
- Compensation strategy
- Industrial relations environment
- HR practices

After the merger, HR is involved in:
- Creating communication channels for both organizations
- Facilitating meetings between both companies for mutual understanding and decision-making
- Creating confidence in the merging organization about their future
- Taking care to preserve the values and legacy of the merging company (similar to what Tata's did with Corus)
- Further facilitating the setting of new objectives for the combined company

Shiva Prasad

Though almost all the points are covered above, let me try to sum up with some additional pointers:

Prior Merger/Acquisition

1. Understanding the People Policies & Processes (Identifying the differences).

2. Understanding the Compensation & Benefits and working out the differences in terms of the loss after the merger or acquisition.

3. Understanding the current hierarchy, band/level, and mapping the same with your company.

4. Understanding the work culture and engagement initiatives.

Post Merger

1. Facilitating a one-time payout for the difference amount to curb the loss.

2. Aligning people processes and policies to integrate through a gradual process.

3. Integrating Compensation, Band, Designation, and in case of salary correction, issuing revised compensation letters.

4. Organizing frequent town halls, all-hands meetings to assimilate the employees of the merged/captive company in a settled way.

5. Adopting a strategy that is open and transparent to win the confidence of people in the captive.

Thanks.

Best Wishes,

Rajiv Naithani