Paper Keywords: M&A human resource management people-oriented M&A human resource management strategy
The business activities of an enterprise are the organization and comprehensive utilization of various resources. Among all kinds of resources, human resources are particularly important, and the survival and development of enterprises cannot be separated from effective human resources management. Correct human resource management is the key to the success of enterprises. This paper mainly studies the existing problems and solutions of human resource management before, during and after mergers and acquisitions.
I. Human resource management before the M&A meeting
M&A is short for merger and acquisition. According to statistics, in the early 1980s, 40% listed companies in the United States had merged with or been acquired by other companies. In recent years, corporate mergers and acquisitions are generally based on long-term development strategic goals. Rongshida Group has achieved the long-term development strategic goal of expanding market share, reducing production costs and enhancing competitiveness through successful mergers and acquisitions. Although objective factors such as finance, R&D, marketing and sales channels are very important, many cases show that human resource management determines the success or failure of enterprise mergers and acquisitions.
Human resources refers to the total amount of people's labor in a certain range, or the total number of people who can promote social and economic development. As a resource, the key difference between "manpower" and natural resources such as forests and mines is that human resources are both the undertaker of production and the implementer of production development goals, that is, all production is to meet the needs of human development and all-round social progress. Human resource management is to use human resources to achieve organizational goals. Therefore, the management activities of managers at all levels and all business activities of the company will involve human resource management. In the final analysis, the business activities of enterprises are the competition, organization and utilization of resources. Among many resources, the importance of people as a resource has been paid more and more attention, and the survival and development of any enterprise can not be separated from excellent human resource management.
In the process of M&A, the employees of the acquired company naturally think that they have been abandoned by their former employers, and it is impossible to get the same fair and just treatment as the original employees from the new employers. This psychological pressure caused many uncooperative behaviors of employees in M&A period. How to make the employees of the merged enterprises actively cooperate with M&A's activities is the primary task of human resource management during M&A. ..
Generally, after learning that the enterprise will be merged, employees will be absent-minded, the team has existed in name only, and the functional departments are just an empty shelf. At this time, the organization is no longer a real organization, and the organizational structure of the acquired company was loose at the beginning of the merger. That is to say, in the early days of M&A, employees of all departments and systems of the acquired enterprise were already in a state of not seeking their own government.
How to solve this crisis? In recent years, most M&A companies choose to establish M&A management teams with human resource management as the core. Through the work of the management team, we can solve the above crisis to the maximum extent, create a harmonious merger atmosphere, guide employees to actively participate in mergers and acquisitions, and make mergers and acquisitions go smoothly. The management team consists of the human resources managers of the merged parties. The task of the management team is to take various measures to ensure the psychological stability of employees during the whole merger and acquisition period and work as always. Of course, according to the actual situation of the enterprise, consultants can also be hired from consulting companies. The role of the consulting company is to provide the management team with the practical experience of previous mergers and acquisitions, and to balance the misconduct that may occur for their respective interests from an objective and neutral perspective. The management team has the right to plan and implement all human resource management activities throughout the merger period.
In the early days of M&A, the management team could not communicate well with employees, because team members from different aspects did not fully understand the situation of M&A, so they could not answer the questions that employees might ask, such as: Why M&A? Why were we acquired? What is the future of companies and individuals after mergers and acquisitions? Wait a minute. To form a unified understanding, it is necessary to have a deep understanding of both companies and a comprehensive understanding of their financial, personnel, products, sales, marketing and distribution networks. To this end, the management team invited the heads of departments of both sides to train the main members of the team on the relevant contents of their respective companies, and at the same time made a comparison.
In recent years, labor disputes have continued, and human resources departments must carefully investigate the legal issues such as labor contracts and working conditions between the merged enterprises and the merged enterprises before mergers and acquisitions. For example, what are the details of the labor contract of the merged enterprise? Does M&A enterprise have the obligation to continue to accept the employee and welfare compensation plan of the acquired enterprise? Calculation and undertaker of severance payment? Is there any labor conflict in the merged enterprise? What is the cause and effect? How to deal with the aftermath?
