Professional Documents
Culture Documents
Add-on
Focus is on business planning HR Practices is an after-thought Line managers own the HR discussions with tangential involvement of HR professionals. Outcome- Summary of HR practices to accomplish business plans
..CONTD
Integration
Focus is on synthesis of HR and business plans Line managers and HR works with integration Highlights HR practices required for the success of the organization
Isolated
Focus is on the HR plans HR prepares the plan separately and present to the manager Agenda of HR function- outcome
NATURE OF M&AS
A merger occurs when two organizations of equal size unite to form a new unit. Mergers are usually voluntary and involve stock
MERGERS MAY BE
Horizontal
Merger : when two organization producing a similar product combine. GAP Inc. controls 3 distinct companies, Banana Republic, Old Navy, GAP brand itself
Like
Vertical merger takes place when two organizations working at different stages in the production of the same product combine. Like Carnegie Steel. Conglomerate mergers take place when two organizations operate in different industries. A conglomerate is a large company that consists of divisions of often seemingly unrelated businesses.
Chaebols (Jaebeol): South Koreas business conglomerates. Samsung, Hyundai and LG Zaibatsu : a Japanese term meaning wealthy clique and refers to large family controlled banking and industrial and industrial combine. Four major zaibatsus are Mitsubishi, Mitsui, Sumitomo and Yasuda.
ACQUISITION .
Takes
place when a large company buys out a small unit or vice versa. Unlike merger no new organization comes into being, instead the small unit loses its identity and it becomes one with the large company, which continues to function in its name. the buyout is forced on the target it becomes a hostile take-over
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Where
PITFALLS OF MERGERS
Undue
focus on financial aspects Employees lose personal effectiveness as a result of rumours, misinformation and worry Infrequent and irrelevant communication Perceived lack of authority and understanding of the employee when the new organization forms Leadership challenges and failure to articulate the communicate the vision and inspiration to the employees
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Figure 3-4
IHRM Chapter 3
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Figure 3-5
IHRM Chapter 3
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Cultural integration
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Transformation both the companies find new ways of operating cultural transformation Best of Both Additive from both sides Cultural integration
LOW
LOW
Reverse Merger Unusual case acquired company dictating terms 16 cultural HIGH assimilation
HR INTERVENTIONS
Cultural and people issues that have a major impact on success / failure of crossborder M&A deals: of new board will occupy which job? culture
Composition Who
Accessing
Undertaking
HR INTERVENTIONS2
Cultural and people issues that have a major impact on success / failure of cross-border M&A deals: Effective communication Retaining talent creating the new culture Aligning performance evaluation and reward systems Managing the transition Integration
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