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Analysis of M & A Enterprise Human Resources Integration

Author: CaoZuo From: www.yourpaper.net Posted: 2010-06-01 06:19:27 Read:
papers Keywords: mergers and acquisitions integration of human resources
abstracts: The article outlined the concept of human resource integration, through the analysis of the pros and cons of the two cases, discusses the integration of human resources, stressing the importance of human resources in the M & A process integration issues related to M & A success or failure an important factor, and on this basis the integration of human resources strategy, including cultural compatibility, stability, talent and other aspects.
With the accelerated globalization, mergers and acquisitions have become a kind of international behavior. Chinese enterprises have also joined the tide of mergers and acquisitions, it is not only an important way for enterprises to achieve low-cost rapid expansion and become another driving force for economic growth. Academia for mergers and acquisitions really improve business performance, and promote the improvement of production efficiency this issue has always been there is controversy. Many scholars issue a lot of empirical research. According to the United States {CFO} magazine survey results show 45 of the world's top 500 corporate mergers and acquisitions, 75% of the mergers and acquisitions "is disappointing or failed. Why hundreds of billion of mergers and acquisitions this point? Reason. Data show that the main causes that lead to mergers and acquisitions fail: (1) 30% is the lack of an overall comprehensive plan; (2) 25% is due to the corporate philosophy of very different; (3) 35% is due to the different mode of operation of the management practice ; (4) 2O% is not suited to one another due to different management attitude and management culture. McKinsey & Company's survey shows that only 33% of the restructuring is successful. This is because the process of corporate mergers and acquisitions, people tend to pay attention and to consider such as share capital, assets, equipment and other factors, compared with mergers and acquisitions successful human resources required factors are often conceal or ignore. Shows that the human factor plays a crucial to the success or failure of mergers and acquisitions. The strategic significance of the M & A activity is not only to get the business of the target company, key technologies or market share is more important is to get the target company's senior technical and management talents. Ex post whether a company has enough high-quality human resources, and this determines the strength of the integration of human resource capacity is the decisive factor in successful mergers and acquisitions.
the status quo of China's mergers and acquisitions
M & A is an important means for enterprises to expand the scale, and enhance competitiveness, if the enterprise is completely out of the market behavior, the purpose of mergers and acquisitions is to create synergy through mergers and acquisitions to achieve wealth and increase in value. The so-called synergies is commonly referred to as 1 1> 2 effect, that after the merger, the overall efficiency of the production and operation activities is greater than the effect of two independent enterprise and in the pre-merger. China's M & A business began in 1984, along with the enormous pressure of the enterprises in China continues to mature and join the WFO, the increasing number of mergers and acquisitions. 2000, between the Mainland of China listed companies on more than 500 M & A, mergers and acquisitions totaling $ 45 billion. Range of mergers and acquisitions in the region, the industry cross-regional, cross-sectoral direction of development, the increasing size, more and more mergers and acquisitions.
Second, the concept of human resource integration
The so-called human resources integration through certain methods, means and measures, regroup and adjust from different corporate human resources team, the establishment of a unified human resources policies and systems, the more important is the formation of a unified corporate culture and values, which individual goals that guide members from different enterprises to the organization's overall goals. The sum of a series of management activities to reach members and organizational goals to achieve win-win results. Integration of human resources is the goal of establishing a higher level in human resources management foundation, is the development of human resources management. Integration of human resources objectives and organizational goals guide the organization members in the same direction near, and thus improve the members code of conduct to improve organizational performance, both as an end, and a process.
Third, the importance of the integration of human resource management in the mergers and acquisitions
Mergers and acquisitions enterprises to achieve low-cost expansion of scale, and enhance competitiveness, an important way of rapid expansion and extraordinary development. Through mergers and acquisitions, companies can effectively achieve the optimal allocation of resources to enhance the financial strength, optimize the structure of the company's assets to achieve diversification at a lower cost, thereby greatly enhancing their competitiveness. Not all M & A business, however, will inevitably produce a synergistic effect, most of the mergers and acquisitions have ended in failure. Bruce Wasserstein, M & A experts have pointed out: "M & A success depends not only rely on the ability of the enterprise to create value, but greater reliance on post-merger integration." Therefore, in the process of mergers and acquisitions, integrate resources constantly . Enterprise resource, human resources is the most important resource for a variety of resources, human resources in mergers and acquisitions will play a decisive role in the success or failure of mergers and acquisitions. In mergers and acquisitions, the impact of human resources for mergers and acquisitions is the full range, from productivity to product quality, marketing performance to customer satisfaction, corporate reputation to the corporate culture, are all closely linked with the human resource situation, the integration of human resource efficiency of enterprises have a decisive impact on the effect of mergers and acquisitions, as Joseph C. kralling discussed, "Possession of a good man, you will manage the transaction, the successful acquisition, and then there is nothing more important than people."
