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Because. of different religions comes into contact with each other. It is not an easy task for HR department. Employee Engagement Products and process alone can¶t help organizations to sustain loyal customers (Mullins L). values and beliefs of acquiring firm(Barclays plc) and to do efforts in achieving the ultimate goal of organisation because in this age of globalisation there is a need for the crosscultural intelligence and to attract the diverse talent over the seas to get competitive advantage.INTRODUCTION Barclays plc is an organisation which provides banking services globally (in Europe. organisation needs the ³engaged employees´. So. USA. managing people at domestic level is totally different from managing people at international level. Africa and Asia) more than 300 years. Lots of issues are agreed upon when the deal between both parties was signed. objectives and plans and takes decision regarding budgetary resources. It will sharp the managerial skills of managers. its location but actually by the people (human resources) who set the strategies. Acquisition of Lehman Brothers organisation is one of the major decisions for Barclays¶ management. committed and involved employees who are very passionate about their work and feel as a part of their organization. Lots of issues may be raised in this collaboration. goals. Its main objective is to get right number of people. the world over. The strategic role of HRM in strengthening and sustaining corporate growth has assumed greatest significance. objectives and the culture over the time. people from different countries. In multi culture environment. But. Human resource planning It refers to links/manage the personnel to the organisation¶s goals. Managing human resources of different organisation is not an easy task. The more they will come into contact with diverse group of people the more they will know about different aspects of personalities of different people. resulting in losses to the firms. The same situation is in the Barclays plc. So when there is a question of merger and acquisition of two organisations then we are talking about the two different cultures which are going to collaborate. with right kind of skills at right time in right job. It is responsibility of the HR department of Barclays plc to Introduce people of both parties with each other and make the people of acquired(Lehman brothers) organisation to accept the norms. who is facing the issues in managing human resources. Barclays¶ signed the deal for $1. They also need highly-motivated.75 billion for the core operations of Lehman¶s in US. ISSUES IN HUMAN RESOURCE MANAGEMENT HRM in cross cultural context Multi-cultural workforce is becoming very popular in these days in MNCs ( Multinational companies). dedicated. As in this case study different nation-based companies (Barclays plc UK based and Lehman brothers US based) are collaborated. getting an employee to be engaged requires a lot of 2 . An organisation is not known by its buildings. for the managers. Cross-cultural differences are the cause of failed negotiations and interactions.
HR Function & Performance Management Except multi-cultural context and employee engagement there is another aspect which provide challenges for HRM is performance management. Selection and recruitment of employees 3 . social(relationship with co workers. training and performance appraisal issues. Job satisfaction level can be influenced by different factors such as individual (education. Job satisfaction is a so complex and crucial task. which has different meaning for different people. So HR department will face challenges in following ways to manage stress. rather than accepting the bureaucracy or autocratic approach company should practise the democratic way of leadership. economic. in the case of Barclays. Here. organisational(leadership style. personality). opportunities to interact) cultural(values. they can feel like at their own previous organisation. personnel policies. Management/leadership style: any organisation¶s culture is influenced by the way of managing people. Job satisfaction has a direct relation with performance and motivation. An acquisition/merger deal will be successful only when the employees will be satisfied from their jobs and which will give the loyal and motivated workers to organisation. they need to examine relevant issues such as training and development. Employee will be committed to the organisation only when they will be highly motivated and satisfied. In this approach employee will be allowed to make suggestions before the final decision. performance appraisal. It includes the recruitment. So that. Here. They are important to the organisation and ultimately they will feel as a part of organisation. Stress is a but obvious feeling in this kind of situation. Communication:-Informal apart from the formal network of communication. because only then happy employee can be the productive employee. It can be accomplished through job rotation. because they have different priorities of needs and wants. It will bring out the core competencies of employees that would give the competitive advantage. the employees should be satisfied from their job structure. job enrichment and job redesign. Manage the stress is very crucial task for the HR department of Barclays. procedures) and environmental ( social.effort and skill on the part of HR managers and calls for a different HR philosophy in the organization. For this. in the case of acquisition of Lehman brothers. To get engaged. government influences) factors. beliefs). where new people are coming. Job design: by creating or providing the jobs to new employees according to their skills and talent what they had been used to in their previous organisation. By having this approach they will think that they have their identity. STRESS is a main factor that will cause problems in attaining job satisfaction and will have adverse effects on the employees of Lehman brothers who are going to the company which is completely new to them. There should be a informal way of communication for the employees So that they can interact with their new colleagues and become familiar with the culture of new organisation.
