Challenges To Workforce Management In Mergers And Acquisitions

Haritha Malepati, BBA LLB, Symbiosis Law School, Hyderabad

ABSTRACT

During the process of mergers and acquisitions, globalization takes place amongst the companies or corporations and the same have a huge impact on the respective companies’ or corporations’ workforce who is the most prized possession of any such organization and it is evident that any company or organization can expand and grown in the future only through the efforts and performances put forth by their workforce. Thus, it is apparent that the management of workforce is vital during mergers and acquisitions. This paper analyses the key challenges faced by companies in managing their respective workforce during the process of mergers and acquisitions. In addition to this, the challenges are substantiated and analyzed in detail by scrutinizing some prominent mergers and acquisitions that have taken place in recent times. Further, the paper also discusses certain strategies which can be implemented by companies in their daily business activities to overcome the challenges in managing their workforce during mergers and acquisitions in order to ensure that their workforce is performing to their maximum potential. This particular paper has followed the doctrinal method of research i.e. making use of mainly secondary sources of data and descriptive method of research methodology to facilitate and support the research by studying three mergers and acquisitions in recent times which are the merger of Idea and Vodafone, State Bank of India with Bharatiya Mahila Bank and other associated banks as well as the Walmart – Flipkart deal. The importance of understanding and analyzing these various challenges by making use of the above named case studies is to highlight the certain key and often overlooked aspects which are often the most responsible factors in making a merger or acquisition either a success or a failure from the perspective of managing a company’s workforce.

Keywords: Mergers, acquisitions, workforce management, challenges, employees, morale, competency, motivation, job satisfaction, commitment.