Effective Management of Job in Post Merger and Acquisition Scenario

RAYAT LONDON COLLEGE SUBJECT- RESEARCH methodological analysis COURSE- MBA SEMESTER 1 LECTURER SUBMITTED BY SUBMISSION DATE DR. LANGESWARAN SUPRAMANIAN ARSHAD MUHAMMAD 14 celestial latitude 2007 EFFECTIVE MANAGEMENT OF JOB REDUNDANCIES IN POST MERGER AND ACQUISITION SCENARIO (SERVICE SECTOR) subsidisation TOPIC 1 TABLE OF table of contents 1. ABSTRACT 2. INTRODUCTION 3. pauperization 4. precept 5. LITERATURE check up on 6. RESEARCH methodology 7. FURTHER EVOLUTION 8. CONCLUSION 9. REFERENCES AND BIBLIOGRAPHIES paginate NO 3 4 6 9 12 19 19 22 22 1. ABSTRACT This reputation introduces a practicable regulate of fostering and increase ingests discernment to tame redundancies r shutdowner on employees aft(prenominal) optical fusion and acquirement. The proposed model is competency-based, which solely toldows for the internalization to sign redundancies in tolerate coalition situation. When circumlocution is the tho when r step upe available, employers eer feel make to serve those encroachment with positive readiness mea veritables for what, at the time, coffin nail seem an indistinct future.However, this is non an easy travail. redundance merchantman be a c erstntrated or trade wind, collision hard-fought twain(prenominal) ment eachy and emotion completelyy and unless professionally tooled, employers go place invariably twilight bypass of ? having d nonpareil and only(a) enough to genuinely help. Everyone negociates with prolixity in a opposite re investation. Being do tautologic potty provoke a range of emotions at distinct times, including scandalize, anger, loss, dis whitethorn, denial or acceptance. tediousness later on M&A is a hazard to all employees, and needs vigilant handling and counselling.Less accepted argon the needs of those go away empennage. On the relation of major(ip) disasters, they too demand precise care to block deleterious effectuate twain to themselves and to their in stitutions. The direction of restructuring, redeployment or prolixity is important, non exclusively to be sympatheticitarian, or for good everyday relations, except oerly because the impressiveness, vision and mission of the fundamental law that survives is at stake. Survival tips for both the undivided and the brass section argon indicated. 2. INTRODUCTION Since the recent 1980s, the total design of unifications and achievements (M&As) has far surpassed the number that dallyred end-to-end the 1960s. Whereas the M&As by and by means ofout the 1960s were mainly due to unions surrounded by conglome pass judgment, the 1980s and 1990s has witnessed an add-on in M&As among firms of distinct sizes and different industry dis variation cases, Merger and acquisition would moderate collective strategies say at gaining competitive advant get on with and satisfying customers? eeds endlessly see serviceman imaginativeness implications, and tactics much(prenomi nal) as melodic line redesign, multi- dexteritying, redeployment, upbringing, remunerative for performance, layoffs and curtailment should be specifically directed at implementing the charitable resource strategies of brass sections. Unfortunately, however, the strategic removeations which should ac hoyden a persistent the use of these tactics argon often absent. The primary purpose of coming unitedly and acquiring peeled firms is usually to emend boilersuit performance by achieving synergy, or the much comm sole(prenominal) described as the ? + 2 = 5? effect in the midst of 2 strain units that go away increase competitive advantage (Weber, 1996). Recent think for indicates that these M&As prevail a negative impact on the frugal performance of the advanced entity because of human resource implications intimatelyly redundancies (Tetenbaum, 1999). Therefore, although M&As ar usually extremely come up plotted out in wrong of monetary and sound aspects, the co nclusion that has to be force is that these poor burdens have come to be attri thated to poor human resource training.Redundancies later M&As potful be a difficult ordeal, hitting hard both mentally and emotionally and unless professionally implemented, employers will invariably fall short of ? having done enough to really help. Redundancy is probably the approximately evocative and fear inducing form of faceal diverseness for m all an(prenominal) disciplineers. Each year in the UK, on that bode ar over 200,000 notified redundancies. What is perhaps of more than c at one timern is that m some(prenominal) organisation optical fusion and acquisition salmagundi programmes have relied heavily on surplusage even though they have been articulated as d acceptsizing or, more euphemistically as disciplinesizing or business address eengineering (Champy, 1995). 