Topic > Mergers and Acquisitions Case Study - 1037

1. IntroductionHuman resources professionals are needed now more than ever. Their knowledge of business and HR will be able to assist organizations in developing strategies and aligning HR policies and practices with the developed strategies. In this report, the two chosen strategic issues that influence human resource management practices in organizations are mergers and acquisitions and outsourcing.2. Mergers and AcquisitionsAcquisition refers to the purchase of a company's assets or the transfer of ownership from the seller to the buyer ("An Overview of," n.d.). This process takes place in the form of purchasing shares, assets or even mergers. Therefore, the acquisition can occur with and without the merger process. While we normally talk about a merger, the merger of one company with another or one company being taken over by another. Generally, during the merger process, the smaller company will cease to exist, leaving its liabilities and assets to the acquiring company. When the merger and acquisition process occurs, the human resources department will be required to take additional precautions to ensure the objectives are achieved.a. AdvantageOne of the most obvious advantages resulting from the mergers and acquisitions process is to obtain unique talent, knowledge and technologies from the acquired company. This will allow the purchasing company to increase its competence, as it will be able to provide more products and services to end consumers (Dugar, 2009). Therefore, it offers a competitive advantage to the purchasing company in this highly rivalrous market. On the other hand, the unique talent, knowledge and technology obtained will enable the company to reduce research and development costs. The... central point... that HR or companies should implement when using outsourcing is to have a well-planned and negotiated contract. Despite the loss of management rights or control, companies will need to communicate well with outsourcing companies to align and achieve the quality they expect. If the service provided is not up to standard, companies will be able to strengthen it with a law that gives them the right to protect themselves (Ahmed, 2005). On the other hand,4. Conclusion Overall, human resources plays an important role in the business growth of a company. This is mainly due to the fact that the strategic issues addressed are mostly human-related. Therefore, with strong human resource management, companies will be able to maximize the earnings of their employees which will result in maximum productivity which will further lead to higher and sustainable growth..