Choosing HR profession as your career –

Opportunities / Challenges in Globalization

May 2, 2014

Opportunities and development of your career in HR professional – growth along with your organization

• Nature of the organization• Business/Product Cycle – Stage of the cycle• Organic Growth or Growth by Acquisition• Growth by Acquisitions – Technology, Products, Revenue, Profit Margin and Market Shares

Challenges on merger and acquisitions: • Repositioning of the business cycle and business strategy; • Change and expansion of the product lines; • Change in number of employees and the talent requirement; • Presence in new, emerging and multiple geographic locations; • Presence in union environment; • Facing cultural differences and different legal requirements

All in all the human capital strategy is to secure; manage and motivate a new workforce that can execute the business strategy and sustain the growth of the profitable business.

Opportunities / Challenges from M&A

Top people issues¹ during M&A activity are:• Organizational cultural differences• Human capital integration issues• Lack of employee engagement• Leadership management retention issues

HR’s role during M&A:• Continue to provide day to day service and operation to keep the company running• Support the critical people-related merger integration needs for the entire organization• Integrate and prepare its own function including consolidating polices, process, programs, systems

and staff M&A led HR transformation:• What HR capabilities are required to support the M&A growth goals?• What HR technologies are needed to effectively and efficiently manage the increase volume of HR

data and transactions in an expanded global footprint? • What HR services are needed to acquire, develop, and retain the new and critical talents?• What skills and experience will HR staff are needed to support the continued changes of business

strategies?

¹Economist Intelligence’s M&A Survey 2013

People Issues and HR Role during M&A

   

HR potential work list for M&A

M&A Preparation Perform Due Diligence HR Integration Plan Post-Closing Challenges

Identify issues about the organizations involved in the M&A

Line up a team with knowledge and skills in due diligence; and help the team to understand the organization’s strategic goals and the implementation of the activities to the goals

Change factors should be identified and plans for effecting changes

Leadership transition and management style

Employee data and information

Work and labor environment

Current HR function, HR policies and procedures

Effect of future business strategy

Associated labor cost – known and hidden cost

Employee communication strategies

Employee separation or transfer processes

Retention programs for key individuals

Change management processes

New strategic plan reflects the changed organization

Organizations blueprint and staffing plan

Staffing levels and other people problems

Problems involving places

Problems involving attitudes and corporate culture

Benefit and compensation plans

Corporate identity

Tax and Legal issues