Hr Merger Essay

In today’s competitive environment, the rate of mergers and downsizing is increasing day by day. In order to face the challenges caused by high competition between firms, organizations are trying to merge more and more in order to reduce their cost, Increase high market share, obtain highly qualified and skilled employees and make their workforce more diverse. All these are done due to gain the competitive advantage and for remain in the market.

When two companies deal to merge themselves, the most important concern of HR department should be their workforce or employees.

Whenever companies merge, there is likely a chance of downsizing which result termination of employees which creates anxiety, stress and discontent among the employees. In this situation HR department plays a vital role to handle all the activities of merger and downsizing effectively and try to reduce the discontent and stress among employees because of circumstances occur after mergers.

In this case, one most important and critical condition of merger is that Alpha Incorporation will lose its 80% employees and only 20% employees will be merged into the new setup. HR manager responsibility is to handle this critical situation effectively and reduce stress, anxiety and discontent of employees as soon as possible.

Steps HR manager must take in this situation:

• When

Discuss problems with their employees about what problems their firm is currently facing, whatever the reason of merger HR manager should discuss this with their employees. If HR manager involves employees in meeting than employees and organization understanding with each other will increased. Employees will understand the circumstance which their firm currently faces. Employee’s feel that their organization is giving respect them and organization treat their employees as a partner. This will increase their level of