MSHRMCapstone -Howland

Running Head: HRM EFFECTIVENESS IMPROVEMENT PLAN 1

HRM Effectiveness Improvement Plan

Creating Culture in a Merged Organization

Michelle L. Howland

HRM 5920

HR Management Capstone

HRM EFFECTIVENESS IMPROVEMENT PLAN 2

Table of Contents

Abstract ........................................................................................................................................... 3

Importance of Culture in Mergers ................................................................................................... 4

Overall Plan to Create a Culture ..................................................................................................... 5

HR's Role in Creating Culture ........................................................................................................ 6

Figure 1. Change Management Process ...................................................................................... 8

Communication ............................................................................................................................. 10

Types of communication ........................................................................................................... 10

100 day communication plan .................................................................................................... 11

Figure 2. 100 Day Communication Plan ................................................................................... 12

Ongoing communication efforts................................................................................................ 12

Technology ................................................................................................................................... 13

Technology Systems ................................................................................................................. 13

Figure 3. Selection of HRIS ...................................................................................................... 15

Implementation.......................................................................................................................... 15

Figure 4. Implementation of HRIS ............................................................................................ 16

Risks and Benefits ..................................................................................................................... 17

Talent and Workforce Management ............................................................................................. 18

HRM practices to talent and workforce management strategies ............................................... 18

Figure 5. Talent Management Process ...................................................................................... 18

Job Descriptions ........................................................................................................................ 19

Recruiting .................................................................................................................................. 19

Figure 6. Recruiting Process ..................................................................................................... 20

Training ..................................................................................................................................... 21

Performance Reviews ................................................................................................................ 21

Succession Planning .................................................................................................................. 22

Headcount.................................................................................................................................. 22

Figure 7. Monthly Headcount Sample ...................................................................................... 23

Implementation of Talent Management .................................................................................... 24

Measuring Success ........................................................................................................................ 24

Ethical and Legal Responsibilities ................................................................................................ 25


Conclusion .................................................................................................................................... 27

Abstract

HR professionals have a responsibility to their organization to find and develop ways to create a

workplace that is functional, efficient, and engages employees. When two organizations merge,

the need for this is all the more important. To achieve continuity within the new organization, a

plan for change has be developed to actively engage employees into the process in order to gain

both their trust in the new organization and their feedback on how the process of assimilation is

being handled from an employee standpoint. This plan includes an aggressive communication

plan that contains a continuous loop process to gain the aforementioned feedback needed to be

successful. It also includes a plan for bringing the organization together through the means of

technology as well as talent management. Both of which reach to further engage employees

through their implementation. Through all of this, the ethical and legal responsibilities of HR are

explored and great consideration has been given to ensure the gained trust of employees and

other stakeholders is retained throughout the process. The new organization will have many

obstacles as it grows and develops; this plan is designed to make this process easier by valuing

its most important commodity – it employees.

.


Mergers and acquisitions affect many workplaces in the U.S. More than 1 in 4 U.S.

workers are affected over a 10 year period (Milligan, 2015). Changes in the workplace due to

merger activity have a profound effect on how the workplace operates. From how desks are

arranged in the office to the organizational structure itself, there are a number of things that can

directly affect how the new culture forms and how employees either embrace or reject what is

being presented.

According to Merriam-Webster (2015), a merger is defined as “the act or process of

combining two or more businesses into one business.” Keeping this in mind throughout this

process, it is important to remember that the goal is to create one business that reflects the new

values and ideals of the organization. The change involved with a merger will create differences

in both environments of the old organizations; but by having stages where both experience

transformation into the new organization, one company will not feel like they are being devoured

by the other company - as is the case with an acquisition. Through all of this, the largest impact

of the result of the merger depends on the culture that is created.

Importance of Culture in Mergers

As much as every management team wants believes in the perceived success of a merger

the day that the papers are signed, it is not a guarantee of success. While many things go into the

details of a merger like financial advantage, impacts to stocks and who will be on the board of

directors, culture of the two organizations that are to be merged are often left until last or not

considered at all. It is culture that will lead to the overall long-term success of the merger.

Without it, there is a confusion of identity within the organization that will eventually lead to low

morale, low employee engagement and turnover issues throughout the organization (Holbeche,

2009).


