Payroll Merger of Pretty Me Company Ltd & Impact Fashions

This report discusses the merger of payroll departments of Pretty Me Company Ltd & Impact Fashions, including costs, risks, and project plan. It also includes a literature review on payroll system mergers and project management methodologies. The report examines the current costs of running payroll systems in both companies and explores how the merger of the system would impact those. It identifies the risks that may be caused as a result of merger and presents a plan to overcome them. Specific activities that would be involved in this research include assessment of the project activities, comparison between the potential savings as well as costs before and after the merger, exploration of the implications that would be caused on the staff as a result of the merger, identification of risks associated with processes, and provision of recommendations based on the study for a successful merger.

Craig F
PRETTY ME COMPANY LTD & IMPACT FASHIONS
Merger of Payroll Departments

Table of Contents
Introduction.......................................................................................................................2
Payroll system costs...........................................................................................................2
Pretty Me Payroll........................................................................................................................2
Impact Fashion............................................................................................................................4
Literature Review...............................................................................................................4
Information required.........................................................................................................8
Staffing levels....................................................................................................................8
Training requirements.....................................................................................................10
Risk management............................................................................................................10
Risk identification.....................................................................................................................10
Positive risks..................................................................................................................................................10
Risk Prioritization (Hallows, 1998)...........................................................................................11
Communication management plan..................................................................................15
Gantt chart......................................................................................................................17
1

Introduction
The aim of this project is to develop a simulation of the payroll merger between Pretty Me
Company Ltd and Impact Fashions. The report would be prepared post examining the current
costs of running payroll systems in both companies and would explore how the merger of the
system would an impact on those. The report would monitor the key performance indicators
in the process and would develop a merger project plan to make changes in a way that have a
positive impact illustrated by these KPIs. This would help in learning how payroll processes
work and how they can be merged with another company with different structures and
processes such that the merger challenges are taken care of and the resulting performances
are improved. The report would identify the risks that may be caused as a result of merger
and present a plan to overcome them. Specific activities that would be involved in this
research include assessment of the project activities, comparison between he potential savings
as well as costs before and after the merger, exploration of the implications that would be
caused on the staff as a result of the merger, identification of risks associated with processes,
and provision of recommendations based on the study for a successful merger.
The Pretty Me Company Ltd is a clothing store that runs a chain of 39 clothing shops across
south of England. There are currently 500 employees associated with the shops and the Head
Office of the company that is set up in Salisbury. Impact Fashions is the sister company of
Pretty Me that also sell clothes at the lower end of the market. Impact Fashions has its
headquarters in Glasgow that comprises of 60 employees along with 300 other employees
working in 36 shops of the company. The project includes the mergers of the payroll
department of Impact Fashions with Pretty Me Company Ltd. The reason behind the merger
is the enhanced number of errors and frauds in an overdue audit conducted at Impact
Fashions. The project shall be completed by 23rd July 2018.
Payroll system costs
Pretty Me Payroll
Total number of employees = 500 (approx.)
Let’s suppose for example:-
Description
Weekly/
4weekly Annual Salary No of Staff Salary Per year Salary Per month
2