Below through the pros and cons of two representative cases, to do the analysis.
Case: Haier M & A Qingdao Hongxing case. Haier culture today as yesterday the "HP Way" China's enterprise management model, all with Haier most successful mergers and acquisitions management not without contact. Haier before acquisitions Red Star, Red Star appliances as a veteran of the washing machine manufacturing plant, the proficiency of its equipment, technology, and workers at the time are pretty good, it is the lack of scientific management and market-oriented production and operation mode Haier was the management and the market concept known for their combination has a great reasonable. After the merger, Zhang Ruimin personally to the Red Star, about his business experience to the middle-level cadres, to explain the "80/20 Management Principles to instill the concept of" critical minority to decide the majority of non-critical "and responsibility". Red Star Electric Company employees should be said that more than 3500, when the enterprise was placed under the "Haier" attitude of welcome and support. Establish the efficient operation of the mechanism, through the establishment of a well-established system of reward and punishment, and fully adjust the internal institutions. In accordance with the principle of "open and competitive, merit-based appointment, the middle-level cadres was reduced from 105 to 45. Reform of the cadre system, change "horses" style system of cadres promoted as a "horse race" style competition regime. Open recruitment, selection and first-class talents, enrich the cadre posts of various departments, only the sales department that recruitment marketing personnel more than the the 5O number of college degree. New employment concepts, to mobilize the enthusiasm of the cadres and inject vitality to the enterprise talent market, the washing machine marketing system to find a new start point.
Haier in the careful planning premise, smoothly completed the integration of human resources, not only to retain the original backbone of the company's R & D and management personnel, and with the development of the business. The technical staff has been further expanded. R & D, production, sales, compared with the pre-merger has made leaps and bounds.
Case II: the Yongle acquisitions large and medium-sized. As the two companies in the first phalanx of the domestic home appliance chain industry, Yongle (China) and Dazhong Electronics, the end of 2005 to start planning a vigorous comprehensive strategic cooperation. But just two months after parting ways. What is one of the reasons? In the integration process of the two months, due to the chaotic management, personnel fluctuation is too large, the systems are not well, poor training and other issues, caused by multiple crises. Especially comprehensive Yongle stores, department managers and general staff from the manager to the big shake, resulting in a lot of stores are a "deserted" human resources crisis, the frequent personnel adjusted so that enterprises unintentional, can not take care of the new M & A storefront operation and management.
The lack of high-quality management team, let alone to form a state-of-the-art corporate culture. Naturally difficult to create a good benefits. Yongle, Dazhong integration defeat, has a certain reference.
Can be drawn from the case, roughly enterprise human resources integration of the reasons for the success: First, determine a holistic goal, and around this goal-setting measures. The second is to retain key personnel, and to reduce the impact from acquisitions psychological conflict. Relevant measures to obtain the trust of the staff. Encourage communication. Case two reasons for the failure can be summarized as follows: First, the early success of the M & A does not mean that future business will be smooth sailing. On the contrary, sometimes due to poor management after the acquisition blindness or acquisitions, resulting in a lack of human resources or crisis results more harm than good. Second, careful arrangements must be prepared for the fate of the senior management of the acquired company. Finally, it can not be denied, mergers and acquisitions can make full use of the original physical capital and human resources of the enterprise, and significantly reduce the cost of enterprise development. How to be eliminated as soon as the antagonism, rapid integration, fully mobilize the positive role of the human resources of the existing employees, the gap of to complement human resources through appropriate channels, enterprises should any acquisitions must be carefully explored.
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