Question

A publicly owned company has acquired a small privately owned company. The small company had grown too big for the former owners to manage. Prior to the acquisition, the owners were both heavily involved in the day-to-day decision making of the company, but they are not adept in effective management practices. Both former owners have signed contracts to remain with the company for two years post-acquisition to be a resource as the integration is completed.

Policies and controls in the small company were nonexistent. The treatment of employees was not consistent, and employee morale is low, primarily due to the uncertainty in the acquisition and the fear of favoritism.
The HR manager assigned to perform due diligence on merging the small company has found additional issues. There is a substantiated allegation that one of the owners of the small company was involved in a romantic affair with a female subordinate, and the HR/finance clerk was