subject: "Managing Human Resource: A Key Success Factor in Mergers and Acquisition" [print this page] "Managing Human Resource: A Key Success Factor in Mergers and Acquisition"
"Managing Human Resource: A Key Success Factor in Mergers and Acquisition"
Human Resource is the most valuable asset of the organization. It is the Sum of knowledge, skill, creative abilities, talents, interest and aptitude which is utilized maximum to meet organizational goal. The strategic contribution of HR as consisting of the "Five P's": Philosophy, Policies, Programs, Practices and Processes. It can be thus understood under the Management Frame Work, given below.
Human Resource Management is a planned approach to manage people effectively for performance. It aims to establish a more open, flexible and caring management style so that staff will be motivated, developed and managed in a way that they can and will give of their best to support departments' missions.
Mergers and acquisitions have become a common phenomenon in recent times. People issues have been the most sensitive and plays vital role in Merger and Acquisition .It is observed that one of the main reasons of its failure is based on Human Resources negligence. Overall Human Resource management helps in
1. Formulating and Developing key strategies for a company's M&A activities
2. Identifying and developing new competencies
3. Managing the softdue diligence activity
4. Advising top management on the merged company's new organizational structure
5. Overseeing the communications
6. Managing the learning processes
7. Re-casting the HR department itself
8. Identifying and embracing new rolesfor the HR leader
9. Providing input into managing the process of change
Thus Success of Merger & Acquisition entirely depends on the people who drive the Business, their ability to Execute, Creativity, and Innovation. Thus the role of addressing any communication issues, employees concerns, compensation policies, skill sets, downsizing issues and company goals lays a platform for the firm base in Human Resource Management to attain desired goals. Involvement of HR Professionals in Mergers and Acquisitions discussions becomes utmost important as it has an impact on key people issues. This will help them to achieve a much better outcome and increase the chance that the overall deal is a total success.
