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The Human Resource Department: Merger And Acquisition

1091 Words5 Pages

Introduction This paper will show how the Human Resource Department goes through a merger and acquisition. The Human Resource Department is an integral part of managing the side of the merger and acquisition. I will analyze how the HR Department plays a very critical role in due diligence, including employee data protection. The potential litigation risks are present when mergers take place. There are also employee concerns and fears that need to discuss so that the structure of the two merging companies are in sync thus eliminating potential litigation that is present when mergers and acquisitions take place. HR Legal Risks The challenges Human Resources faces today are significant. They must contend with recruiting, interviewing, hiring top end talent and understanding government regulations The complexity of going through any merger or acquisition, the HR department must perform critical due diligence (Linquist, 2007). …show more content…

1986). Human Resources will face certain legal issues that each department faces during a merger. They are 1.Policies and practices of employment of the company, including the culture assessment which concerns itself with the decision making and the work management styles (Schuler, et.al. 2001). Examples of this would be the dress code, career opportunities, and communication practices. In the end, this allows a foundation for combined synergy. It is important to understand and to recognize the potential legal risks that would impact the deal. Also, review and discuss the pensions or other equity plans the company has active. Another critical area HR needs to consider would be any employment contracts that were executed before the deal or employee benefits that are pending litigation ( Linquist, 2007). Executive compensation would be

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