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Human Resource Challenges as a Result of Acquisition

When organizations become enterprises; that is, they become geographically dispersed and hence big, the encounter a number of challenges. These challenges can become long-term problems or they can be managed effectively to make them little stumbles on the way. The biggest challenge for any company as a result of acquisition and expansion is the human resource challenge. It is of crucial importance to think about how your employees would feel about expansion because the employees of any organization make it an organization.

If the workforce of a company is dissatisfied, the company will never get any work done. Therefore, it has to be made sure that the employees will adapt to changes as a result of acquiring a new company and breaking into the foreign market. It is imperative to know what these human resource challenges are before they can be overcome. Firstly, the workforce maybe a little bewildered because moving into a new company, let alone, a new country is a huge change. Especially those employees who are being transferred to the Thai operations will be most disorientated.

They will have to be worry about getting along with the existing employees of the acquired company and about settling down in a

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new country. Others will feel that they have lost people who they have worked closely with for many years and they themselves will be worried about their own job security. Therefore, one of the biggest human resource challenges is managing your existing workforce. The second biggest challenge is to staff the best possible human resource in the foreign market. Why is this challenging?

It is challenging because there are several barriers such as language, cultural, and ethical that the organization has to deal with while recruiting and employing foreign employees. These barriers also play a significant role in hindering the company from motivating its employees to the best of its abilities. Now that Fairy has acquired Aaroon Ltd. , there are many other factors that will need to be considered. Some of these are arriving on that level of compromise on the corporate culture and policies.

Expanding into a new country will also mean considering the regulatory and legislative policies and laws of that country. The surge of government regulations and laws has placed a tremendous burden on human resource managers. Fairy will face new regulations in the areas of safety and health of the employees, equal employment opportunity, work environment, and quality of work life. The regulations and any changes by the Thai Equal Employment Opportunity Commission (EEOC) will have to be followed. Implementing these changes frequently falls on human resource managers.

Implementing these changes is the responsibility of human resource managers. Thailand is not a very law-enforcing and law-abiding country, so regulatory considerations are expected to be lenient. Other more important factor is the cultural limitations of the country. Thailand has a very different culture than that of the US. All the employees, including the management, will have to adapt to those. Economic changes will also be encountered by the organization. It will have to operate in a different economy, which will be at a different stage of its business cycle.

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