Organizations
have to grow to survive. The traditional approach of
internal growth - referred as the `organic growth' model
has gradually given way to the more dynamic and bolder
approachthe external approachreferred as `inorganic
growth' model. The current era is witnessing a healthy
combination of both these forms of growth but the slant
is definitely towards `inorganic growth' popularly known
as `Corporate Restructuring' or `M&A - Mergers and
Acquisitions'.
According
to Eric Fiedler, Hewitt's Regional Director, "M&A
activity in AsiaPacific has increased dramatically in
recent years. In 1998, Asian M&A transactions accounted
for just 8% of global deals. However, today that figure
is closer to 25%. During this time, M&A deals have
also grown in sophistication and complexity, and issues
such as cultural adaptability and an understanding of
local HR policies are fast having a strong impact on
long-term success".
M&As
affect the employer-employee relationship in varying
degrees and have a definite impact on the careers/job
profiles of employees at all levels. The impact may
be positive or negative from the employee's point of
view and in the worse case scenario it may end up in
job loss for the employee or resignation/exit of the
employee from the merged outfit due to compatibility
issues.The
challenge facing the employees is to ensure that they
ride on the M&A wave smoothly without allowing it
to hit them adversely. An attempt is made in the article
to address this issue so that the art of riding on the
M&A wave can be perfected and employees can survive
and possibly utilize the M&A activity to their advantage.
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