How Mergers And Acquisitions Are A Stressful Time For Any Company

2. When an acquisition takes place, there is usually a lot of concern on behalf of all the company’s employees.  Not only the company that is being acquired also by the company that is doing the acquisition.  Usually there will be jobs lost, consolidation of positions, promotions, demotions, etc. It is the responsibility of the Human Resources Department to ensure

Pikula (1999) observes that in merging two or more entities, the management of the companies must adhere to the Sherman Anti-trust Act which was established in 1890. This act was specifically established to prevent mergers from creating monopolies and cartels with an aim to exploit the consumers through determining prevailing market prices. If the merger results in a monopoly, it won’t be approved by the government. Employee contractual agreements must be considered before, during and after mergers. For the merger to go on seamlessly there should be shareholder approval. Initial approval by shareholders for the companies to consolidate their operations helps prevent conflicts from shareholders after the merger. Lastly, regulatory approval should be considered. The management must register the newly formed company. In addition, managers from the merging parties must consider agreements and contracts that the parties are engaging in as these will be transferred to the new company upon the merger.

The board and administrative staff can calm the fears of the staff before and after the consolidation by first reframing using dividing terms such as the word “us” The two organizations will be merging therefore the boards will have to come together to avoid sides. Human resource managers will also need to step in and help manage employees. To help human resource managers can create employee suggestion programs. This will encourage employees to create and identify improvements, process, and outcomes for the

When information is shared between the two companies it makes the whole organization better. Utilizing programs to show how effectively the company is operating can help show areas of concern. These can be accessed and addressed in a timely fashion . Because each side would like for the company to thrive, they work together . During this merger roles of the employees / department should be clearly defined . As with anything the lack if knowledge or understanding is what cause failure. As I have started before knowing when employees are aware of their roles and how to do them effectively thing run much more smoothly and are done to standard. (work by rote) .when the employee fails to understand the organization Does as well . While it s the employees job to stay well informed it is also up to management that these things be made clear. During a merger the by learning different ways of comp,eying task employees learn and management  s able to vine up with new techniques.

Leading by example is the most effective way to produce results. The middle managers in most companies are more approachable than top management; therefore it is imperative that middle managers are on board with the new vision of the company and display this in a positive way. While the merger is occurring it is essential to build a team atmosphere, full of open communication, honesty, and teamwork. Each employee from both companies should feel as though their positions is important, and their cooperation is essential to the success of the forming company. Once the merger is complete, it is all about the new culture, staying visible, approachable, and communicating information early and often (Bolton & Lewis, 1998). Aside from ensuring employees are blending well, it is important to focus on patient care. There will be changes implemented at every phase of the merger, but it is important not let misunderstandings, or issues within the staff affect the quality of care given to the patients.

First they are calling it a “merger” which could not be farther from the truth, so associates feel like they’re being lied to from the get go. The announcement brings about stress because the employees are not directly involved in decisions impacting their jobs. Stress is having a negative impact on morale within the department. The two organizations do not seem to have the same culture so they are experiencing culture clash. The employees fear job loss, which is creating negative competition to “outshine” the others, creating conflict. Change tends to create winners and losers and the latter are hardly likely to be happy with the results. As our groups get to know each other there will inevitably be conflict and perceived or real losses on both sides. “The presence of trust can enhance an organization’s efforts to fulfill its mission, and the lack of trust can constrict those efforts” (Combs, Harris, & Edmonson, 2015, p.

I can understand why the administrators did not tell the employees. I can see the concern about employees leaving the company; however, if employees could possible lose their jobs, I feel that the company would have an ethical obligation to tell their employees about the merger. Yes, I feel that honesty to the employees of this company would have been beneficial for the company. I understand that when a company is going through a merger, the company is going through hard economic times, and the layoffs of employees are simply one of the downsides to economic hardship. I still feel; however, that this company should have been honest

Many challenges occur when a merger occurs; especially when it occurs among competitors merge two different organizations into one facility per se disrupts the operation and functionality on all levels involved within the organization. During this transaction, it is an opportunity to combine many knowledgeable individuals, introduce new styles of performing tasks, and introduce different styles of performance.

Maintaining the human needs of the staff members in the merger would entail keeping the employees informed about the organizational changes brought about by the merger. This would mean applying an effective communication strategy that keeps the employees well informed as members of the team. Mainly, during interdepartmental mergers, the nurse leader must build a communication plan throughout the merger process. In this case, the nurse leader clearly communicates details about the merger to every stakeholder affected by the change, including employees, patients, and vendors (Dessler, 2011). Implementing proper channels of communication will facilitate sharing of information between stakeholders, consequently reducing conflict, improves

Post-merger integration work is difficult, political, and often driven by teams that still have day jobs. Budgets are undefined, executive leadership is not clear beyond the C-level, no plans exist, and no one has done it before. Companies are willing to spend money on due diligence ahead of signing the papers, but do not always follow through to ensure that targets are met. In many cases, integration team members are plucked from the “operate and maintain” staff, and either cannot see or do not share the strategic vision of the “design and build” dealmakers. Companies that thrive from mergers do eight things (at least) correctly: Have a Plan, Communicate, and Measure Results, Dedicate the Team, Automate, Plan for Turnover, Focus on Business

The employees have not easily merged. Changes brought about by the merger have resulted in 10% of the workforce choosing to leave the company. Unfortunately, some of the most reliable and productive workers have left, and others are expressing their dissatisfaction with the new working

The recent merger and expansion Southwest Airlines (SWA) is experiencing challenges their human resource department’s hiring practices. The company has the potential to feel damaging effects due to their accelerated staffing needs; a consideration is how the screening for SWA employment is going to be handled with this influx of merging airline applicants. SWA needs to have a plan to streamline this collaborative staffing effort. The company must focus on the strategy and functionality of this expanded recruitment plan. As the CEO, Gary Kelly states, “Our people are our single greatest strength and most enduring long-term competitive advantage"(Southwest). In order to make mergers successful there are steps SWA-HR must implement to develop an addendum to their recruitment plan, identifying this merge specific applicant pool. Once SWA establishes a recruitment strategy that incorporates recruiting staff from these acquired airline companies, this plan is going to give them a great competitive advantage over their competition.

A merger is a form of business that is made up of two or more businesses operating in the same industry coming together to better their services. One of the recent mergers that have happened is that of the Southwest Airlines acquiring the AirTran Airways for several reasons. On making this important acquisition, it is very clear that the operations of the services offered by the airline will expand to different parts of the world with some changes being needed in the parent airlines. The merger will lead to a huge number of employees coming together and forming one large organization whose operations will be determined by different managers and officials from those who they are used to. As such, it is very important for the human resources department of the concerned organization to come up with the best strategies of making the merger for purposes of making the merger successful. As such, this paper will highlight the importance of the acquisition, the problems that may arise in the organization and the strategies that could be developed by the human resource department to successfully form the merger.

This research is going to investigate the Rosneft’s takeover TNK-BP in 2013. The main focus of the essay is the effect of the acquisition on HRM of the new company and the emphasize of the important change management strategy to unite employees from 2 companies under goal with shared beliefs and minimize the cultural clashes between employees from different organizations.

Of all possible internal changes in an organization, few are less catastrophic in business, then an organization having to shut down its office or center at a place and relocate to another. This is true for all stakeholders, but it is the employees who are the most adversely effected by the change. Consequently, the most relevant department is also the Human Resources Department and it is responsible to make the relocation process attractive to the employees and to help them to get their lives in order in the new place at the earliest. Further, there will always be some employees, high and low performers alike, who will not be able to relocate because of family and social obligations. These employees are likely to feel very