The first thing the management team should do is to evaluate the human resource value of the acquired party. The contents of the evaluation include: the salary level of the employees of the merged enterprise; Benefits of employees of the merged enterprise, including medical care, insurance and allowances; Measures for the performance appraisal of the merged enterprise; Labor relations of merged enterprises, including trade union organizations, labor disputes, group agreements, etc. Operation and details of pension and severance payment for employees of merged enterprises.
Another very important evaluation content is to evaluate the cultural type of the acquired enterprise. Corporate culture is a key feature that distinguishes an enterprise from other enterprises, and it is very difficult to eliminate and change it. The degree of cultural differences between the merged enterprise and the merged enterprise will directly affect the progress and difficulty of the merger, and will also directly affect the business performance of the merged enterprise.
Second, human resource management in mergers and acquisitions
In the process of enterprise merger and acquisition, employees often have different "abnormal behaviors", which are mainly manifested in negative psychological states such as nervousness, anxiety, self-protection, decreased trust and the resulting behavioral changes. These negative effects will lead to the decline of the productivity of the new company, the low morale of employees and the increase of the brain drain rate, so it is a very important and urgent problem to be solved.
In view of "abnormal performance", we should let employees participate in the merger and acquisition process of enterprises, actively listen to their voices, understand their wishes, and meet the requirements of most people as much as possible; Be cautious about layoffs; We should care about the physical and mental health of employees and guide their development.
After M&A, M&A enterprises should communicate with the merged enterprises in time. Communication is an indispensable link in the human resource management of M&A enterprises, and timely and effective communication is the guarantee for the smooth progress of M&A, especially in-depth communication with core employees. Comprehensive and timely communication can calm people's hearts and stabilize enterprises. When employees know the cause, purpose and effect of M&A, know the latest situation and find their own position in the future company, they can minimize the xenophobia and dissatisfaction caused by incomplete and asymmetric information distribution in the process of mergers and acquisitions;
Traditional enterprise mergers and acquisitions tend to pay more attention to material incentives, generally ignore spiritual incentives and ignore employees' emotional needs, so that employees can't really care about the interests and development prospects of enterprises, but pay more attention to their own interests and development prospects, so the vitality of new enterprises after normal enterprise mergers and acquisitions is like a flash in the pan, and enterprises soon fall into new difficulties. Material incentives meet the basic material needs of employees, and spiritual incentives mobilize the enthusiasm of employees. In addition to economic benefits, employees also need to consider the working environment and working atmosphere in the new environment, such as the relationship between colleagues, the relationship between superiors and subordinates, the development prospects of the new company and other factors. Therefore, M&A enterprises can put forward higher performance standards; Reward employees' creativity, and adopt the methods of achievement sharing, profit sharing, employee stock ownership, etc. to stimulate employees' work enthusiasm in many ways and fully stimulate and mobilize their potential.
Cultural conflict is the key issue of human resources integration after enterprise merger and acquisition. The cultural conflict between M&A political parties may be the difference of corporate culture or national culture. For cross-border mergers and acquisitions, people should not only pay attention to the differences of corporate culture, but also pay attention to the differences of national culture when investigating the relationship between enterprises. Research shows that the influence of national culture on employees is greater than that of corporate culture. Whether employees can adapt to the new culture and management mode is the key factor of enterprise merger and acquisition. As an advanced management theory and means, the core of corporate culture is to sublimate the business objectives, development strategies and decision-making intentions of enterprises into corporate values and business concepts, and then transform them into practical actions of employees through ideological education, material incentives and the conduction of constraints and incentives of rules and regulations. This change is a key link for corporate culture to play a role in enterprise management, but it cannot be formed spontaneously. It needs to be realized by combining staff training, strengthening communication and strengthening cultural integration.