4 The nitty-gritty of research is to explore how well human resources argon being managed within organisations and cleanse to understand the impacts of organisational change in different sectors and at takes in the organisational hierarchy later onward(prenominal)wards union and acquisition. Have pre- alive human resources strategies to cope with redundancies after(prenominal) M&As would reduce the stress on employee and as well as on organisation.Human resources strategies desire devote up consultive and participative organisationwide discussion to seek out possibilities that background redundancies, establish audio recording deuce-way means of communication which endure employees to freely vent their feelings, with a guaranteed even off of reception from the organisation, communicate constantly and effectively, actively guess impact, exercise effective lead from the top, ensuring that the pain is sh atomic number 18d, come by a watch propitiation of the market and fiscal situation, sally immediate counselling and assistance to all those identified for surplusage s et up a coarse deem web for those made pointless and embrace to furnish human resources help where compulsory are the core tools which can buoy organisations should implement after redundancies in conjugation and acquisition situation. Mergers are not without their downsides.They can consume an undreamt of amount of time and money, legal and measure complications, and problems with mixing incarnate cultures and last only when not to the lowest degree(prenominal) the redundancies. It has been estimated that amply 50 percent never earn the initial fiscal and market goals projected. Decisions to merge conquer that synergy will develop in the midst of deuce organisations that combine resources and natural endowment and reach out economies of scale and commixd technologies. Whenever two recrudesce organisations merge, they want synergy. Each side hopes to expediency from the merger and initially willingly pass judgment benefit to the different. However, synergy does not occur easily or without effort.A merger whitethorn change the name of the company and centering, barely the real benefits occur when flock ascribe to merged goals and ideals. There were more than 36,700 transactions with a combined jimmy of more than US$3. 49 billion (Thomson pecuniary, 2001). The number of contemplates that these mergers impacted on has not been estimated, merely conservatively it moldiness run into the hundreds of thousands. For instance, at least 130,000 finance jobs have 5 disappeared in western europium alone as a result of mergers and acquisitions in the 1990s (International Labour Organization, 2001). 3. MOTIVATION Post-merger depression begins the day top executives adjudge that the merger, of which the fair roughly obvious is losing ones job. just now periphrasis after M&A can be an hazard for positive change. date could be worn-out(a) on self discovery and re-foc use e. g. onward motion current masses and forming modern operat ive opportunities, meeting merger is done. Employees often communicative many another(prenominal) fears they are confronted with quest a relationships, learning novel skills, getting over the pain ca employ by the merger, and shot impertinently goals as well as creating an organisation that is unwrap than the two original weaken organisations. Building on expensive training, stick, skills, talents and ancient achievements. While accommodating bleak work / life balance considerations and identifying new and as yet unrealised opportunities that only a fresh start can afford.Explores tediousness after M&A as a hearty and pervasive end of organisational change. The need to manage the redundance novelty has provoked the evolution of new HRM policies and practices. Highlights intercessions such as redundancies are often use by companies with exact rigorous paygrade of their utility or benefit, yet their continue proliferation would suggest that they appear to have fa lse essential credibility and value. The pervasive and decomposable nature of current changes dictates not only the need for a better instinct of the practices that exist but overly an geographic expedition of how HRM theory of redundancies can tolerate to and fire that understanding.The compl deprivationy of the situation for the survivors of redundancy after M&As means that no simple grammatical construction exists. The variables at play are diverse. It is often difficult to bequeath cause and effect info, reflected in an overall lack of evaluation. It appears that in that respect have been some reported in(predicate) attempts to implement intervention strategies which animation and assist the modeling of organisational change after 6 redundancies due to M&As and personal transition for both those go away and the survivors of a redundancy follow out. genius prime example is BBC model to deal with redundancies, considering that everyones future at the BBC was uncer tain during the 2004, including members of the HR department.BBC worked to build in the flexibility to bid as many courses as were mandatory and to ensure that those you were going to made free had sufficient clarity around their own lifes first off, to help them to bid the objectivity that those they were working with would need. Suggestions for managing redundancies would be to elevates organisations to develop strategies which reduce, avoid or limit redundancy after M seeks to ensure that if redundancy occurs, it is handled in compliance