Human Resource Issues

Paper Summary:

The paper states that due to technology and competition, companies resolve to mergers and acquisitions in order to be more globally competitive against other companies. The paper comments that with every merger there are potential issues and problems that involve the viability of the new company. The paper then discusses an ideal merger, where the newly created company gets the best features from the two merging organizations. The paper continues by discussing HP and Compaq who merged together to become HP-Compaq. This paper discusses the human resource issues and comments on the implications and advantages of the merger.

Outline:
Case of HP-Compaq Merger

From the Paper:

"A huge amount of core HR work was planned and executed for this giant merger. For this merger, a strategy known as the Clean Room was developed where a virtual team was assembled from both companies to plan for the merger. The team adopted an HR strategy and an HR plan that tackled these issues one by one. This included harmonizing terms and conditions and implementing new job architecture and a new performance-management system right across the organization. The need to focus employees meant it was vital to have the necessary communication and information channels in place. Traditional media such as posters and leaflets and regular briefings from senior executives did their part in disseminating information."

Sample of Sources Used:

• ARMSTRONG, M. (1999) People and organisations: managing activities. London: Institute of Personnel and Development.
• HIGGS, M. and ROWLAND, D. (2003) Is change changing? An examination of approaches to change and its leadership. Henley working paper 313. Henley: Henley Management Collegehttp://www.cipd.co.uk/subjects/corpstrtgy/changemmt/chngmgmt.htm
• MRIDU SINGH. "Clash in two organizational cultures post-merger might lead to rivalry between employees of the two organizations and hostile "us-them" attitudes, adversely affecting the merged entity in the long run." HP-Compaq: Achieving the impossible.http://www.planmanconsulting.com/post-merger-culture-shock.html

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