Assignment Title: Reassessment Individual Assignment

HUMAN RESOURCE MANAGERS AND LINE MANAGERS
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Executive Summary
The human resource (HR) department plays a very crucial role in the management and optimal use of human resources in the organization. The role of HR managers and line managers in managing human resources can never be undermined. HR managers play an important role in the issuance of directives to the line managers and ensuring that they achieve the intended goals. On the other hand, line managers are central in the implementation process of the directives from the HR managers as they are deal directly with the human resources available to the firm. However, their roles can extend beyond these mere responsibilities because they are involved in the implementation of policies and this could prove to be vital. This paper comprises of two major sections. The first section offers an in-depth analysis on the functions of the HR manager in a merger or acquisition. The second part discusses HR functions that line managers can participate in so without disruption of the HR procedures, processes and people management issues.
Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc14952635 \h 21.0 Question 1: The Role of Human Resource Managers in Various Capacities PAGEREF _Toc14952636 \h 42.0 Question 2: Human Resource Function with Line Managers PAGEREF _Toc14952637 \h 11Bibliography PAGEREF _Toc14952638 \h 18
Human Resource Managers and Line Managers
1.0 Question 1: The Role of Human Resource Managers in Various Capacities
Change is the only constant in the contemporary business environment. The changes are a necessity as every other business needs to survive and grow. Furthermore, they want to have a dominant market position, adaptable, flexible, profitable, and to be efficient. While firms in some industries may opt to move to new markets to achieve growth and expansion, other will seek to work with relatively smaller firms that are considerably stable or else launching or developing new products (Schuler & Jackson 2002, p.1). The global environment is establishing new patterns where companies find it difficult to achieve their objectives or face competition without the use of deals that lead to acquisitions and mergers.
The former refers to one firm buying another one and consequently, managing it consistently relative to the acquirer’s needs. On the other hand, mergers refers to two firms coming together and eventually creating a new entity (Arora 2010, p.74). The accomplishment of these two does not out rightly translate to success of the result. While many in transition team will place greater focus on the operational, financial, and legal elements of the procedure, failure to acknowledge the role of the human resource (HR) component can result in the failure of the entire result (Rodriguez-Sanchez, Mora-Valentin, and Ortiz-de-Urbina-Criado 2018, p.1). This paper focuses on the role of a HR manager as a vital member of the transition team who is mandated with providing due diligence on the profound HR issues that need to be addressed in mergers and acquisitions (M&A).
M&As is a very challenging issue that HR professionals find difficult to faces and at times are unable to meet the expected standards. The professionals have to be up to par with employment law issues and even above that, critical people issues such as cultural alignment, talent retention, employee communications, and leadership, which are very essential for the success of the company (Abugre 2014, p.3). Also, these aspects define the ultimate merit of the transaction and elevates the perception of the business. This element of the business is a complex one and thus, it is necessary that HR specialists become accustomed to the high degree and overseas activities involved here. Their ability to offer due diligence to the end particularly in the integration process and post deal activities is an undaunted aspect. In this regard, both HR departments of the parties involved should strive to undertake in specific activities.
Strategy designing is among them where the relevant levels are identified and the appropriate communication or training is channeled appropriately. Team building and more so because it involves members from both sides means that the members should be skilled enough to promote great negotiation and interpersonal skills and more importantly, for the implementation of the change management successfully (Dixit & Jain 2016, p.28). The HR department is mandated to create a new organization structure that aligns with the merged entity’s new strategy. The HR department is also tasked with the establishment of a communication plan whereby the dissemination of information is done at the right time and to the right people. The creation of an exceptional transition system will guarantee that that factors such as compensation and performance appraisals are handled in the right way to the extent that minimal confusion is experienced in the process.
In the quest to identify the precise duties and responsibilities of HR managers in this process, there is the need to comprehend on the stages of M&A. According to Schuler and Jackson (2011, p.243), the M&A process has a three stage model, which include the pre-combination, integration of the companies (combination), and the final stage which is the solidification and assessment of the new entity. In each of these stages, the HR manager and the entire department play a very important role in the accomplishment of the set objectives. These stages affect and are quite applicable to other facets of the business such as its strategy, manufacturing, information technology (IT), distribution, marketing, and finance. However, the stages also offers issues that are most closely associated with HR management.
The pre-combination stage has many relevant issues in regards to HR management and their specific implication in the event the merger or the acquisition became a success. The HR manager and other stakeholders are involved in the strategic planning and organization as the first step. In this case, they will seek to develop the mission statement that will be a guide to the fulfillment of corporate objectives. In the next step, the HR manager becomes important in the creation of a team that manages the M&A activity. In most circumstances, the HR department is disregarded as they are perceived to be incapacitated to deal with the respective changes in the organization. Moreover, the legal and financial concerns of the deal are mostly covered in this step and the relevance of the HR department could be undermined. A study involving 109 companies indicated that two-thirds of the firms that failed to incorporate HR managers in the pre-merger planning had post-event problems (Love 2000, p.1). HR managers are essential pieces in the core strategic team. They are quite influential because ‘people problems are a significant cause of poor M&A performance.
