Managing people in radical changes (M&As)

Purpose - The aim of this paper is to look at why and how HRM may take on a more strategic role within mergers and acquisitions (M&As) processes. Design/methodology/approach - The paper discusses the ABN AMRO Bank case. The Dutch bank first acquired one of the largest Brazilian banks and, later, the Brazilian subsidiary of an Italian bank. The paper seeks to understand to what extent the successful integration of the acquired banks by the acquiring one was determined by the consistency among three factors: the determining reason for the acquisition; the integration strategy adopted; and the HRM policies for the management of people. Findings - The case has evidenced that, in processes of radical change, such as acquisitions, the president, as well as the top management of the acquiring company, has a critical role of establishing an understanding that people constitute, in fact, a key asset of the company, thereby opening avenues for HRM to assume a strategic role within companies. Practical implications - Even though the HR managers should seek to undertake a more active and strategic role in M&As, contributing effectively to the performance of the organization, their actions are shaped by the consistency between discourse and practice of CEOs regarding the importance of people within organizations. Any disparity between this discourse and practice is likely to affect the role played by HRM within organizations. Originality/value - This paper will be valuable for those attempting to link both streams of literature – HRM and post‐acquisition integration.