Management - Sample Assignment PDF

Running Head: MANAGEMENT
MANAGEMENT
NAME OF THE STUDENT
NAME OF THE ORGANISATION
AUTHOR’S NOTE

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EXECUTIVE SUMMARY
The purpose of the report is to observe and analyse the process of Merger and Acquisition of two
organisation. The decision to merge is not an easy decision for the organizational leaders to
make, therefore the leaders after much thought, if they feel that it is better to merge one company
with the other company for better prospect issue equity in the market. The merger and
acquisition of the companies hold mixed results for the companies as some positive changes are
present along with some negative aspects. The positive aspects are ensured by the senior
executives in collaboration with the Human Resource Management Team and both the teams
work in collaboration with each other to ensure the smooth functioning of the organisation.

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Table of Contents
INTRODUCTION...........................................................................................................................3
DISCUSSION..................................................................................................................................3
CONFLICTING VALUES AT STAKE......................................................................................3
CRITICAL ANALYSIS OF THE PROCESS OF MERGER AND ACQUISITION.................4
RESOLVING CONFLICTING VALUES...................................................................................6
RECOMMENDATIONS TO INTEGRATE THE EMPLOYEES OF BOTH THE
ORGANISATIONS AFTER THE MERGER.............................................................................8
EVALUATION............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

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INTRODUCTION
The topic of Merger and Acquisition holds mixed emotions among the employees. Some
of the employees might not entertain the motive of merging an organisation with the other
organisation mainly because of the fear of losing out on the prospect of their career as well as the
opportunities in rising higher in life. The issues are addressed by the senior leadership in
collaboration with the Human Resource Management Team. The Human Resource Management
Team must address a number of issues such as determining the organizational goals and
explaining it to the employees to address their concerns regarding the merger and acquisition.
The report discusses about the topic of merger and acquisition and how it affects the employees.
The concerns of the employees are enumerated in the report as also the strategies to improve the
conditions after the merger and acquisition.
DISCUSSION
CONFLICTING VALUES AT STAKE
Mergers and Acquisition of a company is not an easy decision for the top leadership to
make in any organization. The situation if it becomes inevitable leads to the leadership accepting
to issue equity or shares for the other companies to buy the ownership share of the company or
the organization (Marks & Mirvis, 2015). The Pecking Order Theory clearly explain the situation
of Mergers and Acquisition of a company. The Pecking order theory states that the leaders of a
company know best about the financial details of a company. The leaders, when they realise that
the company is running low on the finances, follow three procedures to bail out a company. First,
they manage the internal funds (Dunlap et al., 2016). When the funds are not available then they
follow the procedure of debt by taking loans. When they are in no more position to incur further
debts, then they issue equity. Pecking order theory states the leaders are the best person to know

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about the running of the company and that they will opt for issuing equity as the last option.
There are many values which conflict with each other when the company is merged. The
employees face a challenge of communication after the merger as they fear that the merger will
affect their work and there is a rise of insecurity regarding the job (Field & Mkrtchyan, 2017).
There is a constant challenge of retaining the job for the employees as the new merger can be
detrimental for the employees’ career. The employees become unsure about the future of their
tenure in the company and it can result in the high turnover in the company. The culture which is
the shared values and beliefs present in a company becomes diluted after the company merges
with another company. After the merger, the changes in the management process and styles
affect the working of the employees as the previous work culture was different than the present
culture (Graebner et al., 2017).
CRITICAL ANALYSIS OF THE PROCESS OF MERGER AND ACQUISITION
The process that follows the merging and acquisition of a company can prove risky as
there are numerous challenges which can arise after the process. There is a risk of integration.
The process of integration involves the incorporating all the workers, both old and new, into the
work culture so that the work is not affected, and the employees feel at ease while doing the job.
The issue of integration is crucial as the workers who have been merged into the new company
feel reluctant about the prospects and the future outcomes of their work and whether they will be
treated fairly by the new managing boards of the company (Davis et al., 2015). The changes
happening in the System Dynamics also affects the working of the employees. The changes
made in the factors of internal politics, technology and the accounting methods are not easy to
adapt to for the employees of the company who have been merged. The merging of the two
companies also means changes in the downsizing and the decentralizing procedures to decrease

