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HRM Review Magazine:
Unraveling the `Culture Shock': Challenges in M&As
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There is an increasing trend of going for M&As and joint ventures by companies to enhance their business ventures. In India percentage of such ventures has doubled from the previous two years. But despite the promise of a new beginning these ventures often fail to sustain the tempo they had intended. This article focuses on the role of HR in meeting the challenges thrown up by increasing M&A culture.

 
 
 

When companies go in for M&A style of growth, HR-related issues are bound to crop up in some point if companies do not maintain cultural balance. The major road blocks in the success of M&As include anxiety related to job security for employees, career growth, aligning the values and organizational culture of the both the buying and acquired parities.

The recent acquisition of Ranbaxy Laboratories by Japan-based Daiichi Sankyo highlights the difference in the working styles and the individual characteristics of the Indians and Japanese managers. According to Rajeshwar Upadhyaya, Director of Par Excellence, there are five different areas on the basis of which people are assessed.

Upadhay explains, "It is evident from the table that the Japanese are far more stringent when it comes to adhering to deadlines, problem solving, being assertive, achievement oriented and intolerance to ambiguity. Indians on other hand have to be more disciplined, task oriented, risk taking, embarking on initiatives "

People are molded by behaviors and, behavior patterns that arise from the environment, family upbringing, social relations and work environment. Indians are generally being brought up in a patriarchal family structures; exam focused educational systems that results in individuals finding it hard to take the authority and responsibility of making big decisions themselves.

 
 
 

HRM Review Magazine, Organizational Culture, Ranbaxy Laboratories, Work Environment, HDFC Bank, Tata Group, HR Policies, German Company, Indian Companies, Defensive Strategy, Corporate Training, Intas Biopharma-ceuticals Limited, IBPL, UK India Business Council, UKIBC, Organizational Structure, Cultural Diversities, Mergers and Acquisitions.