There are several examples of organizational mergers that that failed due a lapse in in

creating a cohesive culture. Daimler and Chrysler is one such example where two organizations

attempted to merge and where culture and communication issues kept them from being

successful. There are numerous of other examples such as Compaq and HP, AOL and Time

Warner, & Sprint and Nextel. Each of these mergers, entered into their agreement with high

hopes based on their similarities in industry and market share. However, each of these mergers

broke apart within a few short years because of issues steamed from not bringing together the

culture (Jacobson, 2012). New mergers in the business world today can take lessons learned from

the mistakes of these other mergers in order to work from the start to help foster the new

organization and work to make the organization a homogeneous unit. An example of this would

be the recent merger between H.J. Heinz and Kraft Foods. This merger comes with its own set of

challenges for a logistics standpoint, partially because they have decided to maintain two

separate headquarters in the U.S. (Kraft Press Release, 2015).

Overall Plan to Create a Culture

Integration of the culture ideally should take the best from both companies to create a new

identity that values both organizations rather than just equally (Holbeche, 2009). The concept of

using the best is a great way to embrace parts of both organizations in the merger. The parts that

need more from completing this exercise can be researched further to find best practices and give

suggestions that fit in with the cultural goals of the new organization. Through this paper, the

role of HR in creating culture will be explored along with how culture is influenced by change

management. A communication plan for an organization will be highlighted as well as the steps

for incorporating both technology and talent management into the culture change of the

organization. A plan for measuring success will be outlined. The ethical and legal responsibilities


of HR to the organization and society will be emphasized and challenges and opportunities will

be articulated.

HR's Role in Creating Culture

HR has a very important role in terms of helping foster a new culture because it is the HR

professional who acts as an influencer both with management and throughout the organization to

assimilate programs into the new merged organization and bring both sides together. The best

way to influence stakeholders in this way is by bringing them together through common values.

It is true that not both merging organizations will likely have identical values, but there is a good

chance that both organizations can relate to common values such as honesty, integrity, and trust.

By relating stakeholders to these common values, HR can create within everyone a personal

motivation towards accepting commonality – leading to accepting the culture (Patterson, 2008).

Through the process of creating a new culture, HR needs to be involved in an internal

rebranding of the organization. This includes creating training for employees to inform them

where the organization is heading and how it plans to get there. This will help to engage the

employees and may even produce other ideas to help improve the process as it happens. HR can

encourage this by creating a continuous loop communication process with employees to submit

new ideas (Holbeche, 2009). Employee training programs put together by HR ensure employees

fully understand their role – especially if it changes with the new direction of the new

organization. These trainings can be as simple as a review of job description to creating

development plans for employees to continue to improve themselves within the organization.

This will help to create an engaged workforce that understands the organization and their role

within it. Finally, the organization can embrace a more diverse workforce through not only

evaluating the talent acquisition process, but also by embracing the employees they already have


and valuing them for who they are and what they contribute. Overall, this plan will lead to a

more competent workforce that will help to support quality and sustainability throughout the

organization.

Culture and Change Management

Change management is big part of culture change. In order to help employees adapt to

change, managers and leaders can utilize positive reinforcement. They should expect that people

are going to be human and have emotional reactions. It is important to use communication to

listen to others to help to understand their troubles with what the changes are occurring.

Reinforcement of the behavior that is being changed needs to stay the course in order to be

successful (Daniels, 2000). Strong cultures, those who are recognizable to the outside world,

have shown to perform more successfully than other such organizations. Kotter and Heskett did

testing on this theory by looking at 207 firms. Their findings were moderately conclusive with

positive findings and long-term economic performance (Nelson and Campbell Quick, 2006). In a

merger situation, it would be ideal to be able to create a strong culture. It would help to show the

employees and the outside world that the merger was a success and the new organization is

stronger than when it was two separate companies.

HR practices have many applications when it comes to creating a culture and affecting

change within an organization. For example, programs such as talent management help to shape

the culture of the organization through steps to select, train and foster employees towards the

new culture. These changes can be trying on the workplace and can cause confusion,

apprehension and resistance from stakeholders across the organization. These things must be

faced in order to successfully create change within the organization. By using a structured

approach, the new organization can be made into a strong culture that engages its employees.


