The Human Factor as Reason of Failure of Mergers and Acquisitions

Abstract

Despite all the financial projections, two out of three of the Mergers and Acquisitions failed. The consequences on the employees systematically are ignored although the firm's personnel is considered as the most valuable of its assets. This piece of work investigates the issue from the human resources management point of view and proposed methods to eliminate the problem. It examines and analyses the feelings and reactions of the personnel before during and after the period that a M&A is taken place. It makes clear the necessity of HR department for a successful M&A. Managers must overlay every strategy and action with a careful consideration of how different groups of employees can be helped to adjust to the changes and eventually contribute to the new entity.