Barclays Lehman Hrm Challenges

Topics: Organizational culture, Human resource management, Management Pages: 14 (4012 words) Published: August 3, 2010
|Organizational Behaviour | |Barclays PLS & Lehman Brothers Merger | |Yasir Irshad |


Executive Summary

The Human Resource Management challenges faced by the Barclays PLC after merger with Lehman Brothers were mainly the low motivational levels of Lehman Brothers employees which were due to demise of Lehman Brothers and merger with Barclays PLC. Another factor was of personality differences between employees and groups of employees. They were required to have a very strong and clear communication with all the stakeholders as communication is a tool which is of most importance in scenario of mergers. Performance management and reward programs were also required to be in place to get all the employees understanding the objectives and goals of the organisation. With merger there is always stress which can be lethal and there was a need to develop a common culture to discourage any cultural clash. Retention policy was required to be in place for the talented staff who can get disillusioned due to merger activity.

The issues related to culture were that these two organisations had their own corporate and national cultures which were being followed for quite some time. Barclays understood the need and tried to make a new common culture so that there is no situation through which a clash arises. The conflict issue was addressed with clear and strong communication and they were given clear understanding of objectives and goals of the organisation. In terms of change the issues were mainly related to insecurities of career, job and monetary terms which were addressed immediately by the management.

The stakeholders must have faced dilemmas about integration of two cultures which will bring change and might also generate conflict between the stakeholders as it might affect the future aspirations of the organisation.

Table of Contents

HRM challenges4
Personality Differences5
Performance Management6
Stress Management7
Development of Common Culture7
Talent Retention8
Pre & Post Merger Phases9
Analysis of Merger Decision10


Merger is known as the combining of two or more entities into one, through a purchase acquisition or a pooling of interests. Merger is a bit different than acquisitions as with merger a new entity is formed whereas it is not necessary in the case of an acquisition.

Generally the company’s focus is on the strategic aspects or legal issues when it comes to mergers, but the neglected part in most of the cases is H R. H R is extremely important in mergers as it is the biggest contributing factor when it comes to success or failure of a merger project. Most of the mergers are unable to produce desired or targeted results only due to issues related to people who are involved, mainly the staff of the company which is being over taken. Mergers can bring uncertainty to the employees if human resource issues are not managed in a professional and attentive manner, which can become detrimental to the future aspects of the companies involved.

When it comes to a successful merger the required elements for the Barclays PLC and Lehman Brothers were having an effective leadership which understands how the merger process works and how to implement it. They need to be clear about their goals and objectives which are expected to be achieved out of the merger exercise. They need to have due diligence on hard and soft issues surrounding the merger and there need to be a well-managed and assured merger team for the whole process. Learning from any past experience of the same nature than it can be very helpful in a smooth transition. The planning needs to be completed early and the most important part in terms of HRM is to retain the...

References: • Tom Junod. (2009). The Deal of the Century.
• Dr. Geert Hofstede. (2010). Organizational Culture and National Culture.
• Laurie J Mullins (2010). Management and Organisational Behaviour.
• Hope Greenfield. (2009). Culture Crash.
• Anon. (2008). Ex-Lehman Broker Accused of Passing Merger Tips.
• Andrew Ross Sorkin. (2008). Who’s Getting What in the Lehman-Barclays Deal.
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