Human Resource Management Analysis: JEA, BAW, and JBAW Merger

This assignment presents a business brief analyzing the human resource management implications of the merger between Jakarta Electro-Assembly (JEA) and Bavarian Auto Works (BAW), leading to the formation of Jakarta-Bavarian Auto Works (JBAW). The analysis explores the roles of HR in each organization, emphasizing the importance of employee management and cultural integration. It identifies key HR issues arising from cultural differences between Indonesian and German employees, particularly in negotiations and daily operations. The brief proposes HR policies addressing cultural intelligence, diversity, non-discrimination, and compensation to foster a positive working environment and ensure the merger's success. It highlights the need for effective communication and employee benefits programs while acknowledging the impact of social relationships and time management differences. The conclusion stresses the importance of senior management relationships and effective negotiation in achieving a successful merger outcome.

Running head: HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT
Name of the Student
Name of the University
Author Note

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Introduction
As opined by Bailey et al. (2018), human resource management is considered to be a
process that is based on the recruitment, selection, induction of employees, providing
effective orientation, providing training and development, appraising the levels of
performance of employees. The proper management of the employees or people who are a
part of the organizations is based on the development of proper human resource management
functions.
The analysis will be based on the merger based operations that have been conducted
between the two organizations named, Jakarta Electro-Assembly that is of Indonesian origin
and Bavarian Auto Works. The issues related to negotiations in the deal will be analysed in
detail.
Analysis role played by HR in JEA, BAW and JBAW
The human resources or employees are considered to be an important part of the
operations of Jakarta Electro-Assembly or JEA. The employees need to be convinced in an
effective manner by the management of the organization about the operations related to the
merger. Collaboration levels of employees and managers are important for the proper
operations of the organizations after the merger (Bird & Mendenhall, 2016).
The employees of BAW are also need to be convinced by the management of the
organization based on the merger related operations. The senior managers of the company
can play a major role in ensuring the success of the merger (Brewster, Chung & Sparrow,
2016).
JBAW or Jakarta-Bavarian Auto Works is the organization that has been formed after
the merger. The employees who will be a part of the employee base need to understand the

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culture and values that are followed by each of them. This is able to play a major role in the
achievement of the goals and objectives that have been set by the organization (Brewster et
al. 2016).
Policies that can be developed for the HR issues in the case
As discussed by Cascio and Boudreau (2016), the major issues that can be faced by
the organizations after proper merger are based on the cultural issues that take place due to
the huge differences in the cultures that are followed. The policies that can be developed by
the organization after joint venture is based on the training that needs to be provided to the
employees in order to increase the levels of their cultural intelligence.
According to Lasserre (2017), the knowledge based on different cultural factors are
able to affect the employees who are a part of the two organizations. The cultural issues can
occur in a huge manner between the Indonesian and German employees and this will further
lead to issues in revenues that can be gained. A customer focussed human resource
management department needs to be developed as a part of the joint venture. This will help in
the development of a positive working environment.
Other HR programs and policies to be considered
As discussed by Noe et al. (2017), the development of a diverse environment is
important for the operations of the firm after the merger has been performed. The policies
based on non-discrimination and anti-harassment need to be developed in order to maintain
high levels equality among the employees. On the other hand, the time off and leave based
benefits and policies are important for the development of the operations of the companies
after the merger based operations. The policies that will be developed and implemented by
the organization after merger will be able to play the most significant role in development of

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revenues and profitability as well. The compensation levels of the employees will also be
developed with respect to their skills and not based on the places from which they belong.
This step is based on the maintenance of diversity levels (Brewster et al., 2016).
Policies effective for the merger of the firms
As discussed by Stone and Deadrick (2015), the human resource management based
functions are able to play a major role in the merger and acquisition based operations of the
two firms that have been mentioned in the case study. The development of employee base
after a merger is based on the skill sets that have been gained by the employees and the
confidence levels of the senior management as well. The major policies that need to be
considered by the organization after the merger has been performed include, the development
of effective compensation based strategies that that are able to provide benefits to both the
organizations. The employee benefits based program needs to be developed in order to fulfil
the needs and demands of employees. Communication process development is an important
part of the human resource management based functions after the merger related operations
have been performed (Brewster, Chung & Sparrow, 2016).
Cultural problems in the negotiations
According to Bird and Mendenhall (2016), the major cultural differences that have
taken place in the organization after merger is based on the importance social relationships
that are required to be developed. The importance of social relationships is higher in the
Indonesian society in comparison to the German society. Time management based skills of
German people are also better in comparison to the people in Indonesian society. Detailing is
also an important part of the German society that is not considered to be important by the
Indonesians. The negotiations that are developed between the Germans and Indonesians are
affected by the levels of exaggeration that can occur in the meeting based procedure that is

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disliked by the Germans. The development of proper relationships between the Germans and
Indonesians cannot be developed in an effective manner within the merger based process that
has taken place. The daily operations of the companies are affected by the relationships of the
employees of different backgrounds (Stone & Deadrick, 2015).
Conclusion
The analysis can be concluded by stating that the merger between JEA and BAW will
be successful only if the senior employees in the organization are able to develop an effective
relationship with each other. The organizations can operate successfully after the merger with
the help of proper negotiations.

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References
Bailey, C., Mankin, D., Kelliher, C., & Garavan, T. (2018). Strategic human resource
management. Oxford University Press.
Bird, A., & Mendenhall, M. E. (2016). From cross-cultural management to global leadership:
Evolution and adaptation. Journal of World Business, 51(1), 115-126.
Brewster, C., Chung, C., & Sparrow, P. (2016). Globalizing human resource management.
Routledge.
Brewster, C., Vernon, G., Sparrow, P., & Houldsworth, E. (2016). International human
resource management. Kogan Page Publishers.
Cascio, W. F., & Boudreau, J. W. (2016). The search for global competence: From
international HR to talent management. Journal of World Business, 51(1), 103-114.
Lasserre, P. (2017). Global strategic management. Macmillan International Higher
Education.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education.
Stone, D. L., & Deadrick, D. L. (2015). Challenges and opportunities affecting the future of
human resource management. Human Resource Management Review, 25(2), 139-145.