Post Merger HR and Cultural Issue

HR Role in Merger & Acquisition: Success of merger and acquisitions depends on the people who drive the business, their ability to drive, lead, and formulate strategy, execution and implementation. It is very important to involve HR professionals in merger & acquisition as it involves people and has an impact on key people issues. HR professionals play an active role in the change process by offering their interventions to help ensure a successful merger and acquisition.

HR plays a vital role in

  • Employees coping up with change and culture
  • Organizational hierarchy structure,
  • Maintaining the productivity by placing of right people at right place
  • Alignment of compensation, benefits and welfare schemes
  • Job security
  • Relocation
  • Compliance of local labour laws
  • Employee communication
  • Taking care of personal records

Best practices to be followed by HR during and after merger & acquisition:

  • Identify leaders from both the companies for effective implementation, transition and communication of the same to employees.
  • Train managers on the nature of change
  • Explain new roles to the people
  • Orientation programs on policies and procedures
  • Orientation programs on performance management, compensation, benefits and welfare schemes
  • Identify the skills of people and mapping them appropriately
  • Town halls & Team building activities

Basic HRM practices such as recruitment, selection, training, etc. affect the performance and stability of an organization. Thus these practices have the ability to influence employee behavior and create values that develop organizational culture. Since the behavior change refers to how one acts or conducts oneself, if HR practices could positively affect the behavior, developing positive thinking about Organizational initiatives towards the employees can help in creating value for the strategies and would result in positive results for the business.

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