Strategic Human Resources Management: Merger and Acquisition Strategy

Strategic Human Resources Management: Merger and Acquisition Strategy

LAW CHONG SENG

University Technology of Malaysia (UTM) cslaw5@live.utm.my, mylawcs@gmail.com

ABSTRACT The strategic issue that the HR director needs to focus on before merger includes employee compensation, notice to employee, number of employee needed after the merger, employee rights if the merger take place, communication and talents retention. Employee compensation is an important issue because the merger involves the reduction of workforce and the amount of compensation can be substantial. The pre-determination of number of employee needed will help to decide the cost saving from the merger. Understand the employee rights and to get employees to accept the new employment and the need to focus on the standardization of financial and non financial aspects of both companies. Establishment of good communication with employees is essential with intention to link between the two companies’ employees. With the proper process of talents retention strategy, it allows the key employees to involve in merger from beginning and to take up certain authority throughout merger process. It creates commitment and raise confident level in key talents. The strategic issue that the HR director needs to focus on after merger includes employees motivation from both companies to work as a team, cultures merging, HR practices standardization, improves the morale of the 1

employees and create the synergy between the two different merging entities. To effectively motivate employees, HRM needs to deal with each employee and working together one-onone. This is helping talented people to find satisfaction in their work, and satisfaction is key to an employee’s decision to stay or leave an organization. Cultures merging will help to overcome the problems in way of doing things, beliefs and the assumptions. The standardization of HR practices is allows HRs to work in partnering with senior management team to manage...