Human Resources And Legal Issues

2127 Words9 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…show more content…
The role of management, management style and the cycle of organisation must be specified to provide security and enhance trust among the employees. One way to accomplish this, is with measurable results and scenario planning, which will provide information on how to achieve our goals and which should be the expected results. Employees of the acquired company often feel stress, because of the new and unknown organisational structure and culture, which can lead to variable behaviors. The feeling of uncertainty of the new working environment and the lack of faith in the new formed company, can destruct the employees, decrease their morale motivation to perform and be productive. In parallel, employee turnover is expected, for reasons employees not been able to adjust to the organization’s practices and policies or lack of faith in the success of the new company. Except of being costly, through turnovers tacit knowledge is lost when important employees decide to leave and endangers the prosperity of the company. Solution to this matter, is to develop a two-way honest communication. Keeping continuously informed the employees for the prospective changes, flourish a feeling of participation which can erase the stress, uncertainty and restore faith in the enterprise. Forming a communication channel between the management and the employees, using a brief cultural fit survey
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