Combination of two entities into one is known as merger and an acquisition is when a larger company acquires a smaller company, thereby absorbing the business of the smaller company.
For HR experts, mergers and acquisitions pose serious difficulties. Before approving a proposed merger or acquisition, management of both businesses must weigh all of its potential effects, which unavoidably includes taking into account any “people difficulties” it may bring about. HR specialists frequently participate in the process by giving management advice on matters relating to human resources, such as using surveys and other metrics to gather pertinent data, identifying potential conflicts or HR challenges between the two companies, integrating HR practices and company cultures after an M&A, and managing talent decisions like layoffs, to name a few.
Mergers and acquisitions are a stressful time. Employees are worried about fitting in, what their benefits will be now, how their retirement has changed, if they’ll like their new managers, and a slew of other things. HR must intervene and see to it that these problems are resolved.one organization’s HR team should be able to work closely with the other company’s to make sure of this. These problems can be dealt with promptly and effectively with two specialist teams, each of which has extensive knowledge of its specific business, to ensure a suitable fit.