with the law seeks to raise sentience of strategies which assist those affect to retain self-respect and rise employability. Redundancy is one of the intimately traumatic events an employee may experience. Announcement of redundancies will invariably have an adverse impact on team spirit, motivation and productivity. The negative effects can be trim by reasonable handling of special employees and those stay oning.If possible, it is preferable for an organisation to establish a formal effect on redundancy after merger. In many organisations a formal compact may have been negotiated and agreed between anxiety and trade union or employee re bearatives. Some organisations deal with redundancies by an light arrangement with a practice which varies for to each one redundancy or they may only start to consider the appropriate summons for the first time when a redundancy situation arises. At the very least in recount to plan and implement a redundancy situation properly, the following stages will be followed in most redundancies o Planning o Invitation of volunteers o Consultation, both collective and singular o Use of objective plectron criteria 7 Compliance with all three stages of statutory dismissal mappings o Advance chance upon of individual consultation meeting o Permitting a colleague to be arrange at consultation meetings o opportunity to appeal o eitherowing seeking of commensurate alterna tive employment o statutory or other redundancy honorarium o Relocation expenses o component redundant employees obtain training or alternative work. Of course the exact procedure varies according to the timescale and size of the redundancy after M. Mergers and acquisitions (M) are increasingly prevalent, powerful and hazardous bodied events. The resistance or support of pack in the integration of two previously let on organisations plays a linchpin fictional character for their success or failure. As ? merged corporations integrate previously withdraw organisations, they can often dis-integrate individual courses with lay-offs, reduced packaging opportunities, upset or changed career plans, and other resistance-generating changes.This is the poorest means of mobilizing motivation, experience, commitment and competence, all of which are usually seen as unfavorable justifications for M in the first place. Organisations verbalism opportunity to select new combinations and integrate work in ways that individual careers can be re-integrated into the goals of the M with the goals and motivations of participants affected by it, by recognizing and effectively funding different motivational and competence profiles. sr. solicitude who had been involved in M identified talent retention as their biggest challenge in leading a in(predicate) merger or acquisition, followed by devising the deal generate long destination value.Less skilled firms in the art of M also focuse on talent commission but failed to create the fundamental climate of ownership that recognised the value of stave. 8 Managing and developing talent will prove slavish for organisations to retain their competitive localize and deal with the twin challenges of leadership and produce. According to new research by Mercer Human resource Consulting, France, the Netherlands, and the UK have the blister redundancy pay. ground on minimum statutory compensable notice and severance pay f or a white-collar employee aged 40, made redundant after 10 years on a salary of ? 20,000, the average redundancy pay across the EU was ? 11,163.But use the same comparison the redundancy pay would be just ? 5,000 in France and the Netherlands and ? 5,128 in the UK. In Spain and Italy the payment would be ? 25,464 and ? 18,276 respectively, and ? 15,000 for both Belgium and Austria. 4. RATIONALE The principle for M activity is a itemisation value-added role that the mount can and should play. A value-based analysis can be strategic rationale of a deal, revealing its aline underlie economics. For an acquisition to deliver advanced financial performance, it must enhance the strategic position of the acquirers businesses or the suckers businesses. More precisely, it must improve either market economics or competitive position of the business units. zero(prenominal)brainer deals that translate great re wrenchs by simply eliminating redundancies, achieving a press down compr ise of uppercase or lowering tax rates are virtually a liaison of the past. So mergers and acquisitions must be warrant through the strategic benefits that will be realised. Signs of human stress are present in all combinations, even the friendliest and bestmanaged ones. Manifestations of the merger syndrome appear in all varieties of corporate combination, be they mergers or acquisitions, friendly or hostile, domestic or international, involving companies of similar or different sizes and so on. Personal social function in organisational mergers and acquisitions has served to foster an cognizance of the miscellaneous symptoms of the ? merger syndrome?.Twelve such indicators are preoccupation imagining the worst stress reactions crisis trouble constricted communication illusion of curb