The essence of modern enterprise competition is the competition of talents, who are important resources of enterprises, especially managers, technicians and skilled workers. Foreign research shows that most people who leave soon after M&A are professionals with skills, management ability and experience. They are valuable human resources, the most strategic assets and the key to the success of enterprises now and in the future. It may take a lot of time and energy for an enterprise to find a new replacement. Even if it finds a replacement, it is difficult to completely make up for the losses caused by its departure. For example, the departure of technical talents who have mastered the core technology of enterprises will not only bring huge losses to the technological development of enterprises, but also enhance the strength of competitors; The departure of marketing talents with a large number of customers may take away the customer network they have established and cause great losses to the marketing of enterprises. Therefore, appropriate measures should be taken to stabilize and retain those human resources that are vital to the future development of enterprises.
The main measures that enterprises can take to retain talents are: providing better working conditions, increasing wages and allowances, promoting trust, giving senior managers equity or stock options, and increasing bonuses, benefits and bonuses, so as to stimulate talents' sense of security for the future, their sense of identity and belonging to enterprises after mergers and acquisitions, and their sense of responsibility and mission to their posts.
In view of "abnormal performance", we should let employees participate in the merger and acquisition process of enterprises, actively listen to their voices, understand their wishes, and meet the requirements of most people as much as possible; Be cautious about layoffs; We should care about the physical and mental health of employees and guide their development.
After M&A, M&A enterprises should communicate with the merged enterprises in time. Communication is an indispensable link in the human resource management of M&A enterprises, and timely and effective communication is the guarantee for the smooth progress of M&A, especially in-depth communication with core employees. Comprehensive and timely communication can calm people's hearts and stabilize enterprises. When employees know the cause, purpose and effect of M&A, know the latest situation and find their own position in the future company, they can minimize the xenophobia and dissatisfaction caused by incomplete and asymmetric information distribution in the process of mergers and acquisitions;
Traditional enterprise mergers and acquisitions tend to pay more attention to material incentives, generally ignore spiritual incentives and ignore employees' emotional needs, so that employees can't really care about the interests and development prospects of enterprises, but pay more attention to their own interests and development prospects, so the vitality of new enterprises after normal enterprise mergers and acquisitions is like a flash in the pan, and enterprises soon fall into new difficulties. Material incentives meet the basic material needs of employees, and spiritual incentives mobilize the enthusiasm of employees. In addition to economic benefits, employees also need to consider the working environment and working atmosphere in the new environment, such as the relationship between colleagues, the relationship between superiors and subordinates, the development prospects of the new company and other factors. Therefore, M&A enterprises can put forward higher performance standards; Reward employees' creativity, and adopt the methods of achievement sharing, profit sharing, employee stock ownership, etc. to stimulate employees' work enthusiasm in many ways and fully stimulate and mobilize their potential.
Cultural conflict is the key issue of human resources integration after enterprise merger and acquisition. The cultural conflict between M&A political parties may be the difference of corporate culture or national culture. For cross-border mergers and acquisitions, people should not only pay attention to the differences of corporate culture, but also pay attention to the differences of national culture when investigating the relationship between enterprises. Research shows that the influence of national culture on employees is greater than that of corporate culture. Whether employees can adapt to the new culture and management mode is the key factor of enterprise merger and acquisition. As an advanced management theory and means, the core of corporate culture is to sublimate the business objectives, development strategies and decision-making intentions of enterprises into corporate values and business concepts, and then transform them into practical actions of employees through ideological education, material incentives and the conduction of constraints and incentives of rules and regulations. This change is a key link for corporate culture to play a role in enterprise management, but it cannot be formed spontaneously. It needs to be realized by combining staff training, strengthening communication and strengthening cultural integration.
