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8/3/2019 H.R assignment2010
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ROLE OF HUMAN RESOURCEROLE OF HUMAN RESOURCE
MANAGEMENT INMANAGEMENT IN
MERGER & ACQUISITIONMERGER & ACQUISITION
A PROJECT DONE BYA PROJECT DONE BY
Mehuli Mondal, Roshni Das, Noor Ainy,Mehuli Mondal, Roshni Das, Noor Ainy,Priyanka Dutta and Arnab Chakraborty(Priyanka Dutta and Arnab Chakraborty(
M.B.A 2M.B.A 2ndndYear).Year).
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INTRODUCTIONINTRODUCTION
A merger is a combination ofA merger is a combination oftwo companies to form a newtwo companies to form a newcompany, while an acquisitioncompany, while an acquisitionis the purchase of oneis the purchase of onecompany by another with nocompany by another with nonew company being formed.new company being formed.The term Acquisition isThe term Acquisition istypically used when ontypically used when oncompany takes control ofcompany takes control ofanother.another.
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MOTIVES OF MERGER & ACQUISITIONMOTIVES OF MERGER & ACQUISITION
Quicker way to growth.
Accessing new markets.
Taking on the globalcompetition.
Improving operatingmargins and efficiencies
Acquiring visibility andinternational brands.
Buying cutting-edge
technology rather thanimporting it.
Developing new productmixes.
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DIFFERENT PHASES OF M & ADIFFERENT PHASES OF M & A
STEPSTEP--1 :1 : Pre dealPre deal
STEPSTEP--2 :2 : Due DiligenceDue Diligence
STEPSTEP--3 :3 : IntegrationIntegration
Planning.Planning.
STEPSTEP--4:4:ImplementationImplementation
STEPSTEP--5 :5 : Post DealPost Deal..
PRE
COMBINATION
COMBINATION
POST
COM
BINATION
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IMPORTANCE OF HRM IN EACH PHASEIMPORTANCE OF HRM IN EACH PHASE
(PRE COMBINATION)(PRE COMBINATION)
PRE DEAL:PRE DEAL: IdentifyIdentify the strategy driving
the M/A, locate and select targets, determine
potential business opportunity, define
critical success factors, and notify target ofintent.
H.R ROLE:H.R ROLE: Educate team on HR
implications, conduct high-level analysis of
people, org, & culture fit based on availableinformation, identify people-related issues,
plan for due diligence .
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PRE COMBINATION (Cont.)PRE COMBINATION (Cont.)
DUE DILIGENCEDUE DILIGENCE :: Collect and analyzeinformation from the target, assess
leadership team, summarize findings,
issues, and risks, and make go/no godecision.
H.R ROLE : Collect and analyze HR
related information, identify issues, risks,costs, savings
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PRE COMBINATION (Cont.)PRE COMBINATION (Cont.)
INTEGRATION PLANNING :INTEGRATION PLANNING : Set deal
terms, use information previously collected
to create plans to combine companies with
minimal business interruptions, close thedeal.
H.R ROLES : Secure key talent from target,
collect more information where necessary,
create integration team for HR, create HRintegration plans (e.g., culture, organization,
people, HR processes, HR systems and
policies)
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COMBINATIONCOMBINATION
IMPLEMENTATION :IMPLEMENTATION : Announcedeal and start ongoingcommunication to both companies.
H.R ROLE : Execute HR IntegrationPlans & adapt as necessary
Provide ongoing changemanagement for both companies(e.g., management ability to dealwith people issues, training,motivation, systems integration,
job security/career concerns,
realistic merger preview, Ethics& Compliance standards)
Monitor people-relatedintegration activities
Encourage capture of synergies(e.g., use incentives) and areasof desired lack of synergy
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POST COMBINATIONPOST COMBINATION
POST DEAL :POST DEAL : Deal Team evaluates the successful
capture of synergies and achievement of original
strategy
H.R ROLE :H.R ROLE : Capture lessons learned from the
management of the project
Evaluate organization, people, processes, systems
(e.g., 24th month audit)
Suggest process improvements
Align with Business Strategy of the Future
Learn from this deal to be ready for the next deal
Ongoing involvement in integration of culture
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OVERALL H.R ACTIVITY IN M&AOVERALL H.R ACTIVITY IN M&A
PRE MERGER STAGEPRE MERGER STAGE--
HRHRtakes controltakes controlON MERGERON MERGER--
Explaining new rolesExplaining new roles
Meeting between the counterpartsMeeting between the counterparts
Orientation programsOrientation programs
Technical retrainingTechnical retraining
Training managers on the changeTraining managers on the change
Stress reduction programsS
tress reduction programsPOST MERGER STAGEPOST MERGER STAGE--
Evaluation & team buildingEvaluation & team building
Feedback helpline for employeesFeedback helpline for employees
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MAJOR MERGERS AND ACQUISITIONS INMAJOR MERGERS AND ACQUISITIONS ININDIAINDIA
Hindalco acquired Canada based NovelisHindalco acquired Canada based Novelis
Tata Steel acquired Corus GroupTata Steel acquired Corus Group
Dr.Reddys Labs acquired BetapharmDr.Reddys Labs acquired Betapharm Acquisition of Daewoo Electronics CorpAcquisition of Daewoo Electronics Corp
by Videoconby Videocon
VSNL acquired TeleglobeVSNL acquired Teleglobe
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M& AM& A--the latest trendsthe latest trends
The process of merger and acquisition hasThe process of merger and acquisition has
gained substantial interest in todays corporategained substantial interest in todays corporate
world. The Indian Economic Reform 1991 hasworld. The Indian Economic Reform 1991 has
increased challenges both in domestic andincreased challenges both in domestic and
international spheres. Hence thesituation hasinternational spheres. Hence thesituation has
undergone a sea change in the past few yearsundergone a sea change in the past few years
and acquisition of the foreign companies byand acquisition of the foreign companies byindian businesseshas been the latest trend inindian businesseshas been the latest trend in
Indian corporatesectorIndian corporatesector
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CONCLUSIONCONCLUSION
As merger and acquisition activitiesAs merger and acquisition activitiescontinue to step up globallycontinue to step up globally and withand withmanpower being the deciding factormanpower being the deciding factorfor success,the role of H.R in mergerfor success,the role of H.R in merger
and acquisition is crucial.and acquisition is crucial.
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