Strategic Human Resource Management

Section Two

Managing in the Aftermath of Mergers
and Acquisitions

Although the level of merger and acquisition activity has
lessened, mergers and acquisitions still are a permanent
feature of the economy. Whether a merger or acquisition is
successful depends on more than financial considerations.
Success often depends on how well the two organizations’
human resources are integrated. As a result, the degree to
which human resource aspects of mergers and acquisitions are
planned can be critical.^84 Bruckman and Peters have stated:

The amount of time and energy needed to

successfully merge two sophisticated

organizations, however, is more likely to

resemble the planning and execution of the

invasion of Normandy, accompanied by the

resultant clash of cultures from many elements

attempting to work together toward one end.^85

There is much evidence of the failure to work through
human resource issues even when organizations are acquired
for their human resources. It also has been argued that
planning for the contingencies of a merger is critical because
human resources will pay the price. If the company loses a
takeover battle, there may be redundant employees and the