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How Far Does the Involvement of Human Resources in the Merger Process Contribute to its Success? (Report Date: January 2003, Full Report: 20 pages) Summary This report argues that there is a strong link between HR (human resources) involvement in the merger process and the outcome of that merger, and uncovers the best ways in which HR can get involved in order to increase the likelihood of merger success. The reason why this report focuses specifically on the role of human resources is because there is mounting evidence suggesting that HR-related factors are the true determinants of merger success and rank higher than financial and legal factors. For example, a report by the International Labour Organisation (ILO) notes that the benefits of economies of scale and size are counter-balanced by human complexities during the integration process. Not only do human resources professionals have a vital role to play with respect to the communication process and the management of cultural differences between the people in the merging companies, they also have a more strategic role to play which allows the organisation to differentiate itself from its competitors and to acquire and maintain a position of leadership in the market. This report highlights the clear link that exists between HR involvement in the merger process and merger performance. It also defines the role that human resources professionals should assume during the course of the merger.
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