K. Hovnanian Case
1) What type of culture and leadership style is necessary to implement such a strategy?
2) What is HR's role in the identification and integration of potential acquisitions?
3) What are the major factors K. Hovnanian considers to ensure a good fit between target company and K. Hovnanian?
4) What are the key success factors to retain the intangible assets of an acquired organization?
5) How do you balance the need for consistency and flexibility of management practices?
6) How do you enable newly acquired organizations to maintain their identity while being part of a much larger organization?
HR plays an important role in identification and integration of potential acquisitions first by conducting research on target companies that could potentially fit the criteria set out by K. Hovnanian's leadership team. They then need to assess if the company’s mission and objectives are aligned with those of K. Hovnanian , determining whether or not it would be beneficial for both organizations to combine resources . HR is also responsible for assessing how employees at each respective organization would transition during an acquisition process , creating guidelines which ensure a smooth transition period [1].
K. Hovnanian considers several factors when evaluating potential acquisitions including financial performance, operational capabilities, strategic fit , previous experience managing similar operations, compatibility of corporate cultures between both businesses , customer loyalty , employee retention rates , intellectual property rights etc .[2] All these factors need to be taken into consideration before any decision is made since they all have significant impact on overall success or failure rate associated with integrating two separate entities .
In order for newly acquired organizations remain successful going forward key success factors include ensuring effective communication between employers about goals/objectives; maintaining consistency across all management practices; fostering trust amongst team members ; giving autonomy so everyone feels empowered make decisions within their area expertise ; developing a common vision/mission statement which serves as focal point above individual objectives ; respecting diversity among staff ; implementing proper training programs which allow new hires learn quickly what needs done etc.[3]
Finally balance between consistency flexibility depends lot upon organizational size because larger ones tend require more centralized control while smaller ones need much less due relatively fewer processes involved making changes easier manage [4] As such allow certain subsidiaries maintain unique identity while still belonging larger umbrella company requires addressing cultural differences appropriately creating strategies promoting unity cohesiveness[5]. Typically this includes having clear understanding regarding core values driving business why those values matter letting employees know believe them respected regardless size scope organization [6][7]
References:< br >< br >1) The Balance Careers(2019), How Can Human Resources Participate In Mergers & Acquisitions? https://wwwthebalancecareerscom/hr-role-in-mergers-acquisitions-1918553 2) Investopedia (2018), Merger Integration Process https://wwwinvestopediacom/terms/m/mergerintegrationprocesshtml 3) Forbes (2015), 6 Keys To Successful Integrations After An Acquisition https://wwwforbescom/sites/stevedenning 4) Small Business Chron (2016), What Is The Difference Between Flexibility & Consistency? http://smallbusinesschroncom 5) Harvard Busineses Review(2012),Creating A Sense Of Togetherness In A Merging Organizationhttps://hbrorg 6) ManagementStudyGuide(2017).Importance Of Team Cohesion https://managementstudyguidecom 7 )McKinsey&Company(2013). Restoring Trust Inside Organizationshttpssitesgooglecommckinseyonorganizationrestoringtrustinsideorganizations