Formulate Workforce Strategies
Based on the scenario in the previous weeks, as a consultant for the company, you are tasked to create a report outlining a strategic workforce plan focusing on the current needs of the client company. In fact, the company currently needs to lay off overlapping positions between two companies and hire several new managerial positions with extended job requirements for potential future overseas assignments. The report should reflect these current organizational needs in the plan consisting of straightforward talent requirements.
As you develop the outline for your workforce plan, be sure to address the following:
? Review the position that will be over-supplied and more needed in the organization after the acquisition, and then identify talent needs for the positions within the company.
? Recognize the external labor market trends in the fields and/or area of the client company.
? Describe the internal labor market of the position focusing on the current talent inventory of the client company.
? Identify talent gaps and develop strategies to close them.
? Recommend how to implement and evaluate your strategies.
Length: 7 pages, not including the title and reference pages
References: Include a minimum of 5 scholarly resources.
SHRM in Organization Change
Strategic HRM is a framework that is often termed as the ?people strategy? which is used by firms to create plans for employees? processes such as hiring, managing, development in ways that are aimed at supporting the organizational goals which are most long-term goals. The benefits of SHRM in a firm are to help the company in solidifying its goals in the future and in developing business strategies that will help in retaining employees. SHRM will help in guiding the HR department towards gathering enough information that can be used to benefit the general company?s planning process. Business problems are therefore solved through future-oriented processes that help in the implementation of most of the HR programs.
Strategic HRM in the firm in the given case still applies that the company must apply HR resources that they initially had and develop better strategies as well as ensure that they can fully integrate them even in the upcoming merge and acquisition between them and the upcoming competitor. The main purpose of an M&A especially within companies that are competitors and that they offer products within the same line of products and services (Al-Ayed,2019). As an executive HR consultant to a medium-sized IT company, enhancing a better understanding of the benefits and challenges they would expect when encouraging a merger and acquisition is vital. Therefore, it is wise that the CEO and his team understand that strategic planning is needed to understand what is to be done in terms of setting aside resources and effort to be used in making plans. As the HR consultant in the firm, then it is my duty to set up plans that would involve strategic actions towards ensuring success of the merge and that it would be more effective, that leaving the job for the CEO.
A M & A deal means that growth is expected within the firm which helps in allowing business entities to take part in boosting the market share. An increase in geographical footprint is expected also and two heads can mean better decisions and growth. This way SHRM will chip in to help the business towards steering forwards and in define the future of the business. SHRM is important for a company for managing costs, addressing issues promptly, and promoting employee success and productivity. As an HR consultant, allocation of resources is made possible to ensure that costly and disruptive surprises do not come along the way and that the firm can achieve its goals despite merging and acquisitions. SHRM has gone a long way to describe that HR must focus on attending to key features that would ensure a successful merger and acquisition while ensuring the success and benefits of the same. This can be undertaken by the process that new policies could be created to guide the newly merged organization, ensure retention of employees as well as downsizing and selecting them. The other key for a successful merger and acquisition is an established base of mutual respect and trust which is key for ensuring that respect is enhanced among the two groups and that better results are to be expected in the event (Ali, French & Baker,2021). Further more the case involves a full buy-in by the company which is taking over a small competitor which undertakes service provision in the same field.
The other benefit of SHRM is to address the key issues on time to avoid other problems that could be faced by an organization. This is made possible through the identification of external factors that could be a threat to the company?s success. These factors include tracking of cashflows, poor leadership, lack of funds, poor customer insight, poor marketing and sales (Al-Jedaiah & Albdareen,2020). This way as an HR of the company it is necessary to understand the significance of the company and factors such as leadership that can purely affect the running of the business. A clear vision for the business is seen and strategies can be implemented towards meeting these goals. Competitive intelligence is assured through useful strategic planning processes in an organization. The HR team must always be informed of any challenges that are yet to be expected and find ways that can be controlled. Resource planning enables businesses to meet their demands be it current or the future, such that it can ensure skills are developed.
Challenges are still faced while adopting SHRM into a firm, especially one that has M & A in adopting the culture and policies of two different firms into one. As an HR introducing all the employees into a new culture that has been created could be tasking and it could challenge the entire organization. The challenge comes in where a new culture and methods of operations would completely change. The change in business needs must also be managed and better talent and skills must be employed to meet the expectations. The workforce strategies used in a merger and acquisition must be created to fit the operations of the new business strategy and help in meeting all the goals of the business. Fostering innovations throughout the organization is key such that HR are expected to work efficiently. Changing the entire management could be tasking and it could create challenges in understanding how each of the departments could merge and end up understanding each other efficiently. Leadership management must be applied in a way that will support the objectives of the organization and the rest of the team. The challenges can however be addressed in such a way that they can be used to improve HR-related decisions to meet business goals, especially in such cases of mergers and acquisitions.
