Whatever the region or country in which a company is based, integrating organizational cultures during a merger or acquisition is the top challenge for HR departments, according to a new global study conducted by management consulting firm Hewitt Associates. Experiences are reported from more than 250 HR directors in the Asia-Pacific region, Canada, Europe, Latin America and the United States who recently went through a merger or acquisition. While these deals look good on paper, the fact is that changes in management, policies and programs can be very threatening to employees especially when companies from different countries are involved. Not only are these employees faced with an unfamiliar corporate culture, they must also deal with an unfamiliar national culture.
Most respondents try to create a new or combined culture that supports the blended workforce.
Conversely, only 39 percent of Latin American companies tried to do so. Problems vary regionally While respondents share the common problem of integration, different regions of the world experience different challenges. For example, companies in the Asian-Pacific region report difficulties in integrating HR and benefits programs, whereas European companies do not. HR professionals agree that a good communication strategy is critical to achieving harmony. Canadian, European and U.S. companies also say new compensation programs have a positive effect.