The effective utilization and management of human beings has continually been adopted by organizations due to the realization that it reflects positively on production and the general performance of staff (Salaman, 2005). This realization has made the field of human resources be appreciated as one of those critical (strategic areas) to the performance of the organization. This has further made people be appreciated as a source of competitive advantage. The human resource managers of today are increasingly participating in the development of strategies in the business cadre while ensuring that the dimensions in human resources are considered (Schuler and Jackson, 2007).
Strategic human resource management is the kind of management that seeks to keep abreast with time and which aims at developing firm oriented strategies that aid and prepare the firm to adapt to the changes in the environment and the pressures that come along with these changes. The human resource manager as a strategic manager emphasizes the treatment of people as invaluable assets who represent a significant investment in the organization (Salaman, 2005). The idea is to view issues regarding the people on a long term basis and to solve current problems while aiming to curb those that may occur in the future. The strategic issues include the workforce demographics and the effects of shortages in staff on the organization (Schuler and Jackson, 2007). The manager has to aIDress the issue and cite the means to be used to curb such a problem as time goes by.
In a merger, the manager has to ensure that staff in both of the organizations coming together work in an effective way to achieve organizational goals. Merging means coming together of two or more firms, with the aim of pooling together resources and minimizing costs while realizing their goals (Schuler and Jackson, 2007) . Two companies coming together helps pool resources that are important in speeding growth and improving the value of shareholders. Mergers most of the time concentrate on finances and the law leaving out people who are some of the most important assets. Its not uncommon to find the human resource manager unprepared to deal with the problems that mergers bring along. An acquisition leads to the distortion of the regular working ways of people and ways have to be found to help blend the cultures of the merging companies.
The strategic function of the human resource manager in an acquisition gives them the role of ensuring that the organization has the right supply of staff with the documented skills and knowledge to execute the goals of the firm (Schuler and Jackson, 2007). The managers must therefore have the ability to attract the needed personnel for the jobs in the organization. The function of retention has most of the time been independent from the recruitment function. The two should however be linked for the simple fact that labor turnover is the direct result of poor recruitment systems.
Mergers work differently from the prior individual firms requiring that the managers review and develop the skills of the staff. The capabilities of people in terms of skills and knowledge in the execution of duties is what makes them essential and part of the competitive advantage (Armstrong, 2000). The HR strategic role requires that the staffs capabilities and competencies are expanded. In order to do so, the required skills must be identified and linked to the goals of the organization or to the activities or the firm. This calls for the joint cooperation between the HR professional and the line operators/managers. The skills possessed by the employees must then undergo assessment to identify gaps. These gaps are what show the training needs of the employees. Training can thence commence. Talent development is important for generating satisfaction from employees and it helps increase motivation (Armstrong, 2000).
Merging laws are different from those of single companies and they are hard to comply with. Its the duty to aid the organization comply with regulations. The HR manager as a strategic contributor must deliver the services of the function in means that minimize costs and that ensure the laws and regulatory measures are followed (Armstrong, 2000). Compliance with legal measures that regulate costs while delivering services is therefore key to ensuring effective production. There has been enactment of laws over the years at all levels including state and local and at the highest level, national. These laws are revised annually and its important that the managers ensure compliance (Schuler and Jackson, 2007). These may include such as equity when engaging staff, extension of leaves either medical or family and complacence with matters regarding health and safety.
A merger is larger, meaning the activities are more meaning that compensation has to be large as well. Its important to align the compensation systems with the strategic goals of the organization so that regardless of the performance of the firm, staff is rewarded in a competitive manner in accordance to their skill (Salaman, 2005). The level of performance must be attached to the compensation so as to enable the firm maintain the system. Management of performance in a newly acquired merger is called for as performance reflects at the production of firm. The productivity of an organization is a reflection of the performance of the firm. Decline in performance calls for checks in the causes and problems facing the employees hence the lags. The aim of performance management is to help identify the training needs of employees and thence the basis for performance improvement (Armstrong, 2000). There is a tendency to link pay and incentives with performance.
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