Question

Imagine that you work at a local department store in a midlevel management position. You learn that your company is being acquired by Big Box, a much larger, non-union retailer. The sale and purchase of your store is intended to bring more product, logistical efficiency, and employee efficiencies to your particular market. Describe three significant HR issues that you and your people will likely face after your company is acquired.

Answer 1

HR issues likely to be faced after being acquired by Big Box

Company culture: The work culture of both the companies may or may not be compatible. It is important for the HR department to understand the culture of both the companies. There might be differences in how success is measured, management styles, how problems are dealt with, attitude of managers and employees towards their duties etc. Change is inevitable and it will be uncomfortable for everyone in the beginning. HR must make sure that this transition happens as smoothly as possible. This is only possible by openly communicating with the employees and dealing with their concerns.

Identifying and retaining key talent and deciding who goes: When being acquired by another company it may become necessary to eliminate redundant positions or to combine departments and teams. The HR must be careful and should see that key talent do not leave the company because of changes in role or management. Any issues they might be facing after the acquisition must be given due importance and care must be taken to see that they face a smooth transition. In addition some employees who become redundant will have to be discharged of their duties. HR must deal even with this.

Merging HR policies and strategies: It will be difficult to get a consensus in HR policies and strategies. HR must deal with any changes to be made in employee benefits, health insurance schemes, pension plans etc. In addition there might be a change in the role and structure of the company. It will take time for the employees to get adjusted to new roles and structures. It is important to get a synergy in the policies and strategies of the two companies so that there will be mutual benefits.