Chapter 15 Romavil villar
HR Strategies in
Merger or
Acquisition
There are Three (3) Stages
Pre-Entry Stage
Assimilation Stage
Maintenance Stage
Pre-Entry Stage
Process mapping will determine the
number of people required for each
function or department to determine how
many will be absorbed and how many will
be declared excess.
Oscar Contreras, “manloading study”.
The restructuring of the new
organization would have
resultant implications. Firstly,
reallocation or redistribution of
jobs may result in significant
changes of job content.
Assimilation Stage
Manning the new table of organization
who gets which job and who will be
declared redundant.
Manpower Integration
-to conduct skills, job and manpower
inventory.
The database will include employee’s work
experience, education and professional
training and abilities etc..
Service credits and retirement plan
Credits that should be carried over and
vested right under the original retirement
plans should be acknowledge and
respected.
In short, acculturation is part of assimilation
process.
What if the absorbing
company is Unionized?
Decisions to merge of what ever form should
carry the Union’s involvement to the
extent that Management shows
reasonable manifestation prior to the
issue, otherwise the union can hurl an
unfair labor practice against the
management.
What if the absorbing
company is
Non-Unionized?
The company should continue the
practice of seeking a continuous
dialogue with the staff through their
chosen representatives, which
promotes two-way communications.
Maintenance Stage
Hard Diligence
-issues such as analyzing financial data,
operational assets, legal issues, marketing
prospects and other standard
measurements that add shareholder value
Soft Diligence
-issues such as integration risks, cultural
alignment and human capital risks are
taken less importance if not, glossed over.
Survivors’ Syndrome
-It is like working after the storm has passed.
-Surviving employee’s psyche, creating
feelings of loss of control, betrayal and
unfairness.
-A staff may suppress their negative feelings
which may trigger reactions ranging from
stress to demoralization, depression and
burnout.
Slow Acculturation
-Process between the retained staff of
the merging companies or between
the acquiring and the acquired
company.
–There is that feeling of “us versus
them” or the so called “victor” and
“vanquished” syndrome.
Outsourcing in the
Transition Period
Outsourcing may be negotiated with the
union if the company is organized to avoid
any labor problems.
However, the transition period may also
looked at as an opportunity to outsource
non-core functions.
Sticking to the knitting –non-essential items
are outsourced.
Merger or
Acquisition
There are Three (3) Stages
Pre-Entry Stage
Assimilation Stage
Maintenance Stage
Pre-Entry Stage
Process mapping will determine the
number of people required for each
function or department to determine how
many will be absorbed and how many will
be declared excess.
Oscar Contreras, “manloading study”.
The restructuring of the new
organization would have
resultant implications. Firstly,
reallocation or redistribution of
jobs may result in significant
changes of job content.
Assimilation Stage
Manning the new table of organization
who gets which job and who will be
declared redundant.
Manpower Integration
-to conduct skills, job and manpower
inventory.
The database will include employee’s work
experience, education and professional
training and abilities etc..
Service credits and retirement plan
Credits that should be carried over and
vested right under the original retirement
plans should be acknowledge and
respected.
In short, acculturation is part of assimilation
process.
What if the absorbing
company is Unionized?
Decisions to merge of what ever form should
carry the Union’s involvement to the
extent that Management shows
reasonable manifestation prior to the
issue, otherwise the union can hurl an
unfair labor practice against the
management.
What if the absorbing
company is
Non-Unionized?
The company should continue the
practice of seeking a continuous
dialogue with the staff through their
chosen representatives, which
promotes two-way communications.
Maintenance Stage
Hard Diligence
-issues such as analyzing financial data,
operational assets, legal issues, marketing
prospects and other standard
measurements that add shareholder value
Soft Diligence
-issues such as integration risks, cultural
alignment and human capital risks are
taken less importance if not, glossed over.
Survivors’ Syndrome
-It is like working after the storm has passed.
-Surviving employee’s psyche, creating
feelings of loss of control, betrayal and
unfairness.
-A staff may suppress their negative feelings
which may trigger reactions ranging from
stress to demoralization, depression and
burnout.
Slow Acculturation
-Process between the retained staff of
the merging companies or between
the acquiring and the acquired
company.
–There is that feeling of “us versus
them” or the so called “victor” and
“vanquished” syndrome.
Outsourcing in the
Transition Period
Outsourcing may be negotiated with the
union if the company is organized to avoid
any labor problems.
However, the transition period may also
looked at as an opportunity to outsource
non-core functions.
Sticking to the knitting –non-essential items
are outsourced.