this is a group project and my part
is1.Explainthe advantages of a succession management process
2-Describe the succession management process you are proposing.
also i will upload the rest of my group members work when it is availble but i think you can figure it out fro the case studytbecause this part ( my part) is depends on their work, so please
Group Report 30% HRMT 4338 HUMAN RESOURCE PLANNING Course Project (30 %) LK Business Supplies is a company selling commercial stationery to offices in and around ALKhobar, Eastern Province, Saudi Arabia. Most of its business comes from general office supplies, such as paper, pens, printer cartridges etc., although it also supplies office machines. The office is staffed as follows: CEO Manager Admin staff 3 Sales Manager Field Sales 6 Tele-sales 4 Customer Support 1 Warehouse Manager Warehouse man 4 Driver 5 The tele-sales staff are involved predominantly in selling to small and medium companies and the field sales staff to larger accounts, with the focus on new as well as existing customers Set up in 2010, LK Business Supplies has grown very quickly, but in 2017 it was still very heavily dependent on the corporate memory, skills and experience of its Manager, Sam Millwood, brother of the founder, Walt Millwood. The company expects to grow by 20% in 2018/19. Until recently, Sam was responsible for just about everything. He had been involved since the company was founded, had held a variety of positions and had an intimate understanding of the organization's operations and history. And, of course, he had a direct line of communication to the CEO, his brother. On April 5th, 2017, Sam was killed in a freak car accident on the highway. His unexpected death was a hammer blow and a huge shock to his colleagues. Everything he had known about the organization was "in his head." Although Walt had often asked him to document information and pass his knowledge on to others, this had never happened. Sam had always been “too busy”. Walt Millwood has decided to retire and has sold the company to Chuck Wentworth. Chuck wants to invest a large sum of money in order to expand the company’s operations. He has hired you to draw up a consultancy report in which you: 1. Conduct a PESTLE analysis for the business [12 marks] 2. Identify likely future trends that will impact the business [12 marks] 3. Identify key problems that could impact future growth or profitability [10 marks] 4. Draw up a proposed organization chart for the company [ 5 marks] 5. Propose and justify new positions to help the company expand [15 marks] 6. Develop competency based Job descriptions / Person specifications for all management positions. [ 15 marks] 7. Explain the advantages of a succession management process [ 10 marks] 8. Describe the succession management process you are proposing [ 15 marks] 1. Each group is to submit both a written report via Safe Assign and email a soft copy to your lecturer. 2. Use size 12, Times New Roman font, double spaced, minimum of 12 pages. 3. The report should have: a. Cover page b. Executive Summary c. Table of Contents d. Introduction e. Main Body f. Conclusion g. References 4. Tables, diagrams and figures should be sourced accordingly and include proper referencing and bibliography. Plagiarism Copy paste and plagiarism is not allowed. If your report shows more than 10 %, marks will be deducted accordingly. Submission 18 April 2018 50 % of the total marks will be deducted for late submission Chapter 13 Chapter 12 Mergers and Acquisitions * Copyright © 2013 by Nelson Education Ltd. Copyright © 2013 by Nelson Education Ltd. * * * Learning Outcomes After reading this chapter, you should be able to: Understand the various types of mergers and acquisitions Explain why organizations merge and the methods used to achieve a merger Identify the financial and human impacts of mergers Copyright © 2013 by Nelson Education Ltd. Copyright © 2013 by Nelson Education Ltd. * * Learning Outcomes After reading this chapter, you should be able to: Describe the issues involved in blending cultures Discuss how a merger affects HR planning, selection, compensation, performance appraisal, training and development, and labour relations Copyright © 2013 by Nelson Education Ltd. Copyright © 2013 by Nelson Education Ltd. * * * Review Strategic Types (Chapter 1) Corporate strategy: Organizational-level decisions that focus on long-term survival Restructuring: Includes turnaround, divestiture, liquidation, and bankruptcies (Ch 10) Growth: Includes incremental, international, and mergers and acquisitions Stability: Maintains status quo Copyright © 2013 by Nelson Education Ltd. Copyright © 2013 by Nelson Education Ltd. Reviewing Chapter 1 for corporate strategies briefly is beneficial to see that mergers and acquisitions are growth strategies, whereas Chapter 10 was about downsizing, which is a restructuring strategy. * Mergers in a Post- Global Economic Crisis Mergers and acquisitions peaked in 2007. Buyers are typically focused on M&As to support growth strategies. Sellers have become more reluctant to sell due to issues with valuations of organizations and the economic climate. Copyright © 2013 by Nelson Education Ltd. Copyright © 2013 by Nelson Education Ltd. * * * Definitions Merger: The consolidation of two organizations into a single organization Horizontal merger: The merging of two competitors Vertical merger: The merger of a buyer and seller or supplier Conglomerate merger: The merger of two organizations competing in different markets Copyright © 2013 by Nelson Education Ltd. Copyright © 2013 by Nelson Education Ltd. It is important to review the vocabulary with the students; see “Exercise 1” for more practice. * Definitions Acquisition: The purchase of an entire company or a controlling interest in a company Consolidation: Two or more organizations join