Cross Border Merger and Acquisiton
There are many international mergers and acquisitions occurring across the world with companies in different countries. As a result of these mergers and acquisitions, there is a great potential for problems to arise with poor management of the different companies human resources. What are the potential problems and what are the international workplace relations issues that need to be practised to ensure that the transfer of ownership in a merger/acquisition goes smoothly?
In todays globalised working environment, poor human resource management is a failure key for international merger and acquisition (M & A). Having a strong international workplace relations management is the same with good business strategies and procedure which ensure that market needs can be met and corporate objectives can be accomplished. Most of the companies realised the important of promoting holistic and healthy workplace relations, there are still some issues that need to be undertaken in order to make the transfer of ownership in a merger/acquisition smoothly. This essay will examine issues and problems in transferring a cross-border ownership.
According to Evan, Pucik & Bjorkman (2011) merger is when two companies join together and create a new entity while acquisition once company acquires sufficient shares to gain control of the other organisation. As the increasing number of mergers and acquisition, many companies have to face with challenging to survive in the business. Some of them are successes while other are fail. To be able to overcome with the failure, the organisation must have a strong workplace relations and strategic planning.
International merger and acquisition is more challenging considering with all the facts such as country cultures, communicating across long distances, dealing with misunderstandings emerge from different business forms as well as fundamental differences in management system. These are