Acquisition Strategies For Managing Human Resources

Name :- Bhumanjay Tomar

Year of Study :- 4th Year
University Name/Affiliation :- CPJ College of Higher Studies & School of Law affiliation with GGSIP University.

INTRODUCTION

"Acquisition" is when one company over-purchases one's company shares and tries to overpower that
company shares or when one company tries to adapt its technology to a smaller company or
accompanying them in its decision making power etc .

BACKGROUND
How phases of Merger And Acquisition Works :

Phase One : The Buyers

As with deal, the first step is two or more parties involved to identify themselves , start discussing
possible merger & acquisition ,when one or more companies jointly decide to sign an agreement which
is non-disclosure , so the information / planning should not be open to the public etc.

So here , the task of the human resources manager starts where all information is mentioned to perform
(an agreement ) and start to do future planning / task involved / or preparation to start an event etc.

Phase Two : Third Party

Since trying to bring two companies together at the same term of agreement , that is where the urge of
mediator arises and ensure that all transactions and documents are on a terms basis .

Whereas the human resources role takes care of decisions here, is to reluctantly see issues , cultural
problems , and employees' needs etc .

Phased Three : Prep Time

When all this happened and look into that all the parties have signed the contention / agreement etc
and agree all terms and condition given document with due diligence and before notes formally on
merger and acquisition

Now , the role of human resource is looked carefully combined through HR and management and
nothing messes up at a delicate deal .

Phase Four : The Agreement

This phase where two parties start negotiating the price , and most important thing at what terms does
the party agree and fix the amount all the legal contention has been drawn and accepted .

And that is where the government starts interfering when all legal processes are completed and filing of
taxation documents , and learning how much to pay and govt. get the right to be involved in legal
matters etc .Also , now where the HR role plays to bring an effective workforce .
Phase Five : Getting Started

In this phase now the company merged and all the work started and communicated to the knowledge of
all employees in the workforce . Where HR professionals now look into various vision statements ,
organizational policies , procedures also , it is revised and coordinated with significant HR professionals .

“HR” plays a very important role in any of the companies that bring them to write a path on the basis of
their excellence , skill , knowledge and find out possible pitfalls in merger or acquisition or in both .

Whereas if two or more organization are in conflict with each other , The HR need to addressed it top to
have smooth flow in organization also, when legal team start interferes or ifd requires third party tp
Council or guide them to make sure that all the policies , rules , regulation , local act have been
complied and followed successfully.

The HR role here is to closely observe the company culture , work environment , ethics and morals of its
employees and make sure sequence of events have been followed and timely implemented to avoid late
chaos keep in mind timely followings of companies regulation , rules etc .

Whereas important issues that raised before is :

Is employees able to work together ,

Are they well versed with new task or work with required skills ,

How much will be the turnover in future.

Roles of HR in Merger And Acquisition

Many of these policies will remain the same due to their efficiency and effectiveness while some are
uploaded to make it more accurate as per latest research and HR trends .

Retention And Downsizing

When it comes to merger or acquisition all companies need to come under one roof , whereas it means
that it no longer needs to be in a new organization . It all depends on parties to merge or acquire into
one unified .

For example : one giant company merges with another company. It doesn't mean it is confined to one
single unit , it may also be that they are working for specific brands and also its own . Whereas
downsizing happens in cases of merger and acquisition , also a major challenge is who to retain,
terminate , as well as effectively manage those processes .

Ideally HR will determine skills , knowledge , expertise and involvement in managing merger or
acquisition to figure out redundancies ,and managers need to spend a lot of time in work planning , look
employee knowledge , using layoff , retirement and other tools .

Also there are many employees. When it comes to merger or acquisition , many motivated employees
will stay or leave forever . And HR roles work to convince them the job is safe also, important to the
organization and this requires persistent , commitment touch from HR to managers from companies
etc .
Compensation , Benefits , And More

Likely you need to work closely with managers and departments to come up with new benefits and
compensation schemes for employees .

And also there needs to be proper communication with employees by providing them proper training
sessions to know by staff members . and organization can't tell what exact opportunities you need ,
what benefits you get , and need to update with organization policies .

Culture, Culture, Culture

The one and last thing that remains for years is culture fit. Whereas , the role of HR starts when bringing
culture together and peacefully follows without any conflict .

When asked about the primary cause of culture conflict between two organizations , found that culture
conflicts to avoid after conflicts HR need to evaluate before merger or acquisition properly , help to
analyze future conflict and address solutions timely to avoid further conflict .

Dynamic Method Of Human Resources / Or Relations

Human Relation

Group behavior deals with interpersonal relations and social interaction whereas good behavior is
critical for collaboration and success .However, individual behavior deals with power , feelings ,
leadership and individual feelings and how they affect the workplace .

Organizational development concerns more about how to do betterment of employees , bring a safer
environment and protection of their legal rights , whereas central belief is that employees can better
take care of themselves without or instead of their managers.

Labor Relations

Labor laws, public policy , wages and cost etc . Whereas politics , union , state with labor laws and
sticking to contractual terms can build a powerful position for beginning .

Personal Management

Activities involved in managing a large number of people activities including such as : recruiting ,
compensating , recruiting , selecting and developing etc. that induces appropriate behavior , motive ,
behavior etc .

Personnel hold that such policies / behavior would induce good climate behavior .

Industrial Engineering

The school concentrates more on developing human capabilities and technology to fit the standards of
industries ,it holds efficiency and productivity are products of disciplined supervision .

Each of the four schools focus more on loyalty , committed group of employees whereas , i don't
disagree with appointing or don't i say one school is more superior or one or more less inferior than
others , all want to convey is that they offer tools , mechanisms very effective etc .
Though each is effective in its own way and makes vital contributions like wheel and the engine , each is
equally more concentrated on what actually guidance tools are needed whereas , there needs to be one
such head of four such schools each offering mentor advice .

Corporate Management Advice

One of the problems is better progress towards better people , size , and allocation of resources Also , as
the corporation grows in number of employees the more it becomes diversified , by necessity
communication process via media , speeches become more political and less personal .

When the company grows it becomes more diversified and separates them into different locations ,
headquarters Whereas , in fear it is possible labor force division may create low cost products that may
lead to a bad reputation for the company . As equal opportunity rises , the more diverse it becomes,
therefore each division requires diverse tasks and skilled labor to handle it efficiently and require
employees to be more adaptive .

The problem of diversification may lead to competition between others and bring more conflicts at
headquarters , frustration etc. and with responsibility my leads to be more ineffective .

Time Is Enemy

Acquiring and developing the right talent for business to bring changes in technology , product , service ,
behavior of employees will take approximately upto 5 to 10 year to become more dynamic etc. whereas
it take good long years to bring more genuine change , also one bad decision may affect long term
development of business / or company instead it become slow development .

Conclusion

There are many vital things that HR needs to look at before merger or acquisition such as : poor
communication , loss of trust , uncertainty , lack of motivation etc .Also, here are a few additional things
that HR need to look at such as: updated policies , key employee retention , compensation , benefits
etc .Whereas it is important to work closely with managers to get more employees and ensure
everything runs smoothly with due diligence and accurate planning of upcoming events .

However, HR plays a vital role to ensure that merger and acquisition will run smoothly - boost business
also, prepared to overcome any conflicts ahead of business , and timely .

References :
https://blog.careerminds.com/mergers-and-acquisitions

https://www.mbaknol.com/strategic-management/the-role-of-human-resources-in-mergers-and-
acquisitions/