Issues and Challenges of HR in Post Merger & Acquisition - An Observation Dr. Sudarshanam Gopala*, Associate Professor *School of Management Sciences, Nalla Narasimhareddy Educational Society's Group of Institutions, Ghatkesar, Hyderabad, Andhra Pradesh. Online published on 25 November, 2011. Abstract The present paper has tried to present the major issues & challenges of HR in post M&A. an attempt is also made to draw a few suggestions to overcome the same. It has further examined the assessment of employees’ sentiments towards the merger or acquisition is central to tailoring communications and change-management initiatives to foster unity, teamwork and collegiality. Lapses in productivity are common in this early stage of integration. In a 2,000-employee organization, where one half of the workforce is spending an hour each day discussing the uncertainties of the merger, a newly merged company can lose 1,000 hours per day in productivity. Assuming an average wage of $50 per hour, this wasted time can deliver a weekly loss to the bottom line of $250,000 per week! HR's efforts can make a critical cost-saving contribution. Few studies have been revealing that the overall M&A with Asian participation has greatly gained in significance over the past couple of years. During 1995 - 2008 in total 100,000 deals, almost the value of 3,941 billion USD has been announced. In 2008, 11,518 Asian transactions were announced. This is a slight decrease of 1.5% compared to 2007, but still another year of high activity in terms of numbers. This rather small decrease is even more astonishing given that worldwide the number of deals decreased much more, by 10%. The total value of Asian deals in 2008 declined 37% to 519 billion USD. The number and value of cross-border M&A transactions have increased to levels never seen before. While in 1995 there were about 1,300 cross border deals announced, in 2008 it was 3,600 (an increase of 280%). Over the same time period, the value of such deals has disproportionately increased from 46 to 238 billion USD (+517%). The importance of Asian M&A has increased its share in the number of worldwide transactions from 8.5% in 1995 to 17.7% in 2008 and in its value from 13.3% to 20.0%. Top |