1010 Words Oct 3rd, 2013 5 Pages
Company A, which has been acquired by Company B, was founded in 1956 in Mobile, Alabama. The average age of its workforce is 57 and it is comprised of 40% Caucasian and 85% male. Company B was founded in 1997 in San Francisco, California. The average age of its workforce is 35 and it is comprised of 45% Caucasian and 50% male. These two companies have been staunch competitors in the marketplace for several years and the employees of Company A are resentful of integrating with their former rival (Argosy, 2013).
Company B’s Goals:
Managing the Communication and Information Sharing:
The company wants to keep employees informed of how the acquisition will impact them.
The company wants to be sure that they provide
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In addition, which employees fall under an exempt status and which are non-exempt. There should also be a review of the employee handbook to determine what changes might be needed. A comparison of the companies Human Resource Information System (HRIS) should completed to determine if the systems can be merged.
Determine if there are any pending employee litigation.
Review company contracts and employee agreement statements.
Review current employee benefit programs to determine which if any will be continued or replaced.
Evaluate the company’s worker’s compensation insurance and ascertain if there may be duplication of coverage, and life and long-term disability plans and claims, as well as unemployment issues.
Review employee records and performance reports to assist in determining which key and skill positions are essential to the company.

One of the major challenges facing company B is gaining acceptance from the employees from company A due to the fact that the companies were rivals in their respective market.
Loss of productivity.
Incompatible cultures.
Loss of key talent.
A clash of management styles.
An inability to manage / implement change.
Objectives / synergies not being well understood.
Company B will have to be careful in the selection of layoffs to avoid violation of the Age Discrimination Employment Act (ADEA). Because the average age of employees of company A is 57.


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