RAYAT LONDON COLLEGE
SUBJECT:- RESEARCH METHODOLOGY COURSE:- MBA SEMESTER 1 LECTURER SUBMITTED BY SUBMISSION DATE DR. LANGESWARAN SUPRAMANIAN ARSHAD MUHAMMAD 14 DECEMBER 2007 “EFFECTIVE MANAGEMENT OF JOB REDUNDANCIES IN POST MERGER AND ACQUISITION SCENARIO (SERVICE SECTOR)”
TABLE OF CONTENTS
1. ABSTRACT 2. INTRODUCTION 3. MOTIVATION 4. RATIONALE 5. LITERATURE REVIEW 6. RESEARCH METHODOLOGY 7. FURTHER EVOLUTION 8. CONCLUSION 9. REFERENCES AND BIBLIOGRAPHIES
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This report introduces a practical model of training and development needs assessment to reduce redundancies stress on employees after merger and acquisition. The proposed model is competency-based, which allows for the incorporation to reduce redundancies in post merger situation. When redundancy is the only route available, employers invariably feel obliged to assist those affected with positive planning measures for what, at the time, can seem an uncertain future. However, this is not an easy task. Redundancy can be a difficult ordeal, hitting hard both mentally and emotionally and unless professionally implemented, employers will invariably fall short of ‗having done enough‘ to really help. Everyone deals with redundancy in a different way. Being made redundant can provoke a range of emotions at different times, including shock, anger, loss, fear, denial or acceptance. Redundancy after M&A is a risk to all employees, and needs careful handling and counselling. Less recognised are the needs of those left behind. On the analogy of major disasters, they too demand meticulous attention to avoid deleterious effects both to themselves and to their organisations. The management of restructuring, redeployment or redundancy is important, not simply to be humanitarian, or for good public relations, but also because the effectiveness, vision and mission of the organisation that survives is at stake. Survival tips for both the individual and the organisation are indicated.
Since the late 1980s, the total number of mergers and acquisitions (M&As) has far surpassed the number that occurred throughout the 1960s. Whereas the M&As throughout the 1960s were mainly due to unions between conglomerates, the 1980s and 1990s has witnessed an increase in M&As between firms of different sizes and different industry types, Merger and acquisition would have corporate strategies directed at gaining competitive advantage and satisfying customers′ needs always have human resource implications, and tactics such as job redesign, multi-skilling, redeployment, training, paying for performance, layoffs and downsizing should be specifically directed at implementing the human resource strategies of organisations. Unfortunately, however, the strategic considerations which should accompany the use of these tactics are often absent. The primary purpose of merging and acquiring new firms is usually to improve overall performance by achieving synergy, or the more commonly described as the ―2 + 2 = 5‖ effect between two business units that will increase competitive advantage (Weber, 1996). Recent research indicates that these M&As have a negative impact on the economic performance of the new entity because of human resource implications mostly redundancies (Tetenbaum, 1999). Therefore, although M&As are usually extremely well planned out in terms of financial and legal aspects, the conclusion that has to be drawn is that these poor results have come to be attributed to poor human resource planning. Redundancies after M&As can be a difficult ordeal, hitting hard both mentally and emotionally and unless professionally implemented, employers will invariably fall short of ‗having done enough‘ to really help. Redundancy is probably the most evocative and fear inducing form of organisational change for many workers. Each year in the UK, there are over 200,000 notified redundancies. What is perhaps of more...
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