Liberty Mutual Insurance Group revised its strategy and subsequently acquired Prudential Insurance Group in Europe. As the Director of Human Resources for Liberty Mutual I have been asked by the CEO to prepare a comprehensive staffing strategy for the newly expanded company in preparation for a strategic audit of the HR systems at Prudential. Liberty Mutual operates in the insurance industry and it is expanding in the European marketplace specifically in England.
In the following paper I will discuss Liberty Mutual Insurance Group's acquisition of Prudential. I will discuss the human resource challenges that may arise from an acquisition, the cultural and regulatory issues, and how these will impact organizational effectiveness. Furthermore I will discuss the recruitment and selection practices will be used in staffing the newly acquired company potential outcomes.
A company's ability to adapt to change is critical to their ability to remain competitive. If a company fails to change with the competition the company will become stagnant and may be unable to sustain long-term success.
To gain security many organizations seek to acquire other companies or negotiate mergers.
The dictionary defines an organization as, "A structure through which individuals cooperate systematically to conduct business." In today's job market, many companies have learned that they must provide a supportive and employee friendly work environment to attract and retain the most desirable employees. This is even more critical when an organization is redefining its corporate culture after a merger or acquisition.
Acquisitions pose significant challenges to the human resource department. Merging two separate and divergent workforces is a considerable task for the human resources of those organizations going through acquisitions. "According to a Hewitt Associates survey of 218 major U.S. organizations, integrating organizational cultures was the top challenge for 69 percent of the surveyed companies-even those with previous...