Conflict Resolution Policy.
How can conflict be managed effectively and efficiently when two companies are merging? Just the thought of merging a company’s systems, processes, and workflows, will bring conflict and discord in the organization. If not addressed appropriately, conflict in an organization can cause some unwarranted stress for both the employees and the organization. In an act to provide standardization and to minimize confusion among the employees, it becomes imperative that HR is involved in this transition. How can HR executives lead the way and focus the company’s attention to conflict? According to Masters, HR can do the following: 1) recognizing the possible benefits of conflict, 2) taking a systems approach to managing conflict, and 3) developing skills among employees and managers to handle conflict effectively (pg 1).
When two companies have two separate ways of achieving the same goal, how does an organization merge both policies where either company does not feel that the company that is taking over has just eradicated their old policies? For example, Company A has a traditional grievance process and Company B has a peer mediation process a unified approach needs to be taken in order to achieve one grievance process that is beneficial to all parties involve.
Speak Easy Process
What is Speak Easy? Speak easy is a process that will incorporate the traditional grievance and the peer review process into one process that will be carried out into a series of steps. Speak easy was design to give the employee an opportunity to speak with management about work related concerns first. This will ensure that there is an open line of communication and guarantees a timely response. As stated earlier, speak easy will carried out into three phases. To ensure that this program is a success the company has hired a Speak Easy coordinator.
Phase 1
The employee should go to their immediate supervisor to raise any direct concerns or issues about their job or work situations. The manager is committed to listen and give you a fair and honest answer. If the manager cannot correct or disagrees with the situation, another phase that the employee can be offered.
Phase 2
When an employee is dissatisfied with the outcome in phase one, phase two was design to give the employee another avenue to take to try to have their issue resolve. In this phase, the employee needs to obtain a form from local HR this form is kept completely confidential and should be mailed to your Speak easy coordinator. The coordinator will respond to the employees issue with ten business days.
Phase 3
Should the employee not be satisfied with the result in phase two a formal speak easy review. In phase three, there will be a committee that will listen to the complaint and start an investigation of the issue. The committee will be comprised on a managers, employees, HR representatives, Corporate speak easy coordinator, and a litigation specialist from the legal department. Once the board reviews the complaint, it will be quickly reviewed and responded too in a prompt manner. The board will issue their final decision.
The possibility of not having conflict within an organization is not possible; thus, it is needed for organizational change to occur. Employees must have a meaningful way to voice their dissatisfaction with the workplace. An important first step in managing conflict is recognizing that there are legitimate differences on how organizations should be run and how employees should be treated.
Flextime and Telecommuting.
The U.S. workforce is increasingly diverse. Changes in the family structure in addition to work and family demands and lifestyles have all affected employee attitudes about work and how work relates to one’s overall quality of life. Employers who respond to these demographic changes will be in a better position to recruit and retain talented and skilled workers of all backgrounds, gender, and age (Bond, Galinsky, Swanberg, 1977). Mergers and acquisitions have made it challenging for companies to integrate differing policies involving work structures for their employees and internal organizations. We will now look at two merging companies with differing policies for work environment that will integrate the flextime/telecommuting policies of company A.
Company A had previously found out that the traditional work structure of 40 hours a week from 8am to 5pm, Monday through Friday is no longer a model that fits the needs of many of its workers or organizations. A flextime and telecommuting policy was implemented to address the needs of employees and organizations within company A. Company B in this merger did not see a need for less structured workplace for its employees and organizations. It did not have the policy for dealing with the differing needs of employees or organizations as company A.
Company B’s former management was not initially sold on the advantages of flextime and telecommuting as an acceptable way to run a business. The advantages and disadvantages were discussed between the former members of the old companies who now are the newly company C and they were listed. I will present these differences and discuss the commonly asked questions.
Advantages- Improves employee morale; accommodates the needs of employees of employees with children and other personal demands. The number of employee trips to work is reduced; employees have longer blocks of personal time, usually a 3-day weekend every other week. Reduce employer costs; often-improved productivity because of uninterrupted work time; flexibility for employee to attend to family or other needs. Flexibility in work hours; retaining trained and productive employees; improved recruitment; increased commitment by employee. Retains valued and skilled employees; higher productivity using creative scheduling; allow employee to address other needs outside work (New Ways to work, 1991, p6).
Disadvantages- There is a lack of supervision during some work hours most commonly seen during compressed workweeks exhibited in the four ten hour days. Employees can have a hard time adjusting to 10 to 12 hour shifts; supervisor not on premises during some hours. This situation seems to affect telecommuters. Potential communication problems keeping telecommunications employee informed; scheduling ad hoc team meetings; supervisor is not present. Increase benefit costs; less chance of advance for employee. Potential for increased benefit costs; raises head-count; demands on supervisor for increased communication and alternative scheduling (New Ways to work, 1991, p6).
