...Mergers & Acquisitions “In implementing an M&A, most managers and business leaders focus on the financials. But success often hinges on how you deal with people issues and cultural Integration”. Andrew F. Giffin and Jeffrey A. Schmidt 1 Successful Mergers and Acquisitions are much more than just a name change on the premises and changing company branded material and policies. Mergers and acquisitions (M&A’s) are notoriously risky, and international M&A’s are even more so. Numerous studies on M&A’s, show that success is not always guaranteed. To the contrary, the biggest percentage of (costly) M&A’s, do not achieve goals and set objectives. Mercer Human Resource Consulting, after examining the evidence, has concluded that as many as 60–70% of M&A’s fail to deliver their intended benefits. Another study by CFERF 2 claims that 75% of the deals have failed or underperformed. Although it is clear that some of these unsuccessful ventures are due to financial and market factors, the root cause of a considerable number of failures lies in disregarded HR issues and activities. Some of the main (HR- people) mistakes in mergers and acquisitions are: o HR not being involved early in the game o Lack of culture blending and misaligned values- do not underestimate cultural differences o No clarity on mission and vision o Communications, communications, communications – lack of it in the main Other research has shown that only 1/5th of international M&A’s add to shareholder value. Why is this...
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...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 and business / culture integration requires more attention by Leadership and HRM to M&A deals. ______________________________________________________________________________ HRM in M&A By Ajit Kumar on May...
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...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 and business / culture integration requires more attention by Leadership and HRM to M&A deals. ______________________________________________________________________________ HRM in M&A By Ajit Kumar on May 18, 2013...
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...increasingly being used by firms to strengthen and maintain their position in the market place. They are seen by many as a relatively fast and efficient way to expand into new markets and incorporate new technologies. Yet their success is by no means assured. To the contrary, a majority fall short of their stated goals and objectives. While some failure can be explained by financial and market factors, a substantial number can be traced to neglected human resource issues and activities (Schuler & Jackson p.1). As the Director of Human Resources for Clearly Heard, a telecommunications company it has been deemed necessary for me to revise the current staffing strategy in order to acquire Scene and Sound, another telecommunications company in Germany. The CEO has required that I prepare a comprehensive staffing strategy for the new expansion in order to prepare for a strategic audit of the HR systems of Scene and Sound. In order to get a complete understanding of the HR system I will also answer the following questions: What HR challenges may arise as a result of this acquisition? What unique cultural and regulatory factors (e.g. EEOC) need to be considered? How will they impact organizational effectiveness? What recruitment and selection practices will be used in staffing Scene and Sound? What mix of expatriates and internationals are expected to arise? What process will be used to determine what skills and abilities are needed? Once those skills and abilities are determined, what...
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...Information security Information privacy Security policies Security legislation Security architecture Security training Risk analysis a b s t r a c t We explore HRIS and e-HR security by presenting information security fundamentals and how they pertain to organizations. With increasing use of enterprise systems such as HRIS and e-HR, security of such systems is an area that is worthy of further exploration. Even then, there is surprisingly little research in this area, albeit that extensive work is present in regard to HRIS privacy. While focusing on HRIS and e-HR security, we introduce aspects of HRIS and e-HR security and how it can be enhanced in organizations. A research model is also presented along with propositions that can guide future research. © 2012 Elsevier Inc. All rights reserved. 1. Introduction A human resource information system (HRIS) is an integrated computerized system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information about an organization's human resources (Kavanagh, Gueutal, & Tannenbaum, 1990). HRIS is similar to an enterprise resource planning system, with a caveat that it focuses exclusively on the human resource (HR) functions of an organization. A comparatively recent move toward electronic human resource (e-HR) systems has allowed organizations to offer a personalized interface to...
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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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...with one another around the trends captured in this report. Many leading organizations are already having these crucial conversations. They recognize that now is the time to get ahead of the trends by making more informed decisions. The seven Human Capital Trends for 2013 provide a solid checklist for getting started. Welcome to annual report examining significant trends in human capital.Human Capital Trends 2012 Leap ahead 3 Contents Thinking like an economist 4 The open talent economy 8 Innovating the talent brand 11 Creating an elastic workplace 14 Finding the silver lining in the talent gap 17 Debunking the Superman myth 20 The performance management puzzle 23 4 1 Thinking like an economist Increasingly, many HR leaders have to answer questions that have...
