Curious About HR Challenges in Mergers and Acquisitions? Let's Discuss Pre and Post-Merger Issues

Dear folks,

I am an MBA student and I want to know about some of the HR issues related to mergers and acquisitions, both pre-merger and post-merger. Thank you.

Hi,

Check your private inbox. I am sending you the ID of the person who has done quite a bit of research on the subject. She should be able to provide you with the information that you are looking for.

You can PM Satish as Mamta ma'am has already forwarded the material to Satish. In case you don't get the material from him, PM me, and I will ask her to post again.

Satish, if you can upload the material to the forum, it would be of help to other members as well.

Hi!

HR is facing a lot of problems in M&A due to the following reasons:

1. Indian companies have a militarized form of management - they expect their employees to follow the commands of the employer, for which the employees of the host company term this as arrogance and stinginess.

2. Indian companies have a centralized decision-making system: most decisions are made by the top-level management, and the success or failure of the business largely rests on the top-level management. However, this is not accepted in foreign companies in America and Europe, as each employee is given an opportunity to participate in the decision-making system.

3. Indian employees are poor team players, which leads to team projects turning out to be major flops. Indian employers try their best to separate the Indian population from the employees of the host company.

I think the above has sufficed your requirement with respect to problems faced by Indian companies when merging or acquiring with companies abroad.

Take care,

Alex.

Hi all,

Attached herewith is a project I had done as part of the curriculum. I hope it helps as it contains concrete information about types of M&As, examples, and pre-post M&A HR implications.

Regards,
Radhika

Hi,

If you ask me, I would say that integrating the organizational cultures is probably one of the biggest challenges to HR in the context of mergers and acquisitions. I am currently writing an article on the cultural implications of mergers as part of my curriculum and will mail it across as soon as it is done.

In the meantime, I would appreciate receiving the files in circulation. Please email me at swetharajagopal@gmail.com.

Thanks,
Swetha

Dear All,

I also need a copy of the materials regarding Mergers and Acquisitions and the roles of HR in that.

Regards,
Navneet

Dear Colleagues,

In pre- and post-mergers and acquisitions, two major emotions would be constantly at the forefront. These would include, but are not limited to, anxiety/apprehension and uneasy calm.

The HR professional would step in as a Change Champion in the "Pre Era" and as a Diversity Manager in the "Post Era."

We should always keep in mind that people, who are emotive, make up organizations and not machines or buildings.

Pre Mergers/Acquisition Era:

The HR practitioner would have to champion the need for consistent communication to the workforce on what management is planning and doing. No matter how negative it might seem, it has to be communicated.

HR must seek out ways of getting feedback from the employees to communicate this to management, and employee relations must play a significant role here.

Post Mergers/Acquisition Era:

This era would try to consolidate on the possible gains of the merger. Managing diversity would be the paramount tool used by HR to guide the workforce.

Perceptional differences would emerge due to people's different backgrounds.

Cultural differences would arise from workplace ethics and codes of conduct. What is permissible in Company A & B may not be acceptable in C, yet they are merging—all of these factors must be taken into consideration.

Job titles/functions would be changed or merged. For instance, if companies A, B, & C have merged, the best resolution would be one CEO and two Executive Directors.

Other areas to be managed by HR would include more human-related issues such as gender, sexual orientation, work-life balance, and arbitration/attrition.

Thank you.

Dear Colleagues,

In pre and post mergers and acquisitions, two major emotions would be constantly at the fore. These would include, but are not limited to, anxiety/apprehension and uneasy calm.

The HR professional would step in as a Change Champion in the "Pre Era" and as Diversity Manager in the "Post Era".

We should always keep in mind that people, who are emotive, make up organizations and not machines or buildings.

Pre Mergers/Acquisition Era:

The HR practitioner would have to champion the need for consistent communication to the workforce on what management is planning and doing. No matter how negative it may seem, it has to be communicated.

HR must seek out ways of getting feedback from the employees to communicate this to management, and a lot of Employee Relations must come into play here.

Post Mergers/Acquisition Era:

This era would try as much as possible to consolidate on the possible gains of the merger. Managing diversity would be the paramount tool or instrument to be used by HR to guide the workforce.

Perceptional differences would emerge due to people's different backgrounds.

There would be cultural differences emerging from workplace work ethics and codes of conduct. What is permissible in Company A and B may not be acceptable in C, yet they are merging. All these factors have to be put into consideration.

Job titles/functions would be changed or merged. For instance, if companies A, B, and C have merged, the best resolution would be one CEO and two Executive Directors.

Other areas to be managed by HR would include, but are not limited to, more human-related issues such as gender, sexual orientation, work-life balance, arbitration, and attrition.

Thanks.

Dear Satish,

I was browsing through the Cite HR and saw your query relating to Mergers and Integrations. Could you possibly forward me the file that was sent to you regarding the topic to viswabalag@hotmail.com?

Thanks in advance.

Regards,
Balaji

Hi,

I am also doing my research on this topic. Can you post the material regarding this topic? Also, can anyone tell me how to get information from the companies? I have been trying to do that but the response is very bad.

Thanks a lot

Hello friends,

I am an MBA student working on a project about HR issues in Mergers and Acquisitions. I need a questionnaire for the same. Can anybody help me out? My submission date is very close.

Thanks and regards,
Singh Archana

Hi Satish,

During the business acquisitions and merger, the main HR issue will be manpower planning to determine what the new company is seeking. Typically, in such cases where two companies merge, there will be downsizing of employees.