Due to company B’s culture and many other companies there is a lack of understanding of the diverse world around them. Even today, many senior leaders have strong beliefs in the traditional family structure where the man works and the woman stays at home to raise the children. Kofodimos (1995) wrote that of the 76 CEOs who responded to a Wall Street Journal survey on family issues, 95% of them had wives who had never worked outside the home. Kofodimos (1995) ascertains that the lack of understanding and appreciation by the CEO’s of what the modern-day workforce contends with in balancing work and personal life are barriers in introducing flexible work arrangements and impacts the organizational culture. Additionally, there is often a belief system held by senior managers that face time, the actual time a person spends in the office, is the only worthy measure of output, effort and commitment to the organization. Unfortunately, this belief system too often negates real results and quantifiable productivity (Lee & MacDermid, 1998).
After serious thought and discussion, the former company B leadership team has agreed to be viable team player in advocating a flextime and telecommuting policy. The agreement is to phase in the policy in pieces to give the leadership a chance to analyze and make proactive changes when needed. Some of the data used to analyze the policy will be productivity, communication, who is eligible to be a part of the work structure and cost. A semiannual review will be completed for the first year to make adjustments or strap the policy if the new work structure does not work in the new company. This is an example of some companies compromising on competing or lack thereof policies to develop what is best for their needs.
Code of Conduct.
Because of the complexity in today’s world, it is vital we know how to apply our objectives in the workplace. For that reason the Code of Conduct was developed. No Code of Conduct can cover every possible situation. When someone is unclear about the right course of action, he or she should seek guidance from his or her manager or from other leaders within the company. Our business is serious business as well as a way of life. We have responsibilities to our workplace, customer relationships, supplier relationships, and shareholder’s investment.
Workplace Responsibilities
We provide equal employment opportunities regardless of sex, race, age, color, religious beliefs, marital status, citizenship status, national origin, physical/mental disabilities, or any other classification protected by applicable law. We believe that diverse ideas, skills, and experience complement each other and improve our ability to grow and serve our customers.
We do not tolerate harassment of any kind in the workplace. This includes verbal, non-verbal, or physical conduct that may interfere with another employee’s ability to effectively perform his or her duties or that creates intimidating, offensive, abusive, or hostile work environment. We have zero tolerance for sexual harassment. Unwelcome advances, such as requests for sexual favors by a supervisor, are absolutely prohibited and can result in termination of employment. We also do not tolerate actions or expressions, which are sexually tinged and which create a hostile work environment.
We are committed to providing safe and healthful working conditions. It is an integral part of our management philosophy and corporate culture. Without question, safety is everyone’s responsibility ion all operations and at all levels. Employees have a responsibility to abide by all applicable safety rules and regulations. An employee who observes a condition that may be considered unsafe or not in compliance with any safety, rule or regulation should report the condition immediately to his or her supervisor.
We recognize the need to balance work and family life. Achieving this balance is sometimes difficult. Some jobs by nature are more demanding, as are some family circumstances. As a company, we recognize the need to maintain this balance over time. As individuals, employees need to realistically determine what commitments are necessary to be successful in both their jobs and their family lives.
Customer Relationship Responsibilities
Our customers purchase our services/goods because of the quality and value that we deliver. The needs of our customers are our number one priority. Every employee must constantly drive to exceed a customer’s expectations. We continually look for ways to improve quality, to work more efficiently, and to increase the value of our services. We will not take any action to achieve short-term goals that undermines or risks the quality of our service or the reputation of the company.
Supplier Relationship Responsibilities
All our business decisions are made with the best interest of the company in mind. This commitment helps to support the company’s objective to grow profitably. To achieve this objective all business decisions must be based on sound business judgment rather than personal gain. We avoid any situation that may appear to obligate an employee to make a decision that may not be in the best interest of our company.
Shareholder’s Investment
Our business records must be honest and accurate. They must correctly reflect the facts and meet the requirements of our policies and procedures. This applies to reporting of time worked, business expenses incurred, purchases of goods and services and nay other business related activities. In addition, our financial records must be accurately stated in accordance with GAAP. Our shareholders have pledged their personal investments in the company based on review of public records and their trust in our ability to achieve these goals. Each of us must do our part to protect the company assets and records on which our shareholders have staked their investment.
Everyone is responsible for compliance. We recognize that these guidelines do not address every situation that may arise during the course of a career. To the extent that the compliance program is a success, and it will be successful, only if everyone “buys into it.” The code of conduct is synonymous with our commitment to accountability, trustworthiness, integrity and the treatment of every person with dignity and worth.
