Merging Benefits at Huge Computer Company Essay
Two major high-tech companies, Huge Co. (HC and Computer Co. (CC), have recently merged to form Huge Computer Company (HCC) and are now starting to combine the operations of both. A key issue of the integration has been how to treat the benefit and retirement plans from the two-companies—in particular, how to blend the plans for the software engineers, who are key to the continued success of the new company. Read the following case and write an executive summary of your key findings for the partner of the Human Resources Consulting firm.
The Merging of Success
Huge Computer Company is a result from a merger of Huge Company and Computer Company. Both well-renowned …show more content…
Computer Company Interview: Mariel Salinas (Benefits Manager) was interviewed on her perspective on the benefit plans. Her major concern is making sure the company doesn’t adopt Huge Company’s system but maintaining Computer Company’s flexibility and innovation that they are known for. Their benefit plan consists of a ‘cafeteria’ plan as well, but is based on a point system that allows employees the freedom to choose their own benefits that fit their personal needs.
The Negatives of each Company
Huge Company has been operating “by the book” and is considered a formal culture. They don’t seem to be comfortable with change, and it seems to have affected the company negatively. The VP of Human Resources indicated the benefit plan was restructured in the last two years but he failed to gain the opinions of the employees about the structure of the company and the benefit plans. Another issue is that Computer Company hasn’t done extensive research on revised plan which will make it more unlikely they will negotiate.
Computer Company hasn’t been around as long as Huge Company, so they lack the experience of organizational longevity. Their