Cultural Due Diligence in M&A - PDF
Added on 2021-04-13
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Please carefully read all exam Information.1.This is an individual exam.2.Record your name in the provided space. 3.This exam is worth 65 points and 35% of your total course grade.4.Write clearly stated and legible short answers below the questions as outlined in the exam instructions
Short Answer Questions – Sixty-Five Marks TotalAnswer all questions in the provided space. Marks are noted by each question. Include and apply relevant theories, concepts and examples in each answer. For the purpose of this final exam, please consider yourself a newly hired Manager of HRPlanning at a medium sized and growing advertising company in Ottawa. This company has a well-earned reputation for innovative approaches to digital and electronic advertising primarily for government and other public sector clients. The company has a full-time staff of 200 and a part-time staff of 50. You report into the Director of HR. The Director has asked you to research and provide advice on several important HR planningissues at the company. Please prepare and provide your input to the following questions:1.The company is interested in implementing a succession management program for its full-time managerial staff. Please identify and describe three different management development techniques that you think the company should adopt. Provide your reasoning as to why you think these approaches would be appropriate referencing at least one peer reviewed journal article for each approach to support your argument. (15 marks)Succession management refers to the structured method of assessing key positions within the organisation, defining and reviewing potential replacements and preparing them for these positions [ CITATION MON16 \l 1033 ]. Succession management is now an important talent acquisition program for businesses around the world [ CITATION MON16 \l 1033 ]. In certain businesses, succession management is a proactive mechanism that minimizes leadership vacancies in key positions and offers incentives in emerging candidates to cultivate the expertise required for potential roles [ CITATION KEM15 \l 1033 ].The first technique that the organisation should take into account would be to identifying skills and competencies [ CITATION MON16 \l 1033 ]. Identifying the key leadership competencies expected to be successful help to identify the qualities leaders require [ CITATION RPe01 \l 1033 ].Employees are supposed to have or be in a position to acquire the skills needed for the position. It would be beneficial if the company wanted to search for an objective way to identify such individuals as strategic replacements [ CITATION MON16 \l 1033 ]. Temporary changes should be affected in the event that the manager is removed from the workplace for extended periods of time [ CITATION MON16 \l 1033 ]. The strategic substitution seeks to replace managers with workers capable of meeting the necessary competencies and not only like the previous boss did. The method of actively finding creativity is associated with success [ CITATION MON16 \l 1033 ].
The second technique would be Providing developmental opportunities and experiences. The company's aim is to cultivate skills that could be needed in an unknown future, and management is becoming more open to alternative approaches to building a talent pool [ CITATION MON16 \l 1033 ]. The most popular forms of advancement are recruitment, job rotation, special tasks and action planning, structured training and development, and mentoring and coaching. And, depending on the situation, job rotations, special tasks and mentoring may help to improve[ CITATION MON16 \l 1033 ]. Job rotation would involve a change in the assignment of a job. Rotations provide a variety of positive effects for workers. This is profitable in all ways as it willdiversifies options for workers to take up vacancies, so each employee will have experience in allroles [ CITATION MON16 \l 1033 ]. On-the-job coaching is a constructive approach to the growth ofmanagement skills. Organizations will assess high-potential workers by supplying them with tasks in addition to their daily duties [ CITATION MON16 \l 1033 ]. Mentoring ensures that organisational managers are able to demonstrate their capabilities and this is the reason for their achievements in the organisations [ CITATION MON16 \l 1033 ].The third technique that organisation can use is monitoring succession plan. This would encourage staff and managers to observe roles that are relative to them [ CITATION MON16 \l 1033 ]. When managers have developed their succession strategies, they should track progress, review execution and update their strategies if appropriate. Reviewing results at scheduled intervals and providing elements such as the plan calendar will benefit the company [ CITATION Pat05 \l 1033 ]. This technique would ensure the manage that the work that is been in the process or the reports for the same are been accessed properly [ CITATION MON16 \l 1033 ].2.The company is interested in acquiring a small competitor in the Vancouver area. This company is roughly half the size in terms of employees, provides services exclusively to the retail clients in the private sector, and has a reputation of focusing primarily on print advertising. Given this, the Director of HR has asked you to give your input on the following:
a.Describe what HR due diligence means and explain why it is important for the company to undertake such an activity as part of the acquisition process. Please support your answer with a peer reviewed journal article (8 marks)M&A is one of the most important paths for business growth [ CITATION Iul17 \l 1033 ]. Duediligence is a systematic evaluation of a company conducted by a prospective investor, in particular with a view to determining its assets and liabilities and evaluating its economic potential [ CITATION Iul17 \l 1033 ]. Due diligence is a screening procedure performed to assess thedegree of cultural conformity or compliance between entities that are parties to a merger or acquisition[ CITATION Iul17 \l 1033 ]. This is used to build an appropriate integration / alignment strategy to tackle the effects of culture on mergers or acquisitions.Organization teams should perform a detailed organizational due diligence on the culture of the other organisation and should also examine their own business, community and culture. Standards to determine if the businesses suit [ CITATION Iul17 \l 1033 ]. This is relevant because it fairly defines a different field of due diligence and teaches us about the scope of the procedure. It should be remembered, however, that due diligence has a significant impact on M&A success [ CITATION Iul17 \l 1033 ].Due diligence is not only essential for the choice to complete the acquisition, it is also essential for the transformation of two different organisation into one successful organization [ CITATION MON16 \l 1033 ]. Having an understanding of the context of the acquired company allows for a better result in future [ CITATION MON16 \l 1033 ].b.Describe the role of corporate culture in the context of an acquisition, and identifyand describe two techniques that you would recommend that the company could implement in order to help with the cultural integration of the two companies should the acquisition proceed. (10 marks)Culture is generally characterized as a combination of national cultures, objects and employee participation.To be successful, businesses should initiate the phase long before closing, if necessary, and act before cultural integration becomes more difficult.The advantages of a healthy organizational culture are both inherent and socially aware [ CITATION Oli19 \l 1033 ].
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