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Role of HR in 'Mergers & Acquisitions'
Human Resources » Organization Development


Chrm Message From: javedi Total Posts: 26 Join Date: 29/09/2009
Rank: Executive Post Date: 25/06/2010 12:47:15 Points: 130 Location: India

Dear Team !

Recently one company in the next-door was sold off. That led me to to have disucussion on "mergers & acquisition and role of HR".

In the world of desperate desire to survive and become market leaders, we have seen many mergers and acquisitions. Many have been closed down, many company have disappeared after getting the buy-out amount. I would like to have discussion on this :

a) What is the role of HR in the entire process of merger and acquisition.Is it strictly financial decision or any consideration for Human Relations.

b) Has any top management taken in account HR professional's confidence. How many mergers have been well communicated to the staff who are going to be jobless.
c) What will be the compensation of loosing the job, sharing company's values and systems when company is being taken of by a new entity.

d) What will be the career future when a middle management and lower ground staff that is being laid off at the age of 40 or 40+ ( It's a different thing that company can easily say "It is not my responsibility")

e) If company expects loyality from employees all the time, what company's does in paying back( yeah excluding salary and other perks).

Awaiting your comments in this regard !!!!

Regards,

Javedi

Chrm Message From: rammohan Total Posts: 26 Join Date: 29/09/2009  
Rank: Executive Post Date: 25/06/2010 12:49:08 Points: 130 Location: India

a) What is the role of HR in the entire process of merger and acquisition. Is it strictly financial decision or any consideration for Human Relations.

There is no actual consideration for Human relations, only superficial one's so that people don't panic.

b) Has any top management taken in account HR professional's confidence. How many mergers have been well communicated to the staff who are going to be jobless.
Its not a question of confidence. Most of the times HR is kept out of that part of the loop. And even if they are informed - it is with strong communication of "No Discussions"

c) What will be the compensation of loosing the job, sharing company's values and systems when company is being taken of by a new entity.

Usually there is a 3 month salary given as compensation. This depends on the company again I have seen ranges between 1 month to 12 months and in some cases some ad hoc bonus.

d) What will be the career future when a middle management and lower ground staff that is being laid off at the age of 40 or 40+ ( It's a different thing that company can easily say "It is not my responsibility")

Nothing can be done about it. It happens. The company will most probably (99% times) say that its regrettable but had to be done. Its not in their hands.... the company makes the other company's senior guys as scape goats.

e) If company expects loyalty from employees all the time, what company's does in paying back( yeah excluding salary and other perks).

You have asked the question. There is no answer....

I hope my answers were not too offensive..

Ram

 
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