Managing human capital during mergers and acquisitions: the Indian perspective

摘要

People are chief assets of any business organisation. Studies conducted to investigate the true benefits of mergers and acquisition (M&A) strategies revealed that more than 70-75% of the acquisitions are financial failures. Some of these failures can be attributed to financial and market factors, whilst a significant number of M&A failures can be traced to mistreated human capital issues and activities. The eminence given to companies' human capital before and during M&A deals is decisive to the success of the transaction. The purpose of this study is to find out the role of human capital to enhance the success of M&A. The study aims to understand how Indian organisations can put a central focus on managing human capital during the M&A process to enhance its success. The study also suggests some of the significant parameters that top management must lay emphasis on for successful M&A and the role of HR department to augment the success of M&A.