The input of HR managers in this stage provides the firm with the evaluation necessary of the workforce in the potential acquisition. The HR manager is greatly concerned of the availability of skilled talent that is going to guarantee the success of the venture. In this regard, the manager bears the responsibility to determine the talent and management philosophy of the senior management and the acquired middle managers. In companies such as General Electric and Cisco, they have a policy in the retaining key talent in the firm. Entrepreneurs are adamant that the success of a business is dependent on the working staff and this justifies the reason most companies promote within rather than recruiting new individuals.
Another important aspect of this stage that necessitates the input of HR manager is the determination of the organization fit between the merging firms. Under ordinary circumstances, there are three categories of fit which include organizational, business and financial fit. The three of them must align if the firm between the two firms if the merger or the acquisition is to be a success. In regards to the paper, organizational fit invites greater attention because it comprises of human resources and the cultures of the two organizations (McCann & Gilkey 1988, p.58). These two factors determine how well the firm can integrate. When these two factors have a great discrepancy, then the merger or the acquisition is likely to be unsuccessful.
The combination or integration of companies is the sandwiched between the combination and final stages. This and the last stage are the most complicated because of the level of uncertainty that surrounds them. In the same breath, this level is the most poorly managed of them and justifies why most failures occur here. The HR manager has to be keener to ensure a delicate balance is achieved between stabilizing influence and creating a climate for change. Moreover, the professional ought to understand that family disruptions, psychological withdrawals, frustration, anger, anxiety, and uncertainty are pervasive in the process. The employees that leave during this period highlight the level of uncertainty that abides in the acquisition process.
Negative employee reactions, feelings and behaviors towards the process are signs of insecurity and anxiety and should be expected as responses to threatening circumstances. Most of them are worried about job security (Vijaywargia 2012, p.32). The magnitude of the negative responses will be equivalent to the severity of the threat and even worse, is the degree of powerless they may have to counteract it. The HR manager is responsible for negotiating financial deals particularly with the most critical workforce for the firm to ensure that productivity does not fall (Soundarya, Lavanya, & Hemalatha 2018, p.71). In some cases, stock options remains a viable channel to accomplish this endeavor. On the other hand, the HR manager can also decide to give retention bonuses to motivate them to stay. Thus, the response is a function of their confusion in regards to the expectations of the M&A. For instance, they may be oblivious of the criteria to be used in retention decisions and therefore, will rely on rumors and expectations. HR managers from both companies ought to provide a clear guideline to their respective employees on the nature of the process and what is expected of them. This process will prepare them psychologically.
In the second stage, the HR manager is responsible for providing emotional support to the employees. When this is the case, they have to indulge with the administration to provide better solutions to this debacle. The primary objective now that the employees are aware of the merger or acquisition is to create stability (Seo & Hill, 2005, p.424). Many HR procedures in this process should be dedicated towards ensuring that employees are provided with information. The intent is to provide solutions to the profound threats to their jobs. In this case, the HR manager will provide hope to the employees as they will encourage them to perceive the career opportunities available in the organization and thus, chances are that there will be continued success. Success in this stage is preeminent when the HR manager keeps a higher percentage of the companies’ leaders, total employees, and still, have achieved their business objectives.
The final stage of the merger is the solidification and assessment of the new entity. M&A with high and equal levels of inclusion implies that a new entity has been created. The HR department needs to address many elements for the viability and success of the firm. Sociocultural integration is chief among them because the dominant firm may seek to subvert the formal and informal organization of the acquired organization. The causes of such a conflict could be due to the difference in power between the two groups, efforts to instill the dominant firm’s culture, and erosion of the acquired firm’s culture.
The due diligence of the HR manager at this instance is quite important. They will provide knowledge on the motivating elements of the two workforces and how this will fit into the overall organization structure. It is to the best interest of the new entity to create and evaluate a new structure so that none of the parties and mostly employees feel as though they are inferior. The procedure also elevates the sense of belonging of every individual in the firm. The professional’s knowledge and skills are also put into use when they compare the labor contracts, compensation policies and benefits of both companies to ascertain the most amicable fit. This procedure underlines the need to solidify leadership and staffing. In the end, great leadership and staffing will determine the new direction of the firm.
The cultural match is also another cause for concern. In this regards, the HR manager will display their change management skills in which case, they will appropriately place people into positions that fit their competencies for the successful fulfillment of the organization’s goals. Sociocultural integration is the last bit of the process and even then, it is the most difficult because it represents the employees’ identity. Failure in addressing this part effectively can mean that the organization has much to lose including opportunities, personnel, and commitment from the employees. That is much that is at stake and hence, the HR manager has an insurmountable task to accomplish.
Mergers and acquisitions come with their share of challenges considering that it involves two different firms that are forming to become one entity. The HR manager faces considerable task to merge the respective HR duties and responsibilities to ensure a smooth transition. M&A have three distinct stages and each of them has its characteristics. The involvement of the HR manager in them all is necessary particularly in the articulation of the employee structure in the organization. Employees are the building blocks to the success of the organization. Besides their role in ensuring the best employment str...