Human Resource

Management
CIA 2

By
Anjali Nambiar
II BBM A
0911030
General and Operations Managers
Plan, direct, or coordinate the operations of companies or public and private
sector organizations. Duties and responsibilities include formulating
policies, managing daily operations, and planning the use of materials and
human resources, but are too diverse and general in nature to be classified
in any one functional area of management or administration, such as
personnel, purchasing, or administrative services. Includes owners and
managers who head small business establishments whose duties are
primarily managerial.

Sample of reported job titles: Operations Manager, General Manager (GM),

Director of Operations, Plant Manager, Store Manager, Facilities Manager,
Plant Superintendent, Vice President of Operations, Warehouse Manager,
Chief Operating Officer (COO)

Job description:

 Oversee activities directly related to making products or providing

services.
 Direct and coordinate activities of businesses or departments
concerned with the production, pricing, sales, or distribution of
products.
 Review financial statements, sales and activity reports, and other
performance data to measure productivity and goal achievement and
to determine areas needing cost reduction and program improvement.
 Manage staff, preparing work schedules and assigning specific duties.
 Direct and coordinate organization's financial and budget activities to
fund operations, maximize investments, and increase efficiency.
 Establish and implement departmental policies, goals, objectives, and
procedures, conferring with board members, organization officials,
and staff members as necessary.
 Determine staffing requirements, and interview, hire and train new
employees, or oversee those personnel processes.
 Plan and direct activities such as sales promotions, coordinating with
other department heads as required.
 Determine goods and services to be sold, and set prices and credit
terms, based on forecasts of customer demand.
 Locate, select, and procure merchandise for resale, representing
management in purchase negotiations.
Tools & Technology
Tools used in this occupation:

Desktop computers

Hand trucks or accessories — Handtrucks

Mobile phones — Cell phones

Notebook computers — Laptop computers

Personal digital assistant PDAs or organizers — Personal digital

assistants PDA

Technology used in this occupation:

Accounting software — Bookkeeping software; Intuit QuickBooks software

Customer relationship management CRM software — Avidian

Technologies Prophet; FrontRange Solutions Goldmine software; Software
on Sailboats Desktop Sales Manager; Vanguard Software Vanguard Sales
Manager

Electronic mail software — Email software; IBM Lotus Notes; Microsoft

Outlook

Enterprise resource planning ERP software — Deacom ERP software;

SAP software

Human resources software — Personnel scheduling software

Knowledge :
Administration and Management — Knowledge of business and
management principles involved in strategic planning, resource allocation,
human resources modeling, leadership technique, production methods, and
coordination of people and resources.

Customer and Personal Service — Knowledge of principles and processes

for providing customer and personal services. This includes customer needs
assessment, meeting quality standards for services, and evaluation of
customer satisfaction.

Personnel and Human Resources — Knowledge of principles and

procedures for personnel recruitment, selection, training, compensation
and benefits, labor relations and negotiation, and personnel information
systems.

Economics and Accounting — Knowledge of economic and accounting

principles and practices, the financial markets, banking and the analysis
and reporting of financial data.

Mathematics — Knowledge of arithmetic, algebra, geometry, calculus,

statistics, and their applications.

Computers and Electronics — Knowledge of circuit boards, processors,

chips, electronic equipment, and computer hardware and software,
including applications and programming.

English Language — Knowledge of the structure and content of the English

language including the meaning and spelling of words, rules of
composition, and grammar.

Clerical — Knowledge of administrative and clerical procedures and

systems such as word processing, managing files and records, stenography
and transcription, designing forms, and other office procedures and
terminology.

Sales and Marketing — Knowledge of principles and methods for showing,

promoting, and selling products or services. This includes marketing
strategy and tactics, product demonstration, sales techniques, and sales
control systems.

Production and Processing — Knowledge of raw materials, production

processes, quality control, costs, and other techniques for maximizing the
effective manufacture and distribution of goods.

Skills
Active Listening — Giving full attention to what other people are saying,
taking time to understand the points being made, asking questions as
appropriate, and not interrupting at inappropriate times.

Reading Comprehension — Understanding written sentences and

paragraphs in work related documents.

Speaking — Talking to others to convey information effectively.

Critical Thinking — Using logic and reasoning to identify the strengths

and weaknesses of alternative solutions, conclusions or approaches to
problems.

