ROLE OF HUMAN RESOURCE MANAGEMENT IN MERGER & ACQUISITION A PROJECT DONE BY Mehuli Mondal, Roshni Das, Noor Ainy,

Priyanka Dutta and Arnab Chakraborty( M.B.A 2nd Year).

INTRODUCTION
A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another with no new company being formed. The term Acquisition is typically used when on company takes control of another.

MOTIVES OF MERGER & ACQUISITION

Quicker way to growth. Accessing new markets. Taking on the global competition. Improving operating margins and efficiencies Acquiring visibility and international brands. Buying cutting-edge technology rather than importing it. Developing new product mixes.

DIFFERENT PHASES OF M & A

STEP-1 : Pre deal STEP STEP-2 : Due Diligence PRE STEPCOMBINATION STEP-3 : Integration STEPPlanning. STEP-4:Implementation COMBINATION STEP-4:Implementation POST STEP-5 : Post Deal. STEPDeal.
COMBINATION

IMPORTANCE OF HRM IN EACH PHASE (PRE COMBINATION)

PRE DEAL: Identify the strategy driving

the M/A, locate and select targets, determine potential business opportunity, define critical success factors, and notify target of intent.

H.R ROLE: Educate team on HR

implications, conduct high-level analysis of people, org, & culture fit based on available information, identify people-related issues, plan for due diligence .

PRE COMBINATION (Cont.) DUE DILIGENCE : Collect and analyze

information from the target, assess leadership team, summarize findings, issues, and risks, and make go/no go decision.

H.R ROLE : Collect and analyze HR

related information, identify issues, risks, costs, savings

PRE COMBINATION (Cont.)

INTEGRATION PLANNING : Set deal terms, use information previously collected to create plans to combine companies with minimal business interruptions, close the deal. H.R ROLES : Secure key talent from target, collect more information where necessary, create integration team for HR, create HR integration plans (e.g., culture, organization, people, HR processes, HR systems and policies)

COMBINATION
IMPLEMENTATION : Announce deal and start ongoing communication to both companies. H.R ROLE : Execute HR Integration Plans & adapt as necessary Provide ongoing change management for both companies (e.g., management ability to deal with people issues, training, motivation, systems integration, job security/career concerns, realistic merger preview, Ethics & Compliance standards) Monitor people-related integration activities Encourage capture of synergies (e.g., use incentives) and areas of desired lack of synergy

POST COMBINATION
POST DEAL : Deal Team evaluates the successful
capture of synergies and achievement of original strategy

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

OVERALL H.R ACTIVITY IN M&A

PRE MERGER STAGESTAGE HR takes control ON MERGERMERGER Explaining new roles Meeting between the counterparts Orientation programs Technical retraining Training managers on the change Stress reduction programs POST MERGER STAGESTAGE Evaluation & team building Feedback helpline for employees

MAJOR MERGERS AND ACQUISITIONS IN INDIA

Hindalco acquired Canada based Novelis Tata Steel acquired Corus Group Dr.Reddys Labs acquired Betapharm Acquisition of Daewoo Electronics Corp by Videocon VSNL acquired Teleglobe

M & A-the latest trends AThe process of merger and acquisition has gained substantial interest in todays corporate world. The Indian Economic Reform 1991 has increased challenges both in domestic and international spheres. Hence the situation has undergone a sea change in the past few years and acquisition of the foreign companies by indian businesses has been the latest trend in Indian corporate sector

CONCLUSION
As merger and acquisition activities continue to step up globally and with manpower being the deciding factor for success,the role of H.R in merger and acquisition is crucial.