Human Resource Management Department faces many issues during the merger and acquisition process for both targeting companies as well as the purchasing company. The HR department solves the issues related to people in both the organizations.
The first step HR Management department determines is the cultural difference between the two companies during the merger and acquisition period. HR professionals will be having thorough knowledge about the working culture followed by the employees in the organization in which they are working in and the culture of other company should be studied in order to make it compatible. Cultural indifference might include success measurement employee benefits personal time as well as the method adopted by companies in handling problems.
The HR department often overlooks the benefits achieved both at strategic and financial level during the merger and acquisition. Usually the company which makes the purchase asses the various aspects related to the benefits and detect any problems which is running low due to fund shortage.
Most of the time people are afraid of changes happening inside the purchasing as well as purchased companies. HR professionals help sorting out eliminating the fears by answering concerns of individuals related to mergers and acquisitions. When the fears among the employees in both organization becomes less the productivity is increased to the desired level. Rumors regarding layoffs office relation and changes which might affect the employees is resolved at the earliest by HR professionals.