Monitoring — Monitoring/Assessing performance of yourself, other

individuals, or organizations to make improvements or take corrective
action.

Coordination — Adjusting actions in relation to others' actions.

Social Perceptiveness — Being aware of others' reactions and

understanding why they react as they do.

Active Learning — Understanding the implications of new information for

both current and future problem-solving and decision-making.

Complex Problem Solving — Identifying complex problems and reviewing

related information to develop and evaluate options and implement
solutions.

Judgment and Decision Making — Considering the relative costs and

benefits of potential actions to choose the most appropriate one.

Abilities
Oral Comprehension — The ability to listen to and understand information
and ideas presented through spoken words and sentences.

Oral Expression — The ability to communicate information and ideas in

speaking so others will understand.

Problem Sensitivity — The ability to tell when something is wrong or is

likely to go wrong. It does not involve solving the problem, only recognizing
there is a problem.

Written Comprehension — The ability to read and understand information

and ideas presented in writing.

Written Expression — The ability to communicate information and ideas

in writing so others will understand.

Speech Clarity — The ability to speak clearly so others can understand

you.

Deductive Reasoning — The ability to apply general rules to specific

problems to produce answers that make sense.
Speech Recognition — The ability to identify and understand the speech
of another person.

Information Ordering — The ability to arrange things or actions in a

certain order or pattern according to a specific rule or set of rules (e.g.,
patterns of numbers, letters, words, pictures, mathematical operations).

Inductive Reasoning — The ability to combine pieces of information to

form general rules or conclusions (includes finding a relationship among
seemingly unrelated events).

Job details :
Getting Information — Observing, receiving, and otherwise obtaining
information from all relevant sources.

Making Decisions and Solving Problems — Analyzing information and

evaluating results to choose the best solution and solve problems.

Coordinating the Work and Activities of Others — Getting members of a

group to work together to accomplish tasks.

Scheduling Work and Activities — Scheduling events, programs, and

activities, as well as the work of others.

Monitor Processes, Materials, or Surroundings — Monitoring and

reviewing information from materials, events, or the environment, to detect
or assess problems.

Monitoring and Controlling Resources — Monitoring and controlling

resources and overseeing the spending of money.

Selling or Influencing Others — Convincing others to buy

merchandise/goods or to otherwise change their minds or actions.

Communicating with Persons Outside Organization — Communicating

with people outside the organization, representing the organization to
customers, the public, government, and other external sources. This
information can be exchanged in person, in writing, or by telephone or e-
mail.

Establishing and Maintaining Interpersonal Relationships — Developing

constructive and cooperative working relationships with others, and
maintaining them over time.
Communicating with Supervisors, Peers, or Subordinates — Providing
information to supervisors, co-workers, and subordinates by telephone, in
written form, e-mail, or in person.

Work Context
Telephone — How often do you have telephone conversations in this job?

Freedom to Make Decisions — How much decision making freedom,

without supervision, does the job offer?

Structured versus Unstructured Work — To what extent is this job

structured for the worker, rather than allowing the worker to determine
tasks, priorities, and goals?

Contact With Others — How much does this job require the worker to be
in contact with others (face-to-face, by telephone, or otherwise) in order to
perform it?

Impact of Decisions on Co-workers or Company Results — How do the

decisions an employee makes impact the results of co-workers, clients or
the company?

Face-to-Face Discussions — How often do you have to have face-to-face

discussions with individuals or teams in this job?

Indoors, Environmentally Controlled — How often does this job require

working indoors in environmentally controlled conditions?

Frequency of Decision Making — How frequently is the worker required to

make decisions that affect other people, the financial resources, and/or the
image and reputation of the organization?

Deal With External Customers — How important is it to work with

external customers or the public in this job?

Duration of Typical Work Week — Number of hours typically worked in

one week.

Job Zone
Title Job Zone Three: Medium Preparation Needed
 Education Most occupations in this zone require training in vocational
schools, related on-the-job experience, or an associate's
degree.

Related Previous work-related skill, knowledge, or experience is

Experience required for these occupations. For example, an electrician
must have completed three or four years of apprenticeship
or several years of vocational training, and often must have
passed a licensing exam, in order to perform the job.

