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Company B Merger

1642 Words7 Pages

Company A, which was founded in 1956 in Mobile, Alabama has an average workforce age of 57 and is comprised of 40% Caucasian and 85% male. Company B was founded in 1997 in San Francisco, California and has an average workforce age of 35 and is comprised of 45% Caucasian and 50% male. The two companies have been competitors in the marketplace for years, and Company A is resentful about integrating with their former rival. There are a few strategic and ethical challenges that are involved in this acquisition, but the goals of this acquisition include managing the communication and information sharing, managing the consolidation and changes, and managing the relocation of some employees. As the Strategic HR Director, the goal is to create …show more content…

One challenge is identifying and communicating to the employees the reasons for the merger (Lindenberger, 2013). HR Personnel need to effectively “communicate with employees about the necessity for the change, explain how the change will benefit them, and manage the stresses that accompany change” (Lindenberger, 2013, p. 1). Another challenge includes assessing the two corporate cultures and integrating them. Company A could be “driven by a sales mentality” while Company B is “focused on innovation”. The HR department should anticipate this challenge and find ways to combine them together into one corporate culture. Finally, the HR department should have a merger and acquisition team and team leader. The team leader “must focus solely on the M&A rather than be involved in running the business, be sensitive to cultural differences, lead the change process, and retain and motivate key employees” (Lindenberger, 2013, p. …show more content…

1). When an individual is being laid off, “keep in mind that you will be dramatically changing the person’s life and that the event could be highly emotional” (Quast, 2014, p. 1). HR Managers should ensure that they show compassion when doing so. “A growing number of employers give laid-off staffers something extra to ease the pain of their job loss: continued access to employee-assistance programs” (Lublin, 2007, p. 1). By helping the laid off employee, it can help reduce their stress and depression that is associated losing a

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