Equity - ANSWER involve a foreign direct investors purchase of shares if an
enterprise in a country other than its own
non equity - ANSWER is an investment vehicle in which profits and other
responsibilities are assigned to each party according to a contract. Each party
cooperates as a separate legal entity and bears its own liabilities'.
merger - ANSWER result of an agreement between two companies to join
their operations together. Partners are often equals.
acquisition - ANSWER occurs when one company buys another company with
the interest of controlling the activities of the combined operations
why companies engage in M&A - ANSWER to facilitate rapid entry into new
markets. Thus, 'mergers and acquisitions are a predominant feature of the
international business system as companies attempt to strengthen their
market positions and exploit new market opportunities
low integration - ANSWER if the M&A is carried out mainly for portfolio
reasons) both companies remain separate cultures.
High integration - ANSWER it is crucial for the M&A to meet the HR
requirements of the different phases, which will be outlined in the next
section
pre-M&A phase - ANSWER -identification of people related issues
,-planning for due diligence
-assesing people
-working out the organzitional/cultural fit
-forming the m&a steering team
-educating the team on the HR implications
due diligence phase - ANSWER estimating people related
- Defining an organizational blueprint and staffing plan
implementation and assessment phase - ANSWER -managing ongoing
chnage especially cultural change
-managing employee communications
, -advsiing management on dealing with peole issues
-aligning HR policies especially toward total rewards
-monitoring the process of organizational and people related integration
activities
-ensuring the capture of synergries via incentives
-initiating learning procescess for future M&A's
HR Integration - ANSWER Various studies have shown that the HR
department becomes increasingly involved in the phases of M&A integration
as the process evolves
-strongest involvement in last two phases
3 conceptual tools firms should rely on - ANSWER 1. resources
2. processes
3. Values
IJV - ANSWER A separate legal organizational entity representing the partial
holdings of two or more parent firms, in which the headquarters of at least
one is located outside the country of operation of the joint venture.
IJV Challenges - ANSWER HR must manage relations at the interfaces
between IJV & parent companies
Different rules can create critical dualities
HR must develop appropriate HRM practices & strategies for the IJV itself.
HR must recruit, develop, motivate,
retain human resources at IJV level
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