Job Training Employees in these occupations usually need one or two

years of training involving both on-the-job experience and
informal training with experienced workers. A recognized
apprenticeship program may be associated with these
occupations.

Job Zone These occupations usually involve using communication

Examples and organizational skills to coordinate, supervise, manage,
or train others to accomplish goals. Examples include food
service managers, electricians, agricultural technicians,
legal secretaries, interviewers, and insurance sales agents.

Interests
Interest code: ECS

Enterprising — Enterprising occupations frequently involve starting up

and carrying out projects. These occupations can involve leading people
and making many decisions. Sometimes they require risk taking and often
deal with business.

Conventional — Conventional occupations frequently involve following set

procedures and routines. These occupations can include working with data
and details more than with ideas. Usually there is a clear line of authority
to follow.

Social — Social occupations frequently involve working with,

communicating with, and teaching people. These occupations often involve
helping or providing service to others.
Work Styles
Dependability — Job requires being reliable, responsible, and dependable,
and fulfilling obligations.

Attention to Detail — Job requires being careful about detail and

thorough in completing work tasks.

Leadership — Job requires a willingness to lead, take charge, and offer

opinions and direction.

Self Control — Job requires maintaining composure, keeping emotions in

check, controlling anger, and avoiding aggressive behavior, even in very
difficult situations.

Initiative — Job requires a willingness to take on responsibilities and

challenges.

Integrity — Job requires being honest and ethical.

Stress Tolerance — Job requires accepting criticism and dealing calmly

and effectively with high stress situations.

Cooperation — Job requires being pleasant with others on the job and
displaying a good-natured, cooperative attitude.

Analytical Thinking — Job requires analyzing information and using logic

to address work-related issues and problems.

Persistence — Job requires persistence in the face of obstacles.

Work Values
Relationships — Occupations that satisfy this work value allow employees
to provide service to others and work with co-workers in a friendly non-
competitive environment. Corresponding needs are Co-workers, Moral
Values and Social Service.

Independence — Occupations that satisfy this work value allow employees

to work on their own and make decisions. Corresponding needs are
Creativity, Responsibility and Autonomy.

Working Conditions — Occupations that satisfy this work value offer job
security and good working conditions. Corresponding needs are Activity,
Compensation, Independence, Security, Variety and Working Conditions.
EMPLOYMENT  PLANNING   IS   ''HR  PLANNING''

IS  A  process by which an organisation ensures that it has the right

number & kind of people at the right place and at the right time, capable of
effectively and efficiently completing those tasks that help the organisation
achieve its overall objectives..
GG

Importance  of  HR  PLANNING

1)   Each Organisation needs personnel with necessary qualifications, skills,

knowledge, experience & aptitude .
2)   Need for Replacement of Personnel -  Replacing old, retired or disabled
personnel.
3)   Meet manpower shortages due to labour turnover 
4)   Meet needs of expansion / downsizing programmes 
5)   Cater to Future Personnel Needs 
6)   Nature of present workforce in relation with Changing Environment -
helps to cope with changes in competitive forces, markets, technology,
products and government regulations. 
     Shift in demand from ERP to internet programming has increased
internet programmers .

HOW   HR  PLANNING   COULD BE  USED

i)  quantify job for producing product / service    
ii) quantify people & positions required
ii) determine future staff-mix
iii) assess staffing levels to avoid unnecessary costs
iv) reduce delays in procuring staff
v) prevent shortage / excess of staff 
vi) comply with legal requirements

-------------------------------------------------------------

ARGUMENTS  IN  FAVOUR  OF   HR  PLANNING

Human resource planning is the process of anticipating and

carrying out the movement of people into, within, and out of
the organization. Human resources planning is done to achieve
the optimum use of human resources and to have the correct
number and types of employees needed to meet organizational
goals.
Thus, it is a double-edged weapon. If used properly, it leads
not only to proper utilization, but also reduces excessive labour
turnover and high absenteeism, and improves productivity.
It can also be defined as the task of assessing and anticipating
the skill, knowledge and labour time requirements of the
organization, and initiating action to fulfill or ‘source” those
requirements. Thus, if the organization as a whole or one of its
subsystem is not performing to the benchmark, in other words,
it is declining, it may need to plan a reduction or redeploys its
existing labour force.