Monthly
Shop
managers £ 12,000.000 43 £ 516,000.00 £ 43,000.00
Monthly
Head office
staff £ 18,000.000 75 £1,350,000.00 £ 112,500.00
4 weekly Shop Staff £ 500.000 372 £ 26,071.60 £ 2,172.63
Weekly
Average Staff for
Costing
Casual Staff £ 100.000 23 £ 119,928.90 £ 9,994.08
£ 2,012,000.50 £ 167,666.71
Pretty Me Payroll staff salary is as follows:
Pretty Me
Staff Salary Per month
Payroll Manager £35,000.00 £2,916.67
Payroll Assistant No. 1 £23,400.00 £1,950.00
Payroll Assistant No. 2 £19,800.00 £1,650.00
The payroll assistants work around 208 hours of overtime in a year and is paid at time and a
half. This will equate to an hourly rate of 11.967 for assistant 1 and 10.128 for assistant 2.
Assuming they both work the same no of hours of overtime (104 hours each) this will amount
to a yearly gross total of £3,446.90
From above it can be concluded that in a year, Pretty Me spends around £81,446.90 gross on
3 payroll staff alone and if above mentioned assumptions on salaries of other resources are
taken into consideration then the annual gross salary for all staff comes to £2,09,000.50 .This
is besides the costs of overtime and on-costs of managers and other staff. If the on-costs are
also included then there will be around 30% additional costs.
Besides these costs, there are bank charges and computer costs.
Computer cost 1200/system
Annual maintenance 3840
Bacs 263
Bank charges
Cost 1 10p/item
3

cost 2 5/transaction
timesheet 6/thousand
Self-seal 47/thousand
Paper 1500
Postage
4-weely staff 1.45/delivery
Weekly staff 500
Shop manager
staff
65p/letter
So, it can be observed that all these can add up to over 2 million pound and with every 3
years there is an additional renew charges on computer and other components.
Impact Fashion
For Impact Fashion the cost is low but major cost lies in relocation:
Impact fashions
Head Office 60 Monthly Bacs
Other 29 Weekly Bacs
Relocation cost
Deboarah 20000
Her husband 25000
Literature Review
The objective of any payroll system is to pay the employees of the company on time and
maintaining the accuracy. Each company may have a different structure and processes to a
payroll system. When a merger takes place between two payroll systems, HR workers would
have to work hard to bring out synergies between the two systems such that the processes
used by the two companies complement each other when merged. However, this presents a
4

variety of challenges that companies would be facing while handling the merger activities.
The initial challenge would in merging the governance structure that would differ and would
need leaders to adapt to the change of control. A senior leader who could be responsible for
taking in charge in a company before merger may have to start listening to another leaders
post-merger which can cause conflicts and resistance in leaders.
Another major challenge would be the chaos that would be created because of the fact that
two companies may be using different systems for managing payroll. Service structures,
monitoring systems, benefit programs, and payment structures would not be aligned with
each other so combining them can be very challenging. This would need a company to make
an assessment of the cost of misalignment and developed a roadmap for smoother integration
so that these costs are reduced and consolidation is achieved.
Besides the operational differences, the companies would also face a pressure for bringing
harmony mainly because of introduction of technologies that may happen post a merger,
legislation that would demand protection of laws of equal pay and anti-discrimination, and
the changes in the personnel administration that would affect the cost of integration.
An integration can happen either horizontally or vertically. Horizontal merger is often the
case when two systems belonging to single company are to be merged. The challenges in
such a merger are less as their would be less modifications in the payroll or HR policies as
they may belong to same industry and may have some similar structures. Vertical integration
happens between companies having different cultures or may even be from different
industries. In such a merger, new terms and policies may have to be formulated replacing all
the old systems (Fuchs, Joseph, Mansfield, Seliga, & Usdin, 2017).
In an HR or payroll integration project, major challenges would be related to people
including due diligence, cultural modifications, communication issues, legislation procedures,
job evaluation, payment grades and benefits, retention and redundancy. Thus, all these areas
have to be explored and assessed to consider the impacts of integration and a plan is made
accordingly to ensure that the challenges related to each of these areas are taken care of in the
plan (Geddes, et al., 2017).
In a payroll system merger, a major challenge would arise because of the differences that may
exist between the pay structures of the staff and contract workers in two companies. A
smaller organization may have employees working on similar profiles as the big organization
5

