Human Resources And Legal Issues

2127 Words Dec 7th, 2014 9 Pages
Board Report
Main focus of this report is to demonstrate and explain the key issues, from the Human Resource and legal perspective, which the merger presents. Human resources and legal issues should be the main concern and focus. A lot of researches has shown that lack of appropriate human resource practices and not acknowledging the importance of HR, when and before an acquisition occurs, the outcome was the merger to fail.
To ensure that the Company ‘C’ is able to cover the market demands, the staff from both companies is retained, reaching 200 employees, and also the manufacturing capacity of both factories.
Mergers always arise different types of problems, mainly the reason is because each company operation is based on different policies, strategies and procedures. The difference in organisational culture between two companies, is one of the most vigorous HR issues, in a merger. Employees’ way of working, thinking and behavior is according to their previous company culture. Most of the transferred employees struggle to adjust in the new organisational culture. Culture is one of the most difficult aspect to change into an organisation, because people have used to follow certain procedures and guidelines, and it habits do not change effortlessly. The department of HR, through coaching could minimize the cultural issues, always with the cooperation of the managers and executives.
To create an integrated environment into the new Company ‘C’, requires management to set…
Open Document