Opportunities / Challenges in Globalization May 2, 2014

Opportunities and development of your career in HR professional – growth along with your organization Nature of the organization Business/Product Cycle – Stage of the cycle Organic Growth or Growth by Acquisition Growth by Acquisitions – Technology, Products, Revenue, Profit Margin and Market Shares  Challenges on merger and acquisitions: Repositioning of the business cycle and business strategy; Change and expansion of the product lines; Change in number of employees and the talent requirement; Presence in new, emerging and multiple geographic locations; Presence in union environment; Facing cultural differences and different legal requirements  All in all the human capital strategy is to secure; manage and motivate a new workforce that can execute the business strategy and sustain the growth of the profitable business.

 Top people issues¹ during M&A activity are: Organizational cultural differences Human capital integration issues Lack of employee engagement Leadership management retention issues  HR’s role during M&A: Continue to provide day to day service and operation to keep the company running Support the critical people-related merger integration needs for the entire organization Integrate and prepare its own function including consolidating polices, process, programs, systems and staff  M&A led HR transformation: What HR capabilities are required to support the M&A growth goals? What HR technologies are needed to effectively and efficiently manage the increase volume of HR data and transactions in an expanded global footprint? What HR services are needed to acquire, develop, and retain the new and critical talents? What skills and experience will HR staff are needed to support the continued changes of business strategies? ¹Economist Intelligence’s M&A Survey 2013

M&A PreparationPerform Due DiligenceHR Integration Plan Post-Closing Challenges Identify issues about the organizations involved in the M&A Line up a team with knowledge and skills in due diligence; and help the team to understand the organization’s strategic goals and the implementation of the activities to the goals Change factors should be identified and plans for effecting changes Leadership transition and management style Employee data and information Work and labor environment Current HR function, HR policies and procedures Effect of future business strategy Associated labor cost – known and hidden cost Employee communication strategies Employee separation or transfer processes Retention programs for key individuals Change management processes New strategic plan reflects the changed organization Organizations blueprint and staffing plan Staffing levels and other people problems Problems involving places Problems involving attitudes and corporate culture Benefit and compensation plans Corporate identity Tax and Legal issues