Imagine one firm buys another firm. What issues might arise as they attempt to merge their respective performance management systems? What might be the risks for the combined firm? How could the firm mitigate these risks?
The book I am using is:
Besanko, D., Dranove, D., Shanley, M., & Schaefer, S. (2009). Economics of strategy. (Fifth ed.). Hoboken, NJ: Wiley.
What issues might arise as they attempt to merge their respective performance management systems?
Some of the critical issues that might arise when the two firms attempt to merge their performance systems is that some of the metrics used from one firm may not be effective for employees from the other firm. Further, managers from one firm may do a poor job in assessing employees from the other firm. The performance integration may take place without integration of compensation, development, internal movement or rewards. Also, the form used for the merged company may not be suitable for all employees. Next, the supervisors that have to administer the form ...
Many corporate acquisitions result in losses to the acquiring firms' stockholders. Accordingly, why do firms purchase other corporations? Are they simply paying too much for the acquired corporation? A co-worker asks your opinion. Specifically state the reasons for your argument.View Full Posting Details