How does the frequency of mergers and acquisitions influence

How does the frequency of mergers and acquisitions influence HR planning?

In this unit, HR as a strategic partner has been emphasized. However, the functions of the HR department are increasingly outsourced. Is this a contradiction

Solution

Frequency of mergers and acquistions affects HR planning in a big way. HR palnning includes palnning for various activities like recruiting employees for some particular department, appraising employees on the basis of performance, developing employee related policies in an organization.

When mergers and acquistion takes place, generally employees of the company which is merged or aquired, become a part of the new organization. Thus the HR department of the company which has aquired the new company or the largere company has the responsibility to oversee various HR related activities in the organization.

The HR department now has to formulate HR policies for the new employees as well. The appraisal cycles of the older employees also gets affected as the merger of the company with other company might also bring in various other new policies. Thus might delay the process of appraisal.

The HR department, after merger and acquistions, has to plan various HR policies related with the employment benefits, in a new way.

Thus, frequent merger and aquistions affect the whole organization and in particular the HR department as all the exsiting policies related with the employees needs to be changed and new ploicies needs to be implemented.