Study On Issues And Solutions Relating Human Resources For China Enterprises' Merger & Acquisition

With the globalization of economy, Chinese enterprises have engaged in more M&A activities when seeking further development. Domestic and overseas theories and practical studies show that people is the key factor which decides the success of a enterprise's M&A. It's because the outcome of M&A largely depends on the integration after M&A, especially the integration of human resources.Firstly, the thesis summarizes the development and current situation of Chinese enterprise's M&A, introduces the meaning of enterprise integration and human resources integration. It also summarizes relevant domestic and overseas studies.Secondly, combined with cases study of Chinese enterprises' M & A, domestic and overseas theories, and my own work experiences of human resources management, the thesis puts forward three major problems regarding Chinese enterprises'M&A currently. They are as follows:1. At the initial period of integration after M&A, cultural difference between two sides (difference of nation's culture and enterprise's culture) and extent of acknowledgement towards the other's culture will lead to collision in the integration. It also puts integration of human resources into bigger trouble.2. When M&A comes to enforcement period, discrepancy of wage system between 2 enterprises will lead to collision of staff's wage level in terms of internal and external equity. It further damages staff's sense of fairness, causes decrease of staff's loyalty.3. At late period of M&A, the loss of staff, especially of core staff will cause vacuum of key posts. It'll lead to loss of core value of target enterprise. So, the enterprise won't gain resources and advantages which it originally desires through M&A. The new organization can't function well.Thirdly, the thesis analyzes causes of the foresaid problems. They're as follows:1. No integration plan regarding human resources was made at initial period of integration. Integration gets derailed to strategic goal accordingly.2. Ignorance of difference of enterprise culture and selection of right mode of cultural integration lead to failure of integration. 3. Lack of effective scheme of wage and welfare integration and transitional plan lead to rise of staff loss rate and decrease of productivity.4. Ignorance of value of core staff of target enterprise and lack of reservation plan causes loss of enterprise core value.At last, the thesis puts forward resolutions based on analysis of causes. They're as follows:1. Set up efficient and effective integration team and make plan of human resources of M&A.2. Formulate a whole set of management policies and mechanism which take both enterprises' culture into consideration. Develop new culture of enterprise.3. Starting from balancing interests of all staffs, build up a wage system which helps with motivating staff.4. Make comprehensive plan of reservation of staff and let staff play role in different levels.