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Strategic HR Integration and Proactive Communication during M&A: A Study of Indian Bank Mergers

Author

Listed:
  • A. Uday Bhaskar

    (A. Uday Bhaskar (corresponding author) is affiliated with International Management Institute, New Delhi–110 016, India. E-mail: uday@imi.edu)

  • Kanika T. Bhal

    (Kanika T. Bhal is affiliated with Department of Management Studies, Indian Institute of Technology-Delhi, New Delhi, India. E-mail: ktbhal@hotmail.com)

  • Bijaya Mishra

    (Bijaya Mishra is Faculty (OBHR Area) and Chairperson-PGDHRM Program, Indian Institute of Management Ranchi, Ranchi, Jharkhand, India. E-mail: bijayamishra@iimranchi.ac.in)

Abstract

Research in the past has documented the use of strategic human resources (HR) integration and proactive communication as best practices in mergers and acquisitions (M&A) to deliver the expected synergy out of a combination (merger or acquisition). The failure of majority of M&A deals has been attributed to improper handling of HR issues and lack of a thorough understanding of the merger/acquisition context by the acquiring management. This study was initiated to understand how proactive communication and strategic integration of HR issues improves the chances of deal success. Based on data collected through field interviews with managers of two bank mergers in India, it was concluded that strategic employee communication, appropriate changes in the performance management system and a compensation structure with cutting edge strategic HR practices paved the way for successful integration and merger success in one of the cases studied.

Suggested Citation

  • A. Uday Bhaskar & Kanika T. Bhal & Bijaya Mishra, 2012. "Strategic HR Integration and Proactive Communication during M&A: A Study of Indian Bank Mergers," Global Business Review, International Management Institute, vol. 13(3), pages 407-419, October.
    • Handle: RePEc:sae:globus:v:13:y:2012:i:3:p:407-419
    DOI: 10.1177/097215091201300304
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    References listed on IDEAS

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    1. Nancy K. Napier, 1989. "Mergers and Acquisitions, Human Resource Issues and Outcomes: A Review and Suggested Typology," Journal of Management Studies, Wiley Blackwell, vol. 26(3), pages 271-290, May.
    2. Adrian R. Gourlay & Geetha Ravishankar & Tom Weyman-Jones, 2006. "Non-Parametric Analysis of Efficiency Gains from Bank Mergers in India," Discussion Paper Series 2006_18, Department of Economics, Loughborough University, revised Oct 2006.
    3. Schuler, Randall & Jackson, Susan, 2001. "HR issues and activities in mergers and acquisitions," European Management Journal, Elsevier, vol. 19(3), pages 239-253, June.
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