Preview

MG106 Assignment 1

Powerful Essays
Open Document
Open Document
2085 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
MG106 Assignment 1
Introduction
Many organizations today try to gain competitive advantage and expand their operations in order to be profitable, adaptable, innovative and dominant. An increasing method of expansion is through mergers and acquisitions (M & A). A merger is when “two companies come together to create a new entity”. An acquisition is when “one company buys another and manages it according to the acquirer’s needs”. (Schuler and Jackson MCC Working Paper No. 3).
In most cases of mergers and acquisitions, more attention is paid to legal, financial and operational issues. But executives who have been through mergers and acquisitions will tell you that the real key to getting the best out of a deal is the management of human resource.
The role of the human resource department in an acquisition is to provide input in managing the process of change, advise top management, oversee communication and manage learning process to name a few. Some times HR departments face several problems while supporting mergers and acquisitions. These include deciding which employee stays and which employee must leave; communicating the reasons for the M & A; forming the right team for the M & A and deciding on benefits and compensation as well as the policies and procedures.

In the past it has been noted that the role of human resource has not been given due importance while making decisions regarding acquisition of companies. “The role of HR becomes more and more complex, as HR needs to integrate its own practices and also provide for two more roles i.e. a strategic role for companywide integration and a support role for business unit transaction” (Galpin & Herndon, 2000)

If you look at the above figure it shows how important the work of the Human Resource department is in an acquisition.
The case study in question saw the acquisition of Partners Manufacturing by Scorecard Inc. Unfortunately the acquisition didn’t go well and the company had to be sold several years



Bibliography: Bundy, B., & Hukins, E. (2009). The Impact of Culture on M&A. London: Mercer Limited. Galpin, T. J., & Herndon, M. (2000). The complete guide to Mergers and Acquisitions: Process Tools to Support M&A integration at Every Level Harrison, K. (n.d.). Good Communication is essential for successful mergers and acquisitions. Retrieved February 18, 2010, from Cutting Edge PR: Peterson, L., & Voules, S. (2007). Mastering M&A communication: Helping employees to deal with the deal PR Newswire. (1999). KPMG identifies six key factors for successful mergers and acquisition. Weber, Y., Shenkar, O., & Raveh, A. (1996). National vs. Corporate cultural fit in mergers and Acquisitions: An exploratory study

You May Also Find These Documents Helpful

  • Powerful Essays

    An analysis of the case reveals that the merger and acquisition greatly impacts organizational performance and organizational culture. Our analysis covers the effects of mergers and acquisition on an organizational performance, success factors in M&A as well as organizational culture change and resistance that take place in a merger and acquisition.…

    • 2202 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Hr590 Final Project

    • 2368 Words
    • 10 Pages

    The role of a Human Resource department in today’s world is ever changing. Many years ago the Human Resource department was only there to file pre-employment paperwork, assist with benefits and process payroll. This may have been handled by a department that consisted of one or two company accountants that took on this role in conjunction with watching the company books. The role of a Human Resource department today includes many functions which include acquiring, developing, and retaining talent; aligning the workforce with the business; and being an excellent contributor to the business. The HR department now works directly with management teams throughout the company in an effort to help with strategy and the growth of the company. One very important aspect is talent acquisition. Having the right people in key roles within the company is vital to the success and growth. Performing this function includes preparing a job description, recruiting, setting compensation, and retention. In this paper I will go over the entire process.…

    • 2368 Words
    • 10 Pages
    Powerful Essays
  • Better Essays

    Your consulting group has been retained to help with the merger of two midsized companies that have been competitors for years. The purpose of the merger is to acquire significant market share and compete with other companies in the industry. Concerned employees are looking for strong managerial direction.…

    • 999 Words
    • 3 Pages
    Better Essays
  • Best Essays

    Buss499Assignment5

    • 2940 Words
    • 12 Pages

    Stahl, E.G. & Mendenhall, M. (2005). Mergers and Acquisitions: Managing Culture and Human Resources. Palo Alto, CA: Stanford University Press.…

