Human Resource Management: Analysis of Impact of Change and Mergers

This report examines the profound impact of change on Human Resource Management (HRM), focusing on mergers and acquisitions as a key driver of transformation in the workplace. It delves into the challenges and opportunities that arise for HRM departments during such organizational shifts, analyzing the effects on employees, company performance, and ethical considerations. The report provides detailed case studies of mergers and acquisitions, including TCS-Tata InfoTech, TechMahindra-Satyam, and Tata Steel-Corus. These examples illustrate the specific impacts on HR practices such as talent retention, compensation, and employee integration. The report also explores the legal and ethical frameworks that govern mergers and acquisitions, emphasizing the importance of compliance and fair practices. By examining these aspects, the report offers valuable insights into how organizations can navigate the complexities of change and ensure successful outcomes in HRM.

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Human Resource Management
Student Name
2/11/2020

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Contents
Introduction.................................................................................................................................................3
Key Change- Merger and Acquisition.........................................................................................................3
1. TCS – Tata InfoTech.......................................................................................................................4
2. TechMahindra – Satyam..................................................................................................................4
3. Tata Steel-Corus..............................................................................................................................5
Ethical and legal frameworks......................................................................................................................5
Conclusion...................................................................................................................................................5
References...................................................................................................................................................7

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Introduction
In the recent, there are many changes that occur in front of workplace environment. The changes
are now increasing with the increase in other trends and requirements. The recent change that
occurs in the competitive market is acquisition of other companies. The merger or acquisitions is
one of the recent trends for the businesses which are highly used by them to the certain extent.
Such kind of changes affects the performance of employees, members, profit, goodwill and
mainly Human Resources Practices (HRM). The HRM is an important part for every
organization to run (Bonaime, Gulen, and Ion, 2018)
In the following parts there will be detailed analysis of the influence of change on HRM and
ethical or legal framework.
Key Change- Merger and Acquisition
The merger and acquisition is a stepping stone to go ahead for achieving the desired goals. In
merger two or more companies collaborate together to form a new company whereas in
acquisition a company purchases one or more company. In the acquisition the acquired company
losses its identity and runs with the name of acquiring company (Bratton, and Gold, 2017)
When a company becomes weak or has no financial support then there is an option of merger
and acquisition. This situation rise when major players dominate or manipulate the market and
which small players cannot face. The merger and acquisition reflects actual position of both the
companies. The main impact which is mainly ignored is on human resource departments, the
department has to face many issues such as employment laws, talent retention and leadership.
This change brings two HR practices and which will stay is a difficult one to choose. There are
some key tasks which are performed by HR:
 Introducing strategies and action plans to retain employees
 Identifying barriers and the blocks
 Developing new policies and plan for communicating
 Studying compensation and benefit(DeCenzo, Robbins, and Verhulst, 2016)
To allocate between both the companies resources and chose is best difficult and can be wrong
sometimes which directly leads to a failure in merger and acquisition. The HR Practices is

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foremost reason for the unsuccessful merger and acquisition. There are some examples which
show how merger and acquisition influences human resources department:
1. TCS – Tata InfoTech
This is a merger of two Tata Group companies which include employees of Tata InfoTech
becoming a part of TCS. The merger between both executed very well but the issue rose with HR
department. The impacts of the merger on HR department are:
 Consideration of prior experience- it reflects that which staff should retain and who is to
be considered for TCS? This was overcome by retaining the employees of merged
company.
 Designation and Pay Scales- every employee or managers only want to accountable to his
superior. And also, after merger the pay scales should be equal as of other company.
These were the issues rising by employees of Tata Group. Therefore, HR dealt it by
designating both the company’s’ employees equal pay and responsibilities.
 Introduction and Project Allocation- there will be different project and work in the TCS
which is to be carried out by Tata Group employees. But without knowing it would not
be easy for them and therefore, HR has to organize and introduce some programs to train
and guide the employees before starting work(Eliason et al., 2020)
2. TechMahindra – Satyam
The TechMahindra acquired Satyam whose business was globally diversified. The employees of
Satyam were not satisfied and happy with this acquisition and there occurred a huge change in
the entire structure of organization. This leads to arise of challenges with HR department like
faith of clients, employees and retention of staff. The HR departments held some programs and
campaigns to attract new clients and regain sales. There are some steps taken by HR to cope up
with this acquisition:
 Introduced a 3 day program to motivate and attract new clients.
 To fill up the vacant position Satyam advertised to general public.
 Developed new strategies and reward schemes to boost the employees and retain them for
longer period(Ferrell, 2016)

