Due diligence neglected: managing human resources and organisational culture in mergers and acquisitions

Abstract

The aim of this article is to identify attributes of organisational culture and human resource practices required for successful transitions in mergers and acquisitions. Using primary data from five case studies on mergers and acquisitions, findings show that where neglect of two key ‘soft’ due diligence factors of cultural and human resource compatibility occurs, transition and effective integration of the new entity is hampered. The need for a coherent integration plan including joint teams, effective communication and other appropriate human resource practices is considered vital for successful acculturation. A model for both managerial policy and further research is proposed.

Analysis of Organizational Culture Dimensions Impacting Performance

“…Horwitz at al. [13] examined influence of human resources on performance. So, the number of evaluators for each dimension was different.…”

“…The second one includes works, in which dimensions are picked out [5][6][7]. Their influence on success is validated theoretically or empirically in the third group of works [1,[8][9][10][11][12][13][14]. The more dimensions of the analysed phenomenon will be disclosed, the more clearly it will be perceived.…”

Success Factors of the Companies Mergers and Acquisitions

“…F.M. Horwitz, K. Andersen, A. Bezuidenhout, S. Cohen, F. Kirsten, K. Mosoeunyane, N. Smith, K. Hole oraz A. van Heerden (2002) pokazujπ, øe zaniedbanie ÑmiÍkkichî czynnikÛw due diligence ñ kulturowego i ludzkiego ürÛd≥a potencja≥u po≥πczonych podmiotÛw ñ utrudnia transformacjÍ i efektywnπ integracjÍ nowych jednostek 2 .…”

A Systematic Review of the Due Diligence Stage of Mergers and Acquisitions: Towards a Conceptual Framework

“…Organisations are under constant pressure to grow in the face of increased competition, changing conditions, shrinking gerographical boundaries, and increasingly relaxed country and currency regulatory environments. In order to remain a player or an industry leader, it is imperative for companies to achieve real growth [1], [2]. Traditional methods of achieving organic growth, such as new products, markets, and efficiencies may only assist in growing the organisation to a certain extent.…”