MERGER AND ACQUISITION Essay examples

Moreover, merger of the two companies carries along risks to human resources as it increases in insecurity among employees, lower levels of satisfaction at work, less affective commitment, and a loss of trust in the firms and management teams. Those issues would lead to difficulty in bending cultures, reductions in service levels, poor motivation and loss of key people and clients, and eventually impede the ability of the two companies to achieve their longer-term objectives and result in the failure of merger. [9]

I, Marion Forbes the recently appointed senior human resources manager at Hallington Utilities Services (HUS), am facing with a dilemma; work out HR strategies with the Organizations mission and handle employee’s issues and concerns. HUS has made changes due external and internal factors encountered in the market as well as the new regulations happening within the sector. All are very complicated and my main issues are privatizing, downsizing, unionization, motivation, training and compensation. With the information collected, I need to figure out

The second major barrier to a successful merger between the two companies is a lack of corporate cohesion. The corporate cultures of both companies are very distinct. Royal biscuit is a new corporation that grew rapidly under the entrepreneurial expertise of one man, while Edeling is a mature family-owned business. The companies differ historically, politically and foundationally. Members of both corporations are expressing resistance towards the merger. Royal biscuit employees feel threatened by the merger and are engaging in anti-German antics; some workers don’t want to be loose their job to an Edeling worker or, in other words, to “some sausage-eater” (Reimus, B., 2004, p. 3). Edeling employees, instead, feel that Royal Biscuit employees don’t respect their corporate history. Therefore, it is imperative that Brighton and Wallach come to a cultural compromise in order to collaborate on a leadership plan and create competencies between employees within both of the

This act prohibits an employer from declining to hire, fired, and otherwise discriminate against an employee 40 years of age or older. In a Supreme Court Case Oscar Mayer & Co. v. Evans, Oscar Mayer was accused of age discrimination against an employee (Oscar Mayer & Co. v. Evans, 2007). Evans claimed he was forced to retire after 23 years of services because of his age, which is a clear violation of the ADEA.

The Age Discrimination in Employment Act of 1967 (ADEA) is a federal law that protects workers and job applicants age 40 and over from age-based discrimination in all aspects of employment, (AARP, 2014). With this act it makes it difficult to retaliate against a person because he/she complained about discrimination on the job.

The role of a Human Resource department is ever changing in today’s volatile business environment. Over the years HR have become strong strategic partners within an

Due to the diversity of the cultures in the merged organizations, the management team has to facilitate a working culture in the new organization. Each organization

During the time that an organization is downsizing the supervisor and the managers has to be compassionate, respectful, and honest. They also have to be organized and continue to talk about the progress they are making (Quast, 2014). The regulatory guideline states that if there would be more than 50 employees that were being laid off all at the same time, the Federal Worker Adjustment and Retraining Notification (WARN) Act has to be performed. Under the WARN Act, it “protects workers, their families, and communities by requiring employers to provide notification 60 calendar days in advance of plant closings and mass layoffs”(United States Department of Labor, 2009). If the organization does not give the workers the 60 days notice then

For example, in the U.S. the discrimination against individuals ages 40 and older, working for an organization with over 20 employees, is prohibited by the Age Discrimination Employment Act, (ADEA). Therefore, before thinking of firing an employee, the employer must collect enough evidence that support and demonstrate reasonable factors, such as job performance or skills. Thus, employer must show that their employment practices are reasonable and designed to meet law requirements.

How well a business manages its assets and resources predicates its overall success. Companies that spend financial resources foolishly are apt to find themselves in bankruptcy. Companies that work capital equipment resources beyond the machine’s capabilities or for other than intended purposes are apt to experience downtime and/or lose the equipment to failure. The same premise holds true for a company’s human assets. However, unlike other company assets, which depreciate over time, human assets appreciate over time when managed properly. The article, Importance of Human Resource Investment for Organizations and Economy: A critical Analysis, explains the importance of managing human assets as follows:

Loyalty to company is not necessarily a priority for new workers and polarization I of workforce into two groups adds complexity to the situation.

What is your opinion of a merger? If you say and think a merger is a bad thing then you are not alone. Recently, “mergers were given a big thumbs down in a poll given to Americans and Canadians.” The definition of a merger is “a combination of two or more businesses to form a single firm.” The cons of mergers greatly outnumber the pros because as companies get larger and larger, people lose jobs, monopolies form, and consumers pay higher prices, resulting in a less competitive and, therefore, less opportune business market.

Human capital plays a considerable role in the economic environments. It is not cash, assets, but it is people, which are the critical differentiators of a business enterprise (Fiz-enz, 2000). It is an organisation’s possess individual tacit knowledge (Nelson and Winter, 1982). There are four factors involved by human capital: genetic inheritance, education, experience and attitudes about life and business (Hudson, 1993). All of these factors are intangible and can be invaluable. Human Capital is a source of innovation and strategic renewal, such as improving personal skills, re-engineering new process or just daydreaming at the office (Hudson, 1993). According to Figure 1 (Bontis, 1998), Human Capital is about the intellect of human. It is an internal control and development

Which both wants to destroy the other company, this is caused by the egoism between both and the longings to have the monopoly of the market. In this case instead of getting together to become one big company and help society and show that egoism in that sector in not considered and the company work looking to be an example for others companies, but in this society is not possible. The reason of this is because we are in a world that the pillar of business is the competition between each other and they don’t care about the egoism or the poverty that we are having in different parts of the

2. This inability of the management to get along with the management of another firm could cause problems in the future if they can’t get along with the management of other businesses in the future.