...HUMAN RESOURCE MANAGEMENT’s PIVOTAL ROLE in MERGERS & ACQUISITIONS Ajit Kumar Mumbai, India Abstract Human Resource Management in Mergers & Acquisitions Organizations of all sizes and across all industry sectors are increasingly looking to M&A to support their global growth strategies. The primary objectives for M&A’s are to cut costs, broaden market shares or take advantage of each other’s synergies and most typically to accelerate growth. Yet several studies indicate that more than half of all M&A deals fail to meet management’s strategic, operational and financial objectives. The crux of the matter lies in the excessive focus on financial due diligence, risk assessments. Quite often, the people factor, i.e. issues that relate directly to people as workforce management and cultural integration, are left out of the due diligence process creating major challenges later during integration. In the past, HRM was expected to provide support in postintegration efforts, as well as increased business focus and knowledge to ensure that the full value of M&A deals is realized. For organizations, it important to believe in the fact that People are its key assets. However, today we realize that, mastering the softer issues is the hardest part of integration and has the strongest influence on an M&A’s long-term success. HRM professionals are expected to be ready to manage the people, opportunities and the risks associated in these transactions. Managing organizational change...
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...HUMAN RESOURCE MANAGEMENT’s PIVOTAL ROLE in MERGERS & ACQUISITIONS Ajit Kumar Mumbai, India Abstract Human Resource Management in Mergers & Acquisitions Organizations of all sizes and across all industry sectors are increasingly looking to M&A to support their global growth strategies. The primary objectives for M&A’s are to cut costs, broaden market shares or take advantage of each other’s synergies and most typically to accelerate growth. Yet several studies indicate that more than half of all M&A deals fail to meet management’s strategic, operational and financial objectives. The crux of the matter lies in the excessive focus on financial due diligence, risk assessments. Quite often, the people factor, i.e. issues that relate directly to people as workforce management and cultural integration, are left out of the due diligence process creating major challenges later during integration. In the past, HRM was expected to provide support in postintegration efforts, as well as increased business focus and knowledge to ensure that the full value of M&A deals is realized. For organizations, it important to believe in the fact that People are its key assets. However, today we realize that, mastering the softer issues is the hardest part of integration and has the strongest influence on an M&A’s long-term success. HRM professionals are expected to be ready to manage the people, opportunities and the risks associated in these transactions. Managing organizational...
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...Strategic Management University of Phoenix Strategic Management The purpose of this paper is to describe the role that the human resources management (HRM) department has by being a strategic partner in corporate restructuring or a merger/acquisition of a health care facility or system. Topics discussed will be recruitment and retention, training and development, employee performance management, regulatory compliance and finally, compensation and benefits. The best description of the human resources management department is to look at is as the rudder of a ship. The main task of the rudder is to keep the ship on course, making sure that the direction is set and on course. This is the case with the (HRM) department and it starts with recruitment and retention of good staff. One way of accomplishing this is by using the current workforce as a tool in attracting the best candidates. Current staff that are top shelf standard know the various rigors of the job, and can recommend the correct staff for the (HRM) to interview and consider for the job. A small finder’s fee would be nice to offer for any staff that are hired and make it through their probationary period. This is of course, one way that recruitment and retention can be handled. Retention of current staff is important when considering mergers and acquisitions, keeping the good staff, and after working with staff that is not meeting expectations possibly finding a position that will work for them...
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...of HR Running Head: Importance of HRM in International Business Importance of HRM in International Business [Name of Author] [Name of Institution] 1- Outline Importance of human resource management is now globally recognized and business growth is related to better management of human capital of a company. The present research proposal, henceforth, sets ground to investigate the importance of managing, running, and stabilizing human resource in order for the growth of business. It aims to contribute to the existing research of human resource management (HRM) by organizing secondary sources and relating it specially to the expansion of business across borders that has come to be known as multinational companies operating in a number of different countries (INVESTOR, 2008). The paper also examines various facets and implications of across border business activities that aim to take place majorly due to HR issues such as mergers, acquisition, and so on (Chapman, 2001). Another important aspect of HR and business spreading over the international boundaries is cultural aspects of a specific region, country, or state that a business venture must come to recognized as a valid component. It is important to realize that in the flourishing of withering of a business local culture plays a decisive role. Related to this is the issue of workplace culture where, as in today’s global workplace, workers come from different cultures and backgrounds to work together. Hence it is...
