Managing HRM risk in a merger

Abstract

Mergers are big, risky business and they frequently fail. This article reviews the literature around managing human resource management (HRM) risk in a merger. It finds that poor merger results are often attributed to HRM and organisational problems, and that several factors related to maintaining workforce stability are identified as important in managing HRM risk. Gaps are exposed in the extensive merger focused literature, particularly its lack of consideration of the role of unions and different employment relations policy approaches. The New Zealand‐based banking merger of Westpac and TrustBank is used to illustrate and explore the impact of union involvement alongside HRM initiatives, and to extend Guest's employment relations policy choices taxonomy. This article contributes an important additional dimension to a theory of managing HRM risk in a merger.

Citation

Bryson, J. (2003), "Managing HRM risk in a merger", Employee Relations, Vol. 25 No. 1, pp. 14-30. https://doi.org/10.1108/01425450310453490