Question

Question #1 of 50

Question ID: 542543

During the time between an agreement to merge companies and the final closing of the merger, management should practice containment, which means

A)

plan how to keep the employees from deciding to leave the company.

B)

make sure the managers of the other firm do not taken assets of the firm away before the merger.

C)

keep the merger secret so that damaging rumors do not threaten relationships with the staff.

D)

obtain signs and promotional materials to prepare for the public announcement.

Answer 1

Answer is A) plan how to keep the employees from deciding to leave the company

Mergers and Acquisitions create certain amount of fear in the minds of employees regarding their future opportunities in the firm, the pay structure, designations and promotions, communication with newer staff etc.

Below are the steps that HR professionals can take to ensure that the firms' mergers and acquisitions are successful -

1. Identifying the cultural differences between both the employees in the firm and developing communication and training programs to ensure they understand and respect each others' cultures

2. Ensuring the compensation structure is designed and managed effectively as both the firms will have different pay structures to ensure discrimination

3. Designing a performance management system that is acceptable to both the firms.

4. Managing and merging the union contracts of both the firms