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Group Report 30% HRMT 4338 HUMAN RESOURCE PLANNING Course Project (30 %) LK Business Supplies is a company selling commercial stationery to offices in and around ALKhobar, Eastern Province, Saudi...

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Group Report 30%
                                                HRMT 4338
HUMAN RESOURCE PLANNING
Course Project (30 %)     
LK Business Supplies is a company selling commercial stationery to offices in and around ALKhobar, Eastern Province, Saudi Arabia. Most of its business comes from general office supplies, such as paper, pens, printer cartridges etc., although it also supplies office machines.
The office is staffed as follows:
    CEO
     
     
    Manage
    Admin staff                  3
     
    
    
     
    Sales Manage
    Field Sales                   6
     
    
    Tele-sales                     4
Customer Support        1
     
    Warehouse Manage
    Warehouse man           4
     
    
    Driver                           5
     
The tele-sales staff are involved predominantly in selling to small and medium companies and the field sales staff to larger accounts, with the focus on new as well as existing customers
Set up in 2010, LK Business Supplies has grown very quickly, but in 2017 it was still very heavily dependent on the corporate memory, skills and experience of its Manager, Sam Millwood,
other of the founder, Walt Millwood. The company expects to grow by 20% in 2018/19.
Until recently, Sam was responsible for just about everything. He had been involved since the company was founded, had held a variety of positions and had an intimate understanding of the organization's operations and history. And, of course, he had a direct line of communication to the CEO, his
other.
On April 5th, 2017, Sam was killed in a freak car accident on the highway. His unexpected death was a hammer blow and a huge shock to his colleagues. Everything he had known about the organization was "in his head." Although Walt had often asked him to document information and pass his knowledge on to others, this had never happened. Sam had always been “too busy”.
Walt Millwood has decided to retire and has sold the company to Chuck Wentworth. Chuck wants to invest a large sum of money in order to expand the company’s operations. He  has hired you to draw up a consultancy report in which you:
1. Conduct a PESTLE analysis for the business [12 marks]
2. Identify likely future trends that will impact the business [12 marks]
3. Identify key problems that could impact future growth or profitability [10 marks]
4. Draw up a proposed organization chart for the company  [ 5 marks]
5. Propose and justify new positions to help the company expand [15 marks]
6. Develop competency based Job descriptions / Person specifications for all management positions. [ 15 marks]
7. Explain the advantages of a succession management process [ 10 marks]
8. Describe the succession management process you are proposing [ 15 marks]
1.   Each group is to submit both a written report via Safe Assign and email a soft copy to your lecturer.
2.   Use size 12, Times New Roman font, double spaced, minimum of 12 pages.
3.   The report should have:
a. Cover page
. Executive Summary
c. Table of Contents
d. Introduction
e. Main Body
f. Conclusion
g.  References
 
4.  Tables, diagrams and figures should be sourced accordingly and include proper referencing and bibliography.
 
Plagiarism 
Copy paste and plagiarism is not allowed. If your report shows more than 10 %, marks will be deducted accordingly.
 
Submission
18 April 2018
50 % of the total marks will be deducted for late submission

