Merge is the most radical form of change practice in business circles. When firm involved in process of merging, employee begin to worry about future and vocational stability, and because of nature of merging, obstacle and difficulty of HMR practice arise which put HR manager and professional at greatest risk of their future avocational development. Therefore, strategies must be designed for HR function to avoid impact from merge process.
Before merge process. When merge begins, HR function should suggest company find third party to do HR Due Diligence and HR audit, which can shift responsibility and attention to third party from the commence of the process. During the HR Due Diligence, it is probably to find obstacle and problem of HR practice, especially in C&B and some legal document. Keep in mind, those problem must be report to company and precaution must be designed in order to avoid incur even greater risk from merge process. Before merge process, HR function find obstacle and imperfection of HR practice and takes measure to prevent litigation can save themselves from ruining by flaw and arrogance of previous practice.
During merge process. Merge process, if loss of control from the management, can be confused and chaotic. HR function at this point play important role in the process: to give clear guideline and new policy from new proprietor; explain new policy to employee and stabilize employee who want to leave company. During merge process, by no chance HR function can survive, except keep close contacting with new boss and their team. If all legal document is in order, there should be no litigation incur from people who determined to leave company and want find fault with previously HR practice.
After merge process. When shareholders reach agreement, and all liabilities and obligation is fulfilled, the merge process from shareholder’s point of view is over. New CEO and whole management team is acceded which symbolize power transfer begin, and most ominous things emerge from the process which makes up the most perilous part of the process for HR function. Remember that HR function must be fully involved in the process and delivered new policy from the new owner, otherwise HR function will be expelled from new firm. When power transfer begin, culture conflict will arise, and HR function will facilitate culture emerge and teamwork from both party involved.
Merge process impact the whole management team, especially for HR function, as HR practice must withstand the transfer and HR must facilitate the process, and HR function must face obstacle and contradiction in merge process. HR department and HR professional prepare in advance and keep in touch with power center will survive in the merge process.
