"The successful merger demands that strategic planners are sensitive to the human issues of the organizations". Discuss and mention the checks that need to be ensured in this regard.

CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2019
"The successful merger demands that strategic planners are sensitive to the human issues of the organizations". Discuss and mention the checks that need to be ensured in this regard.

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 are carefully monitored; serious efforts are made to retain key people; a replacement policy is prepared to cope with inevitable personnel loss; employees are informed of what is going on in the organization i.e. even bad news is delivered systematically. Uncertainty is more dangerous than the clear, and logical presentation of unpleasant facts; training department is fully geared up to provide short, medium and long term training to 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 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 especially employees at the level of managers and supervisors Further 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 overcome their inhibitions and breed familiarity.

Topics: Mergers and Acquisitions

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