On the other hand, if it is growing or diversifying, it might

need to find and tap into a source of suitably skilled labor .
That is why; we need to plan in advance even for procuring
human resources, which in contrast to a general myth are not
abundant!! Thus, in the same line, we propose that organization
can achieve its goals effective through effective contingencies
of all the HR functions; for example, the structure of an
organization and the design of the job within it affect an
organization’s ability to achieve only through the efforts of
people. It is essential therefore, those jobs within the organization
be staffed with the personnel who are qualified to perform
them. Meeting these staffing needs requires effective planning
for human resources

HENCE  “HR  planning is the process –

including forecasting, developing and controlling by which a
firm ensures that it has-
· The right number of people,
· The right kind of people,
· At the right places,
· At the right time, doing work for which they are
economically most useful”.
=====================================================
WHY  HR PLANNING    IS  SO  IMPORTANT  TO  BUSINESS/
ORGANIZATIONS

**Forecasting future manpower requirements, where we

use mathematical projections  to project trends in the 
economic environment and development of the industry. 

**Making an inventory of present manpower resources

and assessing the extent to which these resources are
employed optimally.

** Procuring competent personnel

requires positive recruitment efforts and the development
of a variety of recruitment sources. These sources must
consider not only the nature and conditions of the external
labour market, but also the presence of qualified personnel
who are available to fill vacancies through internal
promotions or transfers.
Keep in mind the recruitment activities is integrated with
diversity and equal employment opportunity initiatives.
Staffing needs must be anticipated sufficiently in advance to
permit the recruitment and development of fully qualified
personnel.

**Anticipating manpower problems by projecting

present resources into the future and comparing them
with the forecast of requirements to determine their
adequacy, both quantitatively and qualitatively; 

**Planning the necessary programmes of requirement,

selection, training, development, utilization, transfer,
promotion, motivation and compensation to ensure that
future manpower requirements are properly met.

**It’s a systematic approach. because it ensures a

continuous and proper staffing. It avoids or checks on
occupational imbalances (shortage or surplus) occurring in
any of the department of the organization.

**There is a visible continuity in the process. 

**There is a certain degree of flexibility. That is, it is subject

to modifications according to needs of the organization or
the changing circumstances. Manpower plans can be done
at micro or the macro levels depending upon various
environmental factors.

“ HRP is a kind of risk management. It involves realistically

appraising the present and anticipating the future (as far as
possible) in order to get the right people into right jobs at the
right time”. 

**Ensures optimum use of man (woman, too nowadays?)

power and capitalize on the strength of HR. The
organization can have a reservoir of talent at any point of
time. People skills are readily available to carry out the
assigned tasks, if the information is collected and arranged
beforehand.

**Forecast future requirements (this is done by keeping track

of the employee turnover.) and provides control measures
about availability of HR labor time. If, for example the
organization wants to expand its scale of operations, it can
go ahead easily. Advance planning ensures a continuous
supply of people with requisite skills who can handle
challenging jobs easily.

**Help determine recruitment/induction levels. 

**To anticipate redundancies/surpluses/obsolescence.

**To determine training levels and works as a foundation for

management development programmes

**Planning facilitates preparation of an appropriate manpower

budget for each department or division. This, in turn, helps in
controlling manpower costs by avoiding shortages/excesses in
manpower supply.

An HR Manager’s Guide to Mergers and Acquisitions

by David Zatz, Ph.D., Toolpack Consulting Senior Consultant

Astute HR leadership can bring out synergies while avoiding

collisions and “steamrollers.”

mergers
present opportunities and hazards for both the company and the HR manager. A
KPMG study showed that 83% of mergersand acquisitions failed to produce any
benefits - and over half actually ended up reducing the value of the companies
involved.

Consolidation and costcutting may be great hazards to HR, but the

opportunities are tremendous if you can convince the leaders of your value in
bringing the combined company together.

That number is only astonishing when one considers how many mergers
occur in a year, and how few companies seem to think matters through
(particularly cultural and systems methods) and consider alternatives.

There are also opportunities. For every eight failures, there is a case where
both companies emerge stronger. These are the cases where people in each
organization show that the value the other, and actively work together to
bring out the best values in each.

The role of HR
HR may be in a unique position to question assumptions about the nature
of assets and synergies. Investment bankers have a narrower training, and
are rewarded for making deals; human issues tend to get lost or overlooked.

