1. GSBS6040 Human Resource Management
Answer:
Ans-1
A merger is an agreement between two firms or companies to combine their functions and
create a singular legal entity. For example, if one corporation absorbs the second one by
purchasing it, it is an acquisition. Generally, corporate mergers could be noticed when small
businesses or large corporations merge to strengthen their position in new or multiple
markets and enhance their efficiency in their operations (LIN et al., 2013).
The Benefit Of Mergers: -
The benefit of a merger is typically expected to include:
Reduced costs by removing duplication or gaining access to raw materials or processing
capacity at a lower price.
Higher salesforce/ delivery efficiency by increasing the utilization/ average sales of an
employee
Increased sales by increasing sales routes or markets, where the product of company A can
be sold via routes/ markets of B and vice versa.
It reduces funding costs where the business has cash balances or generates cash, and the
other borrows or requires high working capital.
Sometimes it is done to allow company A to achieve a stock market listing at a lower cost
than a complete listing.
Short-term share price gains (Banakas, 2018)
The type of merger that took place was a Horizontal merger: for the kind of merger, the
combination of two or more companies takes place, which is similar in production,
distribution of the location of business where the main aim is to reduce the competition in
the market in a larger scale, increasing market size, and taking benefit for economies of
scale. The main objective of this type of merger is to reduce competition in the market by
combining their products and services to form a new organization. This type of merger
expands quickly compared to other mergers and acquisitions (Ibrahimi & Meghouar, 2019).
2. Ans 2- The (HR) Department
Plays an essential role in mergers between two companies. It is an integral part of the
growth of the company. Cynthia acted as a trusted adviser for the people working in the
organization. She also plays a leadership role in the merger and acquisition process. She
alkalizes the organizational cultures of both companies because it’s her responsibility for a
smooth transition by guiding employees about the new corporate culture (Rodríguez-
Sánchez, 2018). The steps that Cynthia takes are: -
Management trend of both organizations.
The growth rate of the companies.
Selectively in the hiring process.
Perks and benefits that employees enjoy.
The attitude of staff to embrace the new corporate culture.
Cynthia boosts the morale of anxious employees; it is essential because some employees
face difficulties in adopting the new culture that’s why she acted as comporting factor
among employees: -
She boosted the confidence of employees.
Keeps communicating with the team members and conveying their anxieties to the
management.
They offered good training programs to managers to adapt themselves to the new
organizational culture.
We are upgrading effectiveness by identifying leaders from organizations.
She enhances innovation by placing the right candidate in the right place.
They are reducing the fear of employees to continue productivity.
Ans-3- The Main Challenges Faced By Cynthia In The Merger Was: -
Evaluating cultural differences: - When the different organizations come together, there will
be a cultural conflict. One organization focused on sales, while another focused-on products
or services. The Decision-making process may also differ from each other. So, it’s Cynthia’s
responsibility to determine compatibility and fit in these two entities. Cynthia faces
difficulty in analyzing the demographic and working methods. So, Cynthia needs to develop
a good mutual understanding between work cultures (Väinöläinen-Chukharev, 2019).
In reality, many mergers fail to achieve the expected benefits, often because of cultural
issues, incompatible systems (Especially IT), the inability of terms to deliver the anticipated
benefits because of poor managerial skills, and the additional challenges of running an
extensive business. The disruption caused by job losses of higher and lower-level
employees where necessary knowledge and momentum are also lost is a further issue. So,
HR needs to take steps wisely.
HR Taking a look at the corporate cultures. One corporation can be focused on sales, while
another might be focused on innovation. Alternatively, choices in one firm may be made
from the top down, but in the other, decision-making is more democratic. HR must be aware
3. of potential cultural clashes and take steps to reconcile the two cultures.
Working in new laws and business regulations is essential for HR to identify a
comprehensive understanding of the regulations found in a new market.
Ans 4- Cynthia Prepare Employees To Work Successfully In The Following Ways: -
Cynthia has done a lot of work and helps employees work together more effectively as an
HR Of the company. Direct support for Team Performance best by participating in team
planning. By explaining the purpose and goals of each group, Cynthia works with team
members to set a goal as they will likely feel more involved in the plans that have helped
them create it. Cynthia began a business case for sharing by citing benefits such as
efficiency, innovation, competition, sharing best practices among team players, strong staff
relationships, high morale and motivation, and supporting team performance with an HR
strategy.
Cynthia develops a high-level HR strategy to promote effective team performance.
Learning and development: Some skills are needed to work together and lead a team. The
most effective team performance can be achieved by developing project management,
communication, and leadership staff.
Remuneration: Employee incentive schemes promote team effectiveness by maximizing
team success.
Finally, Cynthia, using team-building activities such as - Problem-solving activities: - The
team is challenged, such as building a limited resource shelter and should work together to
plan and implement a goal together, goal setting activities - Team members are asked to
prepare a project, which includes outcomes and actions of success, promotes the
importance of clear group goals.
Role-based roles - Each task is given a clearly defined role within a group-based challenge to
emphasize the importance of focusing on an individual role in achieving the team goal.
Communication-based activities - Staff members are challenged to achieve team goals
through communication, such as designing and presenting group presentations,
emphasizing the importance of interpersonal skills. In this way, Cynthia helps employees
work together more effectively to achieve organizational goals.
References
LIN, L., Lee, C. F., & Kuo, H. C. (2013). Merger and acquisition: Definitions, motives, and
market responses. Encyclopedia of finance, 541.
https://nscpolteksby.ac.id/ebook/files/Ebook/Accounting/Encyclopedia%20of%20Financ
4. e%20(2006)/52.%20Chapter%2027%20-
%20MERGER%20AND%20ACQ%20UISITION%20DEFINITIONS-
MOTIVES%20AND%20MARKET%20RESPONSES.pdf
Banakas, T. (2018). The Benefits of Corporate Social Responsibility on Mergers and
Acquisitions. https://researcharchive.vuw.ac.nz/handle/10063/8434
Ibrahimi, M., & Meghouar, H. (2019). Sources of value creation and destruction in horizontal
mergers and acquisitions. Managerial Finance.
https://www.emerald.com/insight/content/doi/10.1108/MF-02-2018-0053/full/html
Rodríguez-Sánchez, J. L., Mora-Valentín, E. M., & Ortiz-de-Urbina-Criado, M. (2018).
Successful human resources management factors in international mergers and acquisitions..
ministrative Sciences, 8(3), 45. https://www.mdpi.com/328472
Väinöläinen-Chukharev, E. (2019). Perceived Benefits and Challenges of Conducting
Cultural Due Diligence Before a Merger or an Acquisition.
https://www.theseus.fi/handle/10024/266329
Ozkeser, B. (2019). Impact of training on employee motivation in human resources
management. Procedia Computer Science, 158, 802-810.
https://www.sciencedirect.com/science/article/pii/S1877050919312876
