Page 234 - DMGT548_GLOBAL_HRM

Unit 12: HRM in Cross-border Mergers and Acquisitions

9. Estimate people-related savings. Notes
10 Recommend HR policies and programs.

12.5.3 Integration Planning

Role of HR managers in integration planning:
1. Develop strategies for employee communications.
2. Design programs to retain key talent.

3. Plan and lead the integration effort.
4. Develop total rewards strategy for new entity.
5. Help new organisation cope with change.

6. Define organisation blueprint and staffing plan.
7. Monitor employee attitudes and engagement.
8. Manage selection and placement process.
9. Form people-integration teams.
10. Help to manage labour relations.

11. Advise on productivity/workforce synergies.
12. Recommend assessment/selection method.

12.5.4 Implementation

HR manager can facilitate the process of mergers and acquisitions by:

1. Aligning HR policies, programs, and practices with business practices.
2. Monitoring progress of people-related synergies and ensuring workforce momentum is
sustained.

3. Ensuring incentive programs are designed to reward executives and key employees for
achieving the goals of the merger.
HR should also encourage the new company’s leaders to do the following:

 Recognise and reward behaviours that support the new culture.
 Consider cultural behaviours that support the new culture.
 Align culture with the vision and business strategy of the combined organisation.
 Identify the desired culture and gain agreement from senior management and opinion
leaders of both organisations.
 Employee dissatisfaction to be avoided.
 Conduct common understanding programmes with the executive level employees of the
company which is taken-over.
 Negotiate and make the Union Leaders understand about the entire issue and their future
positions after M&A.
 Understand the Organisational Structure/Salary Structure and try to reduce the parity
between the two companies.

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