Third, the principle of human resources integration in mergers and acquisitions
The following principles should be followed in the process of human resource integration:
(A) the principle of smooth transition
Human resource integration is the most risky integration among various factors. We should first determine the goals and effects to be achieved by M&A, and then make a comprehensive plan and make solid progress in order to make a smooth transition. When implementing various integration schemes, it is necessary to fully and effectively communicate the relationship between managers and managers, managers and employees of both parties to the merger, with the minimum vibration and smooth transition as the standard.
(2) the principle of giving priority to enthusiasm
The development of enterprises depends on the wisdom of people, and people's enthusiasm is the most critical factor for enterprise development. Only by fully mobilizing and exerting people's enthusiasm in the process of integration can we achieve the goal of integration as soon as possible. Therefore, any integration method should obey and serve the purpose of mobilizing people's enthusiasm. Emphasizing the principle of giving priority to enthusiasm means not sticking to a certain fixed form or being confined to a certain chapter, but using various methods flexibly to comprehensively mobilize people's enthusiasm.
(3) the principle of protecting talents
In the existing practice of M&A, the process of M&A is also a process of brain drain, which can be said to be the biggest failure of human resource integration. Only by retaining talents can we talk about the correct use of talents. Of course, protecting talents does not mean protecting any talents, but choosing those talents that are needed for future enterprise development. The talents that should be protected in enterprise merger and acquisition should be based on the optimal advantages of the white group of talents, the complementary knowledge structures of different talents and the formation of joint forces of talents.
(D) the principle of reducing costs
Labor cost is an important part of enterprise's production and operation cost. Different manpower combinations will lead to different labor costs of enterprises. Therefore, the simplest rule is to reduce costs. The cost reduction mentioned here is not characterized by reducing the salary of employees, but based on reducing the cost formed by the best groups. If a few top talents are retained with high salary, the total manpower cost of top talents to command low-paid employees will be far lower than that of most people to get higher salary.
(5) The principle of comprehensive application of various methods.
In practice, the integration of human resources will never be completed in only one way, and there is no one way suitable for the integration of human resources in all M&A enterprises, but should be analyzed in detail. Therefore, in the process of human resources integration, we must fully consider the types, environment, conditions, objects, time and other factors of mergers and acquisitions, determine a variety of ways, and combine these ways scientifically and skillfully.
Fourthly, the integration strategy of human resource management.
The biggest purpose of inter-enterprise M&A is to create1+1>; 2. Build a bigger platform for enterprise development. Only by making a perfect plan in advance, seriously implementing the merger and acquisition procedures, carefully integrating two different corporate cultures after merger and acquisition, paying attention to communication and providing incentives to retain outstanding talents, and turning resistance into help, can we really enjoy the benefits brought by merger and acquisition.
(A) corporate culture integration
Only after fully communicating and understanding the personnel and cultural status of the target enterprise can M&A enterprises formulate the adjustment policy of the original personnel, transplant and cultivate the successful corporate culture and business model of L fraudulent purchase enterprises, and thus improve the strategic coordination between the two enterprises. This can not only avoid the conflict with the employees of the target enterprise, but also realize the operational efficiency of the enterprise and the concept of merger and acquisition.
An effective M&A integration scheme must attach importance to corporate culture factors, conduct necessary corporate culture surveys and design a reasonable integration scheme. Corporate culture integration can maintain the integrity and cohesion of M&A enterprises and macro-control M&A integration behavior. In addition, in a good corporate culture atmosphere, employees will have a great sense of satisfaction, honor and responsibility, and devote themselves to their work with great enthusiasm, which will help create new value. 65438-0995 When Haier Refrigerator Company acquired Hongxing Electric Appliance Company (later renamed as Haier Washing Machine Co., Ltd.), Zhang Ruimin, president of Haier Group, decided to inject Haier's corporate culture to unify corporate thinking, recast corporate soul and revitalize tangible assets with intangible assets. By implementing the strategy of "corporate culture first", explaining his "80/20 management principles" and instilling the concept of "people and responsibility", the enterprising spirit of the majority of middle-level cadres of Red Star was stimulated and they were encouraged to strive for first-class sails. Although there are some risks in this form of integration, it will make cultural integration more effective under certain circumstances.
