Cindy Ma #64032
Q1: Evaluate the bank’s approach to implementing the merger. The merger strategy is available, because First Bank & Trust Company’s profit was based on personal and real estate loans, and Northeastern Bank & Trust Company was less developed on this part. Q2: Are there human resource issues other than those listed by the Human Resource Steering Committee that emerge when two companies merge? Except the listed human resource issues, there are some issues the two banks may face. 1. Salary system: it needs to be redesigned, because the salary system of two companies may have differences. 2. Welfare program: it needs to be fair and equal that every employees can receive same benefit. Q3: Do you agree with Ramsey’s comment that a successful merger is 10 percent planning and 90 percent communication? Why or why not? I agree his point. But the weight may has little change for 30 percent planning and 70 percent communication, because a well planning can prevent unnecessary mistakes, but a well communication can let employees know what can they do and smoothly implement the merger. Q4: Develop a plan of action for handling the projected labor surplus. What factors need to be considered? When two companies merger, there may have labor surplus, but how to layoff is a big problem and many factors needs to be consider like: 1. If implement staff reduction, who should be layoff? The company should remain people who have special skills. 2. If the company keep stay all the employees, how to transfer those surplus labor to other department. Q5: How should the Human Resource Steering Committee handle the needed staff reduction in the Trust Center? 1. Just like my opinions mentioned before, who will remain and who will layoff? The standard can base on the employees performance history and whether they have special skills like specialization in accounting. 2. How to decide the amount of severance pay? It will impact the feeling of people who being...
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