Ulrich et. al. (2008) describes four factors for HR to be a Culture and Change Steward. These

include crafting culture, facilitating change, personalizing culture, and enacting culture. Using

these four factors, HR can work with management to design the process for change. This will

create a support structure for implementation while working with stakeholders in groups and one

on one to gain buy-in. Finally, it will identify areas to audit for future measurement. The use of

these factors helps to influence the creation of a process that takes into account not only the

culture that the organization wants to achieve, but also steps towards creating real change and

includes an all important step to measure progress and restart the cycle with lessons learned. It is

through the creation of such a process that the real work of HR can take place.

Figure 1. Change Management Process

The change management process starts with working with management to develop the

overall goals of the change to take place. In the case of the merger, it is to create a new

organizational culture. From there, the goals need to be broken into manageable steps that meet

smaller goals along the way. These goals should be measurable so that milestones can be

reached. Next, the communication plan needs to be established and announced to stakeholders.

Gaining feedback from employees and other stakeholders can help to handle concerns, questions,

as well as, work with employees to both accept the changes that are occurring throughout the

Develop Change Goals w/ Mgmt

Break Goals into Manageable

Steps

Communicate Change Plan to Stakeholders

Gain Feedback from

StakeholdersImplementation Measure Progress Evaluate Process


organization and take into consideration any issues that they bring to light. From here,

implementation of the various steps can begin with possible adjustments based on the feedback

received. Measurements should be taken with throughout the implementation process to make

sure that milestones are being reached. Finally, evaluation of the process should be done to

determine any lessons learned throughout the process so that improvements can be made for

future changes in the organization.

Culture change is the work of good leadership. According to MacDonald et. al. (2012),

three tools that are keys to leaders being successful include the use of behavior, systems and

symbols. These tools are good assets in order to direct change and create productive culture in

the workplace. For example, a leader’s own behavior can directly affect how news of change is

interpreted within a department or group – good or bad. Systems help to create structure within

an area of an organization that doesn’t change regardless of the manager. By creating systems,

changes can be handled in a systematic way to help adapt faster and easier. Symbols can be very

effective in helping to instill change. For example, giving all employees a new polo shirt with the

new company logo on it and the leadership wearing it can help to show their support for the

changes.

One of the things that help to support leader’s behaviors in the workplace is a code of

ethics. According to Daft (2007), code of ethics clarifies the ethical expectations of the

employees as well as what the company stands for. This is an important step in bringing together

two corporate cultures because it helps to define the ethical foundation of the organization as

well as its behaviors. Integration of culture into the workplace requires balance. This includes

balance of capability, opportunity, and motivation along with culture. This can be done by

working within a systematic framework to allow all aspects to work together (Boudreau and


Ramstad, 2007). It is important to bring these other ideas into the mix because it helps bring a

broader perspective to the goals of culture change within the merger. For example, without this

type of perspective, HR may choose to look at solely training employees on ethics and the values

of the new organization and not take into consideration other things like working one-on-one

with employees to incorporate them into the process.

By working through this process and creating a strong culture, the organization will

greatly benefit from having a structured system in place for future change development. As the

organization grows into its new culture, new things will begin to present itself and change will

continue occur. Through this, it is important to continue to embrace the changes while steering

the organization towards its goals and objectives.

Communication

One of the most vital parts of an effectiveness plan, especially one that involves direct

changes with employees, is communication. In the case of a merger, continuous communication

is important to have with employees to help them to understand the goals and objectives of the

organization and how their contributions will affect the achievement of these goals.

Communication with employees throughout the various aspects of the transition to gain buy-in

for the change itself will be an important step in making culture change work because it answers

questions for employees for why things are happening and what the timeline for change to take

place. It also gives them a chance to give their own suggestions and further bringing them into

the cycle of communication with managers. (Holbeche, 2009).

Types of communication

There a various types of communication that are effective in order keep employees and

other stakeholders informed of the what is going on throughout the organization. Press releases


help to let society and investors know about any plans for the organization as it proceeds with

post-merger activities. Newsletters are a more employee targeted communication that focuses on

what the organization has done and what they are doing to work towards future goals. In order to

stay up-to-date with employees on a weekly basis, weekly bulletins from upper management can

share via emails to supervisors with information that is happening each week. This information

helps supervisor communicate to their employees by having up-to-date information.

