Organization Work Culture And Geographical Proximity In Cisco

Targeting companies that provide best fit for Coco's own strategic direction and corporate culture. Determining success based on he level of post purchase retention and the integration of newly acquired personnel and intellectual capital. Cisco looks whether there is compatibility in terms of long term goals of the organization work culture and geographical proximity. 1. Q. Investigate the approach that Cisco Systems has used In Its many successful acquisitions. What are some of the human resource practices that have made its acquisitions successful?

Cisco believes in an organ culture which is risk taking and adventurous. If this is lacking in the target company, then Cisco is not convinced and backs out from the acquisition. No forced acquisitions. The company Insists on no layoffs and Job security Is guaranteed to all the employees of the acquired company. The acquisition team evaluates the working style of the management of the target 1 OFF style with the employees. Once the acquisition team is convinced, an integration strategy is rolled out.

A top level integration team visits the target company and gives clear cut information regarding Cisco and the future roles of the employees of the acquired firm. After the acquisition, employees of the acquired firm are given 30 days of orientation training to fit into the organ environment. Question: Investigate the approach that a Cisco system has used in its many success acquisitions. What are some of the human resource practices that have made acquisitions successful? Answer: Using acquisitions as a strategic weapon for increasing market share while enhancing customer satisfaction.

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Targeting Companies that provide best fit for Coco's own strategic direction and Corporate culture . Cisco looks whether there is compatibility in terms of long term goals of the organization work culture and geographical proximity. Cisco believes in an organizational culture which is risk taking and adventurous. If this is lacking in the target company, then Cisco is not convinced and backs out from the acquisition. No forced acquisitions The company insists on no layoffs and Job security is guaranteed to all the employees of the acquired company.

The acquisition team evaluates the working style of the management of the target company, the caliber of the employees, the technological systems and relationship style with the employees. Once the acquisition team is convinced, an integration strategy is rolled out. A top level integration team visits the target company and gives clear cut information regarding Cisco and the future oleos of the employees of the acquired firm. After the acquisition, employees of the acquired firm are given 30 days of orientation training to fit into the organizational environment.

Further Cisco is an expert at employee integration. From the moment the acquisition is announced, Cisco human resource and development teams travel to the target company headquarters to meet in small groups with the employees and to answer questions. Furthermore Cisco integration team works with the target company management to "MAP" employees in other words to determine where in Cisco, they might belong. In the meantime, Cisco leaves much of the target company existing structure in place.

Cisco has realized past mistakes from trying to force target companies' structures into Cisco own. Then the day after deal closes, Cisco provides orientation to Cisco processes and this process that takes about a month. As a result the industry praises the company for "being able to divest an entire company without hurting its productivity' The HRS practices that applies in Cisco for successful acquisition: What will happen to my Job? " is the first question asked by employees when their company's acquired by Cisco.

Employees are a critical part of the acquisition strategy, because they hold the key to the next generation of the product. The Cisco human resources (HRS) acquisition team has designed the integration strategy around employee concerns to help facilitate and expedite acceptance of change by the new employees. Cisco HRS applies the following principles and practices to these employee transitions: Cisco has a goal of retaining 100 percent of employees who transition from acquired companies. The employees to Coco's employment structure for salary, stock options, and benefits.

Cisco HRS works with internal resources to handle routine transition tasks such as employee setup in HRS and payroll systems. These tasks adhere to the standard processes defined by the HRS integration team. Cisco HRS also outsourcer some of the due diligence and project work related to individual acquisitions, which is especially effective for rapidly processing large companies with thousands of employees. To reduce the disruption and anxiety of the transition process for new employees, HRS staffs are among the first Cisco representatives onsite at the acquired company when a deal is announced.

Because communication is critical during the early integration phase, an internal Website is created for each acquired company to present detailed information and updates about the employee transition process, and to provide links to Cisco training resources. The Cisco HRS acquisition team provides employee transition letters and hiring documents online to improve the efficiency of employee processing and create electronic personnel files that are easier to update and manage. The Cisco HRS team hosts a new-hire orientation for all new employees at the time the acquisition deal closes.

This orientation gives the acquired employees the information that they need to work at Cisco. Other training sessions address employee concerns such as immigration and company stock. The training sessions are formatted to meet the needs of the global audience and are delivered through online videos, in Weber online conferences, and video conferences. "We must act as quickly as possible to make decisions and inform the new employees about their Job status, because we know that until employees have that information, they will not be able to focus on their work," says Shari Hocus, director of acquisitions in the Cisco

Human Resources department. "Our goal is to have the new employees fully transitioned and ready to work as Cisco employees from the first day after the deal c loses. " Question: If human resources are a major source of competitive advantage and the key determinant of an organization's ability to pursue a given strategy, why have human resource aspects of mergers and acquisitions been ignored or handled poorly in so many instances in the past?

Answer: To kill Competitors ( Avoidance & Hutch) To increase market share (Bahrain & Gain) To strengthen its functions which are related to the core functions Capering & Kanata, acquisition ) most companies forget that M&As are not Just about balance sheets, cash flows or marketing synergies; they are also about people who make the synergies happen. One major fallout of M&As is often the flight of top-quality people. Question: Interview someone who has been through a merger or acquisition.

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