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...The purpose of this study is to critically evaluate the role of the HRM function in delivering service quality to the Hilton Group. “The principles of HRM today are people-first, high-performance and high-commitment” RDI (2012) Module 8, Managing the Human Resources - Introduction "Human resource management is responsible for how people are treated in organizations. It is responsible for bringing people into the organization, helping them perform their work, compensating them for their labors, and solving problems that arise" (Cherrington, 1995, p. 5). HRM can also be considered as a strategic and comprehensive approach to managing people and the workplace culture and environment. The Effective use of HRM enables employees to contribute effectively and productively to the overall company direction and in so doing achieve competitive advantage. Every organization business strategy is driven by numerous factors. Some of these may include external market factors, organizational factors which may include core competence and also people focusing factors. HRM must be explicitly aligned to support the organizations strategy in order to achieve success. In today’s fast grown organization, every successful company should pay utmost attention to HRM and its effective role. In paying attention to HRM, we focus on people, where people are said to be the most valuable resources. In this case we will see the effective role HRM played in attaining the needs of the developing, this changing...
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...The international BCC Corporation, one of the world’s largest corporations, was formed in 1987 by a merger of two national electro-technical companies, the first step in an attempt to restructure a traditionally conservative and nationally based engineering industry into a fully international industry. From this Western base, the group has grown by ‘going East’, investing in and acquiring new companies in Eastern Europe, Russia, South-east Asia and China. The group has attempted to achieve both global scale and decentralised local presence, with component businesses divided into several thousand profit centres, with remarkably few corporate managers at the top, or at Headquarters. English is the designated company language. A strategy of mergers and acquisitions in order to achieve market leadership and, in selected markets, global dominance, has since characterised the company. BCC: The nature of the business BCC now employs more than 200,000 people and last year total sales amounted to US $28,300 million. The group is organised in five Business Segments: Power station design and build Power transmission and distribution Industry systems and building systems Transportation Financial services The five Business Segments are then subdivided into about 50 international Business Areas. Within Power Transmission and Distribution, for example, there are Business Areas responsible for cables, transformers, high voltage switchgear, network control, network installation...
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...RP Assignment Outline ____________________________________________________________ _______________ Reference System: APA. Primary Question: What are the impacts of the internationalisation of HRM? Thesis statements: Internationalisation effects on the human resource management in different ways .Its has an impact on the level of qualifications, recruitment and the exchange of HRM approaches. Outline: 1. Introduction Draft 1: 2. The internationalisation of HRM. The internationalisation combines with the human resource and form the concept of the internationalisation of HRM (IHRM). Internationalisation effects on the human resource management in different ways .Its has an impact on the level of qualifications, recruitment and the exchange of HRM approaches. 2.1. The internationalisation. The internationalisation refers to the ability of linking and communicating between the state and the social which create the present word system.(Petrella,R,1989.p.64). Internationalisation is, about creating a new set of capabilities that make the company able to use resources on an ideal basis to join differentiated customer demand profitably and cost-competitively without regard for geography. Put more simply, internationalisation is about getting an organisation into a position of doing business in any market it chooses, and doing business is not just about marketing and selling. Looking at globalisation as a process of acquiring and renewing competencies...
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...are redirected to other projects other than to their salary increments. In addition, it is recommended that management should explain clearly to their subordinates the intended purpose of funds if they will not avail increments.Employees are more likely to understand their manager’s intentions to generate more revenue for raises to be awarded. In addition, it is equally important for bosses to consider staff a priority and explain the intentions that may lead to cutting down salaries to meet unavoidable expenses. Although, employees may not be pleased with management’s action they would understand it was a rational decision. | What human resource trends are behind the situation faced by Jill McBride? | Various Human Resource Management (HRM) trends have emerged over the years in a bid to support growth of companies. McBride emphasizes the need to have a motivated work force. Motivating workers has increasingly become a trend adopted by many HR firms and traditionally this was not the case. Lack of a well-inspired team may lead to poor productivity and inefficiency in output. By motivating staff through incentives such as bonuses and raises, employees feel more appreciated rather...
