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The Human Resources Integration(HRI) In Enterprise Merger And Acquisition (M&A)

Posted on:2006-02-10Degree:MasterType:Thesis
Country:ChinaCandidate:Q CengFull Text:PDF
GTID:2156360152980473Subject:Business management
Abstract/Summary:PDF Full Text Request
Economist George J. Stigler pointed out that in the modern society's economydevelopment, the outstanding phenomenon was that enterprises became biginternational enterprises by Merger and Acquisition (M&A). In recent years, theM&A activities over the world meets an unprecedented growth. In Jun 29, 2004,TCL has merged Thomson Electronics Limited (TTE), constructed as the world'slargest volume manufacturer of television sets with equity overall 400 million Euro.On Dec 8 the same year, Lenovo Group Ltd purchased IBM's PC-making business,and upgraded as the third PC manufacturer in the world. This brought Lenovo ontothe World Top 500 stage. M&A has become one behavior mode for the modernenterprises' operation and development. However, the end of the purchase doesn'tmean the success of M&A. Although the failing rate of M&A has reduced a lotnowadays, it's still kept around 50%. And among the reasons lead to the failure ofM&A, Human Resources Integration heads the first. In that case, how to insure thesuccess of Human Resource Integration (HRI) is the key factor of Enterprises' M&APerformance. In fact, the definition of HRI in Enterprise Merger and Acquisition is describedas in order to reduce the various influence brought by the uncertainty of M&A, andto improve the new organization's competitiveness, the organization adoptmultiplicate approaches to reconstruct the human resource group and to improve thewhole performance and also the human resources development. HRI focuses on theconstruct of group culture. Because of the difficulty and lag in obtaining theintegration data, the present research concern more about the M&A techniques andcapital operation, but less about the integration, especially the research of HRI. Theresearch of HRI in Enterprise M&A has been lack of systematization and pertinences,so the further research in this area has its practical significance. Though HRI has great effect on the success of Enterprise M&A, the integrationof Enterprise M&A refers to assets, finance, organization, management, humanresource, enterprise culture and some other factors. The integration in M&A is asystematic progress. The relations between HRI and other aspects of integration aremutual related, mutual cooperated, mutual promoted and indivisible. The CultureIntegration is in particular related with HRI. As Cultural Integration provides themacro background and environment for HRI, and HRI offers a way for constructingenterprise culture as feedback. At the same time, the culture of enterprise has to bebased on human resources to realize its existence and development. Consequently,when taking HRI in Enterprise M&A into consideration, we should take it all around,but not only the HRI. HRI in Enterprises' M&A Integration is confronted with many problems, 3including: employees' psychology crisis, the informal group effect and cultureintegration in organization level. Since the situation in our country, the domesticenterprises also meet the confusion of property rights, the posit of redundantpopulation, and the competence of the two parties in M&A and so on. All thesereasons could easily lead to the failure in Enterprises' M&A. In addition, thereplacement costs of human resources also need pay attention to. Although the HRIcould take the control of cost in M&A, and could contribute in the value creation, itwill lead to the opposite way in case do wrong. After the analysis of the problems in HRI, and the reference case study of HRI,the article takes in the theory of Strategy Management. According to the processes ofHRI, the article gives out some suggestion in solving the problems. a.) The effective plan. That points to the explicit objective of HRI, the analysisof organization environment and resources and the set of the HRI Plan. b.) The actualization of HRI in the fast integration phases. In the preparationproce...
Keywords/Search Tags:Merger and Acquisition, Human Resource Integration, Strategy
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