The HR should redesign its strategies to ensure smooth take over is realized. The type of merger should also be addressed effectively by the HR. for example he should identify whether the company will be formed through merger or acquiring the other company’s assets either in terms of a particular product or brand factories of patents. He should acknowledge with all these before any negotiation starts. The HR also needs to do a lot of readjustment to the new system, perform some fine-tuning and solidification of the new staff.
It can be said that former HR management officials had failed to move their organizations in the right direction because of their inability to perform job redesign. The new team selected starting from top managers should be selected with an objective of cutting down the cost of operation to ensure a booming profit is realized (Cartwright, 1996). Training The HR should provide proper training to the new staff to ensure smooth transition during merger and acquisition process. During training he should ensure that the relevant skills and knowledge is imparted to the new staff.
He must recognize that this is a new team working in a new environment. Since new members are taking
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This should cover the types of behavior and statements that should be considered as bullying and harassment according to the company’s policies (Appelbaum etal, 2000b). However, the HR should reevaluate training whenever new equipment tools are introduced into the workplace and whenever new employees join the company. The HR should recognize the cultural values of the two organizations. He should also check whether the two cultural values are compatible. For example one culture may be dominant over the other.
Cultural identification will help him in coming up with procedures on how the people falling under the different cultures will operate when brought together. People’s differences and cultural differences have not been strongly considered by managers when effecting mergers and acquisitions. The HR should therefore know that the employees’ reaction would determine whether the combined company formed through merger and acquisition will be successful or not (Coffey, Garrow and Holbeche, 2003). HR is believed to somebody who has power to address the cultural differences among the employees.
The senior leaders or stakeholders of the two companies should therefore not push him along with these cultural differences. If the cultural are not addressed in the long run then the whole take over process might not be successful. For example intermixing of staff members never succeeded properly in the merger between Glaxo and Welcome Borroughs in 1996 (Coffey, Garrow and Holbeche, 2003). There was a problem between employees of the companies and the administration over the salary increment.
The differences that occurred over the salaries between the two companies employees in India was such that even after a one month compensation offer was made it was refused and both subsidiaries have continued to operate as independent subsidiaries. A pointing an integration team headed by integration manager can solve this problem. The integration manager is responsible to oversee the M&A process and most probably should not be a member of the acts as a negotiator between the two parties team leader, project manager advisor, facilitator and relationship builder (Brock and Greenberg, 1990).
This process or task was ignored by HR who was responsible for the new company that was formed through combining employees from Glaxo and Burroughs. During this period the HR should focus on retention of core staff, attracting new staff and harmonization of remuneration as well as the bridging of the various gaps between the two companies. The HR needs to integrate the new culture with the new strategies and structures for effective operation.