It shows that people management policies are critical to bridging the cultural divide between organisations and ensuring the merger's viability and success.
The report, HR's Contribution to International Mergers and Acquisitions, also concludes that the nationality of the acquirer has a significant impact, and thus underlines the importance of getting the cultural dimensions right. The report highlights five HR policy areas as key to integrating cultures successfully. These include:
- pay and benefits
- management selection
- harmonisation and integration of HR practices
- employee communication
- the pace of change.
The steps that HR should take to help leverage any possible deal are also emphasised. For instance, the report recommends that a new management team is appointed quickly but fairly, while dealing with any necessary redundancies humanely. Other recommendations include setting realistic targets, understanding the rationale of the deal and its external constraints, and ensuring that all costs and reward issues are factored into the deal.
The report is co-sponsored by CIPD, Mercer Human Resource Consulting and PricewaterhouseCoopers Human Resource Services.