is an important and major responsibility of the human resource department. All employees undergo specific training programmes that help in maximizing their potential. All these factors contribute in achieving the HR ultimate goal to let the new employees to be a part of organisation. Improve the quality and skills of staff. y y y y y y He assesses the need of training for individual and channelize the training program towards the ultimate goal of organisation. there is a positive effect of this procedure is that Barclays can get the cream of the Lehman brothers. It is a two way process by which employer and employee come into contact with each other in a formal way. Recruitment Recruitment is a way by which a more qualified and suitable person is selected for the job vacancy. aptitude tests. In these days training is becoming inevitable part of every organisation. training is the next step to polish the abilities of selected ones. Here. Training and Development After recruitment process. talented and skilful persons for the jobs. Performance Appraisal and reward system Performance appraisal is a process of assessing the performance of an employee in terms of what is expected from them. Here training will be the crucial task for the HR department of Barclays because in the induction process employee will understand the policies and job structure of their jobs. He makes sure that the new learned skills are whether being applied or not. Give the feeling of personal satisfaction and achievement. He conveys the messages from top management to employees and vice-versa. After the selection recruitment and training tasks this is the next 4 . he decides the further need of training. Select a person. In training the trainer act as a change agent who make trainees to get familiar with new organisation. is an another issue in HRM because he/she serve as a middleman between employees and organisation. Design the training program. Besides from this challenging face of forming process. But it is the responsibility of HR department that what method is use to when? It is a procedure of forming phase which is most difficult phase for managers. being as a change agent. Different methods are available for the recruitment process such as questionnaires. On the base of current performance appraisal. it is not only essential for new ones but also for the currently employed people so that they can cope with latest trends and techniques. All these activity are related to the betterment of employees. face to face interviews. Through these activities right person is chosen for right job at right place which gives the benefits to both organisation and employee as well. It is a continuous process so it prove as a most difficult task for the department. Main aim to encourage group participation because it is a task of most importance for Barclays plc. the HR department of Barclays plc is challenged to select the more desirable. it will induce the new ideas and new skills in employees so that they can feel easy enough to get intimate in new organisation. The main aim of training is: y y y To maximize the confidence and motivation level of employees.
So these kind of rewards do a lot to motivate employees. y Recognise the problems which are causing an employee to give him/her full efforts.step. So it acts as an input for the human resource department. Performance should be measured to the defined standards. As discussed in the case study. This is the phase where the actual performance of employees is evaluated. And try to do better to get reward from the organisation. on the basis of which the management decides what duties and responsibilities should be given to. Culture Most of the deals are failed because of the failure to cope with each other organisation¶s culture. change and conflict these three are very much interrelated to each other. y The task of creating a performance appraisal method and reward system is a duty of HRM which should be aligned to the objectives and training and development program. objectives in future for long terms. beliefs and customary way of doing things (Richard black). For the Successful mergers. The main issues that have to be faced by HRM in performance appraisal task are as follows: Recognise and identify an individual¶s strengths and weaknesses so that strengths of a person can be utilised more effectively and what can be done to overcome the weaknesses. level of supervision and termination. when actually two companies come into contact with each other. Deciding the reward system according to the responsibilities and jobs done is not an easy task. Feedback from this method acts as a booster for the employees. Because of. In the situation like in Barclays the reward system is very necessary to communicate within the new organisation so that employees can get influenced by reward system of Barclays. On the basis of which they make their decisions such as strategies. more than 30 percent of staff has left the company. it acts as a powerful motivational factor for future growth. productive and motivated people are required who have a shared vision and values according to the present culture and a clear understanding of short-and long-term goals. ultimately. lack of morale of employees. medals or by praising for doing something good. 5 . So it is the responsibility of HRM. promotions. These employee engagement and Performance management issue of HRM. if handled properly. Everyone in organisation try to do something to get reward not necessarily in the form of monetary reward such as bonuses and incentives but also such as recognition in front of all by giving certificates. Culture is known by the values. It provides preliminary information for human resource planning as well. it leads to the higher motivation level and outstanding performance of employees which decreases the turnover. Culture . This is the adverse consequence of cultural mismatch. Who will use the appraisal method and who will be appraised by this method? All these things will be decided by the HRM. Because of that they come to know their strengths and weaknesses. to pass the accurate and correct information to the management without any bias so that they can take the corrective measures. absenteeism.
