A Model of Levels of Involvement and Strategic Roles of Human Resource Development (HRD) Professionals as Facilitators of Due Diligence and the Integration Process

Abstract

This article presents a model of the levels of involvement and key strategic roles of human resource development (HRD) professionals during mergers and acquisitions (M&A), as supported by literary findings. Traditionally, mergers and acquisitions are initiated by the parent company’s finance expertise, with little or no input from its HRD expertise. Often, when HRD is involved in the process, it becomes involved during the postacquisition period. This oversight has been noted as a primary cause of failed M&A. Employees, the focus of HRD, are the vital means through which organizations improve their financial, organization, process, and job performance. Because such improvements are the primary goals of M&A, it is essential that HRD professionals are involved early in the M&A process. More specifically, HRD professionals must be involved in due diligence and integration planning activities. Additionally, the article explores the relationship between levels of involvement and postacquisition integration success.