100 day communication plan

In creating an effective communication plan, it important throughout the process to not just

concentrate communication efforts on outside stakeholders and others that have an influence on

finances of the organization. The employees will be the ones that are the most greatly impacted

on the changes of the organization not matter which side of the merger they are on. A solid

communication plan for employees will help to alleviate some on the initial confusion and

misunderstands that can come with drastic change, such as a merger.

A 100 day communication plan is an ideal way to get information out to employees and

extend through more than a full quarter in order to show results of the progress that has been

made in the early days of the new organization. Planned weekly bulletins from the CEO and/or

CFO of the organization will help to keep everyone from the factory floor to the C-suit up-to-

date with the high level progress that is going on in the organization and how far the organization

is with its progression with the integration. Newsletters will also give information to employees

through departments sharing what they are working on with each other. This gives more of the

employee perspective because it shows how change management is directly affecting the projects

they are working on. These bulletins and newsletters will help managers with their individual


interactions with their teams by creating discussion and giving employees a chance to get

questions answers.

Ongoing communication efforts

After the 100 day communication plan has been executed, communication must still be a

large part of the organization in order to both empower and engage their employees. This can be

done by creating a continuous loop communication path where employees can weigh in on what

is going on in the organization and make suggestions for improvement. The other side of this

plan is where Management evaluates all the suggestions and feedback given and gives a response

in a timely manner to those contributing employees. By creating a loop, employees feel that they

are an important and valued part of the organization. It also contributes to the overall

effectiveness of the organization and embraces the fact that the organization, despite all the

changes going on, values its employees as an asset.

The continuous loop communication plan needs to be accessible to all employees. Having

an online way for employees to submit suggestions is one way. But not all employees may have

access to a computer in their position. It help with this, manufacturing employees should have

meetings at the beginning and end of their shift to talk about what went right and what went

Management Interactions

with Employees

Employee Newsletters

Weekly CEO/CFO Bulletins

Figure 2. 100 Day Communication Plan


wrong. This is also a time for employees to put out suggestions. This dialogue can be tracked by

the supervisor and passed along to Management to evaluate and return feedback within 3

business days. This allows employees to have buy-in and feel like they are really part of the

organization.

Technology

Technology is the center of business in today’s world. It allows organizations to be

competitive in ways that it has not previously by providing instant access to information

regarding market trends and direct communication with customers via social media. Technology

has revolutionized business into a truly global marketplace. Through this, technology has also

impacted HRM services and programs to help with both strategic efforts and advocating for &

supporting employees. For example, performance management can help to identify high

potential employees to be considered for succession planning. The tracking of training efforts

helps to make sure that the organization is compliant for ethics and sexual harassment trainings.

Programs are now available for employees for Employee Assistant Programs (EAPs), wellness,

financial advice, and managing and filling out their timecards all from a PC, tablet, or

smartphone. As these technologies continue to evolve, HR must too continue to stay attuned to

what is changing in order to make improvements to the workplace.

Technology Systems

In regards to the Kraft-Heinz merger, there are a number of things to take under

consideration for a successful implementation of HR programs when it comes to technology.

First, the needs of the organization should be evaluated in order to make a decision on whether or

not one of the current systems will sufficiently meet those needs. With the growth of the size of

the enterprise, not only in number of employees but also facilities, it may be a better course of


action to pursue a new and more comprehensive HR system that interfaces all facilities together.

This will also help coordinate efforts with the managerial decision to have two headquarters in

the U.S. (Press Release, 2015).

When two companies come together, there is bound to be a multitude of different

software, servers and just ways of doing things that differ from each other. An interesting way to

deal with this situation is to use an ambidextrous approach. This approach uses both the creative

side of an organic structure to explore new ideas to find the best solutions while traditional

mechanistic structures also exist for things like implementation (Daft, 2007).

This approach is great for a merger situation because it allow the IT and HR people to

look for the best possible solution for the new organization in new and creative ways with new

technology while still affording those affected with a structure that seems more traditional and

not as disruptive while the details are being worked out in the background. This is helpful to the

culture because it brings IT and HR departments together under a new umbrella within the two

companies to exchange ideas and foster a good start to the implementation. It also helps to not

shell shock everyone until decisions are made on what the best systems will be for the

organization (Daft, 2007). Though this approach they are able to do some creative digging by

getting feedback from departments on things that they need to do their jobs and IT can try to

adapt accordingly. This is especially helpful for the HR department with its specific needs. There

are a number of different systems when it comes to HR. Performance management, employee

records, applicant tracking and training to name just a few of the various areas that are tracked on

a daily basis by HR.

