This website uses cookies to ensure you have the best experience. Learn more

Mergers And Acquisitions Impacts On Human Resources Practice

873 words - 4 pages

I. Introduction
Merger and Acquisition happen all the time. But many companies unable to stimulate growth post mergers due to conflicting corporate cultures. Managing human resources means managing the people and cultures. In merger and acquisition (M&A), it is not merely as easy as putting two cultures into one bowl. Instead, it challenges the management to consider any possible culture clash, address employees concern due to management change, and the need to define the new company’s directions. Although managing cultures can ensure the smooth transitions in M&A, many executives regard managing culture is a low priority compare to the financial deals and strategic aspects (Marks & Mirvis, ...view middle of the document...

Often times, Merger and acquisitions follow by layoff. When two companies merger, having two managers in the same division will not make sense because considering the efficiency. In HR practice, merger and acquisitions mean organizational redesign that includes restructure the job analysis in the company. During merger and acquisitions, “job analysis helps provide a systematic basis for comparing the content of jobs that existed in the separate companies, which is essential when deciding where jobs can be eliminated” (Jackson et el., 2012).
The main issue with M&A is seniority issue. In many cases, “acquiring managers from the stronger or larger company are prone to adopt an attitude of superiority and treat the members of the target firm as inferior” (Marks & Mirvis, 2011). This argument supports the Social Identity Theory; “organization members show a positive bias toward members of their own in-group and tend to hold a negative view about the members of an out-group in order to enhance the relative standing of their own kind” (Marks & Mirvis, 2011).
III. Cultural Pluralism, Integration, Assimilation, and Transformation

a. Cultural Pluralism
“Cultural pluralism defines combinations wherein the companies established a relationship based on mutual coexistence or, more frequently, where the parent company grants a subsidiary a measure of independence” (Marks & Mirvis, 2011).

b. Cultural Integration

c. Cultural Assimilation
Cultural assimilation is probably the most common endstate, especially when there is a difference in the size and sophistication between the lead and target firm (Marks & Mirvis, 2011).

d. Cultural Transformation
In transformational combinations, rather than value premerger strengths, it is useful for HR interventions to...

Find Another Essay On Mergers and Acquisitions Impacts on Human Resources Practice

Mergers and Acquisitions Essay

1366 words - 6 pages advance their organization. The results were positive and the corporation gain more popularity after the acquisitions. Merging applications like TweetDeck, Bluefin Labs and Vine are all programs, which help Twitter become popular than ever before. When it comes to human resources management practices, it plays a major factor on the outcome of a merger. There is a huge investments in human resource technology and it is there to help companies

Mergers and Acquisitions Essay

1801 words - 7 pages important tool at the disposal of corporations. The exact method used will be determined by the reasons for exercising such control. Next we will briefly examine the motives for M&A activity, whether it is proxy contests, mergers or acquisitions, leveraged buyouts, or divestitures.Reasons for M&A ActivityMotivation behind M&A activity can be both sensible and dubious. Shareholders are people who act on their perceptions and beliefs about

Overview of Mergers and Acquisitions

2013 words - 9 pages new enterprise will operate based on this prospect. The creation and increase of enterprise’s value are fulfilled by integrating and reconstructing the elements of both sides and protecting, transferring, spreading and accumulating enterprise’s ability. The success of the capital mergers and acquisitions has a great relationship with the integration. 1.4 The research of capital mergers and acquisitions’ integration in China During the period

Mergers and Acquisitions: Part I

1251 words - 5 pages Mergers, Acquisitions, and Corporate RestructuringMergers and Acquisitions (M & A) PaperIntroductionMergers and Acquisitions (M&A) is the name given to the process of companies acquiring some other companies or companies merging together with the economic objective of improve their competitive advantage and financial performance by anticipating and adjusting to changes in the marketplace. The history of mergers and acquisitions date back

Ways in which an organisation can manage its human resources in a more cost-effective way. Illustrate your writing with recent real-world examples, clear links between theory and practice

5007 words - 20 pages means of persuasion; a person will seek to be mature on the job and is capable of doing so. People will exercise self-motivation and self-direction, commitments to objectives is a function of rewards associated with their achievement. Motivation occurs at all levels of human needs.3.0 MotivationOne question that organisations often ask is 'How do I motivate my people to do the things I want them to do?' The fact is, they can't motivate people

Electricity Impacts on Human and Environment

822 words - 4 pages in homes and offices, industries, transportation, and many more. Yet it also brings some negative impacts on the environment. Nonetheless, regardless of the positive and negative impacts, electricity proved to be reliable and have a large portion in different facets of human life.

