A survey of large Latin American firms showed that many have expanded into international markets through mergers and acquisitions. As a result, they now face problems in cultural differences and staffing. How would you focus HR leaders on the development of positive strategies for expansion? What HR issues do you think deserve the most attention? What steps can HR professionals take to ensure that the firms’ mergers and acquisitions are successful? Solution Q1) Below is how HR leaders can focus on the development of positive strategies for expansion - 1. Cultural differences in recuiting and staffing 2. Company wide employee related policies that need to be kept same as headquarters and those that need to be tweaked for the foreign countries 3. Country\'s labor laws and regulations with respect to minimum pay, benefits etc. 4. Training and development of workers Q2) Below are the HR issues that deserve most attention - 1. Labor exploitation and wage issues 2. Unavailability of skilled and trained workers/employees 3. Organizational structure 4. Cultural and language issues. 5. Performance management 6. Policy issues Q3) Below are the steps that HR professionals can take to ensure that the firms\' mergers and acquisitions are successful - 1. Identifying the cultural differences between both the employees in the firm and developing communication and training programs to ensure they understand and respect each others\' cultures 2. Ensuring the compensation structure is designed and managed effectively as both the firms will have different pay structures to ensure discrimination 3. Designing a performance management system that is acceptable to both the firms. 4. Managing and merging the union contracts of both the firms 5. Designing policies that incorporate the requirements of both the firms into one.

1. A survey of large Latin American firms showed that many have expanded into international
markets through mergers and acquisitions. As a result, they now face problems in cultural
differences and staffing. How would you focus HR leaders on the development of positive
strategies for expansion? What HR issues do you think deserve the most attention? What steps
can HR professionals take to ensure that the firms’ mergers and acquisitions are successful?
Solution
Q1) Below is how HR leaders can focus on the development of positive strategies for expansion
-
1. Cultural differences in recuiting and staffing
2. Company wide employee related policies that need to be kept same as headquarters and those
that need to be tweaked for the foreign countries
3. Country's labor laws and regulations with respect to minimum pay, benefits etc.
4. Training and development of workers
Q2) Below are the HR issues that deserve most attention -
1. Labor exploitation and wage issues
2. Unavailability of skilled and trained workers/employees
3. Organizational structure
4. Cultural and language issues.
5. Performance management
6. Policy issues
Q3) Below are the steps that HR professionals can take to ensure that the firms' mergers and
acquisitions are successful -
1. Identifying the cultural differences between both the employees in the firm and developing
communication and training programs to ensure they understand and respect each others'
cultures
2. Ensuring the compensation structure is designed and managed effectively as both the firms
will have different pay structures to ensure discrimination
3. Designing a performance management system that is acceptable to both the firms.
4. Managing and merging the union contracts of both the firms
5. Designing policies that incorporate the requirements of both the firms into one