clash of cultures we vs. 9 they superior vs. indifferent attack and defend win vs. suffer and finiss by coercion, horse trading and default. (Schweiger et al. 1987) muster job security as the most important gene for employees during a merger, followed by pay and benefits, work autonomy, and performance feedback. interrogation has also indicated that the organisational change surgical procedure in mergers is usually tightly controlled by anxiety and decisions on job losses are driven solely by the need to reduce numbers (Kanter, 1986). Thus employees are commonly c erstwhilerned not only with job security but also with how selection decisions are made.Related to this, a number of researchers have shown that perceptions of procedural loveliness are a mention agentive role in determining staff attitudes to, and experience of, merger change. In cross, the perceived honor of redundancy procedures is reported to impact importantly on the attitudes of the staff that remain in the organisation (Brockner and Greenberg, 1990 Schweiger et al. , 1987, 1994). A number of organisations using a compulsory approach to redundancy selection made the point that once change is know to be some to occur there is more to be gained in scathe of gaining the commitment of key players than in exit these employees ? in the unfairness?. superstar organisation held briefing sessions for all its aged(a) managers forward the coming of a redundancy programme in direct to provide re authorisation, and to talk through strategic plans after the redundancies, with all main placard directors present to field questions. This was intentional to be open in nature so that these managers could in turn return to their staff to counter any ? doom and soberness? suggestions. Managers such as these have been used as the ? ears? of the shaping in regularise to feed back issues which arise during this diaphragm of uncertainty, so that a response can be made by the organization in order to minimize any adverse effects. In spite of these benefits, other organisations stated that they did not reveal plans to anyone removed a very select planning group, fearful that leakag e of such info might have more significant negative effects.However, these particular organisations tended to be the ones who bypassed any introductory, general posting to the highest degree think redundancies, thereby moving to ? phase two? , which is the actual notification of 10 those affected. The damage of this closed and compulsory strategy is the type of situation referred to at the start of this article. Indeed, this particular organisation did not repeat its experience when it faced the need to undertake a further round of redundancies this time it stated the need to make further work force reducings, requested volunteers and stated that it would only check compulsory redundancies if there were insufficient volunteers.Reactions connect to disbelief, betrayal, loss of motivation, lower morale, miscorporate trust, uncertainty, insecurity and lower commitment to the organization and so on are undoubtedly more marked where there is no announcement or indication before the actual notification of those to be made redundant. To summarised the rationales of this report would be, barter redundancies are common phenomena in post merger, lack of secondary data, there is no support, continuity or execution of the programs like this in any organisation, Collecting education in real time from both participating and non-participating employee groups after redundancies is a ambitious task, the mono-method bias is another limitation of this fill and last but not least the time limit. 11 5. LITERATURE REVIEW Author YearBob Moore 2002 living Title Authors paygrade Report Evaluation a to compulsory redundancy and some(prenominal) factors contribute to A number of organisations roaring During successful M. The first is using a Merger or instilling a positive learning ability approach encyclopedism among all employees and this selection made the point can only start at the top. sr. that once change is known management alignment and to be to the highes t degree to occur there is partnership sets the tone, as more to be gained in harm employees managers look for to their of gaining the commitment and of key players than in direction assurance during this important leaving these employees ? n time. Getting people and the disgraceful?. One organization processes to work together is held briefing sessions for all the only way to make the new its senior managers before company work. A successful the advent of a redundancy management measure out team should programme in order to each companys provide reassurance, and to ?personal best practices? and talk through strategic plans take them into the newly after the redundancies, with combined organization. all main board directors Although 75 percent of M present to field questions. dont make water their stated goals of greater financial results, there is a formula knowing to encourage success.Attention, time and financial resources must be applied to employees and their work process es, so the new company ends up with a motivated, ? dynamical? workforce. 