Discuss about the Methodological Issues In International HR Management.
Merger and acquisition has been identified as the important trend in the world of business. It has been found that majority of the large business have the tendency for acquiring the smaller business that are productive and would have a promising future. There have been adequate illustrations of mergers and acquisitions in the recent time in different social media platforms like Facebook acquiring Whatsapp, Google , Instagram or in Googles’s endeavour of acquiring Android. The notion behind merger and acquisition is to take over the promising business entity, maximize the value and entrench the power and position of the company. This report aims to discuss about the two prominent pharmaceutical companies BioHealth Abs based out of United States and DeWaal Pharmaceuticals located in Netherlands and elaborate on the different aspects of merger and acquisition. The report aim to examine the case study and explain about the conflicting values at stake, critical process of the change through the transformation in the organizational culture and leadership style, recommendation regarding the conflicting values, process of recommendation and the evaluation of the management theories and processes.
It is found that the merger of two companies lead to the merger of top positions too. Prior to the merger there was one HR hired for the company and the main issue arose due to HR managers in the company. Once the merger is in place, there is one HR manager for the company. Once this process is sorted there was found that there is one HR manager for the company. This has embroiled the conflict as the person who has left the post would offer resilience before leaving the company . This is observant in case of all the posts and therefore it is inevitable that there will be conflict. The goal would be to reduce the conflict and make the workplace conducive or compatible with the desires and orientation of the worker. The key would be to use transformational organizational culture. Each organization bags its own organizational culture. In this, it can be seen that the people in the organization are, feeling demoralized and they would leave the company before the outset of the merger.
Organizational culture of an organization plays an instrumental role in keeping the employees in the organization. A transformational organizational culture is one in which the redundant measures in the organization are changed to usher in reforms in the business. The organizational culture is contingent on the region of the location of the organization as well as the cultural location of the people who are part of the organization. In the context of this case study, this two organizations are North America and one from Europe (the Netherlands) (Light, 2001). This demonstrates that there is considerable difference n the cultural essence of two organizations. The conflicting values of the organizations are present in the cultural differences. Ana analysis of the case study has led to the usage and application of the appropriate theories and models relevant to the organizational culture. This would enable in better understanding of the nature and disposition of conflict in this specific case study. The Hoefstede cultural theory and the Hoefstede model can be used to understand the cultural difference of the two organizations and the conflict that have emerged from them. Drawing from the Hofstede theory it can be seen that these two countries share similarities in terms of power, indulgence and distance. These countries are close to individualism too and they have differences in Long Term Orientation and Masculinity It has been found that the supervisors make progress and accord the individuals solidarity, quality and balance.
Integration is an important aspect of merger and acquisition that needs to be transformed during the course of the organizational change. This needs to be regulated and managed in a proper manner with the aim of maintaining the circumstances under the control and implementation of the top management staffing in a proper manner using the appropriate Lewin cultural theory for the better understanding of the entire situation. In the first stage, the progress includes establishing the association to recognize that change is important that includes distinguishing between the existing circumstances and developing another method for the working of that circumstance. The central process is to decide the way in which idea can be forwarded in constructing the way in which the process would not be able to accomplish the results. The rationale behind this demonstration is to weave a solution that would benefit everybody and would cope with the situation. There is an imperative to usher in the adequate amendments to the organization in dealing with the process that should commence with the head structure— there needs to be a challenge the qualities, practices, convictions and demeanors that characterize and becomes a pertinent part of the structure of the organization (Burke, 2017). This is important in ushering in the requisite changes in the infrastructure in which the work will be conducted. This is because the two organizations are accustomed in working towards the settings and the work culture and therefore, there needs to be a balance between the two. There is an unfreeze situation when most of the people are caught in the feeling of despair and vulnerability. In this situation people start responding and accepting the changes and feel it can be done away with the problems that are emerging and the ways they have to adapt to the problem. People begin to accept the problem and recognize the ways one need to act in assisting the new heading. This advancement related to the process underscores on being rigid to the new situation. There emerges adaptability in different stages for the people as they would take time to reflect on their position in the company (Fahey & Glickman, 2012)Another important aspect is that of perspective taking within the organization in which the new process are implemented into the place. This is the change carve and it underscores on the process of commencing from the static position hating the company that would take part in the state.
