Human Resource Management in Mergers and Acquisitions

Introduction

Mergers and acquisitions (M&A) involve the joining of companies and their assets such as sharing expertise, acquisition of technology, and diversification of products to increase their competitive position, market dominance, and growth. Avinadav, Chernonog, and Perlman (2018) argue that the main objective of the M&A strategy is to exploit the strengths of the organizations and establish a large market share. Some of the significant factors in M&A are a modification of organization culture, synergy, and mobilization of resources. Thus, this essay examines three articles on M&A and highlights the role of HRM involvement and the reduction of force as the key success factors of the strategy.

What main point(s) about merging companies do the authors make particularly relating to HRM?

The Central Role of HRM in M&A Success

HRM plays a central role in ensuring the success of the M&A deal through active involvement at the initial stages of the identification of the complementary company and due diligence at the final stage of complete integration. Tarba and Cooper (2016) hold that the involvement of HRM is a key success factor in the M&A deal and must be considered at every stage of the process. Avinadav et al. (2018) explain that HR professionals facilitate the long-term success of M&A by advising management on human resource matters, identifying potential problems, and ensuring clear communication to all. Additionally, HRM helps to integrate HR practices, talent decisions such as layoffs, and cultures of the two organizations to guarantee the adequate functioning of the new framework. Since uncertainty and resistance affect a merger or acquisition, HR facilitates efficient transition through communication, counseling, and planning of financial compensation for the affected parties.

Haven’t Found The Relevant Content? Hire a Subject Expert to Help You With
Human Resource Management in Mergers and Acquisitions
Post Your Own Question And Get A Custom Answer
Hire Writer

Early Involvement of HRM

Early involvement of HRM in the M&A deals positively influences the success level of the transaction. HRM needs to be involved in the initial stages of merger and acquisition to conduct due diligence and develop a model of M&A success. Thus, early involvement helps HR professionals to make adequate strategic preparations to avoid costly mistakes involving human capital requirements, layoffs, compensation, and friction in production. Additionally, HR participates in the early engagement of employees from both sides of M&A deal to adjust and streamline the takeover process,

Provide actual employer best practices (and employer name), if possible.

Bank of Punjab and Centurion Bank of India merger to form Centurion Bank of Punjab

The companies involved HRM in all stages of the M&A process to formulate essential policies to guide through the transition process

B. Reduction in Force (RIF)

What main point(s) about RIFs do authors make particularly relating to HRM?

Skill Retention

To create an overall integration plan, HR must understand the incoming employee population and skills to avoid losing key talents and skills. Additionally, the HR professionals’ role is to identify key departmental employees and develop a strategy to retain and engage them in the new organization. According to Makri (2017), the success level of M&A depends on the capacity and effectiveness of HRM to retain an adequate level of skilled workforce from both organizations. Makri (2017) asserts that HRM communicates to employees about the changes in reporting lines, different positions’ roles in the organization, and their contribution to the new organization’s functional team. Thus, HR must identify key employees in all departments and develop an appropriate retention strategy to ensure that they remain engaged as part of the new organization team.

Eliminating Positions

HRM plays a vital role in adopting and developing an effective work structure. In redesigning the new organization outlook to eliminate the risk of failure and avoid losing key departments, HRM must create a comprehensive integration plan. The process constitutes an evaluation of the significance of various departments, assessment of employee skills, enumeration of the population, and integrating two organizations’ structural differences into one robust system. HRM must work with the management and employees to alter the job descriptions of various positions, combine teams, and ensure employees understand their roles in the newly altered organization.

Provide actual employer best practices (and employer name), if possible.

The company adopts, identifies, and retains a skilled workforce through effective planning. For example, the acquisition of small technology firms such as AppyDynamics and Jasper Technologies by Cisco.

Conclusion

In enhancing their market dominance, M&A is one of the efficient strategies adopted by organizations to pull resources together and enhance their competitive position. However, to ensure a successful process, HR must be involved at the early stage and throughout the process to ensure the long-term success of the strategy. Some of the critical HR roles in the M&A deal include due diligence, adequate communication with human resources, proper planning of the integration process, and skill retention, and policy formulation governing the transition process. In the reduction of force, the HR professionals must adopt suitable processes to ensure the retention of skilled employees and critical functional units in the new organization essential to the maintenance of business excellence.

References

Avinadav, T., Chernonog, T., & Perlman, Y. (2018). Mergers and acquisitions between risk-averse parties. European Journal of Operational Research, 259(2017) 926-934. Web.

Makri, E. (2017). Group processes, intergroup relations and human resource practices in mergers and acquisitions post-combination: A critical review and research agenda for the future. Environment and Social Psychology, 2(1), 46-58. Web.

Tarba, S., & Cooper, C. (2016). HRM practices in strategic partnerships. The International Journal of Human Resource Management, 27(20), 2305-2309. Web.

MyhomeworkGeeks
Calculate the price of your paper
Pages (550 words)
Approximate price: -

Why Hire a Professional Essay Writer from MyHomeworkGeeks

Quality Urgent Essays

Domyhomeworkk online platform provides the best essay writing service ever received elsewhere, thanks to our professional essay writers. Experience gained in the 10+ years of being in the assignment writing industry is also an added advantage.

Professional and Experienced Academic Writers

A lot is done to maintain us as the best essay writing service provider. Besides owning a degree from a recognized university, a writer must pass the rigorous tests we take them through before they are considered eligible to offer urgent essay help on our website.

Affordable Urgent Assignment Help

Who said a reliable website should not be cheap also? While it is human nature to associate prices with quality, that does not always work. At domyhomeworkk.com, we guarantee you cheap and urgent essay help without compromising the quality.

24/7 Available Urgent Essay Writing Service

Whether it is a ‘write my essay for me cheap’ or ‘edit my essay’ order you want to request, always feel free to reach us at any time of the day. Our experts work in shifts to ensure that you access urgent essay writing services at any time of the day.

Plagiarism Free Essays Online

The punitive measures that come with plagiarized content are so harsh, and we understand that. We consequently ensure to write each client’s papers from scratch no matter how urgent the essay is. To acknowledge borrowed content, our quick writer references and cites the work.

Wow Customer Support 24/7

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

So much stress and so little time? Take care of yourself: let us help you with your tasks. We offer all kinds of writing services.

Essays

Custom Essay Writing Services

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission and Business Papers

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Editing

Editing and Proofreading

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Coursework

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Have a homework question? Get help from verified tutors now!