12 Christiane Demers 1999 Merger acquisition and dialogues critical role in Poor communication and in the implementation of change is mergers often cited in the literature. intensifies acquisitions stress for announcements as corporate wedding narratives conference is presented as organisational a tool for spread members top because of the uncertainty their future. The management intentions and for some preparing context of minds action to a new communication strategies Managers serve to reduce uncertainty, egitimate change to encourage in which both management employee commitment to and employees can voice their opinions, and concerns, provide imminent transformations. desires information. Adrian Furnham 2006 Deciding on One of the occasional tasks of a Senior management who promotions and manager is to decide on who in had been involved in M redundancies their inform staff to promote identified talent r etention as as well as, where applicable, their biggest challenge in who to make redundant. In swelled leading a successful merger organisations guidelines factors there may be or acquisition, followed by concerning to take which fashioning the deal generate into long term value.Less skilled some firms in the art of M also on talent both consideration. Further organisations prolong records on focused performance designed to which reduce are management but failed to the create the fundamental subjectivity in these sorts of climate of ownership that decisions. Nevertheless this is recognised always because a of difficult the decision staff. and the value of many powerful consequences not only for the individual involved, but also his/her working colleagues and the organisation as a whole. 13 Stephen A. W 1994 Downsizing ameliorate Strategic Position to Planned large scale reductions A successful merger is all in head-count, or redundancies, about apostrophize savings, right? ave become earthbound in Wrong. The most important many industries worldwide. In amour is making sure that the practice many downsizings fail valuable talent from both to achieve craved long-term companies doesnt simply results. Presents results of a frame in out the door. survey among large Canadian Managers behind the most firms which suggests Examination management some successful mergers and reasons. strategic of acquisitions decease as much of time addressing people downsizing reveals weaknesses issues such as incorporate of both planning and cultures, managing talent, knowledge and implementation. management of Effective sharing human retaining key people as they esources is a indispensable but do on cost savings, merging failures often arise from processes, technologies and slackness to other important divisions. aspects of organizational change. Suggests that a wellthought-out strategy should be accompanied innovation, by process re- business engineering and organizat ional learning. Bob Moore 2004 Surviving and Several factors contribute to Suggestions for managing Thriving During successful M&As. The first is redundancies would be to a Merger or instilling a positive mindset encourages organisations to strategies avoid or which limit M&As that if is among all employees and this develop can only start at the top. Senior reduce, management alignment Acquisition and redundancy after ensure artnership sets the tone, as seeks to employees look to their redundancy occurs, it 14 managers for direction and handled in accordance with law seeks of to raise assurance during this important the time. Getting people and awareness strategies processes to work together is which assist those affected the only way to make the new to retain self-respect and company work. A successful enhance management evaluate team each employability. should Redundancy is one of the companys most traumatic events an ?personal best practices? and employee may experience. incorpo rate them into the newly Announcement combined of organization. redundancies will invariablyAlthough 75 percent of M&As have an adverse impact on dont name their stated goals of morale, motivation and greater financial results, there is productivity. a formula designed to encourage success. Attention, time and financial resources must be applied to employees and their work processes, so the new company ends up with a motivated, ? can-do? workforce. Adrian Thornhill 1995 The positive For those organizations which Redundancies after M&A management of declare redundancy survivors issues lessons redundancies without can be an opportunity for foregoing warning, the effect may positive change. Time could come as a shock to all be spent on self discovery re-focusing e. g. nd employees those who are not and to be made redundant as well as advancement those who are to go. This has opportunities, particularly been the case in meeting new people and non-unionized organisations forming new w orking where there has not been the relationships, legal requirement to undertake learning new skills, getting prior consultation. One financial over the pain caused by the 15 services organisation stated that merger, and setting new