There are exchange cars that present the beginning point at the low position of the change curve that heralds the position of people in which they do not want the change and then proceed to the place where people can act proactively and take part in the change. People begin to think that in what ways the change will be implemented in the organization and in the improvement of the lives of the people especially their work life. If change is perceived as having good outcome then members of the organization would automatically take part in the change. When the situation is good, people are taking in the change management principles, and settling with the situation again without the process of refreezing this is understood as the better methods of working to be accomplished. In this case, the external signs of refreeze from which the circumstance can be understood are enduring the affiliation plot and arrangement of the obligations. The upper administration and the managers need to take care. This ensures that actions are adopted in the rightful manner and are taken care in the right manner. This ensures that the actions should be used in appropriately and they should be combined with the customary industry.
Another issue that needs to be discussed here is the point of struggle among the most troublesome HR issues that should be followed by the merger and is the demeanours of the staff members and the employees of the organization. Staff members may be pushed, irated or disillusioned owing to the effects if the merger on their occupation. Change should be a pertinent explanation that is considered to be after stress for the large number of individuals and the occupations that transform habitually in the organizations. Whatever may be the affiliations of the specialist, it influences the charge in the merger frequently in all the situations and the course of the pay and the focal points of the new association. These are considered for the specialists to experience or receive the consistency in the pay and the points of interest and the issues that are restricted. Many times a few representatives are requested to accept pay declines or encounter advantage cuts grumbling and the low spirit that will come about (Kiitam, McLay & Pilli, 2016).
An association needs to maintain an impressive and inspiring organizational culture that would make the employees feel valued. The characteristics of an organization should be to take into account the feelings, practices and other elements that would determine the ways in which people can accomplish their goals nada chive their target.
The recommendation would be integrate two companies in which the companies acquire at the beginning and describe and define the social focus in the extensive terms. This would not work in the never ending manner for the CEO and the CEO will have to deal with her or his dedication and diligence till the point when the moment that they made sense of the goal. This is compatible with the incorporation of the merger and the legitimization of the same.
Setting the merger arrangement in the general sense introduces and incorporates the tough choices and decisions that need to be taken. The task of the acquirer is to adapt to the framework of the association and make it a fusion of both the organization in a balanced manner. Sometimes it can make use of the merger to bring in the culture of the acquirer’s. This blending of the culture into the specific affiliation would culminate to cultural heterogeneity. It will deliberately pitch them the contributions to the success of the merger, for example, in the organization of the business to drive the culture as it will be crucial for the organization.
It has been found that there is a considerable difference between the culture of the acquirer and that of the company that has been acquired. Whatever may be the difficulty the idea is to exactly point out the in what ways and how it will be critical as well as the qualifications. Diagnostics is often perceived as and understood and can measure the qualification among the people and the units, regions, limits and the people. They have the ability to empower the Human Resource with the aim of making sense of the openings that needs to be closed (McKenzie, 2015). The association can make use of arrange of instruments that would empower them to make sense of the openings that should definitely be closed
An association can make use of the instruments and that should include the following:
These gadgets will be useful in facilitating profitable talks during the merger and acquisition. In this case, one profitable yield for the specialists would be to consider for instance in what ways the “word cloud” will be there. The administrator would expect the people to select three descriptors that would delineate their specific association as well as the other one in low-effort and successful way to deal with beginning the symptomatic strategy and to amass the sponsorship around the more broad cultural effort. This would result in the way the gathered through cloud programming and would consistently reveal the complexities that would give a start to start a discussion.