but would be getting less pays. These relative pay differences have to be explored and plans
to be made to resolve potential conflicts that can arise if the differences stayed. Corporate
perspectives need to be evaluated again and accordingly to this, changes may be made in the
salary structures. In any new structure, the employees should be kept at least at the level they
already were. Job evaluation can be done based on which a harmonized payroll structure may
be created. An example of such a move is South Glouchestershire Council that created the
Hay Scheme to cover it’s existing employees as well as to new employees post payroll
consolidation. In the merger of Texas DIY with Store staff payrolls, an alternative approach
was taken by extending the pay structure of Store staff to the DIY staff which meant the pay
settlements for the DIY staff became higher (Suff & Reilly, 2007).
Handling any merger activity can be processed using project management methodologies as
they would make things more organized such that a solid plan can be laid for consolidation.
Thus, it is essential to also explore how project management frameworks may be used for the
case of a payroll merger project (Haugan, 2011).
A project management framework illustrates the guidelines and best practices as specified in
PMBOK and ISO 31000. The management methodologies, such as PRINCE2, agile
methodologies for project management, Waterfall methods etc. provide the steps for adequate
execution (Deeprose, 2002).
With project management guidelines applied, a merger project can be divided into numerous
project management phases as listed in the table below.
Project phase Practices
Initiation Phase Development of project charter Analysis of business case
6

Planning Phase Start-up meeting
Identification of project stakeholders
Identification of project resources
Project scope
Critical success criteria
Identification of project requirements
(Ponnappa, 2014)
Project limitations
Allocation of duties
Project communications
Assignment of schedule
Identification and analysis of risks
Project budgeting
Execution Phase Team discussions and meetings
Treatment and updates on risks
Request for Proposal
Management of project changes
Control Phase Status tracking and reporting
Management of project scope
Closure Phase Closure of project contract
Lessons acquired and reflection
Project documentation
Team celebrations
The project life cycle of any project irrespective of its size, methodology applied, and
framework used has four primary stages. These phases include initiation, planning, execution,
and closure. Each of these stages has their own set of milestones and outputs as shown below.
Life cycle
Phase
Activities Outputs Milestones
Initiation
Phase
Development of project charter
Authorization process
Service agreements and concepts
Project charter document
Cost estimations - values
Allocation of Project
Manager
Decision on the
project
Planning
Phase
Development of project plan
Feasibility analysis
Project appraisal
Planning activities
Results of feasibility
Permits
Design of project appraisals
Project design
Review of the
outputs
Recommendation
on the
7

Procurement design authorization
Approval for
subsequent stages
of the project
Execution
Phase
Work orders and processing
Project Design
Acquisition tasks
Project Delivery
Product
Results
Documents
Review on the
project deliverables
Approval on
implementation
Closure Phase Approval of project deliverables
Final reporting
Transfer of facilities
SOPs
Closure and completion report
Commissioning process
Closure report
Lessons acquired
Team closure and
deallocation
Post
implementation
project review
Review on the
project changes
Review on
succession
Decommission
process
The set of policies provide the guidelines for the project and the execution steps are provided
by the procedures. The examples of the policy statements and the procedural steps have been
shown in the table below. There are a few steps that shall be followed for the purpose of
standardization. These include assessment of the requirement, research process on the
policies, documentation processes, submission, approval, sharing & communication,
implementation and review process (Pinto, 2015).
Standardisation Steps Activities
Identification of the
requirements
Listing of the Problem Statement
Listing of the adjustments that shall be made
Research Listing of the policies similar in nature
Stakeholder identification
Documentation of the
Policies
Development of templates
Definition of terminologies
8