Chapter 13
Chapter 12
Mergers and Acquisitions
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Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd.
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Learning Outcomes
After reading this chapter, you should be able to:
    Understand the various types of mergers and acquisitions
    Explain why organizations merge and the methods used to achieve a merge
    Identify the financial and human impacts of mergers
Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd.
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Learning Outcomes
After reading this chapter, you should be able to:
    Describe the issues involved in blending cultures
    Discuss how a merger affects HR planning, selection, compensation, performance appraisal, training and development, and labour relations
Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd.
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Review Strategic Types (Chapter 1)
Corporate strategy: Organizational-level decisions that focus on long-term survival
Restructuring: Includes turnaround, divestiture, liquidation, and bankruptcies (Ch 10)
Growth: Includes incremental, international, and mergers and acquisitions
Stability: Maintains status quo
Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd.
    Reviewing Chapter 1 for corporate strategies
iefly is beneficial to see that mergers and acquisitions are growth strategies, whereas Chapter 10 was about downsizing, which is a restructuring strategy.
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Mergers in a Post-
Global Economic Crisis
    Mergers and acquisitions peaked in 2007.
    Buyers are typically focused on M&As to support growth strategies.
    Sellers have become more reluctant to sell due to issues with valuations of organizations and the economic climate.
Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd.
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Definitions
Merger: The consolidation of two organizations into a single organization
Horizontal merger: The merging of two competitors
Vertical merger: The merger of a buyer and seller or supplie
Conglomerate merger: The merger of two organizations competing in different markets
Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd.
    It is important to review the vocabulary with the students; see “Exercise 1” for more practice.
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Definitions
Acquisition: The purchase of an entire company or a controlling interest in a company
Consolidation: Two or more organizations join and form a new organization
Takeover: One company acquiring another company
Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd.
    Note later that hostile takeovers are mentioned because takeovers are rarely done amicably.
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Strategic Benefits
Operating synergy: The cost reduction achieved by economies of scale produced by a merger or acquisition
Vertical integration: The merger or acquisition of two organizations that have a buyer-seller relationship
Horizontal integration: The merger or acquisition of rivals
Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd.
    The Urge to Merge
    Companies merge for three reasons:
    Strategic benefits
    Financial benefits
    Needs of the CEO or managing team
    Note that sometimes economies of scale is synonymous with operating synergy.
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Financial Benefits
    Organizations need to reduce the variability and risk of their cash flow.
    Organizations often use “cash cows” to fund “star” operations.
    All growth strategies have different tax implications.
Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd.
    All mergers have complex financial implications that need to be addressed carefully.
    Other financial benefits include the following:
    Developing new products and entering new markets is expensive.
    Financial statement analysis often reveals undervalued organizations.
    Goal is to increase shareholders’ wealth.
    Although one of the objectives is to increase stock price for shareholders, 80 percent of mergers fail to do so.
Needs of the CEO or Managing Team
    Managers may pursue their personal interests at the expense of stockholders.
    Often the motives of executives can be deemed unconscious.
Copyright © 2013 by Nelson Education Ltd.
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Copyright © 2013 by Nelson Education Ltd.
    Some managers make decisions only to prove their capabilities.
    Other studies link personality factors such as the need for power in making management decisions.
    Also note that alongside of power and influence, there is a role for ego in mergers as well.
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Merger Methods
Hostile takeovers: Are dramatic and complex when one company takes over control of anothe
Poison pills: Refers to the right of key players to purchase shares in the company at a discount, making the takeover extremely expensive
Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd.
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Merger Methods
White knights: Buyers who
will be more acceptable to
a targeted company
Pac-Man: A defensive manoeuvre where the targeted company makes
a counteroffer for the
idding firm
Copyright © 2013 by Nelson Education Ltd.
©Robyn Mackenzie/Shutterstock
Copyright © 2013 by Nelson Education Ltd.
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The Success Rate
of Mergers
    Only about 15 percent of all mergers (and acquisitions) successfully achieve the financial goals.
    Best success rates are with similar businesses rather than dissimilar ones
Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd.
    One of the greatest indicators of merger success is related to the acceptance of organizational culture.
    Given the 15 percent success rates, it would behoove merger transitions teams to focus more on culture.
    Mergers take so much time and resources that often the original business is neglected.
    Mergers are more successful when a large firm abso
s a small firm.
    Mergers are less successful in service industries (compared to manufacturing) due to greater risk.
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Reasons for Failures
of M&As
Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd.
    Note that there are financial, human. and process costs associated with merger and acquisition failure.
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Financial Impact
    Estimated financial returns are rarely realized.
    Many mergers fail because the buyer overextends itself financially with high debt loads and then must apply cost- cutting measures to service the debt
    Some forecasted economies of scale are never achieved.
Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd.
    With so many negative financial outcomes, it is important to ask the students why mergers still go ahead.
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Impact on Human Resources
Reduced employee/manager morale before, during, and after the merger may lead to: EXPLAIN
Lower productivity \ morale
Sabotage
Stress and anxiety
Survival tactics
Higher turnove
Lower efficiency
→ Creates negative financial consequences
Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd.
    It is important to realize that the human impact from mergers creates a very negative financial impact on an organization.
What Is Culture?
Culture: The set of important beliefs that members of an organization share
Copyright © 2013 by Nelson Education Ltd.
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Copyright © 2013 by Nelson Education Ltd.
    These beliefs are often unspoken.
    They are an accumulation of the group’s shared history and experience.
    Culture is known as the “social glue” that binds individuals together and creates organizational cohesiveness.
Assimilation
Assimilation:
Occurs when one organization willingly gives up its culture and is abso
ed by the culture of the acquirer or the dominant partne
Copyright © 2013 by Nelson Education Ltd.
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Copyright © 2013 by Nelson Education Ltd.
    There are four cultural options for mergers and acquisitions, including:
    Assimilation
    Integration
    Deculturation
    Separation
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Integration
Integration: Refers to the fusion of two cultures, resulting in the evolution of a new culture representing the best of both cultures
    This form rarely occurs because the ma
iage is rarely one of two equals, and one partner usually dominates.
Copyright © 2013 by Nelson Education Ltd.
Copyright © 2013 by Nelson Education Ltd.
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Deculturation
Deculturation: Sometimes the acquired organization does not value the culture of the dominant partner and is left in a confused, alienated
Answered Same Day Apr 17, 2020

Solution

Soumi answered on Apr 18 2020
131 Votes
Running Head: SUCCESSION MANAGEMENT    1
SUCCESSION MANAGEMENT         2
HUMAN RESOURCE PLANNING
(SUCCESSION MANAGEMENT)
Table of Contents
7.    Benefits of the Process of Succession Management    3
8.    Describing the Proposed Process of Succession Management    4
References    6
7. Benefits of the Process of Succession Management
    Succession management refers to the procedure of understanding, identifying as well as evaluating the potent employees of a company and training them in accordance with the needs of the organization (Hammer, 2015). This process is essential for the new owner of LK Business Supplies to be conducted so that the organizational objectives are easily met. The advantages of the process are as follows:
· Providing scopes to better-skilled and highly potent employees
· Increasing the number of talented employees, who are promotable
· Identifying whom to be replaced with better ones
· Increasing chances for the organization to meet its objectives (Michel & Kammerlander, 2015)
· Analyzing the intellectual capital of the organization
· Supporting professional development of the potent employees
· Improvising the skills of the employees in accordance with the transiting environmental needs
· Supporting the progress of the diversified working groups in the organization for a better pool of talent
· Adjusting with the impact of voluntary separation programs, if the staffs of the company separated on the grounds of the merged culture of the organization Enhancing their morale at workplace
· Managing the impacts of downsizing of the...
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