has taken the decision of acquisition. In the case of merger people of non-dominating company can feel like loss of their identity and on the other hand dominating culture can feel like superior one. beliefs. Culture can be a competitive advantage (Litwin and Stringer). Motivation is a key factor to be dealt with for any organisation. leadership styles are determined by the organizational culture. more the culture is healthy.. it can cause the employees to divert from their paths and make them less productive and let them towards the issues of job security. So to manage the staff. But to get a competitive advantage culture should be flexible enough so that it can adjust according to new strategic demands of organisation. managerial style of dominant culture. The Jobs may be redesigned. The employees of non. because the organizational practices.dominant culture need to leave their own culture. its culture should be flexible enough to adjust the new entrants. So security of job is main issue for the new ones. Employees can get a very different job profile that may have impact upon their performance.because in the merger and acquisition activity. So it create an µus¶ versus µthem¶ situation. After that this activity raises question about their career and opportunities. In this acquisition Barclays have to face culture challenges as the most of the staff of Lehman Brothers has left Barclays and some of them did not join the organisation. career paths. This is the same situation in Barclay¶s merger. Culture is a determinant of employee¶s motivation. fear of the working with new unknown employees and most importantly the security of job(in the case of case study). As the Barclays. there is another issue of culture when two organisations are merged that is when new employee join the new organisation. duplication of departments is but obvious. management can downsize the manpower. As already mentioned in the case study that culture of both organisations is very much different from each other which may be first and foremost reason for the clash of the M&A activity. It is clear that they were not willing to adapt the values. beliefs. it means he/she is not motivated properly and he/she cannot do job effectively and efficiently. and have to accept the new values. engagement and motivation level of employee towards the organisation. performance and attitude. So rest of things are worthless as whole meaning of organisation depend upon just one factor of motivation. Each organization has a different set of beliefs and values (Mullins L).The organizational culture plays an important role during mergers and acquisitions. More the employee is motivated. If the employee is not accepting the culture of new organisation. 6 . leadership style and practices of new culture. Dissimilar cultures produce stress on the minds of employees and because of that they feel not comfortable and a kind of hostility produces in them. One culture can be dominant between two cultures only when the employees of culture are highly motivated. That ultimately effects the commitment. Whenever a person comes to exposure to a new culture. In this kind of situation company cannot do efforts achieving the goals and objectives of its and the merger cannot survive for long time. he/she goes through a psychological state known as µculture shock¶ (Richard Black). It was a challenge for Barclay¶s management to make new employees willing to accept new culture.
policies and procedures are formed. Because in the change of their routine work. he/she should be prepared mentally as well as physically beforehand for that change. new strategies. perception. Ultimately change in the leadership style. Barclays has its own culture and Lehman was having its own culture. When leaders or managers are planning to manage change.to influence the personal factor of a person is not an easy task. Change can have both positive as well as negative effect depending upon how well the change is communicated.e. By changing some of values. As we know that organisation is not just a building or location but it is a collection of people. age and gender). . Result of that was the employees of Lehman were not happy and they left and some of them did not join. Every activity in an organisation whether it is a merger/acquisition or sale activity. is causing some change. management should think about their style of management so that it can cope up with new environment. It has created a new environment to work for both organisation¶s employees. training programs and counselling. beliefs and ideas we can change culture to adjust in new environment. During this merger. Some people like change i. qualification. It can be done via oral communication. Otherwise it would be difficult for them to grasp the sudden change. Because it is a human nature that any person want to do jobs in a manner in which they had been used to. it is a responsibility of management and executives to prepare the employees to adopt change as early as possible such as in pre acquisition period. Different persons react differently to change because of personal factor such as education. To prepare the employees to face change is a very crucial task. So to adjust both parties in a one culture is very much difficult. but if the Barclays has taken decision of merger then it should be ready before hand to adopt the changes in culture and leadership style. The employees of dominant culture may raise an issue that why should we change our culture or leadership style.as discussed above leadership style is a major factor in influencing the new employees. Change Merger of Barclays and Lehman brothers was a huge change for both organisations. Change should not be imposed on people but it should involve people (senior B). Same is here. they always look forward to do something new. so after merger/acquisition. But some people like 7 . Because some of the employees may look forward for the cultural changes but some of them may get demotivated. there are following key principles that need to be kept in mind: Different people react differently to change Every person has its own preferences and perceptions.Management and leadership style of any organisation reflects through its culture and vice versa. in the case of Barclays. nature. Change Nothing is constant except change (Senior B). It can be proven as good and bad as well. Whenever a person is asked to do something new. It is not an easy task. It is easy to manage them. where change was not managed/ communicated properly.