Consultation Stakeholder identification and consultation
Changes in the draft as per the stakeholder comments
Policy submission Submission of draft policy after inclusion of all the comments
Approval Submission of project proposal
Communication and
implementation
Implementation of the processing along with the communication plan
Review Review of the documents
Knowledge sharing mechanism can be used and applied for the management of the
knowledge sets that are generated in an organisation. The first step in the process is the
development and setting up of a database where knowledge shall be stored and shared. The
information on the knowledge sharing processes and practices that shall be adopted for
enhanced learning is stored in a table. The set of these practices can be formal, such as
development of the database, development of training plan, flagship process, etc. The
informal set of methods include collocation, development of the matrix structure for
knowledge sharing and likewise.
In the project life cycle, it is possible to assign the roles and responsibilities to varied people
and it may be altered as well (Turner, 2010). It shall start with the development of
governance structure along with the project approval. The next step shall be project planning
phase. The third step is the execution phase in which status reports are developed for tracking
of the progress and the risk register is developed and constantly updated. The lessons
acquired are also put in a log which is updated by the Project Manager. During the project
closure phase, a closure/completion report is prepared and the lessons acquired are recorded.
The project sponsor carries out the post implementation review for the project.
Project Planning for Payroll
The first step to planning the new merger or consolidation would be gathering information
about the existing structures of the two merging organizations. In order to gather information,
a planned and structured input from relevant components such as human resources, legal, tax,
finance and IT is required. The fact-finding phase involves getting answers for following
questions:
9

 What is the jurisdiction under the scope of which given merger scenario both the
companies operate?
 Where are the revenues generated/bound?
 Where are the taxes paid?
 What are the attributes of tax being paid?
 What are tangible assets?
 What are intangible assets?
 What are the current transfer pricing policies?
 Are the staff being paid in cash or by cheques?
 How does the hand-over and take-over of role planned?
 Which processes are critical for the payroll department?
 Which processes can be put on hold without delaying the salary payment?
 How does the payroll departments in both companies communicate information to
other departments such as HR?
 Are there any security measures followed in the companies?
Staffing levels
The merger which involves creation of new 15 posts may include following resources:
 Payroll consultant – This resource shall guide through the implementation of an
integrated system which shall take data from both the existing payroll systems and
produce output accordingly.
 Payroll Manager – Pretty Me already has one payroll manager but Impact Fashion
does not have so either an existing staff may be promoted or a new resource shall
be hired to understand the intricacies of working of Impact Fashions working.
 Payroll Assistant – This resource shall look after all bank reconciliation related
issues and monitor bank charges.
 Implementation team (Contract basis) – The project implementation will be
carried out by the project team members. Project Manager will be the resource
responsible and accountable for the implementation of the project. The Project
Manager will prepare an implementation plan and the process of implementation
will be done in a phased manner as per the implementation plan (Andersen and
Vaagaasar, 2009). The implementation process will be done in a series of phases
as planning, execution, control, and closure. The Project Manager will prepare the
10

