Business // Case 1 – Mergers and Acquisition + CEO Compensation
Case Study
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Part 1: Merger and Acquisition
Human Resource is one of the most important departments in an organization. It generally handles the company’s most valuable asset—its employees. It performs several important functions, one that includes the evaluation and promotions. Now that corporations are given this persona, economists and social analysts are geared on evaluating the perils that these organizations bring to the society and to the state. There had been several accounts in history where corporations had been charged of criminal liabilities like fraud and to some extent even manslaughter. This is the reason why Bakan (2005), author of a popular book The Corporation: The Pathological Pursuit of Profit and Power, declared that corporations are pathological institutions, a threat for possessing great power that can be directed to the people and the society. Tracing down the progress of corporations in this day and age we can clearly see how these types of organizations is deemed as the most powerful force and influential.
According to Merriam-Webster (2008), accountability is an obligation or willingness to accept responsibility for one’s action. An unpublished thesis states that “accountability exists when there is a relationship where an individual or body, and the performance of tasks or functions are subject to another’s oversight, direction or request that they provide information or justification for their actions (Marshak, R., 2005).” In the economics point of view, accountability is “how those entrusted with the powers of the State are held responsible for their action (Sims, 2002).” Overall, the term can be simplified as a liability to one’s action through transparent. Three decades ago, Friedman postulated how businesses can profit by mere compliance without necessarily having to invest in large expenditures. To establish a point, it would help to evaluate a common practice in any industry. Managers would usually try to save and assure profit by cutting corners and may even go to the extent of bending the law. In fact, even if it assumed that businesses would be prudent not to deliberately violate any laws some might end up compromising quality for a price. Moreover, some would try to be stingy in providing their workforce with the appropriate compensatory benefits and rewards in the belief that this aspect of the business provides no tangible income. By virtue of an analytical evaluation of this phenomenon, it is not difficult to conclude that the reduction in cost has an equivalent effect to the businesses’ cash.
References
Marshak, R. (2005). Contemporary challenges to the philosophy and practice of organizational development. In D. Bradford, & W. Burke, Reinventing organizational development: New approaches to change in organizations (pp. 19-21). San Francisco, CA: Pfeiffer Publishing.
Sims, R. (2002). Organizational Success Through Effective Human Resources Management. Westport, CN: Greenwood Publishing Group.
Part 2: Challenges in Strategy Implementation on CEO Compensation
Strategy Implementation can be defined as the transformation of the information generated from theories, methodologies and technologies into useful information to be employed in business process (Chaudhuri, Dayal, & Narasayya, 2011). Given the definition, strategy implementation would help identify opportunities that could help the business prosper in the future for long-term advantage. The information generated from business intelligence can help companies get a good resource on how to develop a system that would fit their specific business objectives.
However, business intelligence should not be mistaken for competitive intelligence. Unlike competitive intelligence, the focus of business intelligence is more on the internal aspect of business operations (Kobielus, 2010). The information generated from this manner would be used in the development of an organization’s business process. The accumulation of information regarding the best practices in the industry could help thriving businesses to formulate their own system patterned from the recommendations and analysis of the successes of theories, technological advancements and breakthroughs, methodologies and other sorts of information, which could contribute to effective business operation and management. On the other hand, those businesses that have already secured its position could utilize the information generated from business intelligence to secure their status and find ways on how to further improve their current system.
Corporate America has just been through the devastating effect of the global economic recession. Business Intelligence could help companies in US to boost their status after the recession by generating information on companies that have successfully withstand the negative effects of the financial crisis. Several of the companies in the US which failed to resist the ill-effects of the recession are currently evaluating their own system of operation to analyze where there could have failed. In this case, business intelligence could step in to help capitalize on the strengths of the organization by drawing out useful information from several forms of business resources.
References
Chaudhuri, S., Dayal, U., & Narasayya, V. (2011). An Overview of Business Intelligence Technology. Communications of the Association of Computing Machines, 88-98.
Kobielus, J. (2010, April 30). James Kobielus’ Blog: Forrester Research. Retrieved October 20, 2013, from Forrester Research Web site: http://blogs.forrester.com/james_kobielus/10-04-30-what%E2%80%99s_not_bi_oh_don%E2%80%99t_get_me_startedoops_too_latehere_goes
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