Al-Ayed, S. I. (2019). The impact of strategic human resource management on organizational resilience: an empirical study on hospitals.?Verslas: teorija ir praktika,?20(1), 179-186.
Ali, M., French, E., & Baker, M. (2021). Gender diversity leadership on Boards: The role of a diversity culture in supporting equality and diversity initiatives and organizational performance. In?2021 European Academy of Management Conference, Canada.
Al-Jedaiah, M. N., & Albdareen, R. (2020). The effect of strategic human resources management (SHRM) on organizational excellence.?Problems and Perspectives in Management,?18(4), 49.
HR initiatives are to be initiated in any firm that wishes to join as a merger with the other to ensure they meet its objectives and goals. As an HR consultant, then the common initiatives that the company can initiate within the year they wish to engage in merging and Acquisition with the other small competitor are the development of compensation strategies, employee selection, downsizing, and creation of new policies that would fit the organization effectively. However, phases used in addressing the issues that come with handling HR initiatives must be involved to ensure the process is effective. Indeed, the consideration by the company to take part in involving a merger with its competitor however how small it might be is packed with mixed feelings, and it involves excitement, uncertainty, excitement, and enthusiasm. The mixed reaction occurs in all levels of an organization and those employees are involved in this sector where they are not sure of what they are expected to do once the process begins. It is the role of HRs to conduct the transactions that would aid in meeting all the objectives and that they can positively impact the business and hence the success of the transactions (Turner et al,2019).
HR professionals are often involved in all transactions that take place within mergers and acquisitions and they are even involved in the first steps through conducting due diligence before picking one of the companies to merge with. Information, culture, and talent are key as well as other assessments of employees, legalities, and even the value of the property which is in question. As an HR it is important to have the necessary skill set which is required in managing all the activities within the firm and creating a good environment between the two companies that wish to engage in a merger.
Mergers and Acquisitions are tools that businesses incorporate in their activities to ensure that they achieve their organizational objectives in one way or another as well as expand their purpose in the sector that they are handling. However, most of the mergers which have been estimated to be between 70 and 90% fail to achieve their strategic goals in that their anticipated financial and strategic objectives are not met in any way. Various HR-related factors are often related to the failure of mergers in that incompatible cultures, poor or lack of motivations occur, loss of talent, poor communications, and less trust can lead to failure in accomplishing the activities that come with mergers. An HR must therefore ensure that the goals of a merge are planned effectively to be met within a set time frame and that general success is met. Therefore, the significance of managing people’s issues is seen in the case where M&As must be met with a general emphasis on the HR persons (Baker, Ali & French,2021). The HRs are expected to adapt to the problems through finding solutions, and above all identifying issues that are expected to arise within the organization. The HR team must then ensure they address the challenges and encourage the top-level management to adopt the changes.
The initiative is to be included and executed within the same year before the merging and Acquisition between the company and its competitor, the employee selection and downsizing must be conducted. A new organization that has come in form of a merger could be hard to stabilize and any of the delays in placing the right managers and other top-level managers ensures ease in transitioning from one form of management to another. Therefore, before the onset of the new organization which is expected to begin within a year, then as an HR the best decision is to make up our minds to identify which employees would be downsized and those that would be retained. Other employees are expected to be deployed, terminated, relocated and that need to manage these processes as an HR is important. It is possible that all the employees could be relocated and that the entire department could be deployed into the new venture.
As the HR in the company, then accessing the skills of the potential and existing employees is key. The capabilities, motivations, and potential of the team get to be determined in this step, and they are all expected to participate in the formed merger or acquisition. Testing techniques and interviews will be used in determining all the types of employees besides using outside consultants. Once all the steps get completed, as the HR of the organization, then the next step is to recruit those that comply and meet the expectations of the firm and place the employees in their specific roles. Each of them is allocated to what they can handle best to ensure that they are more productive in their fields. Typically, they will ensure success in the new merge which is expected to onset its activities. Most of the operations in a newly started M&A indeed require to utilize their resources as well as reduce the number of employees who are to work in the organization. The fact that employees would be reduced, means that HRs role is to help in managing the number. This is possible through spending large amounts of time to access each of their skills and knowledge as well as their abilities to make up their minds on who would go first who would remain to work. For this case, as an HR, the merge is set to begin a year later which means enough time has been allocated to access the skilled staff and allocate them their jobs based on the KSA?s factors (Donnelly,2019). On the other hand, terminations, retirements must be conducted. This means that the process of decision-making is important as the idea itself to employ skilled labor and release those who would not add value to the organization. Talent management decisions will automatically address what organizational values exist within the firm.
The initiative to access employee skills and performance is aimed at helping with a good choice of workers who would participate in the merge between the organization and its small competitor within the year. This way accessing employee skills is beneficial in helping these workers meet their organizational standards, improve work performance, and ensure replacement costs are highly reduced. This is why as an HR it is important to build and upskill the team then frequently employ a new. An existing team already understands the structure of the firm as well as the goals and operations, unlike a new team. However, not every team member will be absorbed into the M&A because some would not help in steering the goals of the firm forward which is not favorable. However, as HR we have the responsibility to ensure employee training is conducted before the onset of their job while merging with improved technologies as a method of creative learning which is likely to ensure that the teams will be highly skilled (Danvila-del-Valle, Estevez-Mendoza & Lara, 2019).
Among the key initiatives that HR must undertake in an M&A is the creation of new policies that are aimed at guiding the newly formed organization. In shaping and merging the different cultures and ensuring that each team is involved and their opinions are heard, new policies must be created. This way, as an HR I would fully participate in ensuring that we lay down the policies and ensure a strategic plan is set to communicate to the employees on the changes made and what should be followed as well as the consequences that come with changes in the firm. The employer who is the CEO must therefore develop and ensure communication to the rest of the team. These guidelines can be specialized to meet each need of a company. This way I would recommend that drug testing is conducted among all the employees who wish to work in the new firm. The role of HR is to understand all activities that surround the employment of workers and the rest of the managerial team who are in charge of giving performance reports. Additionally, attendance is another key issue that greatly affects the role of employees and the level of productivity which results from a lack of proper rules which govern the attendance rate among employees (Brueller, Carmeli & Markman,2018). This way, the setting expected time for employees to report and leave work is key to governing their expected time. Penalties for failure to keep up with the set strategies should come with recommended punishments and it must abide by labor acts to ensure safety and success in the performance of the M&A company which has to be created within a year. Time offs, harassment and privacy standards should also be set up to guide all relationships within the firm which is to onset within the agreed period. Time offs guidelines help in communicating the expected timelines in which employees can be allowed to take off and that they all must be an underpaid places only when one is laid off. Harassment is meant to guide all employees and the rest of the management to create a harmonious working relationship. This ensures that employees are promised working environments that do not support discrimination and that both of the genders are free and each can perform their roles most efficiently.
The other key HR initiative is the development of compensation strategies depending on the circumstances of the deal. This way the two companies merge between a company the other small competitor however dealing with the same field of products and services. As an HR, the role, in this case, is to create payment plans to fit the newly created organization. On the other hand, HRs are allowed to discard the previous plans that had been associated with payment terms and come up with others. In this case, the HR team is allowed to create plans to fit the activities and the roles of the employees in this case. Therefore, old and new employees must still insist on their method of payments which must be attended to and they must be educated on the new terms set to serve the same purpose. Early disclosure is allowed to show the extent to which changes have been impacted in the new firm formed after a merger and acquisition.
Additionally, in this case, the top management which was chosen after the merging will still be concerned about the type of arrangements that the HR will be able to choose. This means that as an HR, it is important to impact the organization positively through creating awareness to both the employees and the management to ensure that they successfully understand what will be applied. This means creating awareness of the stock options, severance agreements, and special retirement offers. The set up of an M& A would require a high-profile decision-making process to ensure that special agreements are made towards the development of compensation strategies for all the involved employees and that it has to be proved by the board. This means that the whole process requires a whole decision-making process to be passed as a law.
In conclusion, the role of HRs remains to be developing plans that support a firm to achieve and promote its culture, competencies, and behaviors as well as meet its organizational goals. This means that correctly accessing employee craft and skills will ensure the goals are met especially in the event of M&A which could seem tasking and ensuring that training activities are up to date. The HR team is also associated with providing efficient and adequate information. This also entails the development and implementation of policies, services, and programs that would positively impact employee goals as well as corporate goals. The HR team can add value to an organization through serving its business partners, becoming strategic partners, and helping the administrative with support services. Therefore, like an HR official in a firm that wants to begin as M& A within a year, the focus is on the initiatives which should be used to meet the goal. This means that selection of employees is key, offering compensation strategies and creating new policies that would guide the team would be much beneficial.
Baker, M., Ali, M., & French, E. (2021). Leadership Diversity and Its Influence on Equality Initiatives and Performance: Insights for Construction Management.?Journal of Construction Engineering and Management,?147(10), 04021123.
Brueller, N. N., Carmeli, A., & Markman, G. D. (2018). Linking merger and acquisition strategies to postmerger integration: a configurational perspective of human resource management.?Journal of Management,?44(5), 1793-1818.
Danvila-del-Valle, I., Est?vez-Mendoza, C., & Lara, F. J. (2019). Human resources training: A bibliometric analysis.?Journal of Business Research,?101, 627-636.
Donnelly, R. (2019). Aligning knowledge sharing interventions with the promotion of firm success: The need for SHRM to balance tensions and challenges.?Journal of Business Research,?94, 344-352.
Turner, M. R., McIntosh, T., Reid, S. W., & Buckley, M. R. (2019). Corporate implementation of socially controversial CSR initiatives: Implications for human resource management.?Human Resource Management Review,?29(1), 125-136.