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...an international context. • IHRM covers a wide range of HR issues facing MNCs in different parts of their organizations and include comparative analyses of HRM in different countries. HRM Activities • Human Resource Planning (Ensure best fit between employees and jobs) • Staffing (Includes Employee Recruitment, Selection and Placement) • Performance Management (Ensure goals met in effective and efficient manner) • Training and Development (Bettering performance of employees in organizations) • Compensation and Benefits (Awarding employees monetarily or non for work done) • Industrial Relations (Dealing with employee relations) • 3 Dimensions of IHRM: 1. Broad human resource activities of procurement, allocation and utilization 2. National or country categories involved in international HRM activities o Host Country – Where subsidiary may be located o Home Country – Where HQs may be located o Other Country – Where labour, finance and other inputs are obtained from 3. 3 Categories of employees of an international firm o PCN – Parent Country Nationals (Nationals where HQ is located) o HCN – Host Country Nationals (Nationals where subsidiary/facility is located) o TCN – Third Country Nationals (Nationals where resources are obtained from) Difference between IHRM and HRM Activities • More HR Activities o Activities such as International Taxation, International Relocation and Orientation, Language Translation Services and...
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...| Understand how effective and efficient human resource management contributes to the achievement of organisational goals | Introduction Human resources management (HRM) means the management of a business or an organization’s human resources. Its major task is selection, attraction, training, rewarding, assessment of employees and forecasting organizational culture and leadership and ensuring compliance with employment and labour laws. Human resources (HR) also makes a good relation with collective bargaining agreement (CBA) and other labour unions. Human relations movement create HR which creates business value through the strategic movement of the employees. Before HRM, it was only responsible for benefits and payroll administration works. But later organization consolidation, globalization, technological advancement and research has made HR concentrate on strategic initiatives like talent management, planning, mergers and acquisitions, succession planning, labour relations, industrial diversity. Organizations now have well trained and specialized HR professional for individual departments thus we have human resource management professional and line managers. 3.1 Describe the roles of human resources management professionals and line managers. i) Human resources management professionals are responsible controlling and managing the workforce which has direct contribution to the success of an organization. They are also responsible for developing and incorporating personal...
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...understanding of the relationship between human resource management (HRM) and organizational effectiveness (OE) has evolved during the past three decades and to provide examples how firms are using HRM to improve their OE today by addressing several challenges that result from a broader stakeholder model. Design/methodology/approach – This paper reviews the past and current work on the relationship between HRM and OE. Findings – This findings indicate that the relationship between HRM and OE is very different when comparing the past with the current work on the relationship between HRM and OE. A major reason for this is the current work on OE uses the multiple stakeholder model that accounts for many more stakeholders than the past work. Practical implications – Human resource (HR) professionals have the opportunity to demonstrate many ways by which HRM can influence OE, and not just solely on the basis of firm profitability. Thus the use of the multiple stakeholder model today offers the HR professional and the HR profession many more opportunities to demonstrate their importance and impact. Originality/value – A systematic review and comparison of the past and current relationship between HRM and OE using the multiple stakeholder model have not been using both the viewpoints of both academics and practitioners. Keywords Human resource management, Organizational effectiveness, Multiple stakeholders Paper type General review HRM and OE...