Once the needs are identified, it is time for the team to research options that help to fit the

wish list. This involves working with various vendors and trying their systems to see how they


work and start comparing them to each other. This will help to narrow the options to a few.

When the options are narrowed to a point of making a final decision, gaining buy-in from

management to help make the decision and begin the process of embracing the changes and the

new culture. Finally, implementation of the new system can proceed and a new team can be

formed to help with that process. To ensure that the systems being implemented will continue to

be adaptable to ever changing technologies, it is important to make sure that the components are

upgradeable or able to adapt to new technologies. For example, being able to use the system on a

tablet may make it more usable for a supervisor on a factory floor.

Figure 3. Selection of HRIS

Implementation

Implementation is the next step of the process. This involves putting together a team of

IT and a small group of test users. These users represent a sample of the entire affected employee

base from both organizations. This will allow for a number of different views of the new

software. By following an implementation calendar to keep things on schedule, the testing of the

systems can be done in just a few weeks with time in between to work with the vendor to make

adjustments so that it works more fluently with the organization’s needs.

Make a Decision

Gain buy-in from Management Move to implementation

Research Options

Meet Vendors Test Options

Selection of HRIS

Create Team ->IT/HR Create Wish List


Figure 4. Implementation of HRIS

Through this process, it is important to consider the end user. Whether it is just for

management or all employees, it needs to be easy to use and streamlined in order to see ROI.

With a merger, it most likely makes sense to create an enterprise system that will work across the

new organization. The biggest thing is, of course, communication. This includes working with a

team of test users that are in various departments with both similar and different expected

experiences with the system. This way, there are a variety of ways of looking at how the system

works – not just the IT view or the HR view. Another important thing to do is to build a

relationship with the vendor that is providing the system (Harmer, 2014). They will be able to

answer questions about implementation and can work together to create new product design to

continue to improve the system after implantation. In this process, it can be implemented in

phases. For example, performance reviews don’t necessarily need to be released at the same time

as employee records because it only happens once or twice a year. As things are released, it is

important to communicate the changes to all affected employees about the changes and why as

well as having training available. Even if it is just a quick tutorial video on how to get started,

this will help the end users get started.

Communication

Make Training Available Implement/Recieve Feedback/Make Adjustments

Test System

Gain Feedback from Group Work with Vendor to Make Adjustments

Implementation

Create Implementation/Test Team Implementation Calendar


Risks and Benefits

With any project, there are risks and benefits. In case of this project, the risks are the

added cost of implementing a new system rather than adapting an already in place system from

one organization or another. However, the efficiencies that can be gained though pursuing a new

system should provide some balance to the cost incurred. It also includes issues with employees

adapting to the new technology. With the merger process, there are literally waves of change

going on throughout the organization. There will many things that will continue to impact

employees. By communicating regularly with employees, the impact can be minimized.

Along with the risks of this project, there are also benefits. One of the benefits of this

project is a clean start for the new organization. This helps bring together to the two

organizations because they are both going through similar changes, not just one being absorbed

by the other. This way, the burden of change is equal, thus helping in creating a culture of

togetherness. It also assures that the technology being used by the new organization is adaptable

to future changes and technologies. This will always be important as technology is changing.

Overall, the benefits of the cultural and organizational goals outweigh the risks presented.

There are many things that go into the decision to create change in a technology system

of an organization. For this merger between Heinz and Kraft Foods, it makes sense to help bring

them together by sharing the burden of change. This includes the selection and implementation

of a new HRIS that will help them to be competitive as a new merged organization. There will

continue to be challenges as the merger comes together; however this is a good step to help

provide structure to this new organization.


Talent and Workforce Management

Talent and workforce management is another area that will be greatly affected by the

merger and changes to it will have a great deal of influence in the culture of the new

organization. Human resources can use this as a great opportunity to both bring together two

organizations, but take this opportunity to really assess the talent that exists between the

organizations. It also gives HR a chance to evaluate the work that each employee contributes and

look for duplication. Not only will this allow for efficiencies to be made, but it will also make

sure that the right people have been assigned to the right positions.

