Strategic Human Resources Research

Running head: STRATEGIC HUMAN RESOURCES RESEARCH

Strategic Human Resources Research

Terri Butler

Todd Goldsworthy

Robert E. Goss

Benjamin Johnson

Carol Stampley

University of Phoenix

Abstract

This document provides an analysis of key course concepts as they apply to organizations that have faced situations similar to those currently facing InterClean. The paper examines various situations within these organizations that required specific changes in human resource practices. The paper also presents specific human resource management concepts and the processes the various organizations used to attempt to implement these practices. The effects of these efforts are represented. Appropriate references are detailed following the synopses.

Strategic Human Resources Research

In the ideal merger or acquisition, the newly created entity synthesizes the best qualities of the two merging organizations. A well planned and executed process built on a foundation of open, honest and effective communication can foster success. The human resources perspective, which focuses on the integration of the workforce and key operational processes involved with a merger or acquisition, is often neglected with the focus being on financial outcomes. Studies have shown that mergers and acquisitions often fail to achieve desired outcomes due to people related issues. The uncertainty created by poorly managed human resource related strategies in these mergers and acquisitions have been found to be the catalyst for failure.

Research shows how, in different organizations, human resource departments have a substantial influence on organizational success or failure. Mergers, acquisitions, and organizational changes pose significant challenges for the human resource departments of both acquiring and acquired organizations. When human resource professionals work with the leadership team during the restructuring process, integrating staffing practices with the new business strategy, developing effective performance measurement and training systems, or leading the formulation of new strategies, a company is more likely to achieve its long-term goals.

Managing the Restructuring Process

The reality of business today is that increased competition is driving the need for companies to identify ways to reduce cost, increase productivity, and grow the business to meet the demands of customers and investors. Companies may try to increase productivity and profit margins by leaning out their organizational structure or through a series of mergers and acquisitions. Organizational scholars today, such as Jeffrey Pfefffer, would argue that a firm's performance, regardless of the restructuring method a company may select, will hinge "not on technology, patents, or strategic position, but how they manage their workforce" (Dreher & Doughterty, 2001, p. 3). Different companies have taken different approaches to managing the restructuring process, but each approach contains a human resource focus.

At Shaw Supermarkets, the vice president of human resources decided that seven key human resource initiatives must be undertaken to ensure the successful merger between Shaw and the Star market chain. When HP merged with Compaq, a human-resources executive was hired and charged with managing the restructuring processes, to merge the work forces and cultures of the two companies. The inability of human resources personnel to institute both organizational change and cultural change effectively during the merger of Moore Corporation and Wallace Business Forms is believed to be a primary cause for Moore's ultimate failure. In planning for a merger with CMG, Logica developed a restructuring approach containing six key elements, similar to the approach used at Shaw. Logica has continued its strategy of growing through merger and acquisition and has continued to refine its processes to support its goal. The success or failure of the human resource initiatives in managing the restructuring process had a direct and significant impact on the success or failure of these organizations.

Performance Measurement System Attributes

The Hanke Group, a local accounting firm in Texas, needed to respond to the critical issue of talent retention. "The issue was addressed through the implementation of a performance management system that integrates the firm's strategy into its daily operations and focuses on motivating employees," (Cozy, Ward & Schultz, 2007, p. 62). The Hanke Group decided to address this concern with the implementation of a system that allowed for employees to provide structured management of individual performance. The result of their efforts was a system that provides performance feedback that is of value to all levels of the organization.

The concept of performance measurement system attributes applies to the situation and resolution experienced by the Hanke Group. With a myriad of methods to provide measurements for employee success, it was decided that a Process-Oriented approach would work best (Dougherty & Dreher, 2001, p.51). This approach was geared at improving the internal processes of the organization through utilization of all employees. By focusing changes on the processes instead of the results, the Hanke Group developed practices that will continue to deliver positive results. The measurement source consists of employees at all levels with feedback reaching throughout the organization. The steps taken by the Hanke Group exemplify the potentially positive results of proper application of a performance measurement system.

Training and Development

Employee training and development is a key element of an effective human resource management system. A company or organization must systematically assess its training needs, design appropriate solutions to meet the business needs and the needs of the employee, deploy training solutions in which to meet those needs, and finally, evaluate the results of the training solutions.

As part of the human resource system, activities such as career pathing and employee development are used to assist individuals in achieving their future career goals by identifying the