As a HR professional in the software company, which of the following is the most critical issue to bring up during the executive meeting?

A software licensing company is considering merging with a hardware manufacturing company to increase market share and achieve economies of scale. The executive management of the software company has organized a meeting to discuss the viability of the merger.

As a HR professional in the software company, which of the following is the most critical issue to bring up during the executive meeting?
A . Outline market and industry research outcomes on the advantages of mergers in reinventing companies by gaining leverage and capabilities
B . Present research that shows that the hardware company is being targeted by three international unions, and there is a 80% chance that the software company will become a successor employer
C . State that metrics from a recent employee survey indicate that employee turnover has increased and employee morale reduced as employees worry that the merger will result in layoffs due to role duplication
D . State that a diagnostic overview and inventory of all HR processes and procedures within the software company must be carried out prior to the merger

View Answer

Answer: B

Explanation:

Note that the most important activity for HR to carry out when a merger is proposed is due diligence of the other company’s HR processes and practices. Due diligence is a diagnostic overview and inventory of all HR processes and procedures, a comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential. Option D is wrong because it is referring to due diligence within the software company rather than due diligence to be done in the hardware company. Therefore the best answer is C.