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the costs and accelerate the productivity as well as the efficiency of the employees. To do this,
the organizational goals and strategy changes altogether. The employees of the former might be
working under different organizational goals and strategy. It, therefore, becomes difficult for
them to adapt and change to the new organizational framework and follow the new strategies
which has been formulated by the present company. The other changes in the organizational
establishment also results in the lowering of revenues, low productivity and costs incurred due to
restructuring and redesigning of the organizational establishment (Durand, 2016). When two
companies from two different countries merge together, then the Government policies of the
respective countries also become important in deciding their outcomes. The companies need to
be careful while Analysing the legislations and laws which determine the process of doing
business. The tariffs imposed on the foreign companies might levy more taxes and the revenues
are greatly affected by such laws (Chiu, Chung & Yang, 2016). Therefore, the companies which
have a global presence and are merging with international companies need to be fully aware
regarding the laws and rules which are in existence in the respective countries. The companies
need to be proactive regarding the changes in the laws and rules. The change in the policies of
the human resource planning also affects the performance of the employees (Agarwal & Kwan,
2017). The human resource management has the crucial task of redefining the organizational
goals and strategy as well as recruiting and selecting new employees. The stress management is
also resolved by the human resource management. Similarly, the training of the employees is
also looked after by the human resource management team. Often, the problem arises that the
employees of the company who have been merged were comfortable with the human resource
management team of the previous company and find it difficult to adjust with the new human
resource management team. This results in the lowering of the performance as well as the

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demotivation of the employees which eventually leads to the high turnover ratios (Selçuk,
Köksal&Yılmaz, 2016). The lack of support becomes crucial in the employees quitting the job
and looking for brighter avenues. It therefore becomes extremely crucial to resolve their issues
by the new human resource management team and help them in addressing the doubts and the
queries. The fear of the insecurity of the employees is natural and bound to happen when two
companies merge with each other, but it should not be allowed to escalate further. The
employees of the previous company have a lack of confidence in the new management team
because of their newly becoming accustomed to the working conditions of the new team. Kurt
Lewin has given a Change Management Model to describe the Process of Merger and
Acquisition (Lee et al., 2014). The first stage involves preparation of the company to the changes
which will occur because of the merger. This stage is known as Unfreeze. The next stage is the
Change wherein the people get their uncertainty clarified and start adjusting in the new
company’s work culture. The final stage is the refreeze, wherein the workers have fully become
accustomed to the new working environment of the company and the company decides to
refreeze.
RESOLVING CONFLICTING VALUES
The conflicting values can be resolved by following an integration plan to facilitate the
workers on becoming more comfortable in doing the business. The senior executives of both the
organisations should work together to address the issues concerning the employees and help
them resolve those issues. It should be done before undertaking any project or assignment and
this will help in the employees becoming more comfortable and relaxed in the new environment.
The senior executives of both the organisations must have a clear vision regarding the trajectory
that they are going to follow and the procedure that they are going to adopt. The vision and the

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policies of the company must be aligned properly, and the goals should be clearly mentioned to
the employees so that there be no ambiguity regarding the work which the employees are doing.
The senior executives of both the organisations must realise that the work cultures of both the
organisations are different and culture becomes the deciding factor which sets out the success or
the failure of the company. The senior executives must narrate the organizational goals and the
changes in the accustomed norms to the employees of the former company, which has merged
into the other company (Auguets, Martinez-Blasco & Garcia-Blandon, 2017). It might be also
possible that the employees of the former company were following a more relaxed style of work
culture, therefore, getting accustomed in the new work culture which is robust and work centric
is difficult for them. It is then the duty of the senior executives to resolve the issues. The
involvement of the employees must be increased to increase their knowledge about the
operations of the organisation. This requires the efforts of the management as well as the senior
leadership to engage the employees so that the organizational goals become aligned with the
personal goals. After the merger, the employees as well as the customer are not aware as to what
will be the new organizational goals of the company and how the company will achieve them
(Devi, 2016). It is therefore important for the organisation to keep the customer aware about the
future roadmap which they are going to follow (Bhagwat, Dam& Harford, 2016). The customer
base of both the companies are the support of the organisation and addressing the concerns of the
people becomes the prime focus of the organisation. Therefore, like the sharing of information
with the employees of the organisation, the sharing of information with the workers also
becomes very essential. The downsizing of the organisation should be the last option. In
downsizing, the company reduces the costs and extra work force by motivating the employees
with commitment issues and low performance levels to leave the company (Schweizer,

