A Study On Human Resources Reengineering In Merger And Acquisition

Economists Stigler [George. Stiglor] has pointed out that it is an remarkable phenomenon that enterprises became giant enterprise through the acquisition of competitor. There is little enterprises who became giant ones all by theirselves. Mergers and acquisitions are the production of socialization, scale economy and the adjustment of industrial structure. Since the end of the 19th century, the world has taken place in five large-scale waves of mergers and acquisitions. Facts have proved that the M & A business is the important ways of rapid accumulation of capital, operations of scale, market expansion, to adjust product mix and diversification. M & A is also full of risk. According to the U.S. "Fortune" (2000), the results showed that: 75% of the M & A is a failure. According to other statistics, more than 50% companies had lower achievements after the M & A.Reasons that M & A led to the decline of performance are complex. A very important point is that the M & A company didn't properly solve the issue of human resources and the culture integration in mergers and acquisitions, there is no reform of human resources in time. In this paper, the issue of integration of human resources in M&A was intensively and systematically discussed, by using the combination of theory and practice as well as the integration of empirical study and thinking. In this paper, the study used the following methods: literature research, through access to the relevant documentation, the issue of integration of human resources was understood, and then the final integrated strategy was made to solve the problem; theoretical analysis, with using literature research methods, made the available information classified, selected, analyzed, summarizing the information needed; case study, X company's typical case was in-depth analyzed. The paper summarized the issues of the integration of human resources in the mergers and acquisitions, and summed up a number of operating process of the strategy in the integration. The human resources integration in M & A can ease the conflict of two different cultures, defuse the acquisition syndrome, incense and keep the staff, and finally lay a solid foundation of a success M&A.The integration of human resources needs the strong support of senior leadership, the high-level participation and leadership is a prerequisite for the success of human resources integration in mergers and acquisitions. Only in this way, the integration of human resources of the company in M & A can achieve the desired effect and reach the "1+1 > 2" synergy.Through the research of integration of human resources research in mergers andacquisitions, new contents of research on human resources management can be provided,the deficiency of human resources management on mergers and acquisitions can beadded, effective help on business mergers can be supplied, the probability of failure onM&A due to the poor human resources integration can be declined, finally theperformance of company after M&A can be improved.