Target Merger Case Study

1349 Words6 Pages
Bringing multiple organizations together under one united system is occurring more frequently, but is not a simple task. Target has decided to undergo a merger by acquiring a major competitor. A merger is not an unpretentious task. This decision will come with many possible issue which is why the company is seeking my expertise as an external consultant. Merging two organizations will have an impact on the organizational structure, culture and compensation system. Due to the ongoing changes within the organizations many different tools will need to be implemented to control employee stress, along with keeping employees informed. In order to conclude that the mergers productivity an evaluation must occur. The pairing of Target and is acquired…show more content…
Changes in compensation could cause many issues is the staff does not feel adequately provided with benefits. A decrease in staffing can occur if the merger of the compensation systems leaves them feeling underpaid or that they have other employment options (Sinkin & Frederiksen, 2012, para. 4). For example, if staff will no longer receive a bonus in order to increase pay to help equalize pay grades across both companies. This could leave the staff that had their bonuses terminated with a feeling of being underpaid or unappreciated. Another issue that I am currently facing in my work environment due to a merger is the creation of a new health care benefits program. Currently three healthcare systems have merged and I am employed under the largest organization that carries the most affordable and largest range of healthcare coverage. Our concerns are the due to the merger the cost of our healthcare will rise or our coverage will decrease. Many employees are considering leaving the organization if this occurs. In order to aid in preventing issues during the merger controlling the employee stress must be…show more content…
It will impact the two organizational structures, cultures and compensation systems, which could generate issues. In order to keep the issues minimal many different tools can be implemented to control employee stress, such as keeping the employees informed. In order to inform the employee’s information must be shared internally. This can be done in many different way by taking advantage of current technology. To determine how the merger is going an evaluation process will need to be implemented. This can be done by taking advantage of a process that was used to identify the demand for a merger. This is beneficial because it is cost effective by reducing the finical needs that would be associated with creating a new process. The process involved in merging two companies is in depth and requires many different analytical strategies, which is why contracting an external consultant is
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