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2016).The employees who are not so productive can be outplaced to the other companies and
employees with better performance levels from other organisations can be transferred to the
company by the transfer window. These are some of the ways through which the conflicting
values can be resolved.
RECOMMENDATIONS TO INTEGRATE THE EMPLOYEES OF BOTH THE
ORGANISATIONS AFTER THE MERGER
The important role played by the people in the Human Resource Management is
immense. They are the backbone of the organisation and they are the first group who gets to
resolve the issues whichever is affecting the company. The concerns of the employees are
address by the Human Resource Management Team. The concerns of the employees such as the
career options, the change in the organizational roles allotted to them as well as the transferring
of the employees to the new location or place are framed by the Human Resource Management
team in collaboration with the top leadership of the organisation. The senior executives in
collaboration with the Human Resource Management team must address the issue of integration
from a very general perspective. The employees must be welcomed into the new work
environment. It is a known fact that the employees are concerned and worried about the new
merger and acquisitions which have taken place. Therefore, the senior executives and the Human
Resource Management Team have the added responsibilities of managing both the concerns of
the employees as well as getting them accustomed to the new organizational setup (Brueller,
Carmelli& Markman, 2018). This can be done by enumerating the organizational goals which
the organisation is going to follow as well as the trajectory which the organisation is going to
tread. The roles which the employees are going to be assigned should be clearly mentioned to
them as well the organizational chart representing the hierarchy in the organisation should be

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distributed to the employees. This will make them comfortable in the new work environment and
neutralize the impact of merger and acquisition. The employees must be motivated by the
Human Resource Management Team and should be allowed to perform to the best of their
potential and abilities. The new organizational setup and the hierarchy must be clearly
established to enable the workers to fully understand as to which leader the employee is expected
to report to. The new organisation guidelines must be clearly mentioned to avoid any
discrepancy and disruption. The new organizational work ethics must be clearly explained by the
Human Resource Management Team so that the employees become accustomed to the new work
ethics in the organizational setup (Palley, 2016). The issues and problems as and when they
occur must be resolved immediately by the senior executives and the Human Resource
Management Team. The initial concern must be to address the concerns and worries of the
employees rather than distributing organizational goals in the initial period after the merger. The
employees perform much better when they work in a relaxed environment and their
organizational expectations as well as the roles which they will be playing are clearly mentioned
to them.
EVALUATION
The Bureaucracy theory as propounded by Max Weber holds crucial to the Merger and
Acquisition procedure. In the Bureaucracy theory, Weber stated that the top-level leadership are
best suited to take the decision regarding the welfare of the organisation. He was against the
feedbacks or opinions of the workers and the employees. Similarly, the merger and acquisition
decision are taken by the top-level leadership without involving the suggestions or feedback
from the employees. This plays a crucial role in their ability to take a strong decision without the
backing of the employees or the workers. The employees are also not made signatories in

