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1/9

HUMAN SIDE IN MERGERS &AQUISITION

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2/9

Cross culture and HR Processes

While implementing M&A HR practices that

concern

Planning, selection and staffing

Appraising

Compensation and socialization

Need to take into account difference in thenational cultures where they are to be

implemented.

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Planning, staffing and selection

Career management system isinappropriate in the culture of Islamicbelief.

In japan JD is vague and flexible to fituncertainty whereas in USA and france JDare detailed to reduce uncertainty.

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4/9

Skills importance

In USA and UK psychology and humanrelation are valued whereas in germanyand france advanced studies are valued.

Performance Appraisal

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5/9

HR issues and M&A

Pre-combination Combination

Solidification& advancement

There are several HR issues that take place at each

stage of M&A. The stages of M&A are:

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Stage I Pre-combinationHR Issues HR implication and measures

Identifying reason for M&A Knowledge and understandingthe need to be disseminated,competencies needed.

Forming M&A team/leader Proper leadership need to be inplace.

Searching for potentialpartner/target Composition of cross functionaltop level teamSelecting a partner/target Culture assessmentPlanning to manage the process ofM&A.Learning from process

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Stage-II combination & integration of companies

HR Issues HR implication and measures

Selecting an integration manager Selecting appropriate candidateDesigning the composite structure forsynergy and performance Creating team for rationalizing majorHR policiesInstituting Training and development

strategies

Communicating the above is essential

Retaining key employees throughcompensation design

Deciding on who stay and who leaves

Motivating employees throughperformance linked reward

Establishing new culture, structureand HR policies

Managing the change Managing increased diversity

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Stage-III Solidification of new entity

HR issues HR implication and actions

Leadership and high managerialqualities

Focus on retention ok key peopleand redressal of grievances

Assessing new strategies andstructure

Rationalization of manpower

Setting up shared vision andcustomer focused new culture

Blending two cultures needs largescale visioning exercises

Assessing new HR policies and

practices for flexibility

Training, compensation and PM to

focus on harmonizing grades and teambased reward.

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9/9

THANKS