Why HRM issues are important for organizations undergoing m

1. REALIZING THE IMPORTANCE OF HUMAN RESOURCE SYNERGIES IN MERGER INETEGRATED ORGANIZATIONS Dr. Prashant Mehta Assistant Professor, National Law University, Jodhpur

4. - Help to identify issues / planning due diligence - Plan due diligence for people / organization cultural fit - Help to educate the “deal making” team - Help to develop acquisition guidelines - Estimate people-related transaction costs and ongoing costs - Identify/assess cultural differences - Estimate people-related savings - Recommend HR policies and programs - Validate intangible assets - Assess costs of integrating HR systems Leveraging HR – # Pre-deal Human Resources can add value to the M&A life cycle in the following ways:

5. - Develop strategies for employee communications - Design programs to retain key talent & lead the integration effort - Develop total rewards strategy for new entity - Help new organization cope with change - Define organization blueprint and staffing plan - Monitor employee attitudes and engagement - Manage selection, placement, de-selection/outplacement process - Outline people goals and guiding principles - Form people-integration teams to manage labor relations - Advise on productivity / workforce synergies - Recommended assessment / selection method Leveraging HR – # Integration Planning

6. Align HR policies, programs, and practices with business practices Monitor progress of people-related synergies and ensuring workforce momentum is sustained Ensure incentive programs are designed to reward executives and key employees for achieving the goals of the merger. Recognize and reward behaviors that support the new culture Consider cultural behaviors that support the new culture and align culture with the vision and business strategy of the combined organization Identify the desired culture and gain agreement from senior management and opinion leaders of both organizations Leveraging HR – # Implementation

7. - Ability to evaluate another company - Ability to advise regarding employee sensitivities / attitudes - M&A literacy and integration know-how - Ability to plan and lead complex integration projects - Knowledge of best people practices / systems - Knowledge of how to retain and motivate critical talent - Expertise with people / organization / culture integration # “Hope is not a strategy” People must have specific skills, knowledge, abilities, and experience in order to succeed, among them: