International mergers and acquisitions have become very common in the last one decade owing to the rising globalization and competition in the global markets. Companies seeking to grow and expand internationally are opting for mergers and acquisitions to enable them achieve this growth. Mergers and acquisitions occur when companies agree to combine their operations and resources so as to experience the benefits of economics of scale, to reduce costs, to increase efficiency and effectives or for growth purposes. A merger occurs when two or more companies integrate to form one bigger company. While most of the companies that have undertaken this strategy have realized synergy effects, this has been a challenging encounter for other companies (Aguilera and Dencker, 2004).
Staffing is one of the hardest tasks for managers after an acquisition especially because of different policies and practices of various companies. There are many challenges associated with identification and recruitment of right individuals with necessary talents especially in the global market arena (Schuler, Jackson and Luo, 2004). For global staffing, managers can employ various staffing strategies to ensure that they meet the necessary. The following is a comprehensive report of an overview of ABC Company as it plans to expand its business to the Chinese market.
This paper will evaluate look at the challenges facing ABC Company as it expands to Chinese markets including regulatory and cultural factors involved. The paper will also identify and explain the staffing strategies that the company will employ during the selection and recruitment processes for various posts within the company.
ABC Company
ABC Company is an international company based in United States. It specializes in manufacture of household goods such as fringes, oven, gas cookers, and electric cookers. It also produces other goods including cutleries and cooking pans. The company has recently successful managed to acquire DEF Company Chinese Company dealing with production of household and office goods including beds, mattresses, bed sheets and blankets, wardrobes, cabinets and office furniture including chairs and tables. This acquisition aims at making ABC Company a one stop shop for all household and office needs for our customers. This is a diversification strategy that would enable our customers have a wide variety of goods to choose from.
The manufacturing industry is one of the rapidly growing and competitive industries in both America and China. Many household and office ware manufactures have entered this industry especially in the global economy while talent and expertise still remains a high challenge for many organizations in this industry. This has led to high competition in the labor market and increasing the costs associated with recruitment and selection process. China is a technological based company and this is another challenge facing office and household companies in this country. Many Chinese citizens do not highly value career in office ware manufacture despite the fact that this country has the highest demand for office and household wares owing to its high population (Los Angeles Chinese Learning Center, n. d).
Successful management of mergers and acquisition or alliances is one of the hardest tasks for organization. As mentioned earlier, mergers bring together companies and integrate them leading to formation of one large company. The merging companies become equal partners in the management of the newly formed or resultant company after the merger. An acquisition occurs when one company fully acquires or purchases another company and the buyer has the right of determining how the newly formed merger is to be managed and combined. Individual companies have their own policies, practices and cultures that operate in them and that are totally different from those that operate in other companies. Mergers necessitate the coming together of all these internal factors of two companies and harmonizing them to form one organization. Cross border alliances or international mergers also carry with them different business cultures that require integration and harmonization. This makes management of mergers and acquisitions a difficult task not only for the management team but also for human resource managers or department (Schuler, Jackson and Luo, 2004).
HR challenges may arise as a result of this acquisition
China is one of the highly regulated countries as far as employment and labor issues are concerned. This has posed many challenges to ABC Company after the acquisition of DEF Company. The labor laws in operation in United States and those in China vary in a number of ways. One of the major challenges that the company has faced the company following the acquisition is the issue of managing diversity. Diversity management is one of the responsibilities and role being carried out by human resource managers today. As corporations goes global and human rights awareness increases, there has been a need to effectively manage diversity to increase the market share of an entity. Unlike in the past where diversity was not considered essential, this view has really changed with the realization that it has the potential of breaking down or building an organization. Human resource managers are today being charged with the role of managing the different diversities found in an organization. They are based on gender, raceethnicity, disability and age. All these aspects of diversity found in an organization are essential and if well managed may lead to increased productivity. Failure to effectively manage diversity is detrimental to any organization and this is a role being played by human resource department today (Aguilera and Dencker, 2004). Diversity management is expected to be a major challenge to human resource of ABC Company following the acquisition given that Chinese business culture and American business culture vary in many ways. Americans for example are straight forward preferring to give out their ideas during business meetings. Chinese on the other hand value unity and for this very reason, they are not as aggressive in defending their opinions and ideas and they often prefer to keep quite rather than argue over various issues. Also, Chinese people view direct eye contact as being rude contrary to Americans who highly regard eye contact interpreting it as a sign of concentration and interest. Differences in culture will be a major challenge to in managing the new ABC Company after the acquisition (Los Angeles Chinese Learning Center, n. d).
The successful acquisition of DEF Company by ABC Company will also necessitate increased use of information technology within the company. Information technology will be essential in linking up the company in United States and the one in China to ensure that there is continuous flow of information. This will tremendously change the roles and responsibilities of human resource in ABC Company and this is a major challenge. With increasing demand for effectiveness of the human resource, use of technology is paramount unlike in the past. Following the acquisition, human resource will have the responsibility of managing compliance in the company as well as managing data relating to workforce in both United States and China. Such increased roles will lead to the need for automation of human resource functions to improve efficiency. Increasing needs of management-employee communication will also lead to the institution of technology in ABC Company. As technology advances, human resource roles are becoming more complex and demanding and this expected to increase following the recent merger. The merger will necessitate the linking of operations in United States and those in China and this would not only be challenging to manage but it is bound to increase the cost of human resource management. Effective institution of information technology will lead to improved coordination of ABC branches in both United States and China facilitation exchange of information. This may help in instituting a culture of learning as well as improve innovation and creativity as employees will have a chance to participate and contribute to the management of the company via the information technology networks (Schuler, Jackson and Luo, 2004).
One of the most sought after resource is highly qualified human labor force. Organizations are today fighting to attract the most qualified employees so as to improve their productivity and competitiveness. This scenario brought about by increased globalization has made human resource management very vital in organizations. Organizations are today formulating strategies to enable them attract and retain highly qualified employees. As a result, human resource roles have tremendously changed and today organization are offering extensive training to their employees and payment packages. This is another challenge that ABC is bound to experience following the acquisition (Rees and Edwards, 2009). The company will be exposed to international competition especially in the labor market. Staffing is expected to be a major challenge for human resource. The acquisition may require some managers to be moved to China and this may stir rebellion and even resignation.
Differences in regulation and business practices are also expected to bring various challenges to human resource of ABC Company. For businesses to thrive and flourish in China, relationships are highly valued as a means of networking. Chinese business people believe in guanxi which can be interpreted to mean scratch my back and I will scratch yours (Los Angeles Chinese Learning Center, n. d). Guanxi may be in form of money and connections based on friendships with high ranking officials. While in America this may be termed as bribe or unfair business practices, this is considered fair and the normal way of doing business in China. Giving out money in return for business favors does not amount to bribery in China. This is bound to be a major challenge for human resource given the fact that giving any form of money in America in exchange for business networking or to earn employment considered illegal or a form of bribe. America has the EEOC or the equal employment opportunity commission that deals with cases of unfair employment or discrimination. In America, all individuals ought to be given equal employment chances regardless of their relationship with the human resource managers or other managers in an organization. In China, individuals with closer relationships with employers are bound to be given first priority. This is bound to be a major challenge for ABC following the acquisition.
Staffing Strategies for ABC Company
Globalization has become the normal way of doing business today. Most of the companies in unites states are expanding internationally as a means of achieving the much needed growth to enable them stand the global pressures today. China is one of the most viable destinations given the growing population that creates a ready market for various goods. However, with rising globalization, there has been a rise in staffing complications especially owning the cultural differences in China and in United States. Staffing is one of the most essential activities of human resources especially following (Scullion, 2006). Following the acquisition of
DEF Company, ABC Company, there are various staffing needs that have arisen. Both internal and external staffing methods will be employed by the company in recruiting key employees as well as functional employees.
Internal recruitment
Internal recruitment strategy will be used in hiring various higher ranking officials in ABC Company following the acquisition. The acquisition of DEF Company by ABC Company will result in integration of operations so as to reduce costs and avoid duplication of work. Internal recruitment entails identifying potential expatriates from the foreign and domestic operations. The acquisition is expected to create various top positions in the company. To fill these positions, the company will hire from within the company. Internal recruitment would have quite a number of advantages to ABC Company including the recruitment teams have prior knowledge of the recruitees, their personalities, skills and expertise. Individuals recruited internally also have prior knowledge of the culture and operations of the company thus the adaptation time will be less.
This is essential in ensuring the continuity of operations even after the merger. To help in implementing this form of recruitment, the human resource of ABC Company will be aided by human resource managers of the acquired DEF Company. To ensure that the internal recruitment process is fair and free, all qualified individuals will be required to apply for the various post after which a thorough interview will be conducted. This will help the human resource team come up with the most competent individual to take up various posts. Employee to be recruited for managerial positions will be posted in both countries to aid the company during the integration process. Some experienced managers from China will be posted in United States and vice versa to enable the companys integration process be effective.
Various researches have already established that employees who are recruited from the already existing working force are able to adapt to the culture and practices of an organization and to take up their new positions without much difficulty (Schuler, Jackson and Luo, 2004). This is essential for ABC Company given the fact that the acquisition requires the company to make during its integration. Managers recruited from within will also be in a position to aid in integrating the cultures of ABC and DEF companies. Swapping managers between the two countries will also enable company to easily adapt to the cultural changes.
External recruitment strategies
External recruitment strategies are other forms of global staffing that the company will employ (Scullion, 2006). Under this strategy, various recruitment and selection processes will be employed in the endeavor to get qualified staff. One of the major methods of external recruitment will be headhunting. Following the acquisition, the company will be in need of highly qualified senior managers as well as specialists in various sectors. The company will use headhunter firms who offer integrated services around the world. The company will partner with headhunting agencies so as to get a wider geographical area for sourcing potential candidates. China has many headhunting agencies and the company will use its newly acquired status to in China to source for candidates with necessary skills in this areas.
Cross national advertising is another external recruitment method that ABC Company will use for staffing purposes. This will entail looking beyond the borders on United States and those of China. The business world has gone global and flexibility in the global economy has made it easier for cross border advertising and hiring. Skills and talents especially in the household and office ware industry have dramatically reduced as people prefer other careers especially those involving technology and communication (Scullion, 2006). This has made competition for qualified managers and employees to be high in this industry. To carry out cross national advertising, ABC Company will employ various strategies including advertising in airline magazines, placing adverts on airport lounges and work routes and placing posters in some specifically targeted areas. This will create awareness of various posts and encourage people to apply. For this purpose, the company will also use the services of international agencies to advertise and recruit individuals from various parts of the world.
Internet recruitment will also be employed by ABC Company to recruit international managers. The world today has gone global courtesy of technology and most potential employees are searching for jobs via the internet. This has become a major source of international recruitment for managers (Rees and Edwards, 2009). It is an effective tool for attracting qualified graduates, specialists as well as interim managers. Internet has the advantage of broadening the recruitment sources at relatively low costs and specificity. With internet, the company will be able to target specific potential employees with necessary intellect and capabilities. International graduate programs are also other staffing methods that ABC Company will employ in its staffing work.
Skills and abilities assessment
To successfully assess the skills and abilities of all potential employees, human resource department from the integrated ABC Company will meet to evaluate the various positions required to be filled following the acquisition. This will include all the vacant positions that may arise as a result of resignation following the acquisition and subsequent integration. All the posts identified will be thoroughly analyzed and assessed to determine the exact qualities, skills and abilities required to handle the job. To do this, human resource team will come up with a comprehensive job analysis aimed at identifying all the requirements of a job and the risk areas involved with the various posts. From the job analysis, the team will come up with a comprehensive and well elaborated job analysis identifying the various qualifications necessary for potential candidates. Since the elaboration cannot be done on advertisements especially for cross border advertising, interested people will be directed to the companys website for a detailed job description (Schuler, Jackson and Luo, 2004).
All applications forms whether online or via the companys mail box will be deliberated and the most suitable candidates contacted for interviews that will be conducted at various designated parts depending on applications. For candidates from other countries, interview will be conducted via the internet and selected candidates will be invited over for further interview and verification of certificates. All interviews will have three sections the written part whereby candidates will be required to fill forms dealing with personal information and specific skills and experience, a not structured interview whereby candidates will be subjected to a panel of interviewers and lastly a practical interview where candidates will be given tasks in groups to carry out. This will help to assess the qualities, skills, capabilities, behavior and attitudes of employees. Successful training will be selected to join the company (Farndale and Paauwe, 2007).
Training
All successful candidates will undergo a thorough training on various issues relating to management and operations of ABC Company. The training program will take three weeks whereby candidates will be enlightened on the various tasks they will be needed to undertake, the procedures and regulations of the company and above all the different cultures and business culture of China and United States. This will be given much attention given that conflicts may arise between the Chinese and American employees as a result of misunderstanding of various body language, cultures and business practices differences. The recruits together with other employees to be redeployed to China will be included in this training. A further one month on job training will be undertaken after the completion of the first three weeks. This will orient recruits on their jobs enabling them to adapt more quickly to the culture of the company.
Possible audit results. There are several possible audit results following the implementation of the acquisition. Cultural differences between China and United States are one of the most possible audit results that may necessitate organizational structure change. China and the US have different cultures that if not well handled, they may lead to crisis in the organization. China for example highly value close business relationships as a means of obtaining business success while hard work and transparency is highly advocated for in United States as a means of soliciting the good will and trust of the public.
Another possible audit result is that existence of differences in government policies and employment laws between China and United States. The EEOC of United States terms employment discrimination as illegal and subject to penalties. In China, it is common practice to give priority to individuals one is related to or has close family or business ties. This is not viewed as being illegal or a form of discrimination.
Women valuation in management is another difference that exists between China and United States and which may lead to conflicts in the company. In United States, women are regarded as equal partners in business and men have no problem with having women managers supervise them. Gender equality is highly valued and respected in United States and women hold high positions as long as they are qualified. In China, women are still lowly regarded with the business world being dominated by men. Women despite their qualification are viewed as being inferior to men hence they are not allowed to hold high offices in an organization.
Organizational structure reconstruction
Following the acquisition of DEF Company by ABC Company, the former company became part of the latter company and based on the above audit results, various reconstructions may be required in the organizational structure of ABC. Prior to the acquisition, ABC was operating in various states in America and had no differences as far as culture was concerned. However, expansion to china poses a major challenge on how to manage cultural differences. The company needs to establish a diversity management department as a subsidiary of human resource management. This department is to look at the various cultural differences as well as differences in business practices and to educate the employees on the same. This will reduce conflict and ensure that the company is harmonized. Several cultural and religious activities are observed in China unlike in United States. The diversity management team will be responsible for advising the management such issues. Operations will have to be stopped during the religious festivals and other nationally observed days.
ABC Company also needs to establish a legal department that will be responsible to look at various laws and regulations in operation between these two companies and advise the management on the right legal channels to use. this department will also be responsible for advising the management on the right business deals to make in both countries based on legal analysis and implications that may arise there of. The top management team also requires to be restructured to accommodate managers from China to the management of the company.
Staffing is one of the hardest tasks for managers after an acquisition especially because of different policies and practices of various companies. There are many challenges associated with identification and recruitment of right individuals with necessary talents especially in the global market arena (Schuler, Jackson and Luo, 2004). For global staffing, managers can employ various staffing strategies to ensure that they meet the necessary. The following is a comprehensive report of an overview of ABC Company as it plans to expand its business to the Chinese market.
This paper will evaluate look at the challenges facing ABC Company as it expands to Chinese markets including regulatory and cultural factors involved. The paper will also identify and explain the staffing strategies that the company will employ during the selection and recruitment processes for various posts within the company.
ABC Company
ABC Company is an international company based in United States. It specializes in manufacture of household goods such as fringes, oven, gas cookers, and electric cookers. It also produces other goods including cutleries and cooking pans. The company has recently successful managed to acquire DEF Company Chinese Company dealing with production of household and office goods including beds, mattresses, bed sheets and blankets, wardrobes, cabinets and office furniture including chairs and tables. This acquisition aims at making ABC Company a one stop shop for all household and office needs for our customers. This is a diversification strategy that would enable our customers have a wide variety of goods to choose from.
The manufacturing industry is one of the rapidly growing and competitive industries in both America and China. Many household and office ware manufactures have entered this industry especially in the global economy while talent and expertise still remains a high challenge for many organizations in this industry. This has led to high competition in the labor market and increasing the costs associated with recruitment and selection process. China is a technological based company and this is another challenge facing office and household companies in this country. Many Chinese citizens do not highly value career in office ware manufacture despite the fact that this country has the highest demand for office and household wares owing to its high population (Los Angeles Chinese Learning Center, n. d).