(B) human resources incentive strategy
The key of human resources integration strategy in M&A activities is to take substantial incentive measures to make core talents willing to stay, to make the morale of new and old employees of enterprises high and to give full play to the potential of employees. In addition to the above corporate culture incentives, M&A also uses the following three points to motivate employees:
1. Salary and welfare incentives. Salary and welfare incentive is the most basic incentive measure. Competitive salary is only the premise of retaining employees. Nowadays, more and more people pay attention not only to the generous salary and economic effect, but also to understand the company's attention to employees by understanding the company's welfare status.
2. Promotion incentives. When employees regard work as a meaningful life experience and pursue career development, promotion has a great incentive for employees. Peter Drucker pointed out that in the first year of the merger, it is extremely important to make a large number of people in the management teams of the two enterprises get significant cross-border promotion and convince the managers of the two enterprises that the merger provides them with personal opportunities. This principle applies not only to top managers but also to young managers and professionals. The development and innovation of enterprises mainly depend on their own efforts and efforts.
3. Equity incentives. This is a value entity that realizes the transformation from spiritual concept to practical operation. Nowadays, more and more enterprises retain talents through equity, combine the interests of enterprises with the interests of employees themselves, and make employees feel that they are the masters of enterprises, thus attracting and stabilizing the talent team and maintaining the competitiveness and vitality of enterprises.
Human resource training strategy
When an enterprise makes changes and maintains its competitive advantage in the ever-changing environment, training becomes an incubator for breaking the old and creating the new. Training talents is to make better use of talents. An enterprise and organization that does not attach importance to the continuing education of its employees will never be in an invincible position in the increasingly fierce market economy competition. On the contrary, a successful enterprise, department and organization must have a set of scientific and effective personnel training concepts and norms.
Verb (abbreviation of verb) Human resource management after merger and acquisition.
After mergers and acquisitions, layoffs are often inevitable. It is necessary to correctly handle the dismissal of employees and stimulate the morale of retained personnel. Surplus personnel should be arranged through training and job transfer. And only when these alternatives can't solve the problem should we consider the issue of layoffs. In the process of layoffs, we should pay attention to full communication, fairness and transparency, and provide help and compensation for laid-off employees. This will have a positive impact on the employees who stay.
The essence of modern enterprise competition is the competition of talents, who are important resources of enterprises, especially managers, technicians and skilled workers. Foreign research shows that most people who leave soon after M&A are professionals with skills, management ability and experience. They are valuable human resources, the most strategic assets and the key to the success of enterprises now and in the future. It may take a lot of time and energy for an enterprise to find a new replacement. Even if it finds a replacement, it is difficult to completely make up for the losses caused by its departure. For example, the departure of technical talents who have mastered the core technology of enterprises will not only bring huge losses to the technological development of enterprises, but also enhance the strength of competitors; The departure of marketing talents with a large number of customers may take away the customer network they have established and cause great losses to the marketing of enterprises. Therefore, appropriate measures should be taken to stabilize and retain those human resources that are vital to the future development of enterprises.
The main measures that enterprises can take to retain talents are: providing better working conditions, increasing wages and allowances, promoting trust, giving senior managers equity or stock options, and increasing bonuses, benefits and bonuses, so as to stimulate talents' sense of security for the future, their sense of identity and belonging to enterprises after mergers and acquisitions, and their sense of responsibility and mission to their posts.
Four tuberculosis
In the process of enterprise merger and acquisition, human resource management is the core of all management activities. Enterprise human resource management should strive to achieve "people-oriented". Employees are the most valuable resources of the enterprise and the subjective factors that affect the M&A process. In the process of M&A, the human resource management activities of the acquired enterprise are the most important.