HRM practices to talent and workforce management strategies

HR has many tools in its toolbox in order help organizations strategize and make

decisions that will be overall benefit them. These include recruiting, creating and maintaining job

descriptions, succession planning, training initiatives, and managing headcount. Each of these

strategies help to develop the overall culture in their own way. For example, recruiting helps to

identify new employees that fit into the new culture. Succession planning helps to create a map

for future opportunities. These practices make up the total talent management package.

Figure 5. Talent Management Process

Job Descriptions

Recruiting

Training

Performance Reviews

Succession Planning

Headcount Reporting

Talent

Management


Job Descriptions

Job descriptions are a vital part of the talent management process. They provide the

foundation for what the roles of employees by identifying the keys to what the job actually

entails. They provide expectations for employees and help set parameters between other

positions. Job descriptions provide the organization with legal protection against wrongful

termination through setting these parameters.

HR will provide clarity to the roles of the organization so that duplication can be

identified and evaluated. (Holbeche, 2009). Providing clarity does not only help eliminate

duplication, but also helps to create productivity by having one department or employee to go to

for a specific task. It helps to create lines for positions other people may have had to do a task

that was not part of their position but it became a part of their position over time. By doing this,

it creates standardization to similar jobs. For example, a supervisor in one production facility

would have a similar job description to a supervisor in another facility for the same organization.

Through this process, Kraft-Heinz should help bring clarity in this time of confusion by

reviewing the job descriptions of its organization. By grouping similar jobs from each company,

they can take the best from both and combine them to make sure it reflects the goals and culture

of the new organization. They identify duplication through this process and work with

management to see how they can make it more efficient – whether it divide the work by region

or to eliminate one or more of the duplicate positions.

Recruiting

Recruiting is the source of new employees into the organization. It is important that those

who are brought into the organization fit into the new culture that is being fostered. This can be

accomplished through a variety of behavioral interview questions and use of tools such as


personality testing that have been shown as viable tools for identifying individuals that will fit

into a specific culture. In providing the organization with high quality employees that fit into the

culture, they will quickly acclimate to the organization.

To provide consistency to the new organization as well as accomplish the goals for the

new culture, a standardized method of recruiting should be established. It should certainly

identify with things done by each of the former organizations such as type of interview

questions, process, etc. and develop a streamlined process that will seek out the best qualified

candidates while moving the culture forward. The diagram below illustrates the areas and

workflow of the recruiting process that will help to be both efficient and effective at the same

time.

Figure 6. Recruiting Process

Not only will this create efficiency of the recruiting process, it will also give the

organization a chance to inject itself with not only diversity of different races, ethnicities,

genders, etc., but also diversity of ideas. Organizations will always have a certain amount of

turnover. This turnover can be an opportunity for the organization to look for a variety of

Identification

•Identify Recruitment Need

•Requisition Approval From Management

•Hiring team Identified

•Updated Job Descriptions

•Post Position/Advertise

Selection

•Review Resumes and Prescreen Candidates

•Interview Candidates

•Personality and Aptitude Testing

•Reference Checking

•Make Decision/Offer Letter

On-boarding

•Background Check

•Drug Testing

•Pre-employment Physical, if applicable

•I-9 and other onboarding forms

•Orientation Training


different people. This will help to develop new ideas and will help bolster that there is a more

diverse group that can be involved within its industry.

Training

Having a training plan is another important part of talent management. It helps to identify

the needs of employees for future training needs not only for them to be successful in their

current position, but also so that they will be ready when employees move around according to

succession planning. Standardized jobs can also benefit from standardized training, so that jobs

can be filled and the new employee in the role can get up to speed in a more efficient manner.

Creating a training plan begins by identifying training gaps throughout the organization.

From there, priorities can be made and a budget be set to accomplish the training. Tracking when

training has been completed is an important step to ensure compliance, consistency and accuracy

of records. It also helps to show progression of the training that employees receive.

These steps help to cultivate a learning organization. This type of organization is a great

addition to the culture of the new organization because it focuses on employees and how they

can benefit the organization. It encourages communication and ideas throughout the organization

because training promotes thinking and sharing of ideas for improvement (Daniels, 2000).

Performance Reviews

Performance reviews are an important step in measuring the outcomes of period of time.

