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  • Essay / Mergers and Acquisitions Case Study - 1037

    1. IntroductionHuman resources professionals are needed more than ever. Their knowledge of business and human resources can help organizations develop strategies and align human resources management policies and practices with the strategies developed. In this report, the two chosen strategic issues that affect human resource management practices in organizations are mergers and acquisitions and outsourcing.2. Mergers and AcquisitionsAcquisition refers to the purchase of a company's assets or the transfer of ownership from the seller to the buyer ("An Overview of", n.d.). This process occurs in the form of purchases of shares, assets or even mergers. Therefore, the acquisition can take place with or without the merger process. While normally referred to as a merger, it refers to the merger of one company with another or a takeover by another. Typically, during the merger process, small businesses will cease to exist, leaving their liabilities and assets to the acquiring company. When the merger and acquisition process takes place, the human resources department will need to take extra precautions to ensure that the goals are achieved. AdvantageOne of the most obvious advantages of the mergers and acquisitions process is obtaining proprietary talent, knowledge and technology from the acquired company. This will allow the acquiring company to increase its skills, as it will be able to provide more products and services to end consumers (Dugar, 2009). Therefore, it gives a competitive advantage to the acquiring company in this high rivalry market. On the other hand, the obtained proprietary talents, knowledge and technology will enable the company to reduce its research and development costs. Middle of paper......human resources or companies should implement when resorting to outsourcing is to have a well planned and negotiated contract. Despite losing management rights or control, companies will need to communicate well with outsourcing companies to align and achieve the quality they expect. In the event of substandard service, companies will be able to enforce it through a law that gives them the right to protect themselves (Ahmed, 2005). On the other hand4. ConclusionOverall, human resources play an important role in the business growth of a company. This is mainly because the strategic problems encountered are mainly man-made. Therefore, with strong human resource management, businesses will be able to maximize their employees' gains, resulting in maximum productivity leading to higher and sustainable growth...