Mergers and Acquisition abbreviated as (M&A) are the two phases used in human resource management. Acquisition is the absorption of small firms by bigger ones. Merger is whereby two companies come together to form one major firm. Personal problems in organizations do arise sometimes, hence, they need someone responsible to deal with them. Employing workers, sucking, demoting and punishing every law breaker in a firm is the work of a human resource manager. This shows that the human resource manager must be very knowledgeable and have good communication skills to handle cases in the organization. Human resource managers should work with organizing strategies that will enable the firm to move to higher levels and achieve set goals.
If proper human resource management is present, law and order is at high levels in such a country or organization. Merger is very important as when two firms merge and become one, easier supervision of employees and harmonized remuneration systems within the merged organization are adopted. There will be minimal complains among the workers because equality will be a major factor in the organization. The workers will put effort in their work leading to increase in productivity of the organization, hence, increased profit margins.
The merged company will have more power than when the firms were entities of their own. When the companies merge there will be better accountability leading to motivation. Motivation will bring forward innovativeness and create stronger human relations within the organization. Expansion of the firm can be realized within a shorter duration than when the firms were separated. All other principles of management, like staffing, planning and controlling, will become easy and fast in operation. Training personnel in order to utilize the available technology will be enhanced and improved. In employees demotion and promotion there will be defined procedures that lead to easy inspection throughout the organization.