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Study on the Merger and Acquisition of Goliath Bank and David Bank: Strategizing Pay-to-Stay Approach and Internal Communication (a) Faculty of Economics and Business, University of Indonesia Abstract Merger and acquisition has seemed to be a generally-accepted and expected business strategy for any firm to grow. It does offer a compelling potential of exponential business growth and ROI to the shareholders. The interesting catch is, up to 70% of the global merger and acquisition failed miserably. The million dollar investment that the management and shareholders expected to be returned positively, turns out, even to some cases, to be a huge cost and an apparent value-destroying decision. HR management issues are mostly the cause behind these failures, stretched from as simple as misinformation to as profound as cultural integration failure. This case study is investigating the strategies and implementation of compensation, talent placement and internal communication on a merger and acquisition case of two multinational banks in Indonesia, the case was dated back in 2018. In order to squeeze out valuable information and better understand the whole picture of the strategy planning, implementation and best method, triangulation is used. This study solely uses interviews for data collection methods, and has conducted fifteen interviews that are clustered into three main categories- migrated employees, change agents, and consultants. The result of this study is that these variables should not be left ignored, as many M&A cases did. Not to mention that these variables are apparently the main component of how well M&A companies could be able to shift into full speed on productivity level after the integration process. Keywords: Case study- Merger and Acquisition- Banking- Indonesia- Compensation- Talent Placement- Internal Communication Topic: Organizational Behavior, Leadership and Human Resource Management |
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