With the merger, there are things to consider with regards to these reviews. For example,

whether or not the reviews done when they were two separate organizations are used in the new

organization. In this case, the information provided by these documents give insight of the

performance of employees as should be considered when looking at creating efficiencies within

the organization. However, going forward, the performance process should be reviewed at to


make sure that it is measuring things that align with the goals and objectives of the new

organization. It is recommended that the system use a combination of number based performance

as well as an area with specific areas to openly write about the performance of the employee

(Sandler, 2004). This helps to bring together a holistic picture of the contributions that the

employee brings to the organization as well as their areas of improvement.

Succession Planning

Succession planning helps to keep the organization moving forward in the eyes of

change. The purpose is to identify high potential individuals that contribute to the organization

and have greater capacity to lead projects and people. Through the use of performance reviews, it

can show how employees work together as well as their potential to take on other positions of

responsibility as new opportunities present themselves. Other factors that should play into

succession planning are the employees interests within the organization, which can be

determined by having them fill out an annual survey to see where they would like to go.

Employees that are taking advantage of employee benefits such tuition reimbursement should be

considered, as they are improving themselves in order to benefit the organization. Those high on

the list for succession planning should also be those who embrace the culture of the organization

and live the core values both inside and outside the organization.

Headcount

Tracking the headcount the organization is an important part of the talent management.

This gives HR an idea of where turnover is occurring, identifies recruitment needs, and gives

concrete accountability to the finance department as well as management that the organization is

working within the confides of the agreed budget. By setting up a template that each facility can


use, they can simply update their information and submit it to HR on a monthly or even a

biweekly basis, if appropriate, to compile.

Figure 7. Monthly Headcount Sample

Facility 1 Budget Actual Variance

Hourly 50 48 2

Salary 10 10 0

Total 60 58 2


Hourly 100 98 2

Salary 20 15 5

Total 120 113 7


Hourly 75 74 1

Salary 15 12 3

Total 90 86 4


Hourly 25 26 -1

Salary 5 4 1

Total 30 30 0

Totals Budget Actual Variance

Hourly 250 246 13

Salary 50 41 9

Total 300 287 13

With each of these parts of the process, it is HRM’s role to think critically about each of

these areas and how they work together towards the strategic goals of the organization. As can

been seen, they each work together to come full circle throughout each year. Adjustments can be

made from year to year to realign with new goals as they continue to move the organization

forward. Though this, the organization moves closer to sustainability with standardization of the

workforce and of the culture that is being fostered (Weber, 2013).


Implementation of Talent Management

There are many factors that may impact the development and implementation of a talent

management system within this new organization. While looking at talent management as a

process, it should be implemented as such. Starting at the beginning of the process with job

descriptions and moving around to recruiting, training and etc. can be reviewed, updated and

implemented into the new organization throughout the year. This helps to divide the work out

throughout the year and it also gives HR time to give appropriate consideration to each piece and

what ideas to take from each organization and what to start anew with. This process will for the

most part freshen the current process from the other two organizations into the new one. While

there are things that will be different in both organizations, it is important that they gain

commonality through this process. Through talent management the organization will truly

become one organization.

Through this process, the various areas of talent management have been identified and

shown how they need to be reviewed in order to bring the best pieces that reflect the new culture

of the organization. Through stages, these pieces can be implemented and adjustments made to

continually align with goals of the organization and achieve objectives to be a prosperous new

organization that shows the value of its employees.

Measuring Success

Defining success in any project must be determined before the plan is begun. Throughout

the process, there should be time markers set aside to stop and take stock of how the process is

going. In the first year of a merged organization, it is recommended to take measurements at the

beginning of the process, three months, six months, and one year. After this, annual evaluation

should be sufficient to see if numbers are sustaining, improving or declining.


There are a number of things that need to be measured throughout the process of merging

the two organizations that can be telling of successful integration. Employee satisfaction is one

such measure because it gives a baseline with the two companies still separate in all but name as

well as over time when change has been initiated. This measurement shows how satisfied and

happy employees are with the organization. This factor can be linked with turnover and getting

an overall read on the level of turmoil in the organization (Marr, 2012).

Employee churn rate or turnover rate is another important measurement while going

through this process. Not only is it expensive to have to hire new employees with the cost of

hiring and training, but also continues to create turmoil in departments with work being

constantly disrupted – directly affecting productivity. This is important to measure especially

going into the culture change to see if change is directly impacting turnover (Marr, 2012).

