An Research On HR Integration Model In Cross-border M&A

The fifth wave of global merger and acquisition (M&A) is very popular since theearly 1990s. In 2006 the global M&A transactions reached a new highlight.Cross-border M&A is a significant phenomenon in international economic arena.Cross-border M&A transaction for promoting foreign direct investment (FDI) is themajor impetus for growth.However, cross-border M&A is not always successful. According to the authoritativeinstitutions, cross-border M&A often fail for many reasons. Human resourceintegration is becoming a critical issue. This paper focuses on Human resource (HR)integration model.This paper is composed of seven parts. The first part is introduction. Cross-borderM&A is a very common phenomenon in the world's economic stage, a lot ofcross-border M&A failed. One of the major reasons for the failure is the improper HRintegration. It explains the basic conceptions, such as M&A and HR integration, andpoints out the purpose and meaning of studying in this thesis. It also describes thecurrent situation of research on the areas both at home and abroad.The second part is the theory including cross-border M&A theory, human capitaltheory, and psychological contract theory which are the foundation of solving theproblem of HR integration.In the third part ,the author analyzes the influence of cross-border M&A especially onHR psychological and behavioral effects, also analyzes all sorts of challenges fromHR integration of cross-border M&A , which is the basis for the HR integrationmodel.The fourth part is the core of this thesis. Based on the influence on cross-border M&A,the author puts forward HR integration model. This model reflects the factors to beconsidered of HR integration.In the fifth part the author resolved the first challenge by HR integration model;integrate nationality culture difference and corporation culture difference.The sixth part resolved the second challenge by HR integration model. It helps thecorporation and employee rebuild psychological contract.The seventh part is the classical case analysis. Our company wants to buy foreigncompany but we lack of related experience. We can learn from the classical case and accumulate the experiences and lessons of HR integration.