The HR manager, on the other hand, has an opportunity to influence events

so that each company comes out ahead — but, to do that, the HR manager
must preserve their own position! Before, during, and after the merger, HR
may be responsible for assuring that cultural issues do not derail
integration; for increasing innovation; for keeping communication going in
all directions (upwards, downwards, across departments, across
organizations); and for lessening the impact on those who are “reduced”
and on the survivors.

Even at the highest level of the company, HR can have a role. The new
leadership team will need to work together on a daily basis, despite cultural
and personality differences, power issues, and other barriers. HR can act as
a facilitator, and also as a coach to individual executives. Personal and team
assessments can be helpful in enabling team members to work together
constructively.

Opportunities for HR
Mergers and acquisitions are often planned and executed based on
perceived cost savings or market synergies; rarely are the “people” and
cultural issues considered. Yet, it is the people who decide whether an
acquisition or merger works. opyright © 2001-05 Toolpack Consulting,
LLC. All rights reserved. Do not reproduce without written permission. The
opportunity for HR lies in the fact that customer and employee reactions
determine whether the newly combined company will sink or swim.. If a
convincing argument is made to senior leaders, HR may gain more power
to increase the effectiveness of the organization, and may be able to mold
the cultural changes instead of being pushed along by them.

Hazards for HR
One result of many mergers is the consolidation of staff departments.
Eliminating one of the HR departments is sometimes stated up front as a
justification for the merger.

For the “losing” department, layoffs tend to be a fact of life. The “winning”
department may find a substantially higher workload. If both HR
departments are kept, there may be issues of interdependence and
autonomy, and hard decisions about which policies and services should be
shared and which should stay separate.

In many cases, the parent company has taken on a great deal of debt
to finance an acquisition. The next logical step is to cut costs — and HR is
often the first department on the block. Thanks to outsourcing agencies,
even HR people in formerly indispensible functions such as benefits
administration can now be replaced for shortterm gains (and, sometimes,
long-term losses — but since the stock market rewards cuts in head count,
this may not be an overriding issue for leaders). Internal OD consultants
may be the first to be cut, since they are not clearly required to keep
products or services rolling out. This makes it particularly important for
HR managers to make a strong value case to the senior leadership.

Fortunately, there are also opportunities for HR to bring out synergies, so

that the combined company is stronger than the originals.

HR’s role before the merger

The HR leadership has an opportunity before the merger to ensure that
both organizations have a strategy mapped out in advance. Once the merger
starts taking place, people will often be too busy to keep a strategic
perspective.

Before the merger takes place, the leaders of both organizations - at least, of
the dominant firm - should have a strategy mapped out, including
communications to employees and customers, where layoffs will take place
(if any do), and how the cultures should be merged. A SWOT (strengths,
weaknesses, opportunities,

and threats) analysis should be done for the combined company. If

possible, a brief culture survey (preferably done via interviews as well as
paper or Web/e-mail) should be undertaken in both companies to discover
what the cultural differences are.

Sometimes this will be obvious in some aspects -e.g. one culture values
teams and bottom-up innovation, the other favors command-and-control
tactics - but not in others, such as how and whether individuals and teams
are rewarded for innovations, how failure is dealt with, whether confiict is
addressed openly, etc. This will prevent disconcerting delays between the
announcement and the implementation of the merger/takeover.

If the real purpose of the merger is to acquire another company’s assets, in

terms of a particular product or brand, its factories or patents, etc., that
should be acknowledged and dealt with up front. If employees are fooled at
first by pleasant words, they will react more strongly when those words
become taunts.

Finally, before the merger or acquisition takes place, the leadership teams

should consider the non-financial issues. Will people in the two companies
be able to work together? Will acquiring a company, or merging with it,
destroy the properties or drive away the talent that made it worth having?
Can a simple partnership, alliance, or even stock ownership without
integration provide more benefits than combining the two companies?
These issues may be overlooked by the leadership teams — just as they are
often ignored or downplayed by investment bankers who want to do the
deal.

Some questions to ask the leaders, in person or via open-ended survey, are:

 Are there viable alternatives to the merger (for example, greater

integration with suppliers, partnership deals, keiretsu)?
 Is there a communication strategy to keep employees and customers
informed?
 Are the cultures for the two organizations compatible? Is there a plan
for merging the cultures? Will one be dominant, and, if so, how will
people operating under the other culture be brought on board?
 What are each organization’s key strengths, weaknesses,
opportunities, and threats?
 What is each organization’s strategy? How will they be merged?

