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Role of HR at various stages of merger and acquisition

Most of the companies are experiencing successful growth because of the idea of merger and acquisition the Human Resource managers have put into place. Mergers and Acquisition have yielded a lot of profits to these companies and it has overtaken initial investment in these companies as a source of new funds in business. The whole process of merger and acquisition is very complex and therefore brings a lot of challenge to the HR who should ensure that the transition process is properly monitored.

The HR therefore must have the responsibility to influence the various activities so that each company comes out ahead and satisfied. (Deloitte & Touche 2001). In a merger and acquisiti...

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...on the HR department will play a number of activities to ensure there is smooth amalgamation of the two companies. Among the roles include redesigning the company’s model and structures, evaluating essential individuals and setting up the distribution of new and redistribution of present assets and funds (Weber, 1996).

The HR should also play the roles of evaluating of staffing needs and where possible downsizing can be done. Restructuring of incentives to ensure integration of crucial staff salary harmonization and streamlining of payments are also among some issues the HR need to put into consideration. He should pay close attention to the issues that affect the employees and bringing the staff department together (Appelbaum, 2000a). Generally coming up with a successful merger and acquisition is very difficult because it means losing one of the departments or one side might feel sabotaged.

The HR is therefore the central person in managing the transition and smoothing out any performance hitches that may compromise productivity during this period. The HR has the responsibility to deal with making certain strategies and policies in any merger and acquisition process. Therefore the aim of this report is to critically analyze the role of Human Resource manager during mergers and acquisitions for successful growth of companies. This report has been written after careful analysis of various companies and how they have succeeded in increasing production after forming mergers and acquisitions.

It’s main aim just to provide the key role of HR in the transition process. Just from the beginning the HR plays a complex role in the process of merger and acquisition. He should understand that he is dealing with people from different cultural backgrounds. He should therefore recognize whether the cultural values of the two parties are compatible or not (Datta, 1991). Whether one culture will be dominant and the other less dominant is an issue to be addressed by the HR. The Hr should ensure that competent and qualified staff is selected.

This should start with the evaluation of the new employees. By doing this the HR will be better placed to select people with the right skill required for the new company. Staffing Much business formed by merger ands acquisition always looses their key people after acquisition. It means that retention of key employees is crucial to achieving organization’s goals through the transition. The HR therefore should ensure that key employees are retained in the company. He can do this by carrying assessment on the type of employees who are experienced in the organization.

Qualified employees will be picked on the basis of how long they have been working on the organization (Deloitte and Touche,2001). The HR should solidify the new staff in order to strengthen the organization. The HR also needs to do a lot of balancing when choosing the new staff. To ensure smooth transition, he should incorporate the key interest of the new staff (Buono and Bowditch, 1990). Choosing a team representing the two organizations can do the role of selecting new staff members.

The team should also be responsible for the transition and integration process. This will help the HR to make positive judgment on who stays and who goes (Webb, 2002, p. 7). He should also ensure that each employee performs a specific duty according to his/her area of specialization. By doing this he will be able to make good decision on how to establish a new culture, structure, HR policies and practices that is to be carried in the company formed through merger. The HR should therefore take the issue of staffing in the new company formed with a lot of concern.

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