General Info.
This % of acquired firms is sold, spun off, or dissolved within 5 years. (+/- 5%)
What is 33% (28-38%)
There were two areas where HR was most frequently involved in the DUE DILIGENCE stage of mergers. Name one.
What are "Employee Benefits (89%)" and "Employee Compensation (82%)."
This is what the company SAYS are its values are; it may or may not match its genuine values.
What are "espoused values"?
Research shows that in merged firms, new managers and owners are LESS responsive to requests based on this standard of Distributive Justice.
What is "need"?
This type of merger has the Lowest degree of integration.
What is "financial"?
HR can help ____ talent by acting as an employee advocate with top management, communicating with employees, and creating teams drawn from both firms.
What is "Help Retain Talent"?
Physical artifacts such as architecture, dress code, and logos that communicate something about a company's culture.
What are "symbols"?
Workers may experience a sense of ____ during a merger because they may have to work harder for the same outcomes (pay) after a merger.
(Underpayment) Inequity
There are three dimensions to mergers. "Financial" is one. This is ONE of the other two.
What are (1) Desired degree of integration and (2) Strategic purpose?
HR can do this by: hiring new workers who buy into the new culture, train workers to learn the new culture, and by rewarding new behaviors.
What is "Change the culture?"
These establish group boundaries, communicate values, and initiate new members.
What are "rituals"?
Research shows that the LOWER a worker's "Job Continuity" is in a post-merger firm, the more important this type of Justice becomes.
What is Procedural Justice? (Interpersonal justice is also correct)
There are five reasons most mergers fail. One is an inability to implement change. These are TWO of the others.
What are: (1) Loss of worker productivity, (2) Incompatible org cultures, (3) Loss of key employees, (4) incompatible management styles?
During this merger stage, HR establishes policies consistent with top mgt. business strategy and HR monitors employee reactions to those policies.
What is the "Implementation" stage?
Research shows that these have three major themes: Goal accomplishment, job security, and rules.
What are "stories"?
This is the term for "overpayment inequity" when a worker gets to keep his/her job but similarly-performing co-workers lose their jobs.
What is "Survivor Guilt"?
This Cultural Integration philosophy suggests the merged firm draw from the best of each of the former firms' cultures AND take best practices from other firms also.
What is the "Transformation to a new Company" approach?
Some "Due Diligence" HR costs include: Unfunded Pension Liability, Benefit costs, Payroll/HRIS system conversion, Early Retirement/Severance, & Moving Expenses.
What are "predictable" HR costs?
Ed Schein's identified several levels of Org. Culture. "Artifacts" is one. These are the TWO other levels.
What are "Behavioral Norms", "Values", and "Assumptions"?
Research shows that in firms with an "Us vs. Them" mentality (reflecting Low org. cultural similarity), high procedural justice leads to ___ levels of Affective Merger Commitment.
What is "High" levels of Affective Merger Commitment?