implementation budget and schedule and will also allocate the duties to all the
other resources in the project team. The communication and information sharing
mechanisms will also be managed by the Project Manager. The developer will
also be involved in the process of implementation and will be responsible for the
execution phase of the same. There may be a few changes that may come up
during the execution phase of the implementation process. All of such changes
will be managed by the developer and the change reviews will be done by the
Project Manager.
 Data migration team – The database team will comprise of the Database
Administrator, Data Analyst, Data Expert, and Database Associate. The Database
Administrator will be the primary resource responsible for ensuring that the
migration of the data sets is smoothly carried out. The user management,
controlling of the user permissions and access rights will also be done by the
database administrator. There may be several security risks and attacks that the
data sets may be exposed to during the migration of the same. In case of the
occurrence of these attacks, the data properties may be compromised and there
may be issues with integrity of the data sets as well. The Database Administrator
along with the Data Expert will be responsible for handling, preventing, and
controlling these risks and attacks during the process of migration of the data sets.
The data analyst will make use of the automated analytics tools to identify the
trends and patterns that may be used in the process of migration. The database
associate will perform the necessary set-ups for the migration of the database and
the data sets.
 Trainer – The employees and the end-users will be required to be trained on the
new system. The task will be performed by the trainer. The training plan and
training schedule will be prepared by the trainer as per the availability of the
employees and the resources. The training plan and modules will be designed as
per the basic and advanced knowledge of the system. The conduction of the
training process will be done by the trainer and all of the queries regarding the
system will be resolved in the sessions. There will be several changes that will
come up for the resources with the introduction and implementation of the new
system. The absence of training sessions will lead to the enhanced probability of
operational risks and errors. The trainer will provide and arrange for the training
sessions to ensure that such errors and risks do not take place.
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Impact of Changes on Staff
The merger would cause major impacts on the staff as they would be used to working in
different ways and getting paid through different processes. The Pretty Me runs a payroll
system that works monthly, four weekly and weekly with majority working on monthly
payroll while Impact fashion works more on the weekly payrolls. The merger is going to
make some of the employees lose their jobs from the Impact fashion while others would have
to face a change in the way they are paid. A high resistance is thus expected to be seen in the
employees who would first be afraid of losing their jobs and would then be worried about
how the changes would impact their earning and would also cause inconvenience to them
because of changes made.
The working situations of the employees would also begin to change with the addition of new
employees for monitoring the work involved in making the changes after the merger. The
reporting structure would change and so would the payroll systems in Impact Fashion. Also,
the HR staff of Pretty Me would get loaded with the weekly payroll work and would require
assistance from new inexperienced employee which can cause conflicts and challenges in
adoption.
The change would no doubt put everyone into a stressful situation because of increase in
work and learning to adapt to the newly created environment. A way to overcome these
difficulties is by hiring new staff for support and also, keep the staff motivated by showing
them that the results in the long run would be better for the company and for them.
Training requirements
After, employees of both the companies are to work together and under new management.
For payroll staff, there will be an additional requirement of training to be given on new
integrated system. Hence, a detailed training plan will be prepared which shall include the
areas to be covered, focus of the area and estimated number of hours. The training plan shall
include a detailed walkthrough of the system in the form of training manual. Along with this,
the screens of the proposed system shall have a “help” section to find out what to is the next
step.
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Risk management
A systematic and streamlined approach will be used by the project team to identify and
manage the risks related with the project. The risks with highest impact and with increased
likelihood are mentioned along with the schedule so that the prevention measures may
accordingly be taken. The updates on the risks are shared and communicated with the internal
and external stakeholders through team meetings. The reporting activities shall be carried out
by the Project Manager along with the other team members. The assessment of the risk
factors and treatment strategies shall be analysed and the scope for further improvement must
also be highlighted (Ponnappa, 2014).
Crawford Slip method has been used for risk identification which is a common and effective
approach for information gathering and analysis. A small slip is shared with the meeting
attendees and the suggestions on a particular question are written on the slip.
Risk identification
Positive risks
 Completion of the project within the estimated budget
 Completion of the project prior to the due deadline
 Completion of the project with lesser number of resources
 Over-engineered system
 Reduction in taxes to be paid due to increase in revenue
 Management of investment with increased aggression
 Decreased use of desktops by the staff
 Enhanced functionalities in the system
 Early submission of deliverables
 Unwillingness of the staff to move to other devices
 Enhanced system flexibility
 Difficulty to the staff to cross security points
 Over-burdening of data warehouses.
 Over-analysis of the information sets
 Bring Your Own Devices (BYOD) scheme by the resources

Risk Prioritization (Hallows, 1998)
Risk Name Risk Impact Combined
13

Level
Scale
of: very
low,
low,
med,
high,
very
high
Scale
of: very
low,
low,
med,
high,
very
high
rating
Unavailability of the
requirement analyst
Low High Med Pro-active: Notice to the other
projects for the requirement of
the resource
Reactive: Urgent knowledge
transfer and sharing sessions
Unavailability of the
experts
Low High Med Pro-active: Notice to the other
projects for the requirement of
the resource
Reactive: Urgent knowledge
transfer and sharing sessions
Unavailability of the
system analyst
Low High Med Pro-active: Notice to the other
projects for the requirement of
the resource
Reactive: Urgent knowledge
transfer and sharing sessions
Enhancement in
subscription fee of the
software
Low Low Low Pro-active: Enough liquidity in
the project funds
Reactive: Use of open-source
alternative
Unavailability of the
coder/programmer
Low High Med Pro-active: Notice to the other
projects for the requirement of
14

