Question: Read the following case and answer ALL the questions below. Organizations use mergers and acquisitions as a way to reduce expenses, break into untapped markets,
Read the following case and answer ALL the questions below.
Organizations use mergers and acquisitions as a way to reduce expenses, break into untapped markets, reach out to new customers, andor diversify their business plans. In a perfect world, integrating business operations would be an easy and fluid process, but many times the reality is very different. Companies often find it difficult to mesh varying business cultures because employees in the merging companies have grown accustomed to how business is conducted in their different worksites. Consequently, as many as half of all mergers and acquisitions fail, and many more of them dont really help companies improve their overall worth. Merging firms must focus their efforts on creating a positive cultural fit.
A good example of how to effectively manage these processes involves the recent merger that took place between the Clevelandbased architectural design company Vocon and New Yorkbased Conant Architects. Vocon acquired Conant to diversify its offerings beyond interior design to include workspace development. Yet, the HR group was concerned about how to make employees feel good about the merger, particularly because the culture in Vocon was considered to be fun while the culture in Conant was thought to be traditional So they had to find ways to help reduce employees fears.
Vocons Chief Human Resources Officer Susan Austin first looked for any differences in
the companies employee handbooks so that she could describe to workers the changes that would be needed. She also grouped individuals from the two firms together so that they could interview each other in a fun and dynamic way. Finally, the Conant employees were flown to Cleveland for a holiday party at Vocons headquarters to build morale. HR professionals need to develop sound strategies for managing mergers and acquisitions.
Explain what unique strategies could be used to reduce the anxiety experienced by employees during mergers and acquisitions. Discuss how could an HR department help with these efforts. Please give references.
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