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- W8176919 abstract "AbstractThe importance of human element in enhancing productivity has been recognized since a very long time. Physical and financial resources cannot improve efficiency of an organization by themselves. Innumerable attempts have been made to find out a satisfactory answer to the question Mergers and acquisitions are meant to create synergy for businesses with an objective to ensure high growth potential. Although acquisitions have become a very popular route to achieve corporate transformation and growth, experience reveals that they are not very successful. Their success inevitably calls for the process of readjustment and change in human resource initiatives.Acquisitions have a high failure rate - nearly half of all acquisitions are rated as being unsatisfactory by managers of acquiring firms. Poor post-merger integration is among the key reasons for these failures. Success in mergers largely depends on how well the people issues have been addressed, handled and resolved in terms of restructuring, downsizing, harmonization of remuneration practices, psychological and physiological plans. Most acquisition guidelines overlook the feasibility and cost of actual integrating the potential target based on organizational fit. A failure to address these issues in a merger and acquisition a fleets the new organization negatively.Keywords: High performance businesses, restructuring, post-merger integration, HR Initiatives, Corporate Cultural Audit.IntroductionThe importance of human element in enhancing productivity has been recognized since a very long time. The traditional theory of firm postulates that only those firms which maximise corporate performance will survive and those that do not will be eliminated1. Physical and financial resources cannot improve efficiency of an organization by themselves. Innumerable attempts have been made to find out a satisfactory answer to the question. With firms striving to survive in the competitive business environment, mergers and acquisitions are among the most efficient strategies for companies to grow. Mergers and acquisitions are meant to create synergy for businesses with an objective to ensure high growth potential. In recent years, mergers have gained momentum due to liberalization of the capital market and globalization of competition6.Although acquisitions have become a very popular route to achieve corporate transformation and growth, experience reveals that they are not very successful. Their success inevitably calls for the process of readjustment and change in human resource initiatives. As most problems concerning people arise after the acquisition, we should thoroughly examine the post merger difficulties. Many corporate procedure and checklists for acquisitions tend to overemphasize the money aspect of the matter and forget the people factor. Mergers and acquisition phenomena are usually analyzed on the strategic and financial fit between the organizations involved, forgetting the critical component the human resources that play a major role in the success or failure of an acquisition. Acquisitions can have a potentially negative human impact, primarily in the form of attitudinal declines and increasing turnover. Mergers and acquisitions can cause depression, uncertainty, loss of control and job insecurity.Hubbard3 views personnel problems as one of the main reasons for the disappointing financial results of more than half of all mergers and acquisitions. Thus, the high performance business mastery created through mergers and acquisitions will be useless unless the human element is motivated through persistent effort after mergers. Success in mergers largely depends on how well the people issues have been addressed, handled and resolved in terms of restructuring, downsizing, harmonization of remuneration practices, psychological and physiological plans. Most acquisition guidelines overlook the feasibility and cost of actual integrating the potential target based on organizational fit. …" @default.
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- W8176919 date "2013-10-01" @default.
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- W8176919 title "Innovative HR Strategies for Post Merger Performance - Issues and Concerns" @default.
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