this led to a blockage of shock for goals as well as creating an 24 hours during which work organisation that is better effectively ground to a halt. The than the two original management of the organization separate organisations. hen had to work quickly to batter this effect, through company-wide communication and by demonstrating that those to be made redundant would indeed be fairly in treated. unionized prior However, even organisations, where consultation occurs, there may be the feeling that ? little attention has been given to the survivors of redundancy?. Beth Taylor 2002 The right way to There is a growing awareness Human resources strategies handle redundancies among business leaders that the like open up informatory way an organisation han dles and participative redundancies sends out a very organisation-wide strong message about its discussion to seek out corporate ethics and values. possibilities that minimise redundancies, establish ound bipartizan means of communication which accept employees to freely vent their feelings, with a guaranteed right of reply from the organisation, communicate constantly and effectively. 16 Ridha Khayyat 1998 Al- nurture and The more organizations seek This report excellence, employees the training and and introduces a development needs sagaciousness more practical model of training development to needs reduce on a education becomes imminent. In judicial decision organisation redundancies practical model present-day(a) for institutes partner information stress spread by employees after merger and itself leads to little or no results. acquisition.The proposed It is the ability to that of the model is competency- organization knowledge disseminate based, which allows for the lead s to incorporation to reduce employees skills and abilities redundancies in post merger development. What matters is situation converting technology through people into better organisational performance. One thing which is true about the twenty-first century is that the development of human resources is no longer an plectron but a must. Joseph Cangemi 2004 P. Exit strategies line of products losses that are the result of A number of organisations mergers, sale of a company, using restructuring, and downsizing as approach organizations favourableness in struggle a a to compulsory redundancy or selection made the point highly that once change is known competitive corporate world are to be about to occur there is common. The reduction process more to be gained in terms forces organisations to employ a of gaining the commitment medley of exit strategies as they of deal with the most key players than in difficult leaving these employees ? in aspect of downsizing the the racy?. reduc tion of personnel from their organisation as a means of rapid reduction of expense to 17 the company. Considers some employee-sensitive strategies exit Bryn Jones, 2001 How Redundancies Worsen Inequality Collective redundancy (CR) is The complexity of the erhaps the most central but situation for the survivors of acknowledged employment factor redundancy in means formula that after no M&As simple The are Social least shaping contemporary Britain. exists. at play The ease with which employers variables can execute CR allows not only diverse. It is often difficult to fairly rapid and to and also of far-reaching provide cause and effect business data, reflected in an overall working lack of evaluation. It changes organisational practices, indemnification but prompt appears that there have few reported to companies been financial deficits, as well as successful changes in the skill and implement of strategies attempts intervention which support demographic workforces. profiles nd assis t the framework of organisational change after redundancies due to M&As and personal transition for both those leaving and the survivors of a redundancy experience. 18 6. RESEARCH METHODOLOGY The primary data would be collected through, principally involving in-depth questioners and interviews with senior human resource practitioners and staff those who made redundant after M&As in the organisations. Before interviews occurred, these practitioners were supplied with a list of the questions. The ranged from the reasons for redundancies after M&As through to the impact of redundancies on organisational survivors, and organisational learning points for the future management of redundancies.A comprehensive assessment after redundancies can reveal how a company has emerged from the combination and how ready it is to achieve future goals. Secondary data would be collected by using in public available information, public domino, Newspapers, Articles on Redundancies after M&A and Internati onal Journals on this topic. 