the resource
Reactive: Urgent knowledge
transfer and sharing sessions
Unavailability of the
database resource
Low High Med Pro-active: Refer to the
resumes of DBAs in the
company records
Reactive: Urgent knowledge
transfer and sharing sessions
Faults/failure in
network
Med High High Pro-active: Replacement parts
in the buffer
Reactive: Urgent replacement
by the third-party vendors
Faults/failure of
hardware
Low High Med Pro-active: Replacement parts
in the buffer
Reactive: Urgent replacement
by the third-party vendors
Delayed acceptance
testing by the users
High High Med Pro-active: Test plan in place
Reactive: Meeting with the
client
Delayed user reviews Low High High Pro-active: Client
communications
Reactive: Information to the
sponsors
Unavailability of the
tester
Low High Med Pro-active: Notice to the other
projects for the requirement of
the resource
15

Reactive: Urgent knowledge
transfer and sharing sessions
Improper functioning
of test environment
Low High Med Pro-active: Test prior to project
start-up
Reactive: Backup on the test
server
Unavailability of
leads and business
analyst
Low High Med Pro-active: Notice to the other
projects for the requirement of
the resource
Reactive: Urgent knowledge
transfer and sharing sessions
Operational issues in
production system
Low High Med Pro-active: Test prior to project
start-up
Reactive: Backup on the test
server
Completion of the
project within the
estimated budget
Low High Med
Completion of the
project prior to the
due deadline
Low Med Low
Completion of the
project with lesser
number of resources
Very
Low
Med Low
Over-engineered
system
Med High High
Reduction in taxes to
be paid due to
increase in revenue
Low Med Med
Management of
investment with
Low Med Med
16

increased aggression
Decreased use of
desktops by the staff
(Fowler, n.d.).
Med Very
High
High
Enhanced
functionalities in the
system
Low High Med
Early submission of
deliverables
Very
Low
High High
Unwillingness of the
staff to move to other
devices
Med High High
Enhanced system
flexibility
Med Very
High
High
Difficulty to the staff
to cross security
points
Med High High
Over-burdening of
data warehouses.
Low Med Med
Over-analysis of the
information sets
Very
Low
Med Med
Bring Your Own
Devices (BYOD)
scheme by the
resources
Low Med Med
Communication management plan
The communication plan provides the framework through which the members of the project
team and the project stakeholders communicate. It acts as communication guideline in the
project and it updated with the project changes. The role of the resources and the stakeholders
is specified in the plan along with a communication matrix. The matrix comprises of
17