Technology and Impacts on Human Health

702 words - 3 pages Research efforts have been focused on the impacts of new technology on human health. One of the leading new factors is the technology of cell phones, which is predicted to have more than 1.3 billion worldwide users by the 2005. Cell phones have been of the fastest growing industries. Today most people have portable phones in their home, and/or cell phones. Theses devices are connecting people in convenient ways as their cost declines with the

Nature vs. Nurture and the Impacts on Human Intelligence

2276 words - 9 pages education. A higher emphasis is placed on that individual's educational future. This act in itself alters the environmental influence on the individual's intelligence. From the examples used in this paper we can see an argument for environmental influences taking shape as the majority defining factor of an individual's intelligence level. I conclude that while both nature and nurture have varying influences on human development, it is the

Recent Organizational Problem in the Banking Industry: Problems with Mergers and Acquisitions

1420 words - 6 pages . Our focus is primarily on growing the mergers and acquisitions practice, capitalizing on the very strong relationships to help the bank grow.In conclusion, mergers and acquisitions present a work related problem that is quite extensive in content. This paper described the problem's setting, framed the problem in two different ways through the acquisition process and merger implementation in the banking industry. It has described logical thinking, examined other forces of nature, and provided an answer to the dilemma of the problem.

Human Impacts on the Earth

2435 words - 10 pages available, transportation for food and supply will be lost and the amount of daily resources will drop dramatically and the human carrying capacity will drop with it. Alternatives of renewable resources have been suggested such as using soybeans and corn to make polymers (Dove). But using food as alternate resources would require an enormous amount of land, which there is already not enough of. People are becoming too dependent on non-renewable

Why do Companies Continue with Mergers and Acquisitions when so many Fail?

2453 words - 10 pages damage competitors. It is important, first and foremost, that the strategy has synergistical affects for them the acquirer as otherwise it may struggle. As I have highlighted there are undoubted gains offered by successful M&A’s. These attractive advantages can often persuade managers, sometimes wrongly, to implement a mergers or acquisitions of their own. The hope is that their organisation can in practice reap the rewards that the theory

Similar Essays

Mergers And Acquisitions Essay

2032 words - 8 pages acquisitions play an important role in reallocation of resources in an economy. Despite the huge increase of corporate mergers and acquisitions during the last decades many surveys show that the majority of them fail (Nguyen and Kleiner 2003).The purpose of this essay is to give a brief overview of mergers and acquisitions by providing the main key drivers behind this trend, the basic reasons why they fail and some recommendations for better results at

Mergers And Acquisitions Essay

1025 words - 4 pages decision to sell the company being the last decision for the shareholders. As a result of such transaction, the company can be partially or fully sold. Based on their economic characteristic, the mergers and acquisitions can be grouped in four categories: horizontal, vertical, conglomerate and those of diversification named market extension mergers or product extention mergers. Horizontal mergers are related to firms in competition, being a means of

Mergers And Acquisitions Essay 1292 Words

1292 words - 5 pages powerful and important tools at the disposal of corporations. The exact method used will be determined by the reasons for exercising such control. Next we will briefly examine the motives for M&A activity, whether it is proxy contests, mergers or acquisitions, leveraged buyouts, or divestitures.Reasons for M&A ActivityMotivation behind M&A activity can be both sensible and dubious. Shareholders are people who act on their perceptions and

Mergers And Acquisitions Essay 855 Words

855 words - 3 pages name and a new stock takes the place of the once two separate companies. Some mergers and acquisitions that can occur when purchasing a company is horizontal, vertical, carve-out, congeneric, and conglomerate mergers and acquisitions.Learn Mergers (2010) defines horizontal mergers as "Two companies competing in the same market merge or join together. This type of merger can either have a very large effect or little to no effect on the market