Impact of Mergers and Acquisitions on Changing Roles of HR

In an increasingly competitive economic environment, enterprise continuously adjusts and restructures to survive and grow. Mergers and Acquisitions has become one of the important strategies in today's corporate world and play an important role across all business sectors in general and automotive sector. As Mergers refers to two companies coming together and creating a new big single entity and Acquisitions refers to takeover one company by another. Here HR workers play a vital role in this process. HR helps manage any problem or challenges related to people in the organization. People often fear change and Merger or Acquisition creates uncertainty and change for employees. HR can detect and address any rumor, giving feedback to management, etc.

This paper addresses all the possible human sides related to Mergers and Acquisitions by linking it with the changing roles of HR Department. This paper would focus on the impact of Mergers and Acquisitions on employees, the role of the HR manager in making and breaking of Mergers and Acquisitions and the policies taken to solve problems occurred in Mergers and Acquisitions etc.. Companies pay their attention to financial and strategic issues during Mergers and Acquisitions.

This paper will comprise of numerous examples that are been illustrated in the form of issues, activities and roles. This paper concludes with a description of the role and importance of HR.