Betania Tanure and Roberto Gonzalez‐Duarte
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.
Abstract
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.
Details
Keywords
This paper aims to examine why and how HRM may take on a more strategic role in mergers and acquisitions.
Abstract
Purpose
This paper aims to examine why and how HRM may take on a more strategic role in mergers and acquisitions.
Design/methodology/approach
Discusses Dutch bank ABN AMRO's acquisition of one of the largest Brazilian banks (Banco Real) and, later, the Brazilian subsidiary of an Italian bank (Banco Sudameris).
Findings
Highlights major differences in the two acquisitions, but also the common agreement that top management of the acquiring and acquired companies must fully understand the vital role of employees in the M&A process.
Practical implications
Contends that the team or executive leading the post‐acquisition process should establish the most appropriate policies, including those for HRM, so that the results of the chosen integration strategy result in value creation.
Originality/value
Demonstrates that a major challenge in acquisition processes that adopt different integration strategies is to match the reason that determines the acquisition, the integration strategy and the management of people.