communication needs and ensures that the meetings serve their respective purpose (Heerkens,
2015).
What information
to be
communicated
Target
audience
When Methods of
communicatio
n
Provider
Milestone report Employees Per month Project meeting Project manager
Project Status Report Project
Sponsor
Per week Email Project manager
Team progress
report
Project
manager and
Sponsor
Twice a week Project meeting Team members
Conflicts report Project
Sponsor
Per week Project meeting Project manager
Escalation report Employees As per the
need
Project meeting Project manager
Change Requests –
Approved
Employees At any time Project meeting Project Sponsor
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Gantt chart
WBS Task Name Duration Start Finish
1 Payroll Department Merger 155 days Mon 18/12/17 Fri 20/07/18
1.1 Start-up Stage 64 days Mon 18/12/17 Thu 15/03/18
1.1.1 Business Case of the
Project - Introduction
2 days Mon 18/12/17 Tue 19/12/17
1.1.2 Kick off Meeting 1 day Wed 03/01/18 Wed 03/01/18
1.1.3 Literature Review 1 5 days Mon 08/01/18 Fri 12/01/18
1.1.4 Literature Review 2 5 days Mon 12/02/18 Fri 16/02/18
1.1.5 Literature Review 3 4 days Mon 12/03/18 Thu 15/03/18
1.1.6 Milestone 1: Project Brief 0 days Thu 15/03/18 Thu 15/03/18
1.2 Planning Stage 34 days Thu 05/04/18 Tue 22/05/18
1.2.1 Determination of Project
Methodology
2 days Thu 05/04/18 Fri 06/04/18
1.2.2 Data Gathering - Group
Discussions
2 days Thu 05/04/18 Fri 06/04/18
1.2.3 Data Gathering - One on
One Interviews
2 days Thu 05/04/18 Fri 06/04/18
1.2.4 Data Analysis 4 days Tue 08/05/18 Fri 11/05/18
1.2.5 Contingency Planning 2 days Thu 17/05/18 Fri 18/05/18
1.2.6 Budget and Schedule
Determination
2 days Mon 21/05/18 Tue 22/05/18
1.2.7 Milestone 2: Project Plan 0 days Tue 22/05/18 Tue 22/05/18
1.3 Execution Stage 14 days Tue 29/05/18 Fri 15/06/18
1.3.1 Testing & Compatibility
Analysis
1 day Tue 29/05/18 Tue 29/05/18
1.3.2 Data & Services
Migration
1 day Wed 30/05/18 Wed 30/05/18
1.3.3 Efficiency Checks 5 days Mon 11/06/18 Fri 15/06/18
1.3.4 Reviews & Audits 5 days Mon 11/06/18 Fri 15/06/18
1.3.5 Milestone 3: Migration
Plan
0 days Fri 15/06/18 Fri 15/06/18
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1.4 Control & Closure 13 days Wed 04/07/18 Fri 20/07/18
1.4.1 Conclusions 3 days Wed 04/07/18 Fri 06/07/18
1.4.2 Recommendations 3 days Wed 18/07/18 Fri 20/07/18
1.4.3 Closure Report 3 days Wed 18/07/18 Fri 20/07/18
1.4.4 Milestone 4: Closure
Report
0 days Fri 20/07/18 Fri 20/07/18
Conclusions
The study found that the two companies Pretty Me and Impact Fashions were more or less
from the same industry and hence, a horizontal integration would take place when their
payroll system had to be consolidated. However, it can still be challenging for the merger as
it would need leaders to bring in many synergies by overcoming the problems that would be
appearing because of the individual differences in the was two companies operated,
differences in the salaries of the people. However, despite the differences, with some
synergies achieved, the combined deal could be profitable for the combined entity. The lay
off of some employees and addition of new for consolidation would, balance the funds in the
long run and would bring the company mutual profitability. There would also be operational
benefits as the company would be able to increase its portfolio as well as take benefits of the
capabilities of each other to achieve strategic objectives.
Recommendations
Based on the study above, certain recommendations can be made for the merged entity that
would make the entity carry out an effective consolidation of the payroll accounts. These
include:
 As the levels of the salaries of the employees working in two company are different,
the jobs of all the employees should be studied and accordingly, a new salary
structure should be formulated that would be satisfactory for both teams. In the
process, the company must ensure that none of those employees retained are earning
lesser than what they used to earn earlier as their income.
 Leadership structure would change and it would depend on their capacities and
influences to smoothly bring the change even at the lower strata and thus, company
20

should take efforts to keep the leaders motivated and satisfied with the move so that a
supportive environment can be created to bring results.
 Additional staff must be hired in order to carry out the work of consolidation and a
permanent expansion of team handling weekly salaries may be needed to reduce the
workload of the existing staff.
References
Deeprose, D. (2002). Project management. 2nd ed. Oxford (UK): Capstone, p.14.
Fuchs, M., Joseph, T., Mansfield, C., Seliga, T., & Usdin, M. (2017). Driving M&A value
through HR integration: Get it right from the start. Deloitte.
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