Human Resource Management

CHAPTER

15 Mergers And Acquisitions, Restructuring

and Downsizing

Contents

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At the end of this chapter, the students are expected to:

1. explain the impacts of merger and acquisitions on employees;

2. identify the communication issues in merger or acquisition;
3. critique the HR-related strategies in merger or acquisition; and
4. select ways to lessen negative impact of downsizing.

Learning Objectives Suggested Instructional Strategies

Rounds
Call as many students from the class to give as
many answers as possible.
LO 1: explain the
Supplemental Discussion – Ask students to visit
impacts of merger
the website
and acquisitions on
http://smallbusiness.chron.com/effects-merger-
employees
acquisition-employee-morale-3196.html

Writing Assignment – Reflection

(Refer to Experiential Learning Activity #2)

Advanced Reading Assignment - In

preparation for the discussion of the topic, ask
students to visit the website
http://voices.yahoo.com/organizational-issues-
mergers-acquisitions-198437.html?cat=3
LO 2: identify the
communication issues
Think Pair Share
in merger or
Form pairs of students who will individually think
acquisition
of answers, then ask them to merge the ideas,
which shall be presented to class.

Writing Assignment – Reflection

(Refer to Experiential Learning Activity #2)

LO 3: critique the HR- Break-out Group

related strategies in (Refer to Experiential Learning Activity #1)
merger or acquisition

2
 Advanced Reading Assignment – In
preparation for the discussion of the topic, ask
the students to visit the websites:
 http://www.atalisconsulting.com/case-
studies/hr-strategy-for-a-merger-and-
acquisition-case-study/
 http://www.slideshare.net/qaribraza/role
-of-hr-in-mergers-and-acquisitions

Break-out Group
(Refer to Experiential Learning Activity #1)

Supplemental Discussion – Ask the students to

visit the following websites:
 http://humanresources.about.com/od/lay
LO 4: select ways to
offs-downsizing-strategies/qt/7-tips-for-
lessen negative
compassionate-layoffs.htm
impact of downsizing
 http://blog.intuit.com/employees/the-
etiquette-of-making-layoffs-7-ways-to-
make-staff-cuts-less-painful/

Writing Assignment – Reflection

(Refer to Experiential Learning Activity #2)

*All links accessed last March 7, 2014.

Learning Objectives Lesson Slide Presentation

Union Decline LO 1 Slide 3

The Philippine Labor Situation LO 2 Slide 4

Reasons for Maintaining No-Union
LO 3 Slide 5
Status
Proactive Labor Relations LO 4 Slide 6

Non-Union versus Anti-Union LO 5 Slides 7 and 8

Union Avoidance Strategies LO 6 Slide 9

Company Early Warning Systems LO 7 Slide 10

3
Ask the students to go to the following sites for related topics. Ask them
to write a synthesis or a reflection after reading the content of these
sites:

Impact of Merge and Acquisitions on Employees

http://smallbusiness.chron.com/effects-merger-acquisition-employee-
morale-3196.html
http://finance.mapsofworld.com/merger-acquisition/impact.html
http://www.americasjobexchange.com/employer/employer-
articles/business-mergers-and-employees

Conducting on Audit
Communication Issues in Merger or Acquisition
http://voices.yahoo.com/organizational-issues-mergers-acquisitions-
198437.html?cat=3
http://www.cuttingedgepr.com/articles/changecomm_good_comm.as
p
http://www.deloitte.com/assets/Dcom-
UnitedStates/Local%20Assets/Documents/us_consulting_CulturalIssuesin
MA_010710.pdf

HR Strategies in Merger or Acquisition

http://www.atalisconsulting.com/case-studies/hr-strategy-for-a-merger-
and-acquisition-case-study/
http://www.toolpack.info/how-to/hr-managers-guide-to-mergers.html
http://www.slideshare.net/qaribraza/role-of-hr-in-mergers-and-
acquisitions

Downsizing with Less Pain

http://finance.yahoo.com/news/first-person-making-downsizing-less-
painful-183000280.html
http://humanresources.about.com/od/layoffs-downsizing-
strategies/qt/7-tips-for-compassionate-layoffs.htm
http://blog.intuit.com/employees/the-etiquette-of-making-layoffs-7-
ways-to-make-staff-cuts-less-painful/

*All links accessed last March 7, 2014.

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1. Break-out Group
Divide the class into small groups composed of 3-4 members and ask
them to prepare synthesis on the topic. Assign a group moderator, a
secretary, and a rapporteur who shall report to the class the output
of the group.

Option 1: Assign each group with different topics, if the coverage of

the subject matter is too long.
Option 2: All groups shall discuss and assess common questions or
expected outcomes.

2. Writing Assignment – Reflection

Ask the students to write a reflection on the concepts they have
learned from the topic discussed.

Require the students to submit on the following meeting a summary

of not more than 100 words on the topic discussed by relating it to
recent or similar real-life situation.

I. True or False: Write T if the statement is true, otherwise, write F if

the statement is false.
____ 1. Acquisition is the buying of one company by another (acquirer).
____ 2. Financial strength is the common reason for merger and
acquisition.
____ 3. Merger is when two companies are combined to form a new and
larger company.
____ 4. Companies being acquired are commonly cooperative in the
process of merger and acquisition.
____ 5. Neglect of the human resources consideration could be a fatal
mistake in mergers and acquisitions.
____ 6. Acquisition becomes friendly in nature when the “target”
company is cooperative in negotiations.
____ 7. Ambitious and aggressive companies buyout other companies to
create a more competitive and cost-efficient company.
____ 8. Employee morale is one of the common human factors affected
in merger and acquisition as layoffs is expected to occur.
____ 9. Failure in communicating plans for merger and acquisition leaves
employee feeling of uncertainty about their future.

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____ 10. To avoid the adverse effect of downsizing to people company
must offer voluntary redundancy also known as Voluntary Retrenchment
Program (VRP).

1. T
2. T
3. T
4. F
5. T
6. T
7. T
8. T
9. T
10. T

1. Break-out Group
The instructor may use the following to assess the output of each
group (scores may vary).

Very
Excellent (4) satisfactory Satisfactory (2) Fair (1)
(3)
The The The synthesis
The synthesis
synthesis synthesis did not
Content complied with
complied complied comply with
30% the main parts
with all parts with most the main
of the
of the parts of the parts of the
assignment
assignment assignment assignment
Members of
the group Most Members of
Some
worked and members of the group
members of
contributed the group did not
the group
Collaboration consistently contributed contribute in
contributed
15% and equally positively to any positive
positively to
in a positive the group way to the
the group work
way to the work group work
group work
Presentation Presentation Presentation is Presentation

6
Organization is extremely is organized somewhat lacks
25% well with organized; organization;
organized , synthesis, ideas are not ideas are
synthesis, detail and presented in limited and
detail, and coherence sequence difficult to
coherence are very follow
are superior good
Presentation
is engaging
and Presentation is Presentation
insightful; Presentation straightforward is simple and
Presentation
with is clear and and at times little
(30%)
thoughts thoughtful clearly creativity is
and presented used
supporting
details

2. Writing Assignment – Reflection

Assess the completeness, substance of inputs, and organization of
thoughts. Assume a perfect score of 100% and a deduction of 2
points for every incomplete content or irrelevant thought.