The Study Of Key Employee Integration Mode In M&A

With the integration of global economic, mergers and acquisitions has gradually been well known. M&A is one of the ways of growth in business. It's a business strategic action which enhance the core competitiveness of enterprises, by geting external resources when an enterprise growing to a certain stage. Human resource integration, especially integration of key employees, plays an important part in the success of M & A. In M & A, good integration of key employees is so important that, if didn't do effectively, it will greatly reduce the value of the strategy, sometime it may result in the failure of M&A.This essay aims at providing theoretical basis of key employee integration and try to make some certain mode in key employee integration. Research is done by using literature and theoretical integration method, also, mode and flow charts are used to elaborate the question. With application of corporate culture theory, strategic human resource management theory, game theory and psychological contract theory, I analyze the integration of key employee systematically. Firstly, this essay analyzes the main features of the core staff and integration problems. Secondly, use the four theories to make key employee integration mode. And thirdly, the implementation of Integration is divided into four stages: the preparation phase, integration phase, deep integration phase and evaluation and risk prevention phase. Finally, the implementation process and suggestions are given in the end of the essay. In order to make better use of the mode, the case of Lenovo and IBM is cited as an application case.In conclusion, on the base of cultural integration mode study, we propose four different mode of key employee integration, such as absorbing mode, innovation mode, penetration mode and separation mode. On the base of strategic management, we also propose four different mode of key employee integration, such as patriarchal mode , developmental mode, task-based mode and transition-type mode. Based on game theory, we build the integration mode from the interests of corporations and employees, and ultimately, the game reaches Nash equilibrium. Based on psychological contract theory, we bring many psychological factors into the integration mode, and finally made a schematic diagram of key employee integration mode.In the end of the essay, the implementation of key employee integration mode is divided into four stages: preparation phase, integration phase, deep-integration phase and risk prevention phase. During this four phases, we propose several implementation strategies, such as, the establishment of key employee identification system, human resource survey, the promotion of cultural integration, building key employee management mechanism, focusing on communication and properly handle the loss of key employees.