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Mergers and Acquisitions

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Mergers and Acquisitions
Assignment on Mergers and Acquisitions

Strategic Human Resource Planning
HRM

September 21, 2014
Mergers and Acquisitions A merger is the combination of two different companies that are formed to create a new company. A merger can be friendly and settled quickly but on a hostile takeover a merger can start to be extreme. The management starts pushing the "white pills" as they call it which is the key players to buy shares of the company to reach 50% of the company. (Belcourt, McBey, Hong, & Yap, 2013) There is also the "white knights" which are buyers that are more willing to accept the merging company. An acquisition is where a company buys another company, but no new company is created. (Belcourt, McBey, Hong, & Yap, 2013) Through this research, there will be information on what makes a merger or acquisition successful and not successful. (Belcourt, McBey, Hong, & Yap, 2013) There will be a discussion on some of the issues that a U.S.-based company needs to consider when thinking of merging with an international company. We need to take in consideration on where and how culture fits the merger and what effect a merger and acquisition have on employees. There will also be a discussion on the impact that the merger and acquisition on HR planning, selection, compensation, performance appraisal, training and development, and labor relations. (Belcourt, McBey, Hong, & Yap, 2013)
Merger or Acquisition Success or Not There are many reasons for failures in a merger or acquisition, and it is r elated to the fact that it is easy to buy but hard to perform. (Weber, Oberg, & Tarba, 2014) As in starting any new business, a merger or acquisition are no different if there is a lack of planning, there will be a failure. There could be synergies or a difference in the management, organizational, or international culture of the companies. When there are negotiation mistakes, it creates difficulties in



References: Belcourt, M., McBey, K., Hong, Y., & Yap, M. (2013). Strategic Human Resources Planning Fifth Edition. Toronto, Ontario: Nelson Education. Editors of Answer. (2014). What is cultural heterogeneity? Retrieved September 21, 2014, from Answer.com: http://www.answers.com/Q/What_is_cultural_heterogeneity Editors of Ask. (2014). What Is a Homogeneous Culture? Retrieved September 21, 2014, from Ask.com: http://www.ask.com/question/what-is-a-homogeneous-culture Heil, C. (2011, September 1). Strategy in the Global. Retrieved September 21, 2014, from Reference for Business: http://www.referenceforbusiness.com/management/Str-Ti/Strategy-in-the-Global-Environment.html Kansala, S., & Chandani, A. (2014). Effective Management of Change During Merger and Acquisition. Procedia Economics and Finance, Vol. 11, 208-217. Schuler, R. S., & Jackson, S. E. (2014). HR issues, activities and responsibilities in mergers and acquisitions. Series on Human Resource Management Working Paper No. 3, 1-25. Weber, Y., Oberg, C., & Tarba, S. (2014, January 16). The M&A Paradox: Factors of Success and Failure in Mergers and Acquisitions. Retrieved September 20, 2014, from FT Press Financial Times: http://www.ftpress.com/articles/article.aspx?p=2164982 Wignall, D. (2012, November 1). Ten Things to Consider When Building a Global Practice. Retrieved September 19, 2014, from Design Intelligence: http://www.di.net/articles/ten-things-to-consider-when-building-a-global-practice/

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