    • 2940 Words
    • 12 Pages
    Best Essays
  • Powerful Essays

    Hrm 590 Final Project

    • 3124 Words
    • 13 Pages

    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 organization by providing functions such as recruitment, training and development and retention. Human Resources in order to be strategic works directly with all levels of management in an effort to help with strategy and the growth of the company to meet their vision. One very important aspect is talent acquisition. Having the right people in key roles within the company is vital to the success and growth of any company. Performing this function includes preparing a job description, recruiting, and then setting compensation.…

    • 3124 Words
    • 13 Pages
    Powerful Essays
  • Better Essays

    Contingency Plan Hrm 420

    • 1475 Words
    • 6 Pages

    Napier, N. (1989), Mergers and Acquisitions, Human Resource Issues and Outcomes: A Review and Suggested Typology*. Journal of Management Studies, 26: 271–290. doi: 10.1111/j.1467-6486.1989.tb00728.x…

    • 1475 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Finance

    • 5399 Words
    • 22 Pages

    Bertoncelj, A. (2007) “Balanced Management of Key Success Factors in Mergers and Acquisitions”, Organizacija – Journal of Management, Informatics and Human Resources, Vol.40, No.5, pp. A147-A152.…

    • 5399 Words
    • 22 Pages
    Powerful Essays
  • Better Essays

    In regards to acquisitions, it is important to distinguish between mergers and acquisitions. In a merger, two companies come together and create a new entity. In an acquisition, one company buys another one and manages it consistent with the acquirer’s needs. An acquisition that involves integration has greater staffing implications than one that involves separation (Rizvi, 2008). A combining of companies is a major change. Mergers and acquisitions represent the end of the gamut of options companies have in combining with each other. It is the mergers and acquisitions that are the combinations that have the greatest implications for size of investment, control, integration requirements, pains of separation, and people management issues (Doz and Hamel, 1998).…

    • 3253 Words
    • 14 Pages
    Better Essays
  • Powerful Essays

    Jet Blue Case Study

    • 2904 Words
    • 12 Pages

    Human Resource Management, was developed in the late 90’s, by R. Wayne Mondy and Judy Bandy Mondy. It was designed to help new students become familiar with human resource management, providing both realistic and practical scenarios of HR’s strategic role in planning and operating organizations. Through various examples from the research of company material, it demonstrates that all managers are necessarily involved with the human resources part of business, which is described here from Mondy (2008).…

    • 2904 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Living in the 21st century, the world of human resource management is changing more rapidly than can be imagined. As such, HRM in many organizations are facing constant challenges as a result of constant environmental changes ahead of time.…

    • 2769 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Bruce Tuckman's Model

    • 1540 Words
    • 7 Pages

    The role of Human Resources during this merger are to identify and communicate the reasons behind the merger/acquisition; choose a leader and team to manager the process of change, assess the corporate culture, decide who stays and who goes; compare benefits compensation, contracts and decide on HR policies, (Lindberger, Judy).…

    • 1540 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Merger. Research Proposal

    • 4518 Words
    • 19 Pages

    Mergers and acquisitions represent the ultimate in change for a business. No other event is more difficult, challenging, or chaotic as a merger. It is imperative that everyone involved in the process has a clear understanding of how the process works.…

    • 4518 Words
    • 19 Pages
    Powerful Essays
  • Good Essays

    The business environment has become increasingly complex and competitive due to the rapid advances in technology and globalization of the world economy over the last two decades. In order to survive and to compete on a global scale, organizations have sought to increase their market share through mergers and acquisitions (M&A) both locally and internationally. In a publication by the Bureau of Census…

    • 1053 Words
    • 5 Pages
    Good Essays
  • Best Essays

    References: Young. M. and Post, J.E (1993) “Managing to communicate, communicating to manage: How leading companies communicate with employees” Organizational Dynamics, Vol. 22. No. 1, summer, pp. 33-43…

    • 5056 Words
    • 21 Pages
    Best Essays
  • Best Essays

    SHELL REFINING MALAYSIA

    • 3290 Words
    • 11 Pages

    Gaughan, P.A., 2013. Maximizing corporate value through mergers and acquisitions : a strategic growth guide. new york: New york: wiley.…

    • 3290 Words
    • 11 Pages
    Best Essays