Role of HR in Mergers and Acquisitions

Abstract

Mergers and Acquisitions (M&A) have become the dominant mode of growth for firms seeking competitive advantage. As M&A continues globally, companies involved have the opportunity for increased involvement of HR. Mergers and acquisitions (M&A) have been a popular strategy for organizations to consolidate and grow for more than a century. However, research in this field indicates that M&A are more likely to fail than succeed, with failure rates estimated to be as high as seventy-five percent. People-related issues have been identified as important causes for the high failure rate, but these issues are largely neglected until after the deal is closed. Literature suggests that a larger role for HR professionals in the M&A process would enable organizations to identify potential problems early and devise appropriate solutions. This paper attempts at explaining the role of HR in M&A and explores the challenges and opportunities for HR professionals in M &A, both from domestic and crossborder perspectives.

Keywords

• competitive advantage
• globalization
• mergers
• acquisitions
• strategic hrm