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... Chapter Objectives * Examine how international growth places demands on management and HRM * Identify factors that impact on how managers of internationalizing firms respond to these challenges * We cover the following areas: * Structural responses to international growth: The organizational context in which IHRM activities take place. Different structural arrangement have been identified as the firm moves along the path to international status – from export department through to more complex department such as the matrix, transnational, heterarchy, networked. * Control and coordination mechanisms: Control and Coordination aspects. Formal and informal mechanisms were outlined, with emphasis on control through personal networks and relationships, and control through corporate culture, drawing out HRM implications. * Mode of operation used in various international markets: The various modes-such as wholly owned, franchising, management contracts and international joint ventures- used by multinational for foreign market entry and expansion. Again, we attempted to demonstrate the IHRM implications of the various modes, although noting that most of the literature focuses on wholly owned subsidiaries and international joint ventures. * Effect of responses on HRM approaches and activities: How international growth affects the firms approach to HRM. Firms vary from one another as they go through the stages of international development, and react...
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...Taylor Adams Dr. E. Montgomery BUS 508 Contemporary Business 02/14/2014 Mergers and Acquisitions When Proctor and Gamble acquired Gillette Products in 2005, Warren Buffet stated “This was a dream deal, this acquisition would create the greatest consumer products company in the world”. (Englishe, 2011) This is one reason why P&G chose to take on the major brand. Other than being known for their razors, Gillette’s products include Duracell batteries, Oral-B, and Braun. This acquisition meant Proctor and Gamble would take much control over the grocery market shelves. Control was everything to P&G at the time of this acquisition. P&G opened a huge door for Gillette, a door that looked inviting to shareholders. Gillette would now be invited into new markets such as China and Japan. China and Japan were two fast growing grocer markets. While this was a great end of the deal for Gillette, P&G would benefit greatly as well. Gillette housed products that were selling and evolving in the market faster than the brand itself. These were the type of acquisitions P&G needed to remain at the top of the product chain, and open the eyes of its competitors. (Englishe, 2011) Proctor and Gamble, the “signed partnership agreement” that formed in 1837 between William Proctor and James Gamble, was making money from the very beginning of its existence. Gamble, began in the large business venture as William Proctor’s protégé, in already existing soap and candle factory...
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...Ethical Issues in HRM Strategy By: Cynthia Chamberlain Strayer University Professor David Frost Week of Jan. 21, 2013 Identify the areas of overlap in the new client organization with others that you have had as clients. If you have limited experience with these types of problems, be sure to research common issues to complete this question. As an HR function, the areas such as industrial relations, employee relations and employment legislation are intertwined. Whenever an organization engages the services of an outside consultant, they are expecting that consultant to draw on the knowledge and experience gained from working with other companies. Although the new client is experiencing the same problems and situations as former clients, you must handle the new client in a unique manner, tailoring answers to its individual needs. Consultants are often used in the areas of training and development, compensation administration, benefits, staffing, and labor law, and there could be overlaps. If the organization has undergone a merger, rightsizing, or downsizing, employee morale and enthusiasm may be affected. In an article written for the Society for Human Resource Management (SHRM), Sarah Hathorn notes, “People are worried about their jobs and there may be a lot of redundancy and overlapping of responsibilities.” HR consultants can provide stability by exerting leadership when needed and continuously searching for solutions to problems. (Grensing-Pophal, L., 2011) ...
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...Diploma in Strategic Management 2012 Human Resource Management Level 6 - L/503/5093 Table of Contents Task One 3 1.0 Introduction 3 1.1 Strategic Human resource Management 3 1.2 The Harvard Model 4 1.3 The Michigan model 5 1.4 Scope of HRM in Organizations 6 1.5 HRM framework 7 1.6 Development & Implementation of Strategies 8 1.7 Obstacles of implementing SHRM 9 1.8 Role of SHRM 9 Task Two 10 2.1 Four Strategies of British Airways 10 2.2 Assessment of Strategies 11 2.3 Application & performance Measurement 12 Balancing continuity and change 12 Turning choices into action 12 2.4 Merger of British Airways & Iberia 12 Reasons of merger between the British Airways & Iberia 13 Key motivators and drivers of the merger of British Airways with Iberia 13 Conclusion 14 Bibliography & References 15 Task One 1.0 Introduction Human resource management (HRM or simply HR) is the management of an organization's workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture, and ensuring compliance with employment and labor laws. In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will typically also serve as the company's primary liaison with the employees' representatives (usually a labor union). HR is a product of the human relations...
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