Other things that can be measured to check the progress of the implementation include

employee engagement and training return on investment. Both of these measurements are

considered soft measurements on the surface. Since retention and culture building will be at the

heart of success of the new organization’s success, finding a way to measure employee

engagement and what is put into training will be invaluable to showing success long term (Marr,

2012).

Ethical and Legal Responsibilities

From the integration of technology to communicating with employees, each aspect of the

process should be looked at make sure that HR is legally compliant and behaving in an ethical

manner towards the organization, it employees, and society in general.

Ethically, HR has an obligation to the organization to present change that will benefit the

organization and put it in the best light to society. They can do this by open communication with


employees, management to bring forth further discussion that may even improve the process

going forward. HR needs to make stakeholders comfortable with change not by withholding

information, but by sharing an overall goal of where the organization is headed and the steps that

will be done in order to achieve the goal. This helps everyone understand that it will not happen

all at once, and what their involvement and what they can contribute each step of the way. HR

has a responsibility to the organization to help present it to society in the best way. To do this, it

hires top talent to represent the organization and do the work that makes its mark on the world. It

also promotes the organization through strategies that benefit the employees as well as the

organization. From a technology standpoint, that means keeping them competitive both with the

products they produce and the team that produces them. By having a good applicant systems,

easy to use performance management and succession planning, HR can help the organization put

its best foot forward.

Legally, HR needs to make sure that they are compliant with local, state and federal laws

regarding how things are set up throughout the organization. For example, if I-9 files are not

properly kept, separated and shredded per federal law, it could result in the organization being

fined for being out of compliance. This affects the culture of the organization because if HR is

not in compliance with what they need to be, they will be distracted with auditors, attorneys and

legal prep instead of working towards the goals of culture change. The ability to create reports

and providing information that will be audited regarding employee records, payroll, etc. are

necessary for the organization to fulfill some of its legal obligations to laws such as Sarbanes-

Oxley of 2002 (SOX). (Renckly, 2011). This and other laws help to keep the organization

accountable to themselves and society.


With the review of the talent management process, job descriptions provide the

organization with legal protection against wrongful termination through setting these parameters.

Other legal considerations to make are performance, recruiting and the like are not used to

discriminate against others for reasons such as age, color, race, religion, etc. (Muir, 2003). The

recruiting process provides a sound and nonbiased method of selecting individuals which

provides both ethical and legal responsibilities to the organization. This also provides ethical

responsibility to society by creating a process of selecting candidates and not using biased

methods like hiring friends of the hiring manager.

Conclusion

Throughout the process of merging two organizations it is important to consider the

culture in order to realize long term accomplishments with the new organization. It allows the

employees to become engaged in the process of the two organizations becoming one through

stages of changes that directly affects employees, management and the goals of the organization.

Throughout this process, HR needs to consider a wide range of programs that will affect the

outcome such as blending technology, talent management and coordinating the entire thing with

a thorough communication plan and make plans for tracking and evaluating success. Each of

these items helps to build the foundation for success and allows HR to be a vital part of the

strategic team. It is also important to consider ethical and legal responsibility that HR has to the

organization as well as to society and its stakeholders. Not only legal compliance, but also going

above and beyond reproach ethically builds trust with employees as well as other stakeholders to

the organization. By taking all of these things into consideration, HR will have an expansive

view of what is going on throughout the entire organization and can make adjustments to the


plan as the execution begins. The merging of two organizations is no small task, but by allowing

flexibility as issues occur, the new organization can be successfully shaped.


References

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Boston, MA: Harvard Business School Press. ISBN: 9781422104156.

Daft, Richard. (2007). Organization Theory and Design (5th Ed). Mason, OH: Thomson South-

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Jacobson, Darcy. (2012). 6 Big Mergers That Were Killed By Culture (And How to Stop It From

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that-were-killed-by-culture/

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3QV6OO/163505722x0x817718/BB5A3884-B3AD-4249-9FC6-

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9780273570116

Meriam-Webster. (2015). Merger Definition. Retrieved from:

http://www.merriam-webster.com/dictionary/merger

Marr, Susan. (2014). Culture Clash. HR Magazine. August 2014. SHRM.


Muir, Dana. (2003). A Manager’s Guide to Employment Law. San Francisco, CA: Jossey-Bass.

Nelson, D. and Campbell Quick, J. (2006). Organizational Behavior: Foundations, Realities and

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