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deciding the course of the merger and the acquisition. From the Scientific Theory Perspective,
the Merger and Acquisition hold good as the expert and proficient employees from both the
organisations can collaborate with each other to speed up delivering the desired outcomes or
services for the organization (Holburn & Bergh, 2014). The organizational goals once explained
to the employees, becomes the guiding principal through which they are going to be made to
work. The employees also share their expertise in the work which they are allotted. The work
requiring the specialists are allotted to the specialists who have been obtained from both the
organisation. The application of both the theories- Bureaucracy theory of Max Weber as well as
the Scientific Management Theory of Henry Fayol holds significance for Analysing the case of
Merger and Acquisition. These theories help us to understand the value of the management
process and how management organisations are based on the behavioral aspect of human beings.
CONCLUSION
From the above analysis, it can be concluded that mergers and acquisition are difficult
decisions for the human resource management team to make. There are many concerns which are
present in the minds of the employees and these concerns if not addressed properly can
accelerate further into serious problematic situations. The Senior Level Management as well as
the Human Resource Management team perform the crucial duty of helping the employees to
understand and get used to the new setting of the organisation. The organizational goals are
detailed and explained to them. The employees are also explained about the roles which they will
be performing in the team. This enables the employees to be motivated and perform to the best of
their potential.

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REFERENCES
Agarwal, N., & Kwan, P. (2017). Pricing mergers & acquisitions using agent-based modeling.
Economics, Management and Financial Markets, 12(1), 55.
Auguets, X., Martinez-Blasco, M., & Garcia-Blandon, J. (2017). The Sixth Merger Wave and
Wealth Effects of M&A Announcements: An Analysis of Large European Bidding
Companies.
Bhagwat, V., Dam, R., & Harford, J. (2016). The real effects of uncertainty on merger activity.
The Review of Financial Studies, 29(11), 3000-3034.
Brueller, N. N., Carmeli, A., & Markman, G. D. (2018). Linking merger and acquisition
strategies to postmerger integration: a configurational perspective of human resource
management. Journal of Management, 44(5), 1793-1818.
Chiu, J., Chung, H., & Yang, Y. N. (2016). The impact of a conglomerate merger on its vendors
and rivals–a case study of Google's acquisition of Motorola. Technology Analysis &
Strategic Management, 28(2), 176-189.
Davis, A. K., Ge, W., Matsumoto, D., & Zhang, J. L. (2015). The effect of manager-specific
optimism on the tone of earnings conference calls. Review of Accounting Studies, 20(2),
639-673.
Devi, M. N. (2016). MERGER AND ACQUISITION. International Journal For Research In
Business, Management And Accounting, 2(2), 51-58.

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Dunlap, D., McDonough, E. F., Mudambi, R., & Swift, T. (2016). Making up is hard to do:
knowledge acquisition strategies and the nature of new product innovation. Journal of
Product Innovation Management, 33(4), 472-491.
Durand, M. (2016). Employing critical incident technique as one way to display the hidden
aspects of post-merger integration. International Business Review, 25(1), 87-102.
Field, L. C., &Mkrtchyan, A. (2017). The effect of director experience on acquisition
performance. Journal of Financial Economics, 123(3), 488-511.
Graebner, M. E., Heimeriks, K. H., Huy, Q. N., &Vaara, E. (2017). The process of postmerger
integration: A review and agenda for future research. Academy of Management Annals,
11(1), 1-32.
Lee, D., Cho, B., Seo, J., Lee, K. P., & Choi, J. H. (2014). Discriminant and criterion-related
validity of a relative deprivation scale in a merger and acquisition context. Psychological
reports, 114(1), 78-92.
Marks, M. L., &Mirvis, P. H. (2015). Managing the precombination phase of mergers and
acquisitions. In Advances in mergers and acquisitions (pp. 1-15). Emerald Group
Publishing Limited.
Palley, T. I. (2016). Why Negative Interest Rate Policy (NIRP) Is Ineffective and Dangerous.
Real-World Economics Review, 76, 5-15.
Schweizer, L. (2016). Post-merger integration in the pharmaceutical and biotechnology
industries: a practical approach. In Mergers and Acquisitions in Practice (pp. 109-135).
Routledge.

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Selçuk, E. A., Köksal, E., &Yılmaz, A. A. (2016). THE IMPACT OF MERGER AND
ACQUISITION TRANSACTIONS AT THE COMPANY AND INDUSTRY LEVEL.
Business & Management Studies: An International Journal, 4(1).