Optimizing Strategy of Human Resource Capacity System in the Process of China´s Iron and Steel Enterprises´ Merge and Acquisition

Influenced by the sixth worldwide wave of merge and acquisition (M&A), china´s iron and steel enterprises have accelerated the pace of M&A. Whether can the enterprise succeed to acquisition and amalgamation is decided by the effective integration of the human resource (HR) to a great extent. This paper firstly pointed out that human resource capacity (HRC) for M&A integration was a special requiremen of successful integration. The M&A integration behavior proposed a new special requirement on HRC----the enterprises should consider carefully on how to fully utilize and integrate the HRC to meet the developing needs of present and future. HRC integration was the crucial factor to M&A success. It is said that an effective HRC integration doesn´t necessarily guarantee a successful M&A, but an ineffective integration will inevitably lead to the fail. Then, deficiencies and performance of the iron and steel enterprises´ HRC were discussed. They were as followings: (1)The HRC of the merging enterprises couldn´t match the requirement of M&A integration; (2) The iron and steel enterprises neglected the sustainable cultivation of HRC in M&A integration; (3) The iron and steel enterprises lack of a systematic planning on HRC; (4) The iron and steel enterprises´ HRM department absent from the integration. Thirdly, the paper analyzed potential requirements on iron and steel enterprises´ HRC integration.They were shown by two aspects: (1) The existing HRC should consist with the needs for integration to enable this process smoothly; (2) The HRM department should fully exploit the employees´ potential by various motivate ways. Finally, the author suggested two ways to optimize strategy on HRC system for iron and steel enterprises.One is to specifically orient the iron and steel enterprises´ HRC. It is constituted by three aspects: (1) The enterprise needs to improve the ability to adapt to the changing environment; (2) The enterprise- - needs to explore the potential capacity and cultivate the learning capacity of the employees; (3) The enterprise needs to turn employees´ knowledge into enterprises´ competitiveness. The other is to optimize the iron and steel enterprises´ HRC system. Details include the following three aspects: (1) The enterprise has to change its concepts on HR. Put the HRC on a higher strategy level; (2) The enterprise has to reinforce the HRM platform and give full role of HR of iron and steel enterprise; (3) The enterprise has to optimize the HR working environment.