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3. Tata Steel-Corus
Tata Steel acquired Corus; this was the biggest challenge which Tata Steel accepted due to the
reason that both companies are very different from each other. However nothing was easy but
Ratan Tata was so confident for this merger and claimed that both the companies will be a
cultural fit. There HR Department has developed management structures to deal with the
activities(Hassan, Ghauri, and Mayrhofer, 2018)
They also captured some systems integration to lighten up the deliverables. Tata Steel also
formed a seven member integration committee to collaborate with Corus. The Human resource
practice has created some policies and strategies to manage the functions such as Strategy
Development, Strategy Modeling and Industry Group(Huangfu et al., 2017)
Ethical and legal frameworks
There are laws for every work which has to be followed while doing the work. The State and
federal provide some laws for merger and acquisition. The law reflects a path to ensure fair
practices by establishing judicial procedures, guidelines, and compliances. Before collaborating
there is need for approval by the authorities and making them believe that everything is legal and
there is not any intention to defraud(Nayak, Acharya, and Mohanty, 2016)
The merger and acquisition is a big step and it increases many legal formalities for both the
companies such as to intimate each and every step, procedure to government and before
implementing anything approval is required. Both the companies should follow every regulation
for example, in TCS – Tata InfoTech there will be duty of the manager of Tata Infotech to carry
forward the system of employees gratuity, pension or any other benefit to TCS. The policies
which employees were receiving before merger also have to be considered while merger. The
entire legal and ethical framework by the acquiring and acquired company has to be
fulfilled(Eliason et al., 2020)
Conclusion
The above information can be concluded that any change in the workplace leads to effects on
human resources practices. The human resource is an indispensable fact of every company.
Therefore, the merger and acquisition change raised lot of issue and challenge in front of human

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resource department. The HR dealt with all the issues very effectively and made the merger or
acquisition successful. The impact of change also occurs on legal and ethical issues as they have
to be changes or reorganize.

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References
Bonaime, A., Gulen, H. and Ion, M. (2018) Does policy uncertainty affect mergers and
acquisitions?. Journal of Financial Economics, 129(3), pp.531-558.
Bratton, J. and Gold, J. (2017) Human resource management: theory and practice. UK:
Palgrave.
DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L. (2016) Fundamentals of human resource
management. United States: John Wiley & Sons.
Eliason, P.J., Heebsh, B., McDevitt, R.C. and Roberts, J.W. (2020) How Acquisitions Affect
Firm Behavior and Performance: Evidence from the Dialysis Industry. The Quarterly Journal of
Economics, 135(1), pp.221-267.
Ferrell, O.C. (2016) A framework for understanding organizational ethics. In Business ethics:
New challenges for business schools and corporate leaders (pp. 15-29). British: Routledge.
Hassan, I., Ghauri, P.N. and Mayrhofer, U. (2018) Merger and acquisition motives and outcome
assessment. Thunderbird International Business Review, 60(4), pp.709-718.
Huangfu, G., Lv, F., Sheng, C. and Shi, X. (2017) Effect of workplace environment cleanliness
on judgment of counterproductive work behavior. Social Behavior and Personality: an
international journal, 45(4), pp.599-604.
Nayak, A.C., Acharya, S.K. and Mohanty, B.B. (2016) Human Capital Engagement-A Key
Factor in Merger and Acquisitions. Splint International Journal of Professionals, 3(1), p.130.