Successful management of mergers and acquisition or alliances is one of the hardest tasks for organization. As mentioned earlier, mergers bring together companies and integrate them leading to formation of one large company. The merging companies become equal partners in the management of the newly formed or resultant company after the merger. An acquisition occurs when one company fully acquires or purchases another company and the buyer has the right of determining how the newly formed merger is to be managed and combined. Individual companies have their own policies, practices and cultures that operate in them and that are totally different from those that operate in other companies. Mergers necessitate the coming together of all these internal factors of two companies and harmonizing them to form one organization. Cross border alliances or international mergers also carry with them different business cultures that require integration and harmonization. This makes management of mergers and acquisitions a difficult task not only for the management team but also for human resource managers or department (Schuler, Jackson and Luo, 2004).
HR challenges may arise as a result of this acquisition
China is one of the highly regulated countries as far as employment and labor issues are concerned. This has posed many challenges to ABC Company after the acquisition of DEF Company. The labor laws in operation in United States and those in China vary in a number of ways. One of the major challenges that the company has faced the company following the acquisition is the issue of managing diversity. Diversity management is one of the responsibilities and role being carried out by human resource managers today. As corporations goes global and human rights awareness increases, there has been a need to effectively manage diversity to increase the market share of an entity. Unlike in the past where diversity was not considered essential, this view has really changed with the realization that it has the potential of breaking down or building an organization. Human resource managers are today being charged with the role of managing the different diversities found in an organization. They are based on gender, raceethnicity, disability and age. All these aspects of diversity found in an organization are essential and if well managed may lead to increased productivity. Failure to effectively manage diversity is detrimental to any organization and this is a role being played by human resource department today (Aguilera and Dencker, 2004). Diversity management is expected to be a major challenge to human resource of ABC Company following the acquisition given that Chinese business culture and American business culture vary in many ways. Americans for example are straight forward preferring to give out their ideas during business meetings. Chinese on the other hand value unity and for this very reason, they are not as aggressive in defending their opinions and ideas and they often prefer to keep quite rather than argue over various issues. Also, Chinese people view direct eye contact as being rude contrary to Americans who highly regard eye contact interpreting it as a sign of concentration and interest. Differences in culture will be a major challenge to in managing the new ABC Company after the acquisition (Los Angeles Chinese Learning Center, n. d).
The successful acquisition of DEF Company by ABC Company will also necessitate increased use of information technology within the company. Information technology will be essential in linking up the company in United States and the one in China to ensure that there is continuous flow of information. This will tremendously change the roles and responsibilities of human resource in ABC Company and this is a major challenge. With increasing demand for effectiveness of the human resource, use of technology is paramount unlike in the past. Following the acquisition, human resource will have the responsibility of managing compliance in the company as well as managing data relating to workforce in both United States and China. Such increased roles will lead to the need for automation of human resource functions to improve efficiency. Increasing needs of management-employee communication will also lead to the institution of technology in ABC Company. As technology advances, human resource roles are becoming more complex and demanding and this expected to increase following the recent merger. The merger will necessitate the linking of operations in United States and those in China and this would not only be challenging to manage but it is bound to increase the cost of human resource management. Effective institution of information technology will lead to improved coordination of ABC branches in both United States and China facilitation exchange of information. This may help in instituting a culture of learning as well as improve innovation and creativity as employees will have a chance to participate and contribute to the management of the company via the information technology networks (Schuler, Jackson and Luo, 2004).
One of the most sought after resource is highly qualified human labor force. Organizations are today fighting to attract the most qualified employees so as to improve their productivity and competitiveness. This scenario brought about by increased globalization has made human resource management very vital in organizations. Organizations are today formulating strategies to enable them attract and retain highly qualified employees. As a result, human resource roles have tremendously changed and today organization are offering extensive training to their employees and payment packages. This is another challenge that ABC is bound to experience following the acquisition (Rees and Edwards, 2009). The company will be exposed to international competition especially in the labor market. Staffing is expected to be a major challenge for human resource. The acquisition may require some managers to be moved to China and this may stir rebellion and even resignation.
