Roles of Human Resource in Managing Employee Expectation

Jobs OF HUMAN RESOURCE IN MANAGING EMPLOYEE EXPECTATION INFLUENCE THE SUCCESS OF MERGER and ACQUISITION By KASMARIZA KASSIM A task paper submitted to Othman Yeop Abdullah Graduate School of Business Universiti Utara Malaysia in satisfaction of the Requirements for the level of Master of Human Resource Management 1 TABLE OF CONTENT TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES ix xiii xiv CHAPTER 1 : INTRODUCTION 1. 1. 2 1. 3 1. 4 1. 5 1. 6 Background Study Problem Statement Research Questions Research Objectives Significant of Study Definition of Terms 1. . 1. 6. 2 1. 6. 3 Employee’s Expectation Leadership Communication 1 2 4 5 6 7 8 2 1. 6. 4 1. 7 1. 8 1. 9 Commitment 8 9 Scope of Study Assumptions Structure of the Study CHAPTER 2 : LITERATURE REVIEW 2. 1 2. 2 Introduction Evaluation of Merger and Acquisition 2. 2. 1 2. 2. 2. 2. 3 2. 2. 4 2. 3 2. 4 2. 5 Pre-Deal Due Diligence Integration Planning Implementation 11 12 13 14 17 18 19 Evaluation of Employee Expectations The I mportance of Managing Employee Expectation Evaluation of Strategic Human Resource Management in M&A 2. 5. 1 2. 5. 2. 5. 3 2. 6 2. 7 2. 8 Leadership by Human Resource Communication by Human Resource Commitment by Human Resource 21 22 24 25 26 Research Model/Framework Research Hypothesis Development Conclusion CHAPTER 3 : METHODOLOGY 3. 1 3. 2 Introduction Research Design 3. 2. 1 3. 2. 2 3. 3. 4 3. 5 Type of Study Unit of Analysis 27 28 29 30 31 Population and Sampling Procedure Data Collection Procedure The Measurement 4 3. 6 3. 7 3. 8 Questionnaire Design Data Analysis Techniques Conclusion 2 33 35 CHAPTER 4 : FINDINGS 4. 1 4. 2 4. 3 4. 4. 5 Introduction Overview of Collected Data Respondents’ Profile Reliability Analysis Major Findings 4. 5. 1 4. 5. 2 4. 6 4. 7 Pearson Correlation Coefficient Multiple Regression 36 39 40 42 45 Summary Findings Conclusion 5 CHAPTER 5 : DISCUSSION AND ANALYSIS 5. 1 5. 2 5. 3 5. 4 5. 5. 6 Introduction Discussion Limitation of Study Recommen dations for Future Research Theoretical and Practical Implication Conclusion 46 50 51 52REFERENCES APPENDIX A : Questionnaire APPENDIX B : Frequency Analysis APPENDIX C : Descriptive Statistics APPENDIX D : Reliability Analysis APPENDIX E : Correlations Analysis APPENDIX F : Regression Analysis 53 58 63 66 76 77 78 6 LIST OF TABLES Table 3. 1 : Table 3. 2: Table 3. 3 : Table 3. 4 : Table 4. 1 : Table 4. 2 : Table 4. 3 : Table 4. 4 : Table 4. 5 : Table 4. 6 : Sample Breakdown Likert-Scale Measurement Items Questionnaire Layout Response Rate Respondents’ Profile Reliability Analysis Inter-Correlations of the Major Variables Results of Regression Analysis Summary Findings 30 31 32 37 38 41 43 44 LIST OF FIGURES Figure 2. 1 : Figure 2. 2 : Merger and Acquisition Life Cycle Comparison of Where HR Playing A Lead Role in Successful Deals versus Less Successful Deals 15 21 Figure 2. 3 : Research Framework 25 8 CHAPTER 1 INTRODUCTION 1. 1 Background of Study. Merger and obtaining (M&a mp;A) has unquestionably become the component for organizations to react to the requests of the business world. It has been since quite a long while, a principle theme for key writing, since its points of interest in its correct use can be evaluated in elevated levels of upper hands for companies.Companies that are confronting changes in their hierarchical structures through a M&A, present significant adjustments in the procedures, governmental issues, qualities and edge of references. Every member of this procedures either the securing or the obtained, need to confront distinctive procedure and difficulties. Unmistakably, the two organizations are influenced some portion of their character and method for getting things done. The difficulties of this adjustment are progressively clear when the distinction of center business between the two organizations is increasingly self-evident. In this manner, the sort of industry is a key component to comprehend the transition.First of eve ry one of, a few fields are increasingly suitable to understand a M&A, for example, ventures, where the economy of scale is extremely important, and a lot simpler to be comprehended in term of economy. In addition, if the organizations are reciprocal in their own business, collaborations are destined to be reached as far as showcasing, accounts and hierarchical objectives which make it a â€Å"natural† developing procedure. 9 Through the only remaining century, organizations gave more consideration to the three after mentalities: methodology, financial aspects and finance.Nevertheless, these last years, it has seen the rise of a fourth attitude, as human elements to accomplish an ideal reconciliation of the two organizations. Despite the fact that M&A procedure is respected to be a vital hierarchical change, however the human part frequently gives off an impression of being the determinant component to succeed or fall flat (Parra, 2006). This is on the grounds that in dividuals are helpless to fear alteration in their condition; in this way the usage must be executed with clear and organized arrangement so as to reduce conceivable obstruction. To oversee M&A process effectively in the best conditions is exceptionally far to be easy.If a few hindrances are consummately recognizable, for example, human expenses of scale, powerless development, etc, there are others all the more niggling to distinguish and quantify like the undetectable structure of attitudes. For these reasons, a significant and profound examination needs to make before the dealing of M&A (Parra, 2006). 