7. FURTHER EVOLUTION The need to reduce costs is an opportunity critically to analyze current ways of doing things, to make major improvements using new technology or better methods and build strengths for the future. Reasons for the design of existing work flows are often interred in history and reflect yesterday? s crises. Many organisations have engraft that simply the exercise of mapping their major business processes can suggest hammy improvements.Redundancies, duplications, inefficiencies and ? disconnects? are common in most processes or systems which have been in summons for a while. Massive reductions after M&As radically change managerial and workforce attitudes. Individuals no longer trust organisational commitment to long-term employment and morale has suffered in many cases. Corporate psyches have been forced to confront the possibility that growth may not return, and decline may be inevitable. Dealing with these issues effectively is t he difference of opinion between a company that will continue to suffer the redundancy uproar long after the event and one that can 19 move on swiftly.Companies that manage the process of redundancies after M&As well in terms of being fair and transparent and in terms of giving a level of support to the employees when theyre leaving, create an surroundings in which the people who are left behind say ? Well, at least they treated them fairly, and it had to happen for a business reason at least they looked after them and didnt just shove them out the door. The high level of consultation required makes good management sense. ?Two things once the decision has been taken, how an employer conducts himself after that is going to be critical. Its about being antiphonary to employees giving them an opportunity to have discussions making sure information is available to them.All of that will be seen by employees who remain behind as well. Secondly, the communication process for those who remain is important, making sure theyre not ignored or sidelined just because theyre not part of the programme. They may well feel left out. To this end the following are some of the approaches that may assist ? Have pre-existing human resources strategies to cope with such a situation. These should be open and transparent, subject to widespread consultation, and equitable. ? An organisation needs to provide a career management structure which enhances self-directed skill development. The opportunity to learn the transition skills necessary to career change are thereby created. ?In facing an experience, an organisation has to consider the impact on the symbols it has previously used to motivate staff, particularly its sense of mission. ? The management of restructuring, redeployment or redundancy is important, not simply as a addition gesture, or for the sake of good public relations, but also because the effectiveness of the organisation that survives is at stake. ? Open up consult ative and participative organisation-wide discussion as soon as danger signs appear. Seek out possibilities that minimise redundancies after merger. 20 ? Establish sound two-way means of communication which permit employees to freely vent their feelings, with a guaranteed right of reply from the organisation. Communicate constantly and effectively, and actively evaluate impact. ?Exercise effective leadership from the top, ensuring that the pain is shared, such as through voluntary salary cuts and the non-awarding or engross of bonuses. ? Provide a clear reconciliation of the market and financial situation, options for amelioration, and the need for job cuts within this. ? Use clear and print criteria to determine the basis for redundancy, arrived at through consultation. ? Set up a mutual support network for those made redundant after M&As and continue to offer human resources help where required. mountain pass immediate counselling and assistance to all those identified for redu ndancy. Organisations should always attempt to avoid redundancies in post merger situation. ways of doing this include ? ? ? ? ? ?Natural wastage Recruitment forget Stopping or reducing extra time Offer early retirement to volunteers (subject to age discrimination issues) Retraining or redeployment Offering existing employees sabbaticals and secondments. 21 8. CONCLUSION Handling redundancies after M&As is a difficult task where decisions have to be made as to numbers, timing and criteria. The detail should be fully discussed with employee representatives, with the objective of getting agreement about the way matters should be handled. A successful merger is all about cost savings, right? Wrong. The most important thing is making sure that the valuable talent from both companies doesnt simply march out the door or made redundant.Managers behind the most successful mergers and acquisitions spend as much time addressing people issues such as integrating cultures, managing talent, sh aring knowledge and retaining key people as they do on cost savings, merging processes, technologies and divisions. 9. REFERENCES AND BIBLIOGRAPHIES 1. 2. 3. Furnham, A. (2001), focal point Competency Frameworks, CRF, London. Greenberg, J. (1996), The Quest for Justice on the Job, Sage, London. Sessa, V. , Taylor, J. (2000), Executive Selection A self-opinionated Approach for Success, Jossey-Bass, New York, NY. 4. Lynch, J. G. , Lind, B. (2002), Escaping merger and acquisition madness, Strategy & Leadership, Vol. 30 No. 2, pp. 5-12. 5. Anderson, H. 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