Differences in regulation and business practices are also expected to bring various challenges to human resource of ABC Company. For businesses to thrive and flourish in China, relationships are highly valued as a means of networking. Chinese business people believe in guanxi which can be interpreted to mean scratch my back and I will scratch yours (Los Angeles Chinese Learning Center, n. d). Guanxi may be in form of money and connections based on friendships with high ranking officials. While in America this may be termed as bribe or unfair business practices, this is considered fair and the normal way of doing business in China. Giving out money in return for business favors does not amount to bribery in China. This is bound to be a major challenge for human resource given the fact that giving any form of money in America in exchange for business networking or to earn employment considered illegal or a form of bribe. America has the EEOC or the equal employment opportunity commission that deals with cases of unfair employment or discrimination. In America, all individuals ought to be given equal employment chances regardless of their relationship with the human resource managers or other managers in an organization. In China, individuals with closer relationships with employers are bound to be given first priority. This is bound to be a major challenge for ABC following the acquisition.
Staffing Strategies for ABC Company
Globalization has become the normal way of doing business today. Most of the companies in unites states are expanding internationally as a means of achieving the much needed growth to enable them stand the global pressures today. China is one of the most viable destinations given the growing population that creates a ready market for various goods. However, with rising globalization, there has been a rise in staffing complications especially owning the cultural differences in China and in United States. Staffing is one of the most essential activities of human resources especially following (Scullion, 2006). Following the acquisition of
DEF Company, ABC Company, there are various staffing needs that have arisen. Both internal and external staffing methods will be employed by the company in recruiting key employees as well as functional employees.
Internal recruitment
Internal recruitment strategy will be used in hiring various higher ranking officials in ABC Company following the acquisition. The acquisition of DEF Company by ABC Company will result in integration of operations so as to reduce costs and avoid duplication of work. Internal recruitment entails identifying potential expatriates from the foreign and domestic operations. The acquisition is expected to create various top positions in the company. To fill these positions, the company will hire from within the company. Internal recruitment would have quite a number of advantages to ABC Company including the recruitment teams have prior knowledge of the recruitees, their personalities, skills and expertise. Individuals recruited internally also have prior knowledge of the culture and operations of the company thus the adaptation time will be less.
This is essential in ensuring the continuity of operations even after the merger. To help in implementing this form of recruitment, the human resource of ABC Company will be aided by human resource managers of the acquired DEF Company. To ensure that the internal recruitment process is fair and free, all qualified individuals will be required to apply for the various post after which a thorough interview will be conducted. This will help the human resource team come up with the most competent individual to take up various posts. Employee to be recruited for managerial positions will be posted in both countries to aid the company during the integration process. Some experienced managers from China will be posted in United States and vice versa to enable the companys integration process be effective.
Various researches have already established that employees who are recruited from the already existing working force are able to adapt to the culture and practices of an organization and to take up their new positions without much difficulty (Schuler, Jackson and Luo, 2004). This is essential for ABC Company given the fact that the acquisition requires the company to make during its integration. Managers recruited from within will also be in a position to aid in integrating the cultures of ABC and DEF companies. Swapping managers between the two countries will also enable company to easily adapt to the cultural changes.
External recruitment strategies
External recruitment strategies are other forms of global staffing that the company will employ (Scullion, 2006). Under this strategy, various recruitment and selection processes will be employed in the endeavor to get qualified staff. One of the major methods of external recruitment will be headhunting. Following the acquisition, the company will be in need of highly qualified senior managers as well as specialists in various sectors. The company will use headhunter firms who offer integrated services around the world. The company will partner with headhunting agencies so as to get a wider geographical area for sourcing potential candidates. China has many headhunting agencies and the company will use its newly acquired status to in China to source for candidates with necessary skills in this areas.
Cross national advertising is another external recruitment method that ABC Company will use for staffing purposes. This will entail looking beyond the borders on United States and those of China. The business world has gone global and flexibility in the global economy has made it easier for cross border advertising and hiring. Skills and talents especially in the household and office ware industry have dramatically reduced as people prefer other careers especially those involving technology and communication (Scullion, 2006). This has made competition for qualified managers and employees to be high in this industry. To carry out cross national advertising, ABC Company will employ various strategies including advertising in airline magazines, placing adverts on airport lounges and work routes and placing posters in some specifically targeted areas. This will create awareness of various posts and encourage people to apply. For this purpose, the company will also use the services of international agencies to advertise and recruit individuals from various parts of the world.
Internet recruitment will also be employed by ABC Company to recruit international managers. The world today has gone global courtesy of technology and most potential employees are searching for jobs via the internet. This has become a major source of international recruitment for managers (Rees and Edwards, 2009). It is an effective tool for attracting qualified graduates, specialists as well as interim managers. Internet has the advantage of broadening the recruitment sources at relatively low costs and specificity. With internet, the company will be able to target specific potential employees with necessary intellect and capabilities. International graduate programs are also other staffing methods that ABC Company will employ in its staffing work.
