Figure 1.
Conceptual framework for analyzing the impact of the maturity level of the HR function on the course of HR integration and the maturity of the HR process after PMI.
Source: own.
Table 1.
HRM process maturity levels adopted for this study
| HR process maturity level | Characteristics of the HR process maturity level |
|---|---|
| 1. | The level of sporadic HRM processes, carried out ad hoc The HR process is carried out spontaneously, poorly managed, and of a reactive nature. However, it is not defined and documented. Actions are taken on the basis of current events. There is a shortage of owners (responsible persons) for both the tasks carried out within the subprocesses and the processes as a whole. Processes are not being improved. Usually, personnel administration activities dominate. |
| 2. | Level of defined and repeatable HRM processes Basic HR processes are described, and there are formalized procedures. However, the prepared “reference models” are not related to the organization’s strategy or its mission. Processes are carried out in a repetitive manner, and tasks have permanently assigned owners (although they are not responsible for the entire process). Only basic tools and methods are used to carry out the processes. The level of efficiency still depends on the commitment of employees and the degree of cooperation between them. |
| 3. | The level of ‘measured’ processes and HRM efficiency measurements HRM is carried out at the strategic level. Managers use a process approach, linked to the strategic goals and performance of the organization. Processes are defined and documented and have assigned process owners. The tasks are broadly defined. HR effectiveness is measured, and the internal structure of processes is visible, as well as reference models (benchmarks). Processes are updated, both based on legal regulations and internal needs of the organization, but they are still not subject to improvement. |
| 4. | Level of integrated HR processes Strategic international HRM is conducted. The processes are integrated and used for daily cooperation with internal and external customers. Process owners work with designated executives to ensure that processes are executed as efficiently as possible. Process optimization takes place. Continuous improvement of processes occurs on the basis of feedback: their implementation and projects aimed at improving them. |
1 Source: own based on: Mc Cormack, K.P., Johnson, W.C. (2001), Business process orientation. Gaining the business competitive advantage. St. Lucie Press, New York.
Table 2.
Pre-transaction HRM processes, describing the maturity level of the HR function
| HRM area and activities | Acquiring company [N = 58] | Acquired company [N = 58] | |
|---|---|---|---|
| 1. | HRM strategy developed in the form of a document | 28 | 16 |
| 2. | Job descriptions | 38 | 16 |
| 3. | Workforce planning | 28 | 16 |
| 4. | Onboarding | 28 | 12 |
| 5. | Competency models | 28 | 9 |
| 6. | Competency management system | 28 | 9 |
| 7. | Periodic evaluation system | 38 | 16 |
| 8. | Remuneration system based on the results of job evaluation | 21 | 6 |
| 9. | Employee training system with effectiveness evaluation | 28 | 9 |
| 10. | Career planning/high potential programs | 16 | 1 |
| 11. | Personnel function monitoring and evaluation system | 28 | 6 |
| 12. | HRM audit/process documentation | 18 | 6 |
| 13. | HR effectiveness measurement | 16 | 6 |
| 14. | Continuous improvement of the HR process | 16 | 6 |
Chart 1.
Declared level of maturity of the HR process in the acquiring and acquired companies at the time of joining the acquisition transaction.
Source: own research.
Table 3.
Declared level of compliance of subprocesses in the acquiring and the acquired companies before the transaction
| Elements of the HRM process | Assessment of the level of compliance of selected HRM subprocesses | ||
|---|---|---|---|
| M | Me | IQR | |
| Personnel recruitment system | 3,12 | 3 | 1 |
| Remuneration system | 2,62 | 2 | 2 |
| Staff motivation systems | 2,82 | 2 | 2 |
| Staff development system | 2,52 | 2 | 1 |
| Incentive system for monitoring the effectiveness of incentive | 2,21 | 2 | 1 |
| systems | |||
| Training effectiveness monitoring system | 2,21 | 2 | 1 |
| Job evaluation system | 2,21 | 2 | 1 |
| HR effectiveness measurement | 2,12 | 2 | 1 |
| Continuous improvement of the HR process | 2,21 | 2 | 1 |
Table 4.
Level of compatibility of HR process maturity in the companies involved in the acquisition and the course of integration in the HR area
| The declared compatibility of the maturity of the HR process | Scope of HR process integration | Speed of integration of the HR process | ||||
|---|---|---|---|---|---|---|
| Full [18] | Moderate [22] | Low [18] | High [10] | Moderate [30] | Low [18] | |
| High [11] | 6 | 5 | - | 5 | 6 | - |
| Moderate [33] | 11 | 16 | 6 | 3 | 21 | 8 |
| Low [14] | 1 | 1 | 12 | 1 | 3 | 10 |