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Human resource integration of enterprise merger and acquisition.

Author: YangWeiZhi From: www.yourpaper.net Posted: 2010-06-04 10:51:54 Read:
Keywords: mergers and acquisitions; human resources; enterprise culture and
Abstract: with the development of economic globalization, M & A has become an important means of most enterprises rapid growth, however, from a practical point of view, enterprise merger and acquisition success rate is not high.Different causes of business failure may be in many aspects, but M & A integration disadvantage is one of the important reasons, especially human resources have not been effective integration has become the main cause of the success of enterprise M & A.Facing the risk of M & A in human resources, cultural integration, effective communication and retain the core staff, should be the most important issues to consider when enterprise M & A.
At present, the world more and more enterprises to expand business scale M & as, establish an important means of sustainable competitive advantage, many large enterprises to achieve the purpose of expansion and profitability through a merger.But the data and statistical data show that, not all mergers and acquisitions can be expected to bring benefits to the enterprise, in the global mergers and acquisitions in the success of only 25% ~ 35%, obviously this proportion and the surging global mergers and acquisitions boom tremendous contrast.Practice has proved, mergers and acquisitions in the integration of human resources as the intangible factors involve the individual psychology, motivation, political relations, values and norms of behaviour, integration and relative organization, management system and tangible resources and other elements of the much more difficult.The effective management of human resources integration can not only ease the work pressure, the negative effects of employee psychological, behavior to a minimum, but also can improve production efficiency and performance level of M & A.Can say, the integration of human resources is the key to decide the success or failure of M & A.

In fact, mergers and acquisitions in most of the enterprises will encounter the situation early heart instability, employee turnover, it should be said that this is a normal phenomenon.But if the enterprise underestimate their negative effects, will greatly increase the risk of M & A.Generally speaking, the enterprise human resource risk is mainly reflected in the following aspects.
First, the loss of staff.Mergers and acquisitions will change greatly, also can appear layoffs certain.But the enterprise hopes to reduce the employee not essential but not to the enterprise core employee role.While the enterprise loss of employees tend to be a part of the core staff, enterprises want to find can replace their new may take a long time and effort, even to find the corresponding replacement is also very difficult to make up for these talents brings loss to the enterprise.For example, a master core technologies, their departure will not only make the enterprise technology development was severely affected, may also enhance technological strength competition; for example, left with a large number of customer marketing personnel, may have established network of customers were away, it will cause great losses to the enterprise marketing.Therefore, after the acquisition of enterprises, the core staff arrangement is an important work.For example, Lenovo in the acquisition of IBM PC business, mainly to do the work in two aspects: one is on IBM senior staff on the new company's vision, make IBM company employees about the merger of enterprises is mainly to do PC business, they will have a better development space.Two is personnel status remains unchanged, especially some of the senior employees would be greatly improved than the original.These two measures to make IBM Pc staff almost no loss.This is a very good inspiration to other enterprises.
Second, cultural differences.The enterprise culture is usually regarded as an enterprise or the soul of enterprise management.Each enterprise will form their own unique culture in its historical evolution process, the difference of conflict and integration of human resources in the enterprise merger and acquisition often come from culture.In practice, the unique cultural characteristics of enterprises is often reflected in the enterprise's managers and staff behavior, and to influence character by environment effects on the integration process of mergers and acquisitions of enterprises and human resources.For example, at the beginning of 2001, Delong company in the identity of shareholder group strategic investors and holds a 51% stake, but cooperation is not too successful O two years later, Delong company chose to quit.It should be said that he failed for many reasons: M & A integration development strategy is not consistent, cooperation between the two sides of the top managers running is not smooth, financial arrangements have contradiction and so on.However, the top managers of self accumulation "culture" differences invisible barriers to collaboration also can not be ignored.
Here, M & a cultural differences between two countries may be the difference between enterprise culture, also may be cultural differences.When the combined culture does not fit or not compatible with enterprise together, is likely to produce uncertainty, be reduced to fragments and cultural fuzzy consequences, will lead to tension, and the tension of the experience may lead to low morale, responsibility loss and confusion and despair....Overseas mergers and acquisitions and expansion in the Chinese enterprise, double the difference between enterprise culture and national culture is the important influence factors of merger negotiations, integration.Because of the M & a firm's employees, media, investors and even the union of Chinese enterprises often skeptical and prejudice, in this case, the merged enterprise employees generally take FL, their employment, management personnel at LF, their positions, investors bear LF, their returns, as these are M & A has a long history and mature business environment, they tend to their own cultural identity degree is high, if the Chinese enterprises will be its own culture on Enterprise M & A, the results are often in the "independence" of the state of each sticks to his own view.This will make both parties in business and organizational integration is hindered, conformity difficulty will increase greatly.Compared with the cross-cultural merger and acquisition of enterprises in developed countries, Chinese enterprises are facing the cultural management difficulty will increase.