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...The impact of information technology on the HR function transformation By Yu Long 0123404 Graduation Committee: First supervisor: Dr. T. Bondarouk Course coordinator: Pro. Dr. J. K. Looise Master Thesis, Business Administration HRM University of Twente March, 2009 Preface This master thesis concludes my life as a student, which is performed under the supervision of Twente University in the Netherlands. The research is the terminal of the program Human Resource Management. Doing this research not only improves my skill on literature searching, information analysis, but helps me to gain more profound knowledge about e-HR. During the research, I have got great support from several persons, and now, here is the opportunity to thank them. At first, I give special thanks to Jiajie Li, my boyfriend. He accompanies with me during the whole research period. Besides dealing with my impatient and anxious attitude, he also put great effort on improving my thesis. His optimistic and serious attitude influences me, and makes me continue the research with better and better results every time. His support is very meaningful for my research period. Secondly, I would like to thank Ms. Tanya Bondarouk, and Prof. Jan Kees Looise for their excellent support, feedback and guidance. Both of them give me fruitful advice on how to improve my work. And they always give me timely feedback on my work, which encourages and makes me belief that I can hand in a satisfactory report under the effort...
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...International human resource management (IHRM) is concerned with identifying and understanding how multinational organisations (MNC’s) manage their geographically dispersed workforce in order to sustain their competitive advantage. Literature shows that globalisation has brought about new challenges and increased complexity for human resource (HR) directors in managing organisational systems in areas of recruitment and selection and training and development (Kayworth and Leidner, 2000; Selmer, 2001; O’Leary, Cummings, 2002). Geographical dispersion has created trends correlated with several challenges IHR managers face when dealing with the global environment. These include issues associated with the Internet, time zones and employee isolation. Being in contact with different geographic locations leads IHR managers to do business with employees of different nationalities and cultures. The challenge for IHR managers is to avoid culture clashes and adequately prepare unit members, specifically expatriates, on adapting in a foreign environment (Tung, 1987; Selmer, 2001; Chauh, Hoffman, Jones and Williams, 2007). This essay will discuss these challenges in relation to IHR directors designing recruitment and selection processes and training and development programs. The essay will also describe briefly the challenges IHRM come across as a result of pressure to rationalise and differentiate their operations, and explain how these challenges prove IHRM to be more complicated than the...
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...Labor Relations, Rutgers University, Piscataway, NJ 08854 The authors identify the key challenges facing strategic human resource management (SHRM) going forward and discuss several new directions in both the scholarship and practice of SHRM. They focus on a clearer articulation of the “black box” between HR and firm performance, emphasizing the integration of strategy implementation as the central mediating variable in this relationship. There are direct implications for the nature of fit and contingencies in SHRM. They also highlight the significance of a differentiated HR architecture not just across firms but also within firms. Keywords: strategy; human resources; black box; implementation; differentiation The field of strategic human resources management (SHRM) has enjoyed a remarkable ascendancy during the past two decades, as both an academic literature and focus of management practice. The parallel growth in both the research literature and interest among practicing managers is a notable departure from the more common experience, where managers are either unaware or simply uninterested in scholarly developments in our field. As the field of HR strategy begins to mature, we believe that it is time to take stock of where it stands as both a field of inquiry and management practice. Although drawing on nearly two decades of † We are grateful to Steve Frenkel, Dave Lepak, and seminar participants at Monash University for comments on an earlier version...
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...Labor Relations, Rutgers University, Piscataway, NJ 08854 The authors identify the key challenges facing strategic human resource management (SHRM) going forward and discuss several new directions in both the scholarship and practice of SHRM. They focus on a clearer articulation of the “black box” between HR and firm performance, emphasizing the integration of strategy implementation as the central mediating variable in this relationship. There are direct implications for the nature of fit and contingencies in SHRM. They also highlight the significance of a differentiated HR architecture not just across firms but also within firms. Keywords: strategy; human resources; black box; implementation; differentiation The field of strategic human resources management (SHRM) has enjoyed a remarkable ascendancy during the past two decades, as both an academic literature and focus of management practice. The parallel growth in both the research literature and interest among practicing managers is a notable departure from the more common experience, where managers are either unaware or simply uninterested in scholarly developments in our field. As the field of HR strategy begins to mature, we believe that it is time to take stock of where it stands as both a field of inquiry and management practice. Although drawing on nearly two decades of † We are grateful to Steve Frenkel, Dave Lepak, and seminar participants at Monash University for comments on an earlier version...
