Dear Friends,
ACQUIRING a company is never easy. That’s because it is never fully possible to buy out the core of the firm: Its people. In these days of high attrition and a vibrant job market, companies involved in mergers and acquisitions have to tread lightly when it comes to employees. They have to be reassuring about jobs, and allay all fears and concerns. Given this situation, HR departments are beginning to play a more significant role than ever before, in integrating people during M&A.
Please see the attached ppt. this may be useful for HR professionals.
Regards,
PBS KUMAR
From India, Kakinada
592ACQUIRING a company is never easy. That’s because it is never fully possible to buy out the core of the firm: Its people. In these days of high attrition and a vibrant job market, companies involved in mergers and acquisitions have to tread lightly when it comes to employees. They have to be reassuring about jobs, and allay all fears and concerns. Given this situation, HR departments are beginning to play a more significant role than ever before, in integrating people during M&A.
Please see the attached ppt. this may be useful for HR professionals.
Regards,
PBS KUMAR
From India, Kakinada
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Dear PBS Kumar,
What you have written is fine. However, as soon as a company is taken over, manpower is purged. A recent example of this is Motorola. After the takeover, Google has announced that it will lay off about 4,000 employees. This move might have created a sense of insecurity among the employees, leading them to start quitting even before Google instructs them to leave. Consequently, Google might lose talented employees who should have otherwise stayed with the company.
The decision regarding manpower reduction is typically made at the board level or by strategic planners. In such instances, HR professionals are required to align with the decisions of their superiors to avoid being part of the group earmarked for removal.
If this is the scenario in the US, it is even more challenging in India. Compared to their counterparts in Western countries, HR professionals in India tend to be more subservient.
Oracle has acquired 35 companies in the last 5-6 years. Due to Oracle's aggressive management style, many employees have voluntarily left the company. There is no definitive study available to determine the cost of attrition in companies acquired by major corporations.
I appreciate you sharing the presentation. However, beyond academic discussions, it would be valuable to provide a case study demonstrating the practical implementation of the theories you have discussed and how the parent company benefitted from them.
Thank you,
Dinesh V Divekar
From India, Bangalore
What you have written is fine. However, as soon as a company is taken over, manpower is purged. A recent example of this is Motorola. After the takeover, Google has announced that it will lay off about 4,000 employees. This move might have created a sense of insecurity among the employees, leading them to start quitting even before Google instructs them to leave. Consequently, Google might lose talented employees who should have otherwise stayed with the company.
The decision regarding manpower reduction is typically made at the board level or by strategic planners. In such instances, HR professionals are required to align with the decisions of their superiors to avoid being part of the group earmarked for removal.
If this is the scenario in the US, it is even more challenging in India. Compared to their counterparts in Western countries, HR professionals in India tend to be more subservient.
Oracle has acquired 35 companies in the last 5-6 years. Due to Oracle's aggressive management style, many employees have voluntarily left the company. There is no definitive study available to determine the cost of attrition in companies acquired by major corporations.
I appreciate you sharing the presentation. However, beyond academic discussions, it would be valuable to provide a case study demonstrating the practical implementation of the theories you have discussed and how the parent company benefitted from them.
Thank you,
Dinesh V Divekar
From India, Bangalore
Dear Dinesh ji,
Thank you for your comment. However, what happens after merging the organization depends on the Memorandum of Understanding (MOU) between the two managements. The key question is the role of HR in mergers and acquisitions. HR must align with the management's requirements and implement strategies in a systematic manner. An example of post-merger activities is the integration of Satyam Group into Mahindra and Mahindra.
Regards,
PBS KUMAR
From India, Kakinada
Thank you for your comment. However, what happens after merging the organization depends on the Memorandum of Understanding (MOU) between the two managements. The key question is the role of HR in mergers and acquisitions. HR must align with the management's requirements and implement strategies in a systematic manner. An example of post-merger activities is the integration of Satyam Group into Mahindra and Mahindra.
Regards,
PBS KUMAR
From India, Kakinada
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