HR Strategies in
Merger or
Acquisition
There are Three (3) Stages
Pre-Entry Stage
Process mapping will determine the number of people required for each
function or department to determine how many will be absorbed and how many will
be declared excess.
The restructuring of the new
organization would have
resultant implications. Firstly,
reallocation or redistribution of
Assimilation Stage
Manning the new table of organization who gets which job and who will be
declared redundant.
Manpower Integration
-to conduct skills, job and manpower inventory.
Service credits and retirement plan
Credits that should be carried over and
vested right under the original retirement plans should be acknowledge and
respected.
What if the absorbing
company is Unionized?
Decisions to merge of what ever form should carry the Union’s involvement to the
extent that Management shows
reasonable manifestation prior to the issue, otherwise the union can hurl an
What if the absorbing
company is
Non-Unionized?
The company should continue the
practice of seeking a continuous
dialogue with the staff through their
chosen representatives, which
Maintenance Stage
Hard Diligence
-issues such as analyzing financial data,
operational assets, legal issues, marketing prospects and other standard
measurements that add shareholder value
Soft Diligence
-issues such as integration risks, cultural alignment and human capital risks are
Survivors’ Syndrome
-It is like working after the storm has passed. -Surviving employee’s psyche, creating
feelings of loss of control, betrayal and unfairness.
Slow Acculturation
-
Process between the retained staff of
the merging companies or between
the acquiring and the acquired
company.
Outsourcing in the
Transition Period
Outsourcing may be negotiated with the
union if the company is organized to avoid any labor problems.
However, the transition period may also looked at as an opportunity to outsource non-core functions.