and form a new organization Takeover: One company acquiring another company Copyright © 2013 by Nelson Education Ltd. Copyright © 2013 by Nelson Education Ltd. Note later that hostile takeovers are mentioned because takeovers are rarely done amicably. * * Strategic Benefits Operating synergy: The cost reduction achieved by economies of scale produced by a merger or acquisition Vertical integration: The merger or acquisition of two organizations that have a buyer-seller relationship Horizontal integration: The merger or acquisition of rivals Copyright © 2013 by Nelson Education Ltd. Copyright © 2013 by Nelson Education Ltd. The Urge to Merge Companies merge for three reasons: Strategic benefits Financial benefits Needs of the CEO or managing team Note that sometimes economies of scale is synonymous with operating synergy. * * Financial Benefits Organizations need to reduce the variability and risk of their cash flow. Organizations often use “cash cows” to fund “star” operations. All growth strategies have different tax implications. Copyright © 2013 by Nelson Education Ltd. Copyright © 2013 by Nelson Education Ltd. All mergers have complex financial implications that need to be addressed carefully. Other financial benefits include the following: Developing new products and entering new markets is expensive. Financial statement analysis often reveals undervalued organizations. Goal is to increase shareholders’ wealth. Although one of the objectives is to increase stock price for shareholders, 80 percent of mergers fail to do so. Needs of the CEO or Managing Team Managers may pursue their personal interests at the expense of stockholders. Often the motives of executives can be deemed unconscious. Copyright © 2013 by Nelson Education Ltd. * * Copyright © 2013 by Nelson Education Ltd. Some managers make decisions only to prove their capabilities. Other studies link personality factors such as the need for power in making management decisions. Also note that alongside of power and influence, there is a role for ego in mergers as well. * * Merger Methods Hostile takeovers: Are dramatic and complex when one company takes over control of another Poison pills: Refers to the right of key players to purchase shares in the company at a discount, making the takeover extremely expensive Copyright © 2013 by Nelson Education Ltd. Copyright © 2013 by Nelson Education Ltd. * * Merger Methods White knights: Buyers who will be more acceptable to a targeted company Pac-Man: A defensive manoeuvre where the targeted company makes a counteroffer for the bidding firm Copyright © 2013 by Nelson Education Ltd. ©Robyn Mackenzie/Shutterstock Copyright © 2013 by Nelson Education Ltd. * * * The Success Rate of Mergers Only about 15 percent of all mergers (and acquisitions) successfully achieve the financial goals. Best success rates are with similar businesses rather than dissimilar ones Copyright © 2013 by Nelson Education Ltd. Copyright © 2013 by Nelson Education Ltd. One of the greatest indicators of merger success is related to the acceptance of organizational culture. Given the 15 percent success rates, it would behoove merger transitions teams to focus more on culture. Mergers take so much time and resources that often the original business is neglected. Mergers are more successful when a large firm absorbs a small firm. Mergers are less successful in service industries (compared to manufacturing) due to greater risk. * Reasons for Failures of M&As Copyright © 2013 by Nelson Education Ltd. Copyright © 2013 by Nelson Education Ltd. Note that there are financial, human. and process costs associated with merger and acquisition failure. * * Financial Impact Estimated financial returns are rarely realized. Many mergers fail because the buyer overextends itself financially with high debt loads and then must apply cost- cutting measures to service the debt Some forecasted economies of scale are never achieved. Copyright © 2013 by Nelson Education Ltd. Copyright © 2013 by Nelson Education Ltd. With so many negative financial outcomes, it is important to ask the students why mergers still go ahead. * * Impact on Human Resources Reduced employee/manager morale before, during, and after the merger may lead to: EXPLAIN Lower productivity \ morale Sabotage Stress and anxiety Survival tactics Higher turnover Lower efficiency → Creates negative financial consequences Copyright © 2013 by Nelson Education Ltd. Copyright © 2013 by Nelson Education Ltd. It is important to realize that the human impact from mergers creates a very negative financial impact on an organization. What Is Culture? Culture: The set of important beliefs that members of an organization share Copyright © 2013 by Nelson Education Ltd. * * Copyright © 2013 by Nelson Education Ltd. These beliefs are often unspoken. They are an accumulation of the group’s shared history and experience. Culture is known as the “social glue” that binds individuals together and creates organizational cohesiveness. Assimilation Assimilation: Occurs when one organization willingly gives up its culture and is absorbed by the culture of the acquirer or the dominant partner Copyright © 2013 by Nelson Education Ltd. * * Copyright © 2013 by Nelson Education Ltd. There are four cultural options for mergers and acquisitions, including: Assimilation Integration Deculturation Separation * * Integration Integration: Refers to the fusion of two cultures, resulting in the evolution of a new culture representing the best of both cultures This form rarely occurs because the marriage is rarely one of two equals, and one partner usually dominates. Copyright © 2013 by Nelson Education Ltd. Copyright © 2013 by Nelson Education Ltd. * * * Deculturation Deculturation: Sometimes the acquired organization does not value the culture of the dominant partner and is left in a confused, alienated