Mergers And Acquisition Case Study

1. Introduction

Human Resource professionals are needed now more than ever. Their knowledge of business and of human resources will be able to aid organizations in the development of strategies and alignment of Human Resource Management policies and practices with developed strategies. In this report, the two strategic issues chosen that are affecting the human resource management practices in the organizations are mergers and acquisitions and outsourcing.

2. Mergers and Acquisitions

Acquisition refers to the purchase of assets of a company or transfer of ownership from seller to buyer ("An overview of", n.d.). This process occurs in the form of purchase of stocks, assets or even mergers. Therefore, acquisition can occur with and without the process of merger. While merger is normally referred the combination of a company with another or a company is taken over by another. Generally, during the process of merging, smaller company will cease to exist, leaving its liabilities and assets to the acquiring company. When the process of merger and acquisition occurs, human resource department will be required to take extra precautions to ensure the objectives being achieved.

a. Advantage

One of the most obvious advantages from the process of mergers and acquisitions is to obtain exclusive talent, knowledge as well as technology from acquired company. This will allow the acquiring company to increase its competency, as it will be able to provide more products and services to end consumers (Dugar, 2009). Hence, it gives a competitive edge for the acquiring company in this strong rivalry market. On the other hand, the exclusive talent, knowledge and technology obtained will allow company to reduce its cost in research and development. The...

... middle of paper ...

...uman resource or companies should implement when using outsourcing is to have a well planned and negotiated contract. Despite having loss of management right or control, companies will have to communicate well with the outsourcing companies to align and achieve the quality that they are expecting. In the event of service provided not up to the standard, companies will be able to enforce it with law that gives them the right to protect themselves (Ahmed, 2005).

On the other hand,

4. Conclusion

Overall, human resource plays an important role in the business growth of a company. This is mainly due to the strategic issues faced are mostly human related based. Hence, with strong human resource management, companies will be able to maximize the gains from their employees that will result in maximum productivity that further leads to higher and sustainable growth.