The purpose of this assignment is a critical review of company mergers and acquisitions regarding different human resource management related aspects. It will be analysed what impacts a merger might have on the organisational structure, on the human resource management strategy and on the required approach regarding intercultural management of the newly created company in relation to the current situation of the merging companies. In addition to that it will be analysed which impact a merger has on the motivation system, the change- and conflict-management and on the human resource management accounting system.
Based on practical merger examples the problems of these areas will be described and analysed and a recommendation for solutions will be given when possible. This assignment will give an overview about the human resource related problems and aspects, which companies will face and should consider when a merger is planned.
The definition of mergers and acquisitions (M&A) is not absolutely clear in the literature. On one hand side a merger is described as the legal and economical connection of two equal companies of the same size, which can be defined as a classic amalgamation, and an acquisition is described as an economical take over of a small company by a big one.1
On the other hand side the subject M&A also includes the sale of companies, splitting of companies (Asset Stripping), restructurings, spin-offs, joint ventures and alliances.2 Based on this it is not clear if a merger is the same as an amalgamation. Although the Daimler-Chrysler deal and the Renault-Nissan deal are defined and described as mergers it is not obvious if these were classical amalgamations or more acquisitions communicated and presented as mergers.3
According to the purpose of this assignment mergers are defined as classic amalgamation and a share or asset based acquisition.
The important item here is that companies with different cultures and backgrounds merge together and have to find a common identity including the consideration of the identities of the merging partners.
In the last years a lot of big and small mergers took place between companies from very different countries and cultures.
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1 Compare: http://www.flexible-unternehmen.de/kl0908.htm, Jörg Wirtgen
2 Compare course material: Financial Management Module M&A, Dr. Frere
3 Compare: http://www.businessweek.com/2000/00_23/b3684147.htm
Table of Contents
- 1 Introduction
- 2 Elements of HRM
- 2.1 Organisational Structure
- 2.2 Strategic HRM
- 2.3 Intercultural Management
- 2.4 Motivation Systems
- 2.5 Change Process and Conflict Management
- 2.6 Human Resource Accounting
- 3 Conclusion
Objectives and Key Themes
This assignment critically reviews company mergers and acquisitions (M&A) concerning various human resource management (HRM) aspects. It analyzes the impact of mergers on organizational structure, HRM strategy, intercultural management, motivation systems, change and conflict management, and HRM accounting. Practical merger examples illustrate problems within these areas, offering recommendations for solutions where possible. The goal is to provide an overview of HRM-related problems and aspects companies should consider when planning a merger.
- Impact of mergers and acquisitions on organizational structure
- HRM strategies in the context of mergers and acquisitions
- Intercultural management challenges in merged companies
- Motivation and change management during and after mergers
- The role of human resource accounting in M&A
Chapter Summaries
1 Introduction: This introductory chapter sets the stage for the assignment by defining its purpose: a critical review of the human resource management implications of mergers and acquisitions. It clarifies the scope, focusing on the impact of mergers on organizational structure, HRM strategy, intercultural management, motivation systems, change and conflict management, and human resource accounting. The chapter also addresses the ambiguity in defining mergers and acquisitions, differentiating between classic amalgamations and acquisitions, and highlighting the importance of considering "soft" aspects alongside financial and legal considerations to ensure successful mergers. The chapter concludes by emphasizing the need to understand HRM-related aspects throughout the merger process—before, during, and after—to mitigate negative impacts from insufficient consideration of these crucial elements.
2 Elements of HRM: This chapter delves into the core elements of human resource management within the context of mergers and acquisitions. It begins by examining organizational structure, highlighting the interplay between structural setup (responsibilities, hierarchies, departmental relationships) and industrial engineering (work processes). The chapter emphasizes the influence of corporate culture and history on the organizational structure, noting the coexistence of diverse organizational forms (hierarchical, staff line, project, team, virtual) in modern companies. It uses the organism approach to describe the complexities of organizational structures, acknowledging the parallel existence of various aspects and highlighting the significance of Maslow, Herzberg, and McGregor’s theories in understanding organizational dynamics. While the provided text only offers a partial overview of this chapter, it's clear that the chapter lays the groundwork for understanding the HRM complexities involved in integrating different organizational cultures and structures during mergers and acquisitions.
Keywords
Mergers and Acquisitions (M&A), Human Resource Management (HRM), Organizational Structure, Strategic HRM, Intercultural Management, Motivation Systems, Change Management, Conflict Management, Human Resource Accounting, Company Culture, Organizational Integration.
Frequently Asked Questions: Comprehensive Language Preview on Mergers & Acquisitions
What is the main topic of this document?
This document is a comprehensive preview of a text that critically reviews company mergers and acquisitions (M&A), focusing on their impact on various aspects of human resource management (HRM).
What topics are covered in the Table of Contents?
The Table of Contents includes an introduction, a chapter on the elements of HRM (covering organizational structure, strategic HRM, intercultural management, motivation systems, change process and conflict management, and human resource accounting), and a conclusion.
What are the key objectives and themes explored?
The document analyzes the impact of mergers on organizational structure, HRM strategy, intercultural management, motivation systems, change and conflict management, and HRM accounting. It uses practical examples to illustrate problems and offer solutions, aiming to provide an overview of HRM considerations for companies planning a merger.
What are the chapter summaries?
The introduction defines the purpose and scope of the assignment, emphasizing the importance of considering HRM aspects throughout the M&A process. The "Elements of HRM" chapter delves into the core elements of HRM within the context of mergers and acquisitions, examining organizational structure, corporate culture, and relevant theories of organizational dynamics.
What are the key elements of HRM discussed in the preview?
The key elements of HRM discussed include organizational structure, strategic HRM, intercultural management, motivation systems, change process and conflict management, and human resource accounting, all within the context of mergers and acquisitions.
What are the keywords associated with this document?
Keywords include Mergers and Acquisitions (M&A), Human Resource Management (HRM), Organizational Structure, Strategic HRM, Intercultural Management, Motivation Systems, Change Management, Conflict Management, Human Resource Accounting, Company Culture, and Organizational Integration.
What type of audience is this preview intended for?
This preview is likely intended for academic use, facilitating the analysis of themes related to mergers and acquisitions and their impact on human resource management.
What is the overall purpose of this document?
The purpose is to provide a structured and professional overview of the key themes and content of a larger work analyzing the HRM implications of mergers and acquisitions. It serves as a concise guide to the text's content and aims.
- Quote paper
- Sven Brueninghaus (Author), Kai Karsten (Author), Bodo Schaefer (Author), 2002, HRM Aspects in the Context of Mergers and Acquisitions (M&A), Munich, GRIN Verlag, https://www.grin.com/document/6418
