In the era of globalization, the business world is increasing in size. The rules of trade and commerce are changing. The competition is getting tougher. Big corporations are approaching and taking over smaller organizations. Some organizations are merging, and others are being acquired. In both cases, one thing that remains common is the fear arising in the employees. During these difficult times, the employees often look up to the HR professionals for answers. How should one try to calm the anxious employees? We might have some answers to these questions. Here are some tips for HR professionals to follow in chaotic times.
Communication is the key if the organization is going through some major changes. There can be rumors or false information circulating in the organization. As an HR professional, your main task should be to put these rumors to rest by communicating with the employees. Answering questions privately can help put the mind of employees at ease.
Individuals will always be wondering and questioning if there shall be any changes in their job or will there be any modifications on the organization structure? One reason that companies fail in M&A is during the change management process and I believe no company would want to be in such a state. As a matter of fact, it is vital how the information is conveyed to employees and what changes will take place during the process, as this will emphasize the difference between success and failure of the organization going forward.
Retaining Key Employees And Downsizing
During a merger & acquisition, employees can try to jump ship or can be approached by rival organizations. Retaining key employees that are important to the organization will prove beneficial in the future. Downsizing on the employees who do not play a key role in the organization also needs to be determined. Downsizing should be done by keeping in mind the legal aspects.
Analyzing Organizational Cultures
Determining how the employees of two different organizations would fit culturally is essential. Mergers & Acquisitions often bring out cultural differences in organizations. Analyzing the cultural differences beforehand is important so that a cultural fit can be constructed. Cultural differences can cause friction in the organization. Many M&A fail due to overlooking the cultural differences of different organizations.