HR in Mergers & Acquisitions

This report examines the critical role of Human Resources (HR) in the success or failure of mergers and acquisitions. It highlights common reasons why companies fail to develop adequate HR plans during these strategic processes, emphasizing the neglect of employee concerns and cultural integration. The report underscores the importance of HR in creating new policies, providing training, and ensuring a smooth transition for employees. It uses examples to illustrate the consequences of inadequate HR planning, such as difficulties in integrating employees from different organizational cultures, as seen in the example of a beer and wine company merger. The report concludes by stressing the proactive role HR must play in facilitating a successful merger or acquisition, focusing on employee well-being and effective integration strategies.

INTRODUCTION TO HUMAN
RESOURCE MANAGEMENT AND
LEADERSHIP

TABLE OF CONTENTS
REASONS COMPANY FAIL TO DEVELOP HR PLAN AT THE TIME OF MERGERS AND
ACQUISITIONS STRATEGIES....................................................................................................3
ROLE OF HR IN MERGERS AND ACQUISITIONS..................................................................3
REFERENCES................................................................................................................................4

REASONS COMPANY FAIL TO DEVELOP HR PLAN AT THE TIME OF
MERGERS AND ACQUISITIONS STRATEGIES
The mergers and acquisitions are not successful because the company lacks in developing
the HR plans. The reasons are as follows:
 The firm focuses on merging the business but the employees. The focus is laid on the
assets and the products which have been merged.
 As per the case study, it has been said that, the cultural matters which are witnessed in the
organization are not given the due importance. Due to this, the company does not
emphasize on making HR plan (Cartwright and Cooper, 2014).
ROLE OF HR IN MERGERS AND ACQUISITIONS
HR plays an important role in this process because they are the one who are directly
connected with the employees.
 They are required to make new policies as well as regulations by involving all the
employees of the organization.
 Besides this, proper training should be provided to the workers so that they can carry out
the work of the company in which they have been merged. E.g. - merger of beer and
Wine Company, where the workers were unable to sell the wine bottle (HR Challenges in
Mergers and Acquisitions, 2016).
 To make the employees comfortable with the working environment and give them
guidelines of the work before their joining.

REFERENCES
HR Challenges in Mergers and Acquisitions. 2016. [Online]. Available through:<
http://www.businessgyan.com/hr-challenges-mergers-and-acquisitions>. [Accessed on 2nd
November, 2016].
Cartwright, S., & Cooper, C. L. (2014). Mergers and acquisitions: The human factor.
Butterworth-Heinemann.