Strategic Management Paper
August 2, 2010
Strategic Management Paper
Early this year, Mental Health Care, Inc. announced plans to join forces with Achieve Tampa Bay Inc. to create an exemplified model for other nonprofits faced with reduced public funding. Under the merger, Mental Health Care will pick up Achieve’s back-office work, such as accounting, IT and human resources functions, keeping about 150 staff members employed and continuing health care services for about 1,700 children, adults, and families (Manning, 2010). Neither the administrative director of human resources for Mental Health Care, Inc., Bob Sleczkowski, nor the HR official heading the ...view middle of the document...
Morgan, personal communication, July 28, 2010).
Rich Greco, former CFO and COO of Achieve Tampa Bay, admitted that the company did not have the funds to pay back to the Children’s Board of Hillsborough County. He and other top Achieve execs have since left that company (Manning, 2010). The cause of financial hardship was Achieve’s rapid growth had overwhelmed the agency, swelling payroll. Under these circumstances, HR attends closing activities to help in identifying risks. According to McConnell (2007),
“It helps to remember at all times in dealing with Human Resources that HR does not command; rather, HR recommends” (p. 25).
HR for Mental Health, Inc. and Achieve is establishing and executing change management and communication processes while identifying critical talent. Morgan also implies that the HR team is keeping employees motivated and loyal to the new organization because the administration realizes that when proper attention to the “people” side of the transaction is not made, the value of the new organization can plummet as anticipated efficiencies or market share go unrealized (S. Morgan, personal communication, July 28, 2010).
Training and development
HR has the capacity to uncover hard costs in this merger and is a valuable asset in addressing the human “challenges” involved that can make or break the deal. Both companies realize the critical establishment of change management and a solid communication plan early in the merger process. The objective is to create an awareness of the deal for the workforce and over time, build understanding of the vision for the merger to gain acceptance and commitment to its success. The merger process needs to begin in the pre-deal phase and continue through post-integration activities.
Employee performance management
Managing expectations through change management and communication is also critical to retaining key talent throughout the process. Morgan says that HR is helping both companies to identify high-potential employees and in which department they will fit in the new combined organization (S. Morgan, personal communication, July 28, 2010). HR can also coordinate the funding incentive programs to reward high performers who help ensure a successful integration. According to McConnell (2007),
“The Human Resources department should never forget—and should never be allowed to forget— what it is there for: to represent employees and advocate for them, to ensure that management is aware of what the employees need to keep them motivated and performing, and to propose and champion those programs and services that appear to be most needed” (p. 85).
Additionally, the organization provides managerial and employee training to progress the efficiency of the organization and to avoid government or state interference in administrative development. Training programs can include counsel and discussion on various subjects like workplace guidelines,...