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 An undertaking 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 Expectatio ns The Importance 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 Recommendations 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 procur ement (M&A) has unquestionably become the instrument for organizations to react to the requests of the business world. It has been since quite a while, a fundamental subject for vital writing, since its preferences in its correct use can be assessed in significant levels of upper hands for companies.Companies that are confronting changes in their hierarchical structures through a M&A, present significant alterations in the procedures, legislative issues, qualities and edge of references. Every member of this procedures either the securing or the gained, 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 apparent when the distinction of center business between the two organizations is increasingly self-evident. Hence, the sort of industry is a principal component to comprehend the transition.First of every one of, a few fields are increasingly proper to understand a M&A, for example, businesses, where the economy of scale is extremely applicable, and a lot simpler to be comprehended in term of economy. In addition, if the organizations are corresponding in their own business, collaborations are well on the way to be reached regarding promoting, funds and authoritative objectives which make it a â€Å"natural† developing procedure. 9 Through the only remaining century, organizations gave more consideration to the three after outlooks: methodology, financial aspects and finance.Nevertheless, these last years, it has seen the rise of a fourth mentality, as human elements to accomplish an ideal joining of the two organizations. In spite of the fact that M&A procedure is respected to be a necessary authoritative change, yet the human part frequently has all the earmarks of being the determinant component to succeed or come up short (Parra, 2006). This is on the ground s that individuals are defenseless to fear alteration in their condition; consequently the usage must be executed with clear and organized arrangement so as to lessen conceivable obstruction. To oversee M&A process proficiently in the best conditions is far to be easy.If a few boundaries are flawlessly recognizable, for example, human expenses of scale, feeble advancement, etc, there are others all the more niggling to distinguish and gauge like the imperceptible structure of mentalities. For these reasons, a significant and profound examination needs to make before the haggling 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, frequently after an extensive stretch of time.This outlines that M&A procedure is continually running, even 10 precedi ng 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 joining. This is exceptionally arranged toward the administration of individuals and the systems formed to fuse them into the new vision and reasoning that the organization will make with the merger. This phase of the procedure speaks to the difficult that will be investigated, portrayed, and clarified in this study.Though incorporation and its prosperity relies upon numerous variables like corporate culture similarity, corporate size and measurements, the executives style and, capacity to impart viably, another fundamental issue to recognize is the proper 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 technique ought to be driven by human asset. It is inescapable that human asset assume fundamental job in the human side of the M&A procedure particularly overseeing worker expectation.There are actually several reasons why the M&A disappointment rates are so high and many have been followed was because of the prohibition 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 proposition venture tends to its emphasis on considering the change procedure in a M&A created by two mammoth oil and gas specialist co-ops in Malaysia; SapuraCrest Petroleum Berhad and Kencana Petroleum Berhad.Some components will structure the examination of this examination, for example, worker desire, administration, correspondence and responsibility. In particular, this theory will investigate t he elements that impact the M&A accomplishment through human asset activities by concentrating on the representative desire. The underlying and fundamental suppositions of this examination is having the option to clarify and dissect 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 inclusion of hazard and huge speculation 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 examination will at first be guided by these inquiries: 12 RQ1-Is there any critical connection between human asset vital jobs regarding authority and worker desire towards the achievement of M&A?RQ2 †Will there be any connection between human asset key jobs as far as correspondence and representative desire towards the accomplishment 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 examinations on the connection between the worker desire and key HR on account of M&A. Notwithstanding, the principle target of this investigation is to figure out which among the factors contributes most to the achievement of M&A.They are tended to by explicit goals, for example, RO1 †To decide critical connection between human asset key jobs as far as initiative and representative desire towards the accomplishment of M&A. RO2 †To look at the connection between human asset key jobs as far as correspondence and representative desire towards the accomplishment of M&A. 13 RO3 †To decide the connection between human asset key jobs as far as correspondence and worker desire towards the achievement of M&A. 1. Noteworthy of Study when all is said in done this examination means to advance the comprehension of worker 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