Third, lack of effective internal communication.For any enterprise, good communication is the lifeblood of the organization, it will help employees more involved in decision-making, enhance employee commitment to this process, and then improve the performance.But in the initial acquisition, the original normal channels of information often is in the closed or state of collapse, a large number of enterprises in uncertain information into tend to make the recipient not know what course to take, all levels of staff will feel themselves in a vacuum environment, for their future development, enterprise's own role in the enterprise and it is difficult to determine the position and.They can only realize the organization program, the future of business objectives, management style and organizational structure will change, but are not sure how to change.Although the enterprise top managers will try to ease through a commitment to the anxiety of employees, but the fact is that employees are still full of tension and confusion.They don't know the merger and acquisition of enterprises will be what new demands on himself, who is responsible for the future.The state will make employees at work lose direction and goal, feel be at a loss what to do about their situation, future prospects for restless l2j.In reality, enterprises lack of effective communication and feedback are mainly three: one is the most senior managers in a careful or need stability considerations, some of the information is not released to the public; two is the most senior managers do not own to determine the specific operation process of M & A can produce what kind of results and many the impact of, or managers have no ready-made answers provided to employees; three is the enterprise management is not effective, timely and ordinary employees to communicate, do not take into account the feelings of their employees and feedback, and that M & A is the two business, it doesn't matter and ordinary employees, and this idea was eventually the staff will lose trust in enterprise.Lack of effective internal communication brings to the corporate human resources is trust, cooperation, reduce the difficulty level for power and other integrated sequela.
Fourth, employees do not trust.Mergers and acquisitions will make the staff down business trust level, this is any enterprise will be encountered in the problem of mergers and acquisitions.With the development of M & A activity, even though the original to the enterprise trust employees may also have doubts and dissatisfaction to the enterprise, those who start to the enterprise the dissatisfaction of the people may be even more paranoid and conflict.Some have been eager to get required from top management
And the interests of the people, now also changed the plan, people on the top management's attitude and speech hold doubts and try to figure out the.Trust levels drop impact on enterprises is negative, under great psychological pressure, the staff become irritable, angry, and therefore affect employee morale, affect the enthusiasm and initiative of employees, but also make the staff loyalty to the enterprise is greatly reduced.

In summary we can see, the human resource integration of merger and acquisition of enterprises should not be performed in mergers and acquisitions, and mergers and acquisitions activity should be run through the whole process.From the establishment of M & a transition team to the final completion of the merger, the integration of human resources is the most important problem for enterprises to consider the.Enterprise human resources that M & a high success rate for that, after the merger of 3 ~ 6 months are: effective implement employee communication plan, aiming at the key staff to implement talent retention strategies, pay attention to enterprise culture integration, integration of enterprise welfare plan.First, cultural integration.Conflict is one of the largest enterprise merger risk is caused by cultural differences, this kind of culture may be the long form of the enterprise culture, also may be the different national culture, national culture influence on people is long and not easy to change.If you don't pay attention to it and take active measures to prevent this kind of cultural conflict, will have an important impact on the future development of enterprises, some enterprises overseas mergers and acquisitions of the early lessons China fully illustrates the importance of the problem.Each enterprise will form a unique corporate culture in the long-term development, and excellent enterprise culture is one of the core competitiveness of enterprises an important, it can not be copied.On the enterprise M & A, the original enterprise culture will not be acquired immediately disappear, it will affect the psychological and behavioral patterns of the merged enterprise employees over a long period of time.Therefore, enterprises can't eager to put its own corporate culture force in enterprises to promote mergers and acquisitions, so easily cause strong psychological conflict, resulting in the sense of superiority and inferiority, conflict and disappointment, expectation.Is regarded as the global M & a Cisco company model, completed 100 acquisitions in the past 20 years, the success rate has reached more than 70%.And about the same period of high-tech mergers and acquisitions 90% ended in failure.Cisco in summing up their experience that, in the merger and acquisition, the first thing to consider is the corporate culture and Cisco is close, then to study the technology of their innovation, common culture and common vision is one of the important factors for the success of M & A.Cisco approach provides a good experience to the merger and acquisition of enterprises.
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