Skills and abilities assessment
To successfully assess the skills and abilities of all potential employees, human resource department from the integrated ABC Company will meet to evaluate the various positions required to be filled following the acquisition. This will include all the vacant positions that may arise as a result of resignation following the acquisition and subsequent integration. All the posts identified will be thoroughly analyzed and assessed to determine the exact qualities, skills and abilities required to handle the job. To do this, human resource team will come up with a comprehensive job analysis aimed at identifying all the requirements of a job and the risk areas involved with the various posts. From the job analysis, the team will come up with a comprehensive and well elaborated job analysis identifying the various qualifications necessary for potential candidates. Since the elaboration cannot be done on advertisements especially for cross border advertising, interested people will be directed to the companys website for a detailed job description (Schuler, Jackson and Luo, 2004).
All applications forms whether online or via the companys mail box will be deliberated and the most suitable candidates contacted for interviews that will be conducted at various designated parts depending on applications. For candidates from other countries, interview will be conducted via the internet and selected candidates will be invited over for further interview and verification of certificates. All interviews will have three sections the written part whereby candidates will be required to fill forms dealing with personal information and specific skills and experience, a not structured interview whereby candidates will be subjected to a panel of interviewers and lastly a practical interview where candidates will be given tasks in groups to carry out. This will help to assess the qualities, skills, capabilities, behavior and attitudes of employees. Successful training will be selected to join the company (Farndale and Paauwe, 2007).
Training
All successful candidates will undergo a thorough training on various issues relating to management and operations of ABC Company. The training program will take three weeks whereby candidates will be enlightened on the various tasks they will be needed to undertake, the procedures and regulations of the company and above all the different cultures and business culture of China and United States. This will be given much attention given that conflicts may arise between the Chinese and American employees as a result of misunderstanding of various body language, cultures and business practices differences. The recruits together with other employees to be redeployed to China will be included in this training. A further one month on job training will be undertaken after the completion of the first three weeks. This will orient recruits on their jobs enabling them to adapt more quickly to the culture of the company.
Possible audit results. There are several possible audit results following the implementation of the acquisition. Cultural differences between China and United States are one of the most possible audit results that may necessitate organizational structure change. China and the US have different cultures that if not well handled, they may lead to crisis in the organization. China for example highly value close business relationships as a means of obtaining business success while hard work and transparency is highly advocated for in United States as a means of soliciting the good will and trust of the public.
Another possible audit result is that existence of differences in government policies and employment laws between China and United States. The EEOC of United States terms employment discrimination as illegal and subject to penalties. In China, it is common practice to give priority to individuals one is related to or has close family or business ties. This is not viewed as being illegal or a form of discrimination.
Women valuation in management is another difference that exists between China and United States and which may lead to conflicts in the company. In United States, women are regarded as equal partners in business and men have no problem with having women managers supervise them. Gender equality is highly valued and respected in United States and women hold high positions as long as they are qualified. In China, women are still lowly regarded with the business world being dominated by men. Women despite their qualification are viewed as being inferior to men hence they are not allowed to hold high offices in an organization.
Organizational structure reconstruction
Following the acquisition of DEF Company by ABC Company, the former company became part of the latter company and based on the above audit results, various reconstructions may be required in the organizational structure of ABC. Prior to the acquisition, ABC was operating in various states in America and had no differences as far as culture was concerned. However, expansion to china poses a major challenge on how to manage cultural differences. The company needs to establish a diversity management department as a subsidiary of human resource management. This department is to look at the various cultural differences as well as differences in business practices and to educate the employees on the same. This will reduce conflict and ensure that the company is harmonized. Several cultural and religious activities are observed in China unlike in United States. The diversity management team will be responsible for advising the management such issues. Operations will have to be stopped during the religious festivals and other nationally observed days.
ABC Company also needs to establish a legal department that will be responsible to look at various laws and regulations in operation between these two companies and advise the management on the right legal channels to use. this department will also be responsible for advising the management on the right business deals to make in both countries based on legal analysis and implications that may arise there of. The top management team also requires to be restructured to accommodate managers from China to the management of the company.
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