1. 2 Problem Statement The M&A is a progressing procedure. This implies the activity runs from the second the organization is intrigued by another until and after the accomplishment of the M&A. For example, various M&A prevail over the long haul, regularly after an extensive stretch of time.This outlines that M&A procedure is continually running, even 10 prec eding the dealing of exchanges autonomously of the need or conditions that encompass the procedure. The M&A procedure needs to dispatch and create through organizations mix. This is exceptionally arranged toward the administration of individuals and the methodologies formed to fuse them into the new vision and theory that the organization will make with the merger. This phase of the procedure speaks to the difficult that will be examined, portrayed, and clarified in this study.Though coordination and its prosperity relies upon numerous elements like corporate culture similarity, corporate size and measurements, the executives style and, capacity to impart viably, another fundamental issue to recognize is the suitable condition all through the entire procedure of M&A where human ability is included. This can't be acknowledged without the help and association of human asset. Having stated, the M&A methodology ought to be driven by human asset. It is inescapable that human asset assume crucial job in the human side of the M&A procedure particularly overseeing representative expectation.There are truly several reasons why the M&A disappointment rates are so high and many have been followed was because of the avoidance of human asset experts in the pre-bargain arranging stage. Human asset just capacity to the very late consideration after the exchange has shut. This is an exemplary instance of â€Å"too little, too late† (Clemente and Greenspan,1999). 11 In request to get a superior understanding of the circumstance above portrayed, this postulation venture tends to its attention on examining the change procedure in a M&A created by two monster oil and gas specialist co-ops in Malaysia; SapuraCrest Petroleum Berhad and Kencana Petroleum Berhad.Some variables will structure the examination of this examination, for example, representative desire, initiative, correspondence and responsibility. In particular, this proposal will investigat e the elements that impact the M&A accomplishment through human asset activities by concentrating on the worker desire. The underlying and fundamental suppositions of this examination is having the option to clarify and investigate how HR activities and driving jobs, being the most significant measurement in M&A procedure could be considered to have the most effect on the achievement or disappointment of the joining .This is basic since the merger between SapuraCrest Petroleum Berhad and Kencana Petroleum Berhad has activated issues in oil and gas industry. The contribution of hazard and enormous venture made so far by the two organizations, are the key reasons why this M&A can't stand to acknowledge disappointment as the conclusion. 1. 3 Research Questions This exploration will at first be guided by these inquiries: 12 RQ1-Is there any critical connection between human asset key jobs as far as administration and worker desire towards the accomplishment of M&A?RQ2 â € Will there be any connection between human asset key jobs as far as correspondence and representative desire towards the achievement of M&A? RQ3 †Will human asset key jobs as far as duty contribute in overseeing worker desire towards the accomplishment of M&A? 1. 4 Research Objectives There aren? t numerous investigations on the connection between the representative desire and vital HR on account of M&A. Nonetheless, the fundamental goal of this investigation is to figure out which among the factors contributes most to the accomplishment of M&A.They are tended to by explicit destinations, for example, RO1 †To decide critical connection between human asset vital jobs regarding administration and representative desire towards the achievement of M&A. RO2 †To analyze the connection between human asset key jobs as far as correspondence and worker desire towards the accomplishment of M&A. 13 RO3 †To decide the connection between human asset vital jobs as far as correspondence and worker desire towards the accomplishment of M&A. 1. Noteworthy of Study by and large this examination means to advance the comprehension of representative desire after the declaration of M&A to the administration, too to investigate the effect of HR jobs on the achievement of the reconciliation. Despite the fact that in today? s fast development of business