The document discusses the role of human resources management (HRM) in company acquisitions. HRM must understand the cultures of both companies to facilitate integration. They must also assess benefits structures, address employee concerns about potential layoffs or relocations, and communicate any changes to roles and reporting structures. HRM plays a vital role in managing cultural differences, benefits issues, and employee impacts during the acquisition process.
The document discusses the role of human resources management (HRM) in company acquisitions. HRM must understand the cultures of both companies to facilitate integration. They must also assess benefits structures, address employee concerns about potential layoffs or relocations, and communicate any changes to roles and reporting structures. HRM plays a vital role in managing cultural differences, benefits issues, and employee impacts during the acquisition process.
The document discusses the role of human resources management (HRM) in company acquisitions. HRM must understand the cultures of both companies to facilitate integration. They must also assess benefits structures, address employee concerns about potential layoffs or relocations, and communicate any changes to roles and reporting structures. HRM plays a vital role in managing cultural differences, benefits issues, and employee impacts during the acquisition process.
A Q U I S I T I O N The term "acquisition" refers to the acquisition of assets by one company from another company.
the act of acquiring something acquisition of property
or acquisition of knowledge Objective: an acquisition is self-evidently growth and expansion of the acquirer's assets, sales and market share. ROLE OF HRM IN ACQUISITION A institution/company’s human resource department as well as the human resource workers in the other institution/company play a vital role in the process.
The role of HR in M&A process are:
Institution/Company culture Benefits problems Employee concerns Changing roles and structure INSTITUTION/COMPANY CULTURE • Human resource must have a firm grasp on the culture of the company for which they work and must study the culture of the other organization to make such a determination. • Culture differences may include How organizations define and measure success How problems are handled management styles Overall attitude of employee and managers. BENEFITS PROBLEMS
• Human resources from the purchasing company assess the
benefits structure of the other company to uncover any potential problems. EMPLOYEE CONCERNS • Human resources can detect and address any rumors about layoffs, office relocation or other changes employees fear, giving feedback to management about employee concerns. CHANGING ROLES & STRUCTURES
• When one Institution/company acquires another, some changes to both
organizations may occur. • Human resources communicates to employees changes in who they report to within the company, what team or work group employees are assigned to as well as any changes to different positions’ roles in the organization