'The successful merger demands that strategic planners are sensitive to the human issues of the organizations'. For this purpose, as a Practicing Company Secretary outline the different checks which are to be made consis
CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · June 2021
'The successful merger demands that strategic planners are sensitive to the human issues of the organizations'. For this purpose, as a Practicing Company Secretary outline the different checks which are to be made consistently.
Answer & Explanation:
The successful merger demands that strategic planners are sensitive to the human issues of the organisations. For the purpose, following checks have to be made constantly to ensure that: Sensitive areas of the company are pinpointed and personnel in these sections carefully monitored; Serious efforts are made to retain key people; A replacement policy is ready to cope with inevitable personnel loss; Records are kept of everyone who leaves, when, why and to where; Employees are informed of what is going on, even bad news is systematically delivered. Uncertainty is more dangerous than the clear, logical presentation of unpleasant facts; Training department is fully geared to provide short, medium and long term training strategy for both production and managerial staff; Likely union reaction be assessed in advance; Estimate cost of redundancy payments, early pensions and the like assets; Comprehensive policies and procedures be maintained up for employee related issues such as office procedures, new reporting, compensation, recruitment and selection, performance, termination, disciplinary action etc.; New policies to be clearly communicated to the employees specially employees at the level of managers, supervisors and line manager to be briefed about the new responsibilities of those reporting to them; Family gatherings and picnics be organised for the employees and their families of merging companies during the transition period to allow them to get off their inhibitions and breed familiarity.
Topics: Mergers and Acquisitions
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