Human resource management implications of mergers and acquisitions: A case study of the merger between Anglogold company limited of South Africa and Ashanti Goldfields company limited of Ghana

Abstract

The purpose of this study is to examine the true impact of the Anglo Gold/Ashanti Goldfields merger on human resource management. The study examines human resource management and practices of the two companies before the merger, steps taken to integrate the two practices, and their impact on human resource management of the merged company. Interviews with four key players in the merger negotiations from both Ashanti and Anglo Gold and prepared questionnaires randomly distributed to 100 employees drawn from Accra Head office and Obuasi mine site were used to collect data to support the issues examined. The study finds that human resource management has very wide implications for merger success in general. Specifically for the Ashanti/Anglo Gold merger, the outcome of the study suggests that the confinement of human resource management to the back burner led to employee dissatisfaction because they did not see their interests taken into consideration. It is expected that this study will add to existing knowledge about the impact of mergers and acquisitions on people issues, especially from an African perspective. Companies that are going into a merger and or acquisition will find this useful as a guide towards smooth integration in order to prevent some of the frustrations encountered by employees which undermine the realization of the very benefits that these companies expect to gain from these mergers.