Mergers And Acquisitions, Human Resource Management Integration

The HR integration are very important to the success of merger & acquisition(henceforth M&A) of enterprises. On the basis of existed theories , combining with some cases analysises, this thesis has elaborated five aspects of HR integration.I Integration Plan and CommunicationBefore starting the integration, the company should make an integration plan that conforms to the company's long term strategy. The plan should include when and how to merge the major resources, assets,and businesses of the two companies. After the integration plan defined, the management should communicate about the plan with the employees as soon as possible.II The Integration of Corporate CultureThe corporate culture is the common value system of one company members, and has an important effect to the success of the company.The managements of the new company should choose appropriate culture integration strategy, have more communications with employees, and make policies that support the new culture.III The Integration of StructureThe experienced management and technicians are the major resources of one company, so the top management of the newcompany should do best to retain such important employees after the merger. The emphasises of structure integration are the Board of Directors and senior management. When laying off employees, make sure to do the work kindly and have a good severance policy.IV The Integration of CompensationThe M&A will bring both opportunities and risks for the employees. The employees are much concerned about the compensation system. Besides, the compensation system is also very sensitive to the leadership of the new company.All these concerns and problems need to be solved through the integration of compensation. The aim of compensation integration is to set up a compensation system with motivation.V The Establishment of Motivation SystemAfter the merger, the employees are usually in a state of worries. To make the employees play a more positive role, the leadership of the new company should set up an effective incentive system on the basis of incentive theories. Stock options, promotion, bonus etc. ,have been proved to be very effective motivation measures.