Project #46705 - Human Resource Mgmt: Finalizing Due Diligence on Fundamental Factors

Systems theory is an enveloping concept that can be applied to most fields of study. Put in its most basic terms, systems theory proposes that every element within a specified framework has a direct impact on the other factors around it. In a business, this element could be as small as changing the floor location of a copy machine. Those who frequently use the copier would have to deviate from their normal routes. This seemingly small change could affect the way in which they interact with others, their work habits, their attitude about using the copier, and even their productivity. This one move, the location of the copy machine, has the ability to impact many other unforeseen parts of the system.

Making decisions in an acquisition is no different. After due diligence on the target’s fundamental factors is complete, HR must compare the target’s fundamental factors with its own. By doing this, HR can advise management with options on creating, adapting, or eliminating the current factors for each of the organizations. For example, if you are purchasing a target that is well known for having excellent policies and procedures, will you choose to adopt its current frameworks? What if the acquiring and the target organization use a different factor system but both have seen successful results? How do you determine whose to use and whose to eliminate? Furthermore, do all of the factors have to be changed for an acquisition to be successful?

This week’s Assignment will help you answer questions such as these. To complete your Assignment, you first view the scenario depicted below. You then assess the merger options that are given within the Assignment. Once you have selected the merger option that you believe to be the best solution, you analyze the potential benefits and consequences that come with your decision.


Imagine that Exquisite Designs is seeking to purchase the World Wonders organization. Exquisite Designs’ HR department conducted due diligence on World Wonders and found that both organizations provide performance bonuses but use different scales. World Wonders has a policy of heavily compensating individual sales representatives. For each sale that an individual employee makes, he or she can earn up to 40%. This bonus-driven policy has created an individualistic culture that has been both profitable and successful.

Exquisite Designs’ formal procedure for providing performance bonuses relies on the team approach. Their eight-person aggregate works together to establish relationships and sales opportunities with clients. If successful, each team earns 15%, with each team member receiving an equal portion of the bonus. This approach to performance bonuses has worked well for Exquisite Designs. Like World Wonders, they have continued to see an increase in profits and competitive advantage within the industry.

World Wonders and Exquisite Designs present two very different, yet equally successful, methods of motivating and compensating employees. These methods represent two very different cultures. If you were the HR professional for Exquisite Designs, how would you approach the practice of issuing performance bonuses after the two companies merge? How might formal policies and procedures be adapted to account for this? How would your decision affect the people and philosophies of the newly merged organization?

To complete this Assignment, respond to the following in a 4- to 5- APA Style page paper and use resources attached:

·         Assess merger options.

o    Review the following options:

§  Option 1: Shift all employees to Exquisite Designs individualized performance system.

§  Option 2: Shift all employees to World Wonders team-based performance system.

§  Option 3: Keep each organization as a separate entity. Exquisite Designs employees will continue to receive individual bonuses, and World Wonders will continue to receive team-based bonuses.

§  Option 4: Create a hybrid system that requires each organization to operate under a new performance measurement system.

o    If you were a sales representative in this newly merged organization, which option would motivate you more?

§  How might thinking like a sales representative help you to strategically select the most advantageous merger option for your organization?

o    Identify the one option that you might rule out first.

§  Why does this option strike you as the most ineffective way to finalize the process of distributing performance bonuses?

o    Identify the top two options you would examine.

§  How can each of these options have the potential to create continued success in Exquisite Design’s profits and sustainable competitive advantage?

·         Analyze the benefits and consequences that result from your selected merger option.

o    Choose one merger option from the list above that you would implement in this newly merged organization.

o    Justify the option that you have chosen by describing at least two benefits that come with your decision.

§  Contrast these benefits with potential negative outcomes that the acquiring and/or target organization might experience.

§  Compare these benefits and potential negative outcomes with that of one other available option included above.

·         Propose strategies for a successful fundamental factor integration.

o    Identify and describe at least two HR strategies you might employ when implementing your merger option.

o    How would these strategies help to align the philosophies, policies, and procedures of the organization while also keeping the people (employees) on both sides of the merger happy?




Subject Business
Due By (Pacific Time) 11/12/2014 02:00 pm
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