recruitments and change agents. these both activities have created a sense of fear such as downsizing. values and beliefs of organisation. As in the case of acquisition or merger when employees shifted from one organisation to another one. by designing the jobs in a better way through job redesign. and procedures can be conveyed easily without any hesitation. y Make change inevitable by promotion. According to human nature everyone will try to do things in his/her own way. To cope up with this fear factor is really a tough task. Here if we take the example of given case study then occurrences of conflicts is but natural because not only two different cultures of two different companies are merging but also many subcultures are also merged. This relationship is very important. Everyone has own needs and priorities Some people prefer jobs because they like the salary or bonus packages i. But in reality management cannot make every happy at the same time. stress. To manage the change the management should do the following tasks:y It should inspire the people and should talk about the objectives. job enrichment and job rotation management can handle change effectively.the stability i. Expectations Should Be Managed Realistically There is a relation between expectations and reality. y It should create communication network for face to face interaction so that new ideas. negative attitude towards other person¶s preferences and resistance. they are hard to influence and they like things in the way they have always been. So to change the perceptions of this kind of people is not an easy task. Before the employees could expect that is not achievable. In these situations. So. employment relation. Conflicts Conflict is a situation when two or more than two people have disagreement upon different ideas or beliefs. person can experience the strong dissatisfaction.e. better job opportunities and reward system. policies. So it should communicate the changes in the pre acquisition period that what could be done realistically. job security in the minds of Lehman staff. goals. There will be different sets of beliefs. rewards. Shutting down of Lehman brothers and then merger with Barclays. Remove the obstacles if any in the way of communication because it is the only way by which people can be made to accept changes.e. Starting with 8 . An organisation itself is a collection of people from different backgrounds. values and ideas. At last the most important thing that the organisation will have to be dealt with is FEAR. they expect a good treatment from the new management and employees as well. they just want to earn money but some people like the jobs because they prefer the self actualisation and social identification in front of all and they like the reward system of organisation.
perspectives. Conflicts with the subordinates Now you are in a situation where you have got authority. strategies. let them to find out the reasons and help them skilfully whenever required. It can be because they did not understand your view or you have not communicated it properly.small disputes. conflicts may reach to higher level and can be reason for separation. Carefully evaluate the bad effects of the decision on you and organisation. Whenever you have a idea or views then present in the form of suggestions. If any problem occurs always be ready to help them. So try to start a discussion to sort out the problem. procedures to solve problems. In this case if any conflict occurs then use following ways:y y y Allow freedom to everybody to express their own views and listen carefully. objectives and goals. You and your colleagues may have different point of view. Secondly by using cooperation policy we can sort out the conflicts. So always try to communicate. in future. Conflicts with the colleagues/peers Whenever you have a conflict with your colleagues then use the proper communication. ideas. 9 . As the culture of both organisations is entirely different so both of them can have different values. So that. Rather than imposing your views try to understand other person¶s as well. Do not raise question on his/her authority. Ultimately that will affect the organisation. if you take any decision they can understand on which basis you have taken this decision. There are following type of conflicts that may rise among people of Barclays and Lehman brothers are given as follows:- Conflicts with the boss Whenever you encounter a conflict with your boss. Your subordinates are not having broad vision like you. remember that boss has wider perspective and more experience than you so listen to him. By identifying positive minded people we can sort out conflicts upto a great level. discuss with them about your vision through training and counselling.
policies or procedures So to make them happy. They might not like the new leadership style of management. for the stakeholders of Barclays. ultimately affects them. Here. So whatever the decision is taken. new strategies. The other party may or may not like these changes. They should present the advantages of Merger/acquisition in front of them. For example. It is a situation like one party is changing the rule of game. ultimately. affect the stakeholders of company. management should do efforts so that they can digest changes easily. it is difficult situation to choose from what to do and what to not.Dilemmas for the Barclays PLC stakeholders All these changes in an organisation. 10 . They are the owner of company.
Mullins L. 2. 3rd Edition.Businessdictionary. Prentice Hall. (2005) Organisational change. Senior B. 6th edition. www. Swailes S. (2004) Management and Organisational Behaviour. 3.com.References: 1. 11 . Pearson Education.
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