Analyze the process of cross-border mergers and acquisitions, and determine the major challenges to HR. -------------------------------------------------
Cross-border mergers and acquisitions can create a number of challenges with the HRM team. After studying the difference between mergers and acquisitions, I determined that both have their own individual issues when it comes to strategizing HRM. Mergers (when two companies enter an agreement to join their operations together), create a challenge with deciding which of the two HR teams will take over the newly merged operation. When a company merges, each company entering the agreement has to agree on which leaders from each will be the best fit for the position in the new operation. There are staffing issues such as twice as many employees, and wether there are enough new and existing positions to put them (if not, it could result in layoffs). Each company has their own policies and procedures that may have made that company successful, or even produced different types of services or products. A merger or acquisition can cause personell issues, which often go overlooked for a period of time. If not thoroughly analyzed, this type of agreement (M&A's) can produce a high failure rate.
A great way to reduce the number of failures when companies enter M&A agreements, is to thoroughly engage in proper planning via several phases. As discussed in the textbook on p54, mergers and acquisitions are characterized by a number of phases such as: screening of alternate partners, analyzing the benefits of the planned agreement, integration planning, and implementing the agreement to form a new company. Another suggestion for addressing issues that could result from M&A agreements is to include the two company's employees in the planning process. When employees have been employed at a firm for an extensive amount of time, they feel that they have invested into the company and they should get some voice in the merger. This will lessen the impact on existing employees, making personell issues and attitudes less likely to develop. Author: Anonymous
Date: Tuesday, June 19, 2012 10:03:45 AM EDT
Subject: Week 3 Discussion 1
"Cross-Border Mergers and Acquisitions"
Please respond to the following:
the challenges that accrue with mergers and acquisitions are: The possibility of having to layoff people with a merger. With a merger two companies are agreeing to come together to form one, so their will be a change that there will be more people then positions. Change in operations, for now it will be two styles coming together to make one smooth running system. People might not like the new way of operations, so they decide to look for employment else where.
The challenges could be reduced by talking to and assessing the employees to find out their straights and weaknesses. design key talent programs, and find a way to work out the organizational and cultural fit among the two companies
Analyze the process of cross-border mergers and acquisitions, and determine the major challenges to HR.
Mergers and acquisitions are never easy, especially when they are done cross-border. There are several phases of a merge/acquisition. There is a pre-M&A phase that screens the partners and analyzes their positive and negatives, a due-diligence phase looking at the pros and cons of the merger. The next steps include integration and implementation. There are places where HR can play a role in these phases. The two that I see the most HR challenges and participation would be the integration and implementation phases. It is not uncommon that during a merger and acquisition a large amount of employees are lost either the company decision or the employees’ choice. When looking at a merger the HR function needs to look at the global HR functions, how it will integrate, can it be integrated. What are the practices of each...