Chapter Case 52
Chapter Case 52
Chapter Case 52
We Merged...Now What?
Earlier this month, your company, a running equipment designer and manufacturer
called Runners Paradise, merged
with a smaller clothing design company called ActiveLeak. Your company initiated the
buyout because of the excellent design team at ActiveLeak and their brand recognition,
specifically for their MP3-integrated running shorts. Runners
Paradise has thirty-five employees and ActiveLeak has ten employees. At ActiveLeak,
the owner, who often was too
busy doing other tasks, handled the HRM roles. As a result, ActiveLeak has no strategic
plan, and you are wondering if
you should develop a strategic plan, given this change. Here are the things you have
accomplished so far:
• Reviewed compensation and adjusted salaries for the sake of fairness. Communicated
this to all affected employees.
• Developed job requirements for current and new jobs.
• Had each old and new employee fill out a skills inventory Excel document, which has
been merged into a database.
From this point, you are not sure what to do to fully integrate the new organization.
1. Why should you develop an HRM strategic plan?
2. Which components of your HR plan will you have to change?
3. What additional information would you need to create an action plan for these
changes?
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1. The company has grown to now have almost 30% more staff than before. In
addition to ensuring that the merger is successful, it is of utmost importance that the HR
department's plan is aligned with the company's expectations regarding current
employees and especially new employees. A well-designed HRM strategic plan is
therefore essential in this scenario.
2. It has already started well by matching salary values, and the definition of each
position, it is now very important to develop a successful retention plan, training, and
performance evaluation methods for all employees.
3. It is very important to evaluate the sales of both companies, not only sales but
payroll, profit, general expenses, mainly from Actionleak as this was probably managed
by the company owner, so the HR department will have a better view of the current
workforce is compatible or there will be a need for new hires, also helping to assess
whether wages and benefits are compatible with what the company can offer.
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