Project #47807 - HR Mgmt: Due Diligence on Two Disparate Systems

Marriage is a time when two distinct family cultures are placed together as one. During this transition, many unique differences are bound to shape the way in which each side interacts with one another. Before these differences begin to impede on the joy of the union, the bride and groom must determine which traditions they wish to continue and which values they wish to instill in their own family. As these decisions are agreed upon and communicated to family members, the two entities are better able to understand one another.

The union of two families is very much like the process of a newly merged and/or acquired organization. During M&A dealings, each organization represents a disparate 4P system. Though differences may not seem as important at the onset, many significant problems can arise as the two become integrated into one company. Before the alignment of these two systems negatively impacts synergy and the financial bottom line, HR should advise top management on how to best address the differences between the two.

For this week’s Assignment, you specifically examine the misalignment of employee benefits. To complete this Assignment, you first review the Nelson article presented with the resources, to examine due diligence on employee benefits. You then use the scenario presented below to place yourself in the role of an HR professional in the health care industry. Finally, you formulate strategies for successful integration.  

Scenario

When Advantage Medical conducted due diligence on Transformative Health, an organization that it was looking to acquire, its HR department found the following discrepancies:

·         Acquiring company: Advantage Medical, a pill production factory based in South Carolina, assembles name brand allergy medicine. Factory workers receive $17 an hour and are on a full pension plan. The organization ensures all employees have a strong health care plan. Strict policies on vacation and sick days are enforced.  

·         Target company: Transformative Health, a pill production factory based in Hyderabad, India. Assembles generic allergy medicine. Factory workers receive $6 an hour and have no formal pension plan. The organization has a weak health care plan with high deductibles and low coverage. It does not provide dental and vision, and workers must pay a lot to add their families to their plans. Managers currently hold a lenient policy on vacation and sick days.

The executives for Advantage Medical entrusted HR to provide them with the ethical, legal, and financial impacts that come with acquiring Transformative Health. As the head HR professional in charge of conducting due diligence for this merger, you know that every disparate element of this deal must be discussed. As such, you begin to identify and provide the real-world ways each element can both positively and negatively affect the culture and bottom line of the company.

To complete this Assignment, respond to the following in a 2- to 3- APA Style paper:

·         Part 1: Assess organizational risks for each company involved in the merger and acquisition.

o    Identify all disparate elements presented in this scenario.

§  For example, in which ways does each company differ?

o    If left unaddressed, predict how each disparate element could negatively affect the culture and bottom line of both Transformative Health and Advantage Medical.

·         Part 2: Formulate solutions for successful integration.

o    As part of the HR department, how might you advise the executives in their decision-making process?

§  Describe a solution that you would present to management to address each of the disparate elements that you identified in Part 1.

§  How might each of your solutions help to harmonize the disparate elements presented in this scenario?

 

Note: You will answer each of the above questions for every disparity presented in the Advantage Medical/Transformative Health scenario. Also, be sure to save both Part 1 and Part 2 into one “.doc” file.

Subject Business
Due By (Pacific Time) 11/21/2014 12:00 pm
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