How HR and Managers Can Collaborate for Post Merger Success

Merger Considerations for Core HR Functions

The staffing requirements that result from mergers typically involve multiple organizational changes that present a number of challenges which are fundamentally different from standard staffing decisions (Scott, 2012). Although these challenges apply to virtually all types of organizations, they are especially daunting in health care organizations that are characterized by a multidisciplinary group of employees with different priorities for the post-merger organization. The purpose of this presentation is to provide a review of the relevant literature to identify areas of critical important for collaboration between the human resources (HR) service and departmental managers when making staffing decisions for a post-merger outcome. In addition, the presentation also recommends a process and elements for creating effective job descriptions and an explanation concerning two prominent considerations for developing fair and competitive compensation and benefit plans. Finally, the rationale in support of a recommendation for an appropriate employee performance appraisal methodology is followed by a summary of the research and important finding concerning the foregoing issues in the conclusion.

Analysis of two areas of critical importance for collaboration between HR and managers when making staffing decisions

Establish the set of guiding principles for the staffing process

It is absolutely essential to establish the appropriate guiding principles that will be used when making staffing decisions for the post-merger organization to provide transparency in the process in order to avoid even the appearance of favoritism or, conversely, covert revenge that is targeted at employees by some managers. In other words, these principles will serve as a roadmap that can be used to guide the post-merger staffing process. This initial set of guiding principles should also include the identity of the principals that are tasked with making the staffing decisions for the post-merger organization to reinforce the transparency of the process. For example, according to Scott (2012), “The staffing process should be made fully transparent. Employees need to know how they are being evaluated and by whom” (p. 3). To facilitate the development and application of appropriate guiding principles, HR and managers can draw on the best practices identified in mergers between other, similarly situated health care organizations (Harrow, Marks, Schneider et al., 2019).

Agree on communication, roll-out, and post-merger management strategies

One of the biggest mistakes that many organizations make in preparing for the post-merger environment is to keep the process secret, but this can backfire by generating unfounded rumors that will complicate the development and implementation process. Therefore, it is also vitally important for HR and managers to collaborate on the manner in which the steps needed to effect the merger will be communicated to stakeholders, how it will be implemented and what management strategies will be used during the post-merger phase (Scott, 2012).

Recommends a process and elements for creating effective job descriptions

Many job descriptions fail to provide a comprehensive description of the actual day-to-day activities of employees since jobs may expand in scope and responsibility over time without any corresponding changes to the elements of the original job descriptions. Consequently, it is important to develop up-to-date job descriptions for the post-merger organizations as soon as possible. For example, according to Pato (2014), “Job descriptions have to concentrate on the right scope of activities, namely everything in the given job descriptions have to be about the scope of activities of that given job” (p. 68). Creating accurate job descriptions can be accomplished in various ways, including desk audits and empirical observations of employees’ knowledge, skills and abilities, but job experts should be tasked with validating the process through a consensus-based format that includes both HR and departmental managers and/or their designees. In addition, Scott (2012) advises that, “This consensus-based format can be supplemented with self-assessments, structured interviews, business cases, and minimum/ preferred qualifications” (p. 3).

Explains two prominent considerations for developing fair and competitive compensation and benefit plans

Prevailing average levels that are regionally or nationally based provide a useful framework in which to evaluate the adequacy of compensation and benefit plans (Douglas & Kerfoot, 2012). Here again, another consideration for developing fair and competitive compensation and benefit plans is the need to develop a consensus among managers and HR to achieve optimal outcomes for the post-merger organization (Scott, 2012).

Justifies your recommendation for an appropriate employee performance appraisal methodology

Because of the diversity of the occupations in a post-merger health care organization, a 360-degree performance appraisal methodology that uses reviews by managers, peers, and direct reports of employees represents the optimal approach, especially since many of the employees involved are not in management positions (McClellan, Bateman & Bailey, 2009). The 360-degree methodology has the added benefit of promoting professional development of reviewed employees regardless of their specific discipline (McClellan et al., 2009).

Conclusion

Health care organizations share many of the same considerations as all other enterprises for mergers, but they tend to differ with respect to the greater diversity of the occupations that comprise their workforce as well as the multidisciplinary nature of their work. Developing effective staffing decision and accurate job descriptions represents some of the more important factors, but the research was consistent in emphasizing the need for transparency in the process as well as the importance of fair and competitive compensation and benefit plans. Although mergers are challenging for these and other reasons, they also represent an opportunity to address the deficits in the foregoing issues in ways that will help contribute to the success of the post-merger organization.