The hypothesis in this situation concentrated on the human conduct and the connections that are not much dynamic but rather are grounded in the real human experiences and inspirations (Dalkir, 2013). They have hope in developing the potential for the commonly advantageous connections in the context of the working environment. Workers and the managers do not generally have compatible interest regarding the organizational feature of merger and acquisitions. The administrators may be able to settle on the choices that can outrage the workers whilst the representatives may place their specific advantages over the company. The administration hypothesis is of the view that the ideas of the authority and the motivation may not render adequate weight to the tension (O’Sullivan, 2017). The employees in majority of the cases usually leave their employments due to poor management in a situation that would increase the cost and the expenses. This would bring down the capability of return that invested the amount in the business. The entrepreneurs need to see the great administration that would keep with the brain and the end goal with the aim of making a plan of action. This could enhance the worker profitability that would dispense the excessiveness of the procedures. Supervision is contingent on rehearsals and the supposition of the supervisors and the representatives or the contextual analysis of the specific territory of the business. They usually work best for the casual associations and the little ambiguity that exists regarding the management model that would reap the fruit on the grounds that the reputation of the model rationalizes itself with the evidence (Tovstiga & Farhad, 2017). The administration would rehearse and concentrate on the flow between gatherings and legitimizes the director for greater flexibility in settling with the decisions and enabling the representatives with the aim of working together as a unit when they would cooperate in an undertaking. The entrepreneurs need to combine the administration, the speculations and the practices in view of the plan of action. The start-up owner or the industrialist will need to examine, ascertain and delve and execute the administration rehearses in the context of the fact that he would expect the adaptability in support of the business mode. With the development of the business, there may be the inclusion of the components of the administration hypothesis in keeping with the end goal in formalizing the leadership and the characteristics of the administration.
In the context of merger and acquisition in the international trading it has caused the scenario of the bigger businesses to come up. It has been found that merger is fraught with multiple complications and the long processes and the consequence is the successful merger that is beneficial for the employees and the companies. Based on the above mentioned information, it can be witnessed that there has been a balanced implementation of the merger. The companies that are pursuing a merger need to evaluate the benefits the parties before the final implementation. There needs to be a thorough evaluation of the cultural difference of both the organizations and respected. During the induction of the new employees all these features and pointers need to be kept in mind.
References
Bakir, A., Blodgett, J. G., Vitell, S. J., & Rose, G. M. (2015). A preliminary investigation of the reliability and validity of Hofstede’s cross cultural dimensions. In Proceedings of the 2000 Academy of Marketing Science (AMS) Annual Conference (pp. 226-232). Springer, Cham.
Batras, D., Duff, C., & Smith, B. J. (2016). Organizational change theory: implications for health promotion practice. Health promotion international, 31(1), 231-241.
Burke, W. W. (2017). Organization change: Theory and practice. Sage Publications.0020
Cascio, W. F. (2012). Methodological issues in international HR management research. The International Journal of Human Resource Management, 23(12), 2532-2545.
Dalkir, K. (2013). Knowledge management in theory and practice. Routledge.
Fahey, K., & Glickman, C. (2012). Leading for powerful learning: A guide for instructional leaders. Teachers College Press.
Gilin Oore, D., Leiter, M. P., & LeBlanc, D. E. (2015). Individual and organizational factors promoting successful responses to workplace conflict. Canadian Psychology/Psychologie canadienne, 56(3), 301.
Hofstede, G. (2017). Cultural Dimensions: Country comparison.
Kiitam, A., McLay, A., & Pilli, T. (2016). Managing conflict in organisational change. International Journal of Agile Systems and Management, 9(2), 114-134.
Light, D. A. (2001). Who goes, who stays?. Harvard Business Review, 79(1), 35-41.
McKenzie, D. M. (2015). The role of mediation in resolving workplace relationship conflict. International journal of law and psychiatry, 39, 52-59.
Moser, C. A., & Kalton, G. (2017). Survey methods in social investigation. Routledge.
O’Sullivan, P. (2017). 8 Transitioning the new CEO while embedding a merger. Coaching and Mentoring in the Asia Pacific.
Shirey, M. R. (2013). Lewin’s theory of planned change as a strategic resource. Journal of Nursing Administration, 43(2), 69-72.
Tovstiga, G., & Farhad, M. (2017). Post-Merger Growth Due Diligence. In Value in Due Diligence (pp. 187-205). Routledge.
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