Relevance to the Human Resource

¶ … relevance to the human resource side of Paragon Tools, and what the merger would mean for the human capital of Paragon. The central problem in this case study is whether Paragon Tools should acquire MonitoRobotics or not, and how much that acquisition would cost the company. The underlying issue, however, is how it would affect the human resources department, and how not acquiring MonitoRobotics would affect the human capital of the company. Throughout the study, consultants, managers, and staff weigh the pros and cons of the issue, but interestingly, no one brings up the human resource concerns, which seem to be quite vital to the overall outcome of this case study.

Relevant factors in this case study include the growth of the company via the acquisition, which would include expansion in hiring and training. The growth would also change the corporate culture of the company, elicit up-to-date and immediate human resource planning, and could actually add to the overall employment picture in the community. The author of the work also alludes to the fact that the CFO might leave the company if the acquisition occurs, which would lead to an executive job search, which could leave the company in flux and transition at a crucial time. Clearly, this would be a very challenging time for the human resources department, and yet, the study barely alludes to this.

One of the areas this merger would create and improve is the services division, and this is a key factor in the study. Littlefield, the CFO, wants to do away with the division, while it would grow larger if the merger occurred. Thus, there could be two very different results for human resources to deal with. If the services division is closed, human resources must deal with layoffs in the department. They might locate and identify other jobs within the company for some of the workers, and they would have to deal with terminations, counseling, resume help, and the myriad details that come from a large-scale layoff.

On the other hand, if the merger goes through, they would be responsible not only for hiring new staff members to fit roles in the services department, they would certainly be charged with helping at least some MonitoRobotics staff members transfer to Paragon, while dealing with the layoffs and transfers that a merger would bring. They would also have to identify and create training modules for new and transfer employees, and develop training for the new systems and services as they were developed throughout the company. This would be an extremely important function of the department because it would help define the shape of the new company, and it would determine how successful the new company would be, because it would have to be developed very quickly and efficiently to be effective, and it would have to be cost effective and easily implemented, as well.

The corporate culture of the company would change, especially if the CFO decided to leave after the merger. The company would see growth in employees, and that would mean adding managers, as well, which would require strategic HR management and planning. They would have to decide on training and hiring practices, but even more, they would have to engage in a major recruitment if the CFO left the company. In addition, they would have to complete the recruitment as rapidly as possible, because the new, larger company would require sound fiscal planning and forecasting immediately, since the merger was costly and the profits were not expected to expand overnight. Leaving that position empty for two long could reduce the profitability of the merger, and could actually add to the failure of the merger if the return on the investment did not occur as soon as the budget and forecasting required. Thus, the human resources department could have a very negative effect on the success of the merger if the hiring and training were not managed effectively.

The merger could contribute to a higher rate of employment for the community, as the company would require additional workforce and would probably hire from within the community. The company is already popular in the community, and this could add to the overall popularity of the company, and could add to its worth as an investment, as well. Thus, each of these relevant factors would change the corporate culture of the organization, and would create a strategic role for human resources throughout the company, and even the community.