Arising Conflicts
Company A had no code of conduct, and believed it was not needed. They stated the policy was unfair, and conflicted with some of the ways they conducted business. Some of company A’s senior level management had made some business deals through “bargaining,” and not having the company’s interest as their first priority. Business transactions and relationships were reviewed closely which lead to a high employee turnover rate within company A.
Some employees with company A were placed in positions without the proper qualifications. Their work reflected the little knowledge they had on how to perform their job duties. Their hiring practices were mainly based on family relationships, and not job qualifications, which were unfair to other individuals applying for the job and more qualified.
Benefits.
Development of a unified compensation and benefits scheme is another key element. Pay scales must be constructed that reflect the universal measures of seniority and responsibility but that also do not discriminate between or among persons previously in the employ of either company. The compensation policy must be fair but, in order to motivate, needs to ensure that personnel are not significantly worse off than before the merger.
The Employee Benefits package not only protects the workers, but it also benefits the company by attracting and retaining qualified employees. To build a successful company, it is necessary to have a comprehensive benefit package that will capture the attention of the best and brightest. During a company merger, two separate businesses found it necessary to combine their companies together to keep from going under. Company A benefit package only offered a buy in benefit plan that included 1 week paid vacation, health/dental, and one sick day per year. Company B benefit plan was similar to Company A with a slight difference in the amount of two sick days instead of one.
From investigating the two companies’ records, we found conflict in the upper management group and the lower management group on the type of benefits package plan offered. With the morale of both companies going through an uncertain merger, we found it necessary to put together a benefit package plan that would be beneficial to all the employees and not just to the upper management. After assessing the situation as consultants, the MBA All-star team formulated an employee benefits package with HR from both companies and created a new atmosphere for all employees concerned. The employee new benefits package is as follows:
- 3 weeks paid vacation
- 5 paid sick days
- 4 paid personal days
- 12 paid holidays
- Comprehensive medical plan
- Life Insurance
- Disability Insurance
- Free Parking
- 401k/Retirement
- Stock Options
- Employee Assistance Plan
- Leave of absence
- Funeral Leave
The new employee benefits package will benefit those who have worked for either company more than six consecutive months. Employees who have worked for 90 days are not eligible. With a benefits plan of this type in place, will definitely be a contributing factor that will retain the workers and give them a sense of worth. Having a healthy workplace environment will create the growth productivity of each company involved.
Conclusion
Recommendations
Once the structure is in place, communication is key in any successful acquisition. It is the first step in assimilating employees into a new organization and represents the best chance to make them feel good about the company. Both individual and group meetings are appropriate to communicate individual employment status as well as the impact on the overall organization. There should also be extensive planning around logistics for those exiting the organization on the day of the deal.
Implications
The implications of life after the merger are particularly relevant to the employees being retained. An early indication to these employees of their role in the new organization and the new organization structure removes uncertainty and ensures retention. These individuals have a significant role to play in achieving the vision for the new entity and as such must be informed of the planned direction for the company. This will mean for them in terms of their current responsibilities, developmental aims, and remuneration as soon as this information is known. This avoids the circulation of rumors based on incomplete information and the loss of key personnel to a premature search for safer employment opportunities. The employees who are displaced must be treated fairly and with compassion, not only for their sake but also for the sake of their peers who remain. Some of those displaced employees may also be the key to the integration process and sufficient incentive has to be provided to retain them for the period of the integration. If the above steps are taken in a professional, timely manner, you can greatly minimize potential employee-related problems that can occur during a merger or acquisition. Every person reacts differently when his or her job is threatened, but a consistent, equitable approach will minimize the possibility of litigation and reassure the new work force that the new company is a good place to work.
References
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McGladrey, R,(2001).Managing the Human Dynamics of Mergers and Acquisitions.Retrieved on October 12,2003 from http://www.rsmmclgadrey.com.
Master, M.,(1999). Policy Approach to Discord in the Workplace,1-2.Retrieved October 12, 2003 from Human Resource Management News database.
Kofodimos,J.R.,(1995). Beyond Work Family Programs: Confronting and
Resolving the Underlying Causes of Work-Personal Life Conflict.North Carolina: Center for Creative Leadership.
Lee, M.D. and MacDermid, S.M. (1998). Improvising New Careers: Accomodation, Elaboration,Transformation. West Lafayette, IN: The Center for Families at
Purdue University.
Bond, J.T., Galinsky,E.& Swanberg, J.E.(1998). The 1997 National Study of
The Changing Workforce. New York: Families and Work Institute.
Wilkins, R. (1999). New Ways to Work: Consulting firms offering services and publications for employers and individuals pursuing a better understanding of FWA's and how to successfully implement such a program. Retrieved on October 12,2003 from http://www.nww.org.
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Appendix
Appendix A: HR Due Diligence Checklist
Employees and Human Resources Issues of the Company
Appendix B: Project Plan
