An Exploratory Study into the Integrative Role of HR in the Context of Post Mergers and Acquisitions

Abstract

Organizations carry out mergers and acquisitions to create value and give newlinethem a competitive advantage. Surveys by various consulting firms and researchers have shown that despite possible benefits, failure rates in mergers and acquisitions are as high as 75%. Research studies have shown that mergers and acquisitions, many times create a loss in shareholder s value. In addition, they have a negative impact on employees - causing them stress and resulting in lower levels of satisfaction, commitment and loyalty. HR issues arising during the post integration stage have been identified as one of the newlineimportant reasons behind this failure. newlineMost studies conducted in the area of MandA rely on information collected newlinefrom specific companies and relating to specific aspects of Human Resource newlineissues in organisations in the post MandA scenario. Independent studies have been conducted to study the impact of culture, integration of compensation and benefits, Talent Management and so on in the post MandA scenario. newlineHowever, there have not been many studies conducted which take into consideration the impact of the series of interconnected events in an organisation post-merger and acquisition on employees in the merged entity. newlineFor example, the change in policies post-merger could affect the culture of the newlinemerged entity. Changes in the organisational structure would have newlinedownsizing, retention and attrition issues which would be all interlinked. newlineThese all have to be handled by HR post-merger. The role of HR becomes newlinevery crucial in this scenario. Also, not many studies have been conducted which span across organisations in India. newline