One way to get the answers to these questions is to have an outside agency
speak with senior leaders, one at a time — or, if that is not possible, to have
them circulate a brief confidential survey and present the results at a
facilitated meeting. Difficult questions, for example whether there are
alternatives to a merger, should be raised as early as possible.

The HR manager may need to raise the issue of culture - how people work,
how they think, what they value, and, of some importance, how they view
the other organization. If the acquired (or acquiring) organization is viewed
with disdain, these issues must be addressed up front. Likewise, severe
cultural differences must be addressed. They can be overcome with
attention and work.

Some cultural differences are obvious (e.g. one culture values teams and
bottom-up innovation, the other favors command-and-control tactics) but
others may be subtle (e.g. how and whether individuals and teams are
rewarded for innovations). Will acquiring a company, or merging with it,
destroy the properties or drive away the talent that made it worth having? If
the real purpose of the merger is to acquire another company’s assets, in
terms of a particular product or brand, its factories or patents, etc., that
should be acknowledged and dealt with up front. If employees are fooled at
first by pleasant words, they will react more strongly when those words
become taunts.

The HR leadership may, because of its skill and background, be placed in

the uncomfortable but important position of persuading corporate leaders
to admit the truth to themselves, and to employees.
HR as an internal consulting group
HR is often one of a few units which can work as an internal consulting
group during a merger or takeover, along with quality or process
engineering teams.

In this light, HR managers may be able to use management coaching skills to

help managers and executives to communicate effectively and completely,
to address power issues, and to deal with cultural issues. In some cases, HR
may take a more active role; in others, HR should act as a coach.

Individual HR staffers need to understand their current skills and may need
to update their knowledge or practice with role playing to ensure that they
are working as constructively as possible. Process consulting skills are
essential.

Some key issues in mergers follow.

Communication.

As people look inwards to try to find their place in the merged company and
attempt to see their future in it - or outside it - productivity drops. The
grapevine can become a major source of headaches. Constant, consistent,
and honest communication from leaders and HR is essential.

Power and conflict.

It is essential to bring confiict out to the surface and deal with power issues
honestly. If one group is obviously in charge, that should be admitted early
on so people don’t waste time with second-guessing. Often, people get
wrapped up in turf wars which are destructive to both sides, rather than
trying to figure out roles for both sides and have a win-win situation.

Culture

Organizational culture is an organization’s shared values, beliefs, and

preferred ways to behave - is a key to success, and though many talk about
it, few seem to have the skills to grapple with culture and work with both
organizations to assure a good fit. Many organizations use a brief cultural
fit survey to assist them during mergers.

Operations

Ideally, processes can be examined to see where true synergies lie. In many
mergers and takeovers, power relationships determine operational changes,
rather than actual efficiencies or quality concerns. By making changes with
facilitated cross-platform teams, HR can help to ensure that the best of the
two organizations are preserved.

New HR Staff Roles

In a role as executive coach / internal consultant, HR staff can also be
effective through:

• Helping the leaders to agree on a clear and specific set of

goals for the merger, with a focus on tangible, measurable results, which
brings misunderstandings and con- fiict into the open.

• Scenario planning - will the merger work if there is a market decline?

What will be the responses of customers and regulators?

• Exploring options - are there other ways to accomplish the same goals
without a merger?

• Investigating assumptions - the OD consultant, as an outsider, is in a

unique position to bring out hidden assumptions. This should be done
continuously throughout the process, though scenario planning and
exploring options are expressly designed to explore and test assumptions.

• Rewards - even where bonuses or profitsharing help to increase

motivation, the money itself is often symbolic, a measuring stick for
achievement. The HR staff should help the organization to set up
milestones and celebrate small and large successes along the route to
integration, so that people not only feel progress, but also feel that their
achievements are being rewarded.

• Integrating initiatives - ensuring that managers are not overwhelmed

by initiatives and changes that all seem to come at once.

• Watching key processes - often forgotten are key processes such as

new hire orientation, training, and even compensation systems. These
processes all support or sabotage both the present and desired culture. As
an HR professional, you know the impact of these processes, and can work
to make them support change efforts.

