Академический Документы
Профессиональный Документы
Культура Документы
By
(Group 7: Akshay4A|Ashirvad 8A|Kavita 19A|Rakesh-30A|Sachin-36A|Shiv-40A)
Contents
1. Introduction....3
2. Key Issues
2.1
2.2
2.3
2.4
2.5
Communication ....4
Power and conflict ....4
Culture ...4
Operations .5
Geographical nuances ......5
merger between Fiat and Chrysler after the latter emerged from filing for bankruptcy). In
most cases, the success factor is where people in each organization show that they value
the other, and actively work together to bring out the best values in each.
Some key issues that may arise during Mergers and Acquisitions are as follows:
2. Key Issues
2.1 Communication
As people look inwards to try to find their place in the merged company and attempt to
see their future in it or outside it, the productivity drops. The grapevine can become a
major source of headaches. Constant, consistent, and honest communication from leaders
and HR is essential.
2.3 Culture
Organizational culture is an organizations shared values, beliefs, and preferred ways to
behave. It is a key to success and though many talk about it, few seem to have the skills
to grapple with culture and work with both organizations to assure a good fit. Many
organizations use a brief cultural fit survey to assist them during mergers.
2.4 Operations
Ideally, processes can be examined to see where true synergies lie. In many mergers and
takeovers, power relationships determine operational changes, rather than actual
efficiencies or quality concerns. By making changes with facilitated cross-platform teams,
HR can help to ensure that the best operational practices of the two organizations are
preserved.
economies within regions. Companies that have failed often have not had thorough
understanding of the local people, business conditions and environment.
Under these circumstances, the role of an HR manager becomes very important and if the
issues are handled properly, M&A can be a huge success. Mergers present opportunities
and hazards for both the company and the HR manager.
These issues may be overlooked by the leadership teams and it is the job of the HR
manager to point out these issues. Some questions to ask the leaders, in person or via
open-ended survey, are:
Are there viable alternatives to the merger (for example, greater integration with
suppliers, partnership deals etc.)?
Are the cultures for the two organizations compatible? Is there a plan for merging
the cultures? Will one be dominant, and, if so, how will people operating under
the other culture be brought on board?
One way to get the answers to these questions is to have an outside agency speak with
senior leaders, one at a time or, if that is not possible, to have them circulate a brief
confidential survey and present the results at a facilitated meeting. Difficult questions,
for example whether there are alternatives to a merger, should be raised as early as
possible.
The HR manager may need to raise the issue of culture - how people work, how they
think, what they value and how they view the other organization. If the acquired (or
acquiring) organization is viewed with disdain, these issues must be addressed up front.
Likewise, severe cultural differences must be addressed. They can be overcome with
attention and work. The HR leadership may, because of its skill and background, be
placed in the uncomfortable but important position of persuading corporate leaders to
admit the truth to themselves, and to employees.
8.0 Conclusion
By knowing what makes mergers succeed, keeping an eye on the human issues as well
as the financials, and using appropriate tools, companies can make mergers work. The
job of the HR manager is to quickly develop a strategy for helping the company to achieve
the synergies it needs and develop game plan for leading the process. It helps to have
achievable goals, with stretch targets, and concrete milestones for implementation.