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...Resource Management Lecturer: Mr Dung Huynh Student: Vuong Minh Tam ID Number: s3462321 Subject: Human Resource Management Lecturer: Mr Dung Huynh Table of Contents 1.Executive Summary: 3 2.Introduction 4 3. The role of HRM: 4 4.Issues of new strategy: 5 5.Solution for issues: 6 6.HRM practices: 6 7.Conclusion: 7 8.References list: 7 1.Executive Summary: Unitel was a huge telecommunications organization in the Asia Pacific area since their privatization in early 1990s. In order to expand their business and compete against others, Unitel has announced a new collective strategy called :”Vision 2020”, which was grown by an external consulting company. Firstly, this report aims to analyse the role of HRM during the business strategy is executing. To explain these role, using the 6 functions of HRM such as staffing, performance management, training and development, rewards and benefits, employee-management relations, health and safety. Secondly, this report moves to the issue section, meaning that it will demonstrates the main issues that occurs while excuting the new strategy.Those problems are conflicting relationship, poor management, belief problem. After that, these best possible solution for those issues is applying the Storey Model (1992). The Storey Model (1992) includes four main features as belief and assumption, strategic aspects, line management, key levers.Next, after all these events, with the purpose of improving the organizational performance...
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...managemet Case Study One Research in Motion. Managing Explosive Growth. Walter Demartis. Master programme in HR Development . Department of Human and Organizational Change. The George Washington University. 1. Overview /Introduction The case is about a successful company that has to deal with the complexities and challenges of a globalized environment. The organization faces a number of SHRD issues arising from: a) the specificity of a rapidly changing industry (smartphone), b) the need to cope with significant growth through strategic and diversified sourcing and talent management and, c) align mergers and acquisitions to the HR strategy. Moreover, the growth has resulted in work pressure, which is further affected by lack of physical space and staffing needs concerns also middle management posts. The following analysis further describes the internal and external challenges. The main issue is identified and solutions proposed in the ensuing paragraphs along with an annexed action plan. 2. Environment Analysis Internally, the recent growth and external competition have impacted upon the structures, the workload, and motivation and led the company to reconsider its strategy. Externally, the industry...
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...This article was downloaded by: [Monash University] On: 27 September 2010 Access details: Access Details: [subscription number 922191555] Publisher Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 3741 Mortimer Street, London W1T 3JH, UK The International Journal of Human Resource Management Publication details, including instructions for authors and subscription information: http://www.informaworld.com/smpp/title~content=t713702518 The role of human resource management in international joint ventures: a study of Australian-Indian joint ventures Sharif N. As-Saber; Peter J. Dowling; Peter W. Liesch To cite this Article As-Saber, Sharif N. , Dowling, Peter J. and Liesch, Peter W.(1998) 'The role of human resource management in international joint ventures: a study of Australian-Indian joint ventures', The International Journal of Human Resource Management, 9: 5, 751 — 766 To link to this Article: DOI: 10.1080/095851998340775 URL: http://dx.doi.org/10.1080/095851998340775 PLEASE SCROLL DOWN FOR ARTICLE Full terms and conditions of use: http://www.informaworld.com/terms-and-conditions-of-access.pdf This article may be used for research, teaching and private study purposes. Any substantial or systematic reproduction, re-distribution, re-selling, loan or sub-licensing, systematic supply or distribution in any form to anyone is expressly forbidden. The publisher does not give any warranty express...
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...is adopted.” (Armstrong, M.,2008, pg 33) . This journal will explore on the principals of human resource management, analysis of its concepts, models and framework. Explanation of HRM process and build up of strategies. The journal ends with an assessment of roles in strategic HRM. Strategic Human Resource Management (HRM) can be defined as the way through which the organizational goals will be achieved by the people with the help of HR strategies, policies and practices. (Armstrong, M., 2008, pg 33). Other definitions of Strategic Human Resource Management are as follows:- “Strategic Human Resource Management means formulating and executing human resource policies and practices that produce the employee competencies and behaviors that company needs to achieve its strategic aims” – Garry Dessler (Durai,P.,2010,pg 24) “Strategic Human Resource Management is a pattern of planned human resource developments and activity intended to enable a firm to achieve its goals “ – G.C.MacMahan (Durai,P.,2010,pg 24). Models of Strategic Human Resource Management The Harvard model :- The Harvard model was put forward by Michale Beer, Richard Walton, Quinn Mills, P. Lawrence and Bert Spector which draws attention towards the soft aspect of HRM. It lays emphasis on the fact that HR policies should be made keeping in mind the vision, mission, goals and objectives of an organization, and in very few cases external factors should also be considered. To sum up, HR policies are liable to be...
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