You can’t help if you’ve been laid off

Most of us have heard the flight attendant say, “If you are travelling with a
child, put your own oxygen mask on first.” If you’ve passed out, you’re not
going to help anyone. Likewise, if you’re laid off in the first stages of a
merger or takeover, you’re not going to be able to help guide the
organization to a safe landing. There are a number of steps you can take to
avoid the loss of your job, and the loss of your department, in a merger or
takeover. None are infallible; it is unfortunate, but often choices are made
based on personalities or power relationships.

Some Important Terms

Milestone: a deadline by which some important, measurableoutcome will have

been reached (a system implemented, customer turnover reduced by 10%, $10
million savings from employee ideas)

SWOT analysis: analysis of agreed-upon strengths, weaknesses, opportunities, and

threats (from competitors, regulators, etc.)

Stretch targets: a relatively high target, above what one would normally expect to
be able to achieve, and designed to motivate people for higher performance by
raising expectations

Synergy: where the whole is more than the sum of its parts due to economies of
scale, brand visibility, etc.

As the acquisition of Chrysler by Daimler-Benz shows, profitability and

practical matters can take a back seat to personalities and power
relationships.

Aside from the political and personal influence moves which are outside the
scope of this article, there are some steps you can take. First, you should
have a good, clear picture of how your department adds value to the
organization, described in terms the CEO and other powers would resonate
with. What is your contribution to the bottom line? Can you provide a brief
presentation of problems you have seen in the organization, and steps you
have taken to resolve them? Do you have cost savings of interventions your
department has undertaken, e.g. quality initiatives, cultural change,
employee survey-based change, facilitated process reengineering, etc.?

One way to justify not only your department’s existence, but also its leading
role in the merger integration, is to link key results to human issues.
Having a consulting firm statistically link employee survey results (possibly
from existing data) with operational, customer, or financial datacan pack a
powerful punch. “Not only do we know internal communication is
important, but we know raising it by ten points increases customer
retention by 5%. That leads to a $600,000 increase in revenue!” Similar
analyses can be used to predict employee retention.

An outside source of affirmation is The Loyalty Effect, a book which links

customer retention to revenue and profit. This is not a major breakthrough
— it can cost ten times as much to gain a new customer as to keep an
existing one — but the research support is enormous.

More significantly, the writers show how employee retention has a strong
impact on customer retention, which in turn has a strong impact on both
profit and revenue. This “bottom- line” argument can both position you as
having a strategic mindset, and give more weight to the “people issues”
which are key to a smooth, productive integration.

Collecting key department success stories - money saved through best

practices, innovation, or simple good sense, services provided, etc., is
usually helpful.

The key here, and you probably have guessed this by now, is to show how
much value your department adds, using as many quantifi- able metrics as
you can.

Find all cost savings, efficiency increases, and other positive outcomes that
you can, and show how your department is a profit center, not a cost center.

It’s not a guarantee, and it may not even work as well as forging strong
personal relationships, but it can be very convincing, and a show of good
faith (and a demonstration that you, personally, understand “real business
issues.”

Wrapping it up
By knowing what makes mergers succeed, keeping an eye on the human
issues as well as the financials, and using appropriate tools, companies can
make mergers work.

Your job as an HR manager is to quickly develop a strategy for helping the

company to achieve the synergies it needs — and develop HR’s game plan
for leading the process. It helps to have achievable goals, with stretch
targets, and concrete milestones (supported by good, valid measures) for
implementation.

The most important step may be to sell the process - because the best
change plans are useless unless they are implemented.

For your further perusal:

 Mergers and Acquisitions: Finding Synergy and Avoiding the Reefs

  Employee surveys: a tool for change | Making employee surveys
useful | Survey norms
 Increasing executive and supervisor credibility through visibility and
communication
 Solving problems and getting action - quickly | Mission statements
 Job involvement and identity | SPIGOT | Overtime and
health | Types of consultants | Why consultants fail |
 Engagement and the informal contract | How cultural change can
fail | Process mapping guide | Pareto charts
 An HR manager’s guide to mergers and acquisitions | Books | Tips for
building a valid survey
 Organizational development and change in education
 Career advice | Helpful books | Mac statistics software
 ...and also see this oddly unrelated car reviews site!

This site provides organizational development and change information.

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