HRs Role in Mergers and Acquisition Article Example | Topics and Well Written Essays - 500 words

HRs Role in Mergers and Acquisition - Article Example The corporate culture aspect involves litigation risks such as employee contracts, the collective bargaining agreements, failure to consider the target company’s employee management issues, and the organizational leadership structure. The change capacity risks include the employees’ rigidity and perspective regarding the behavioural change. Other risks include failure to analyze the insurance policies of the target company, the current claim threats against the enterprise, matters in arbitration, pending litigation, and terms of previous settlements (Lee & Carpenter, 2012). The roles of the HR in the major phases of a merger or acquisition vary depending on the nature of the process involved. However, there are essential functions that all HR departments need to consider limiting the possibilities of litigation. During the due diligence phase, the HR has to establish a rigorous target decision criteria and create value in the process. The HR has to interact with the tar get company’s employees and find out as much information regarding their operations and organizational cultures. The HR analyzes the company’s policies and terms of engagement with the various stakeholders to ensure that all aspects are outlined and solutions implemented accordingly. The data collected should be carefully protected with the standards detailed in the company’s privacy policy, and the department must also ensure that the process is confidential with no retaliation possibilities (Protiviti, 2014).