HRM the Impact and Influence

HRM

The Impact and Influence of Strategic Human Resource Management: A Brief Case Study

The growing field of strategic human resource management has wielded no small amount of influence on the way today's global businesses are run, and on the decisions made at the organizational level. Mergers and acquisitions are considered from new vantage points due to the developments in the field of strategic human resource management, and the ways in which these actions take place -- as well as the ultimate design of the larger entities that are formed following these mergers and acquisitions -- are largely guided by the conclusions developed in the area. This is perhaps especially true when these acquisitions take place across international borders, combining companies with entirely different cultural employment bases and, fairly often, different markets.

Ticketmaster and Live Nation

The recently announced merger between Ticketmaster and Live Nation, along with its extensive international division Live nation UK, is one example of a strategic human resource management-guided merger decision and strategy. The companies are often in direct competition, including in international markets, so the merger makes sense for a variety of other reasons, as well (Quainton 2010). An examination of certain strategic human resource management theories, however, reveals that the manner in which the merger is being carried out, as well as the broadly outlined plans for the new entity, Live Nation entertainment will operate both domestically and internationally, was carefully planned.

Knowledge Management and Communication

One of the primary human resource management strategies that will come into play regarding this merger is the knowledge management strategy. Effective knowledge management entails the proper organization and hierarchy of information sharing, ensuring that each member of the organization has easy and clear access to all pertinent information, as well as a simple and straightforward system for determining the priority of information in order to facilitate effective and efficient decisions (Armstrong 2001; 149-50, 151). The new international conglomerate of ticket dealers and concert promoting is built on the belief that effective knowledge management between the separate arms and activities of the companies will allow employees and managers to make more effective decisions. The breadth and timing of the information they receive will certainly aid them in this.

Communications have formed a key part of strategic human resource management in non-merger settings too, of course, and can be used to address many changing opportunities and challenges in established firms (Lundy & Cowling 1996; 381-3). In the context of the current merger, however, the possibilities for positive change being brought about by communication and knowledge management strategies is arguably even greater, as these strategies can be built largely from the ground up in the newly-formed (or soon to be formed) organization. By implementing a full and comprehensive knowledge management and communications strategy, Live Nation Entertainment will enable more rapid growth and innovation in their industry than previously possible (Quainton 2010).

Technology and Local International Competition