Exploring the Strategic Role of HRM in Mergers and Acquisitions

This essay examines the critical role of Human Resource Management (HRM) in mergers and acquisitions (M&A). It highlights how strategic HRM practices, including attracting, retaining, and rewarding employees, align with organizational goals during these transitions. The analysis covers the implications of HRM on M&A, emphasizing post-merger integration strategies, the influence of transformational leadership, and the revitalization of boards of directors. Furthermore, the essay discusses the human impact on the success of M&A, focusing on employee well-being and psychological effects. The research draws upon various journals to support its findings, illustrating the multifaceted role of HRM in ensuring successful M&A outcomes by managing human capital, fostering effective communication, and adapting leadership styles.

ROLE OF HRM IN MERGERS &
ACQUISITIONS

INTRODUCTION
Strategic human resource management is
based on the process of developing,
attracting, retaining and further rewarding
the employees for the profit of the
organization. The goals of the human
resource department is thereby aligned with
the overall goals of the organization. The
strategic human resource management is
thereby considered to be the practice which
attracts the employees and supports the
objectives and the goals that are set by the
organization as a whole (Brewster, 2017).

ROLE OF HRM IN MERGERS &
ACQUISITIONS
The human resource department of the
organization plays an important role in the
process of mergers and acquisitions that are
conducted by the organizations. The mergers
between the companies are affected in a
huge manner by the human resource
management department. The HR plays an
important role in the ways by the employees
are managed after the merger has taken
place (Jackson, Schuler & Jiang, 2014).

CROSS BORDER MERGERS
&ACQUISITIONS
The mergers are mainly based on the
agreement which takes place between two
companies so that they are able to join their
operations together. An acquisition on the
other hand occurs when an organization
takes over the entire operations of another
organization. The which takes over the
operations mainly aims at controlling the
entire operations of the company (Taken from
textbook).

IMPLICATIONS OF HRM ON MERGERS
AND ACQUISITIONS
The mergers and the acquisitions of the
organizations are affected by the
international human resource management
based activities of the company. The phase of
mergers and acquisitions involves the
highest involvement of the human resource
management based department of the
company. The different types of researches
have depicted that the HR department is
getting involved in the mergers and
acquisitions in a huge manner (Taken from
textbook).

JOURNAL 1 -
MERGER AND ACQUISITIONS RELATED TO POST
MERGER INTEGRATION
Strategy 1 – Post merger integration of HRM
practices
o The strategy is implemented based after the merger has
taken place between the companies. The integration of
human capital within the new processes is the major part of
this strategy.
o The process of mergers and acquisitions of the organizations
are related to the acceleration in the growth of these
companies in the industry in which they operate.
 The main aim of the journal that has been considered in the
analysis is based on the mergers and acquisitions and the
process of post merger integration as well.
 The human resource management is considered to be the
foundation of the mechanism based on human capital and
the ways of executing the strategies and the diverse tasks
(Brueller, Carmeli & Markman, 2018).

RELATIONSHIP BETWEEN
MERGERS & ACQUISITIONS, POST
MERGER INTEGRATION AND
HUMAN RESOURCE MANAGEMENT
 The strategies related to mergers and acquisitions can be
classified into different type which are, diverse, having
different aims and various capabilities.
 The mergers and acquisitions are based on the designation of
the employees, the appearance and the objectives.
 The mergers and the acquisitions based process is thereby
related to the target firm and the core assets that are owned
by the company.
 The mergers and acquisitions are thereby used by the
companies to the seize the new capabilities, key personnel
and the processes (Brueller, Carmeli & Markman, 2018).

HUMAN CAPITAL AND HRM
 The human capital of a company and the
HRM functions are linked with each other.
 The relationship of these two departments is
much more than the payroll of the employees
and the normal labor relations within the
organizational operations.
 The HRM personnel of the companies which
are a part of the merger process and the
human capital of the companies need to
coincide to improve the entire process
(Brueller, Carmeli & Markman, 2018).

JOURNAL 2 -
ROLE OF LEADERSHIP ON HRM PRACTICES IN M &
A
Strategy 2 – Roles played by HRM and
transformational leadership in mergers and
acquisitions
 This strategy is based on the role that is played by the
transformational process of leadership in the process
of mergers and acquisitions between the companies.
 The ways by which the human behavior can influence
the merger and acquisition based process is analyzed
in the second journal that is taken into consideration.
 The behavior of the employees affects the leadership
style and entire process of mergers and acquisitions.
 The implementation of the HRM practices is important
for the success of the mergers and the acquisitions
(Vasilaki et al., 2016).

TRANSFORMATIONAL LEADERSHIP IN
MERGERS AND ACQUISITIONS
 The leadership of the organizations which
are a part of the merger process helps in the
easy implementation of merger.
 The transformational leadership style
thereby impacts the HRM practices of the
company in a positive manner.
 The leaders and the employees are able to
coordinate with each other to formulate the
new practices which are required after the
merger process (Vasilaki et al., 2016).

COMMUNICATION PROCESS BETWEEN
ORGANIZATIONS
 The process of communication between the
organizations is an important part of the
entire merger based process.
 The leadership of the organizations is
responsible for the purpose of the creating a
proper communication between the
employees.
 The stress levels that are caused due to the
lack of proper communication can be
reduced with the proper process of
leadership (Vasilaki et al., 2016).

JOURNAL 3 -
REVITALIZING THE BOARD OF DIRECTORS AFTER
MERGER
Strategy 3 – Revitalizing of the directors after
merger process
 This strategy is based on the process by which
responsibilities of the board of directors are modified so that
they can operate in an effective manner in the changed
environment.
 The growth of the firms is managed in an effective manner
with the help of internationalization.
 The risks that are related to conflicts that are based on the
relationship of the employees after the merger is an
important factor that needs to be considered.
 The governance of the organizations are mostly affected by
the mergers and the acquisitions that take place.
 The board of directors of the company thereby need to be
managed according to the situation that takes place after
the mergers (Mirc, 2014).