The paper 'The Major International Human Resource Management Challenges' is a great example of a Management Assignment. Studies on acquisitions and mergers show that challenges during integration occasion outcomes that are negative for firms and employees especially when it involves cross-border mergers and acquisitions. The main challenge entails employees in the new merged organization or company have to learn how they are going to work together in the achievement of goals that are common and keep away from conflict. However, there is an absence of connectivity in relation to the human side of mergers and acquisitions.
An important step is to devise ways of socializing workers before the merging or acquisition. Workers have to be prepared in advance before mergers or acquisitions occur (Mendenhall, Oddou & Stahl, 2006). Organizational socialization is important to step in making employees harness social skills and knowledge which are required in assuming roles in the newly merged organization. International human resource management plays an integral role in organizations that engage in cross-border mergers and acquisitions. Acquisitions and mergers have turned to be a central portion of the majority of corporate strategies for growth, and many of them entail cross-border mergers and acquisitions.
Many mergers and acquisitions can be referred to as being cross border since a merger between American corporations like EDS and HP will involve an integration plan that affects operations in many other countries. However, managing strategic alliances successfully is a difficult task (Briscoe, Schuler & Tarique, 2012). An illustration of this is the 1998 cross-border merger of DaimlerChrysler depicts the challenges in management that accompany cross-border alliances. Forces of competition in the auto industry globally made it necessary for the two companies to the merger.
On paper, the combination looked superb, but differences in culture interfered with the ability of management to expediently to realize the economic gains they had expected to reap. Confrontations owing to differences in cultures of countries involved and cultures of the companies nearly led to the collapse of the hitherto envisioned success. It took a long time for the management to focus on a common vision and chose a single culture that is unifying. Human resource challenges brought about by the differences in culture led to delaying the success of the new corporation.
This demonstrates that cultural differences play a major role in cross-border acquisitions and mergers. Cross-border mergers and acquisitions are characterized by distinct national cultures that offer opportunities for investment, but can also be a source of increased risk of failure from outside and within the organization (Ferraro, 2010). Misaligned behaviors, expectations, processes, practices, reward schemes, and structures can occasion employ disengagement, general frustration, and finally loss of main talent in the organization (Sanz-Valle, Sabater-Sanchez & Aragon-Sanchez, 1999).
International human resource management ha the challenge of ensuring that a unique and common culture of the companies involved is identified and promoted throughout. It will be frustrating to see employees who are not sure what they should do owing to the confusion brought about by the merger or acquisition. Differences in national cultures remain a big challenge in the face of acquisitions and mergers. If an Australian company was to merge with a Chinese company, or a Chinese company acquires an Australian company or vice versa, there will be frustrating moments that are brought about by their differences in the culture of employees or managers from two distinct cultures.
Employees have to be prepared psychologically to successfully tackle the challenge that comes with acquisitions and merger that are cross-border (Sorge, 1991). Making employees understand and appreciate a new culture has to be the role of international human resource management. Identifying common attributes in the different cultures and highlighting to the workers can ignite a unifying bond between the different camps.
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