Explain the role of effective human resource management (HRM) during mergers and acquisitions.
What will be an ideal response?
Answers will vary. It is becoming increasingly clear that the successful management of human resources during the merger and acquisition process is quite important for the overall success of the project. Employees involved in mergers and acquisitions must abandon one self-identity and then develop a new one: an employee of the acquiring firm or an employee of the new, merged firm. However, research shows that this would lead to intergroup conflict. HR managers must, therefore, move to integrate the two firms into one and create a new self-identity for all employees: employees of the newly merged firm. In other words, for a merger or acquisition to be successful, all the employees should identify with the new firm and therefore work with one another and cooperate to help make the new firm the best it can be-especially because it is even more rewarding to be associated with a really successful firm.Another critical role the HR manager can play during this process is to serve as the center of communications. There is a great deal of uncertainty for everyone during a merger or acquisition, and the HR manager can work to communicate openly, honestly, and frequently with the employees. In addition, it is important to build employee identification with the new corporate identity. This can be accomplished with simple measures such as distributing shorts or caps with the new corporate logo, or it might involve orientation sessions in which all of the reasons and details of the merger or acquisition are explained. Through programs such as these, the HR manager can be an important player in the merger and acquisition process and thus can add value to the organization in yet another way. See 6-5: Managing Human Resources during Mergers and Acquisitions
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A building with an appraisal value of $154,000 is made available at an offer price of $172,000 . The purchaseracquires the property for $40,000 in cash, a 90-day note payable for $45,000, and a mortgage amounting to$75,000 . The cost basis recorded in the buyer's accounting records to recognize this purchase is
a. $160,000 b. $120,000 c. $172,000 d. $154,000
A merger between two or more companies that compete in the same business and geographical market is known as ________
A) horizontal merger B) vertical merger C) market extension merger D) conglomerate merger
The balances in the unadjusted columns of a work sheet will agree with:
A. whatever balances management has decided to report. B. the balances reflected in the company's unadjusted trial balance. C. the balances reflected in the company's financial statements. D. the balances management budgeted for the accounting period. E. the balances in the company's post-closing trial balance.
He set the analysis aside for a few days and had forgotten about it completely until one night when his frequent dining companion Leonid Hurwicz visited his house and retired to the drawing room for an apertif
"What you must do, my friend," Hurwicz began, "is to declare your coefficient of optimism, which can be tricky." After forty-five minutes of intense concentration, the cold, calculating father decided that his coefficient of optimism was 0.5. "Wait a minute Hurwicz, that figure sounds as if I'm afraid of making a decision," the father intoned. "It seems that depending on how optimistic I am, the optimal choice changes between alternative B and alternative D. Furthermore, another transition point exists between alternatives C and D. What is this devilry, Hurwicz?" Help Leonid Hurwicz identify the range of coefficients of optimism that render alternatives, B, C, and D superior to all others. The cold, calculating father did exactly that when examining the 27 year old failure to launch man child that had turned his walk in closet into a bedroom. As he saw it, there were five alternatives; each had its advantages and disadvantages, and under different circumstances, each had a different financial incentive. He laid it all out neatly in a table, but as not to arouse suspicion, he left the table's labels very generic, so the alternatives were simply labeled A through E while the different circumstances were simply numbered one through three. He flicked the gray ash off of his favorite purple smoking jacket and pondered the best course of action under each possible future. It was good to be devious, he decided. One Two Three A 19 6 20 B 26 5 48 C 24 18 17 D 43 34 15 E 36 34 15