For a merger or acquisition to be successful,:
A) the human resource department should not interfere in decision making.
B) the human resource department of the new firmshould play the role of a final arbiter.
C) all the employees should identify the new firm and cooperate with one another.
D) a large scale fresher recruitment should be carried out and old employees should be laid off
E) policies of the large firm of the merger or acquisition should be implemented abolishing the policy of the small firm.

Question

Quizplus · Accepted Answer

The success of a merger or acquisition largely depends on the cooperation and identification of all employees with the new firm. The human resource department can play an important role in facilitating this process, but should not make final decisions without input from other departments. Large-scale recruitment and layoffs can have negative effects on morale and productivity, and implementing policies from only one of the merging firms may cause resentment and resistance from employees of the other firm. Therefore, option C, which emphasizes the importance of employee cooperation and identification with the new firm, is the best choice.

For a Merger or Acquisition to Be Successful