Merging is when two or more organizations collaborate to work together as one entity by putting their resources in one pool. Most of the organizations which merge majorly have common goals and objectives that they strive to achieve (Scholarworks & Jordan, 2019). Some of the main components of the organizations that get affected during a merging process are the corporate leaders’ members and the human resource management department. The human resource management department within an organization plays a significant role in ensuring an appropriate transition process during the merging process (Boon et al., 2019). This paper strives to highlight some of the important roles of the human resource management department when two or more corporate agree to merge.
One of the main reasons for ensuring an appropriate merger between two organizations is to increase the organizations’ revenue due to increased market share. Be more competitive within the markets, acquire more innovative advantages within the operations sector, and reduce negative impacts of risk exposure to the organization (Scholarworks & Jordan, 2019). One of the most important steps during a merging process is the premerger process, whereby the corporate, departmental leaders are tasked with the responsibility of ensuring that they provide a detailed report on the impacts of the merger to the organization (Rodríguez-Sánchez et al., 2018). Appropriate premerger activities bring about a productive post-merger performance for the organizations.
During a merging process, the human resource management department is tasked with the responsibility of ensuring effective cohesion between the employers, employees and departments of the two organizations. Merging means that the human resources of the previous organizations will be introduced to a new management team, a new working station, and a bigger team. The productivity of an organization greatly relies on the quality of productivity from their employees within the organization (Jauhari & Ltd, 2016). It is the mandate of the human resource management department of an entity to hire a group of highly productive individuals during a corporate or organizational merging process to enhance their productivity and profitability.
Anchor Hospital and St. Mary’s Hospital are two organizations that operate in the same sector. They also have the same goal of ensuring effective and affordable healthcare services for the members of the metropolitan. Merging the two organizations is possible because they share and have various aspects in common. Some of the primary roles of the human resource management departments of the two hospitals to ensure an effective merging process include; ensure appropriate organizational culture integration (Jauhari & Ltd, 2016). The human resource departments of the two hospitals should ensure that the appropriate organizational cultures of the two hospitals are adhered to (Jauhari & Ltd, 2016). This helps avoid the conflicts of culture to enhance the productive integration and cohesion of the two employees.
Issues related to individuals are the main factors that bring about unexpected failures during a merger. The human resource manager should also ensure that all the interests of the employees are dealt with appropriately because they are considered trustworthy advisors to the workers (Boon et al., 2019). Some of the significant roles of the human resource management departments of Anchor and St. Mary’s hospitals during the proposed merger and acquisition between the two hospitals include; conducting a compelling analysis of the organizational cultures of the two hospitals. This will help the two hospitals to ensure effective compatibility in different departments of the two hospitals by encouraging the employees of the two hospitals to embrace the new organizational culture.
The factors which the human resource of the two hospitals should highlight when conducting a demographic analysis of the employees before the merger include the management trends of the two hospitals, the opinions of the employees of the two hospitals regarding the merger, and the growth rate of each of the hospitals (Jauhari & Ltd, 2016). Selective hiring also makes up the most important aspects during a merger since it will enable the two hospitals to retain only highly productive employees, enhancing productivity within the new business structure after a merger(Boon et al., 2019). The benefits that the employees of Anchor and St. Mary’s hospitals will receive upon a successful merger and acquisition are also an important aspect to consider since it will enhance employee satisfaction.
Another important function of the human resource management of the two hospitals is to motivate their employees by highlighting some of the benefits of mergers to the two entities. This will help enhance a good attitude from the employees, which will promote a smooth and productive transition (Jauhari & Ltd, 2016). Employee motivation will also help boost the morale of all the anxious but productive employees from both hospitals, enabling them to retain their experienced and qualified workers. Boosting the employees’ morale to adapt to a new working environment also helps in increasing their confidence when working in a new organizational structure (Boon et al., 2019). One of the most recent trends that will foster effective human resource management within the new organizational structure after a successful merger is ensuring employee diversity within the organization.
Ensuring that the employees will be protected by the labor laws upon a successful merger is also an important aspect to consider before undertaking a merger. The employees of both Anchor and St. Mary’s hospitals should be protected by the labor laws, which aim at protecting individuals working within the healthcare sector (Rodríguez-Sánchez et al., 2018). The laws aim at ensuring a productive working relationship between the new employer and the employees. It also ensures that the employees are subjected to a good working environment and appropriate remuneration. The human resource managers of the two hospitals should ensure the adoption of effective procedures of solving disputes within the organizations arises during the merging process.
The most significant human resource management model that is suitable for the merging process between Anchor and St. Mary’s hospitals is the Standard Causal Model of Human Resource Management. This model majorly strives to ensure that all the human resource activities from the two hospitals during the merging process are effectively aligned with the post-merger organizational strategies (Scholarworks & Jordan, 2019). This will help in achieving all the set goals and objectives of the merger. This model also aims to improve the organization’s internal performance since it greatly relies on the productivity of the employees to improve the organization’s financial performance.
The organization’s productivity after a successful merging process greatly depends on the relationship between the department leaders of the organization. Some of the best practices that the managers of the two hospitals should implement to foster a good and productive relationship with department managers include adapting an effective communication approach with the department heads (Rodríguez-Sánchez et al., 2018).
Coaching the heads of departments on the importance of adopting new policies within the organization will also foster a good relationship with them. Considering the relationship with them as a partnership that is working towards achieving a common goal is also an important aspect for the human resource to acquire a good working relationship with the department managers (Rodríguez-Sánchez et al., 2018). Organizing various team-building initiatives that will enhance a good working relationship between the employees and the employers is also a better way of strengthening a good relationship with the relationship managers.
Boon, C., Den Hartog, D. N., & Lepak, D. P. (2019). A systematic review of human resource management systems and their measurement. Journal of Management, 45(6), 2498–2537. Web.
Jauhari, A., & Ltd, P. M. M. P. (2016). The dynamic role of HR in merger & acquisitions. People Matters. Web.
Rodríguez-Sánchez, J.-L., Mora-Valentín, E.-M., & Ortiz-de-Urbina-Criado, M. (2018). Successful human resources management factors in international mergers and acquisitions. Administrative Sciences, 8(3), 35-45. Web.
Scholarworks, S., & Jordan, M. (2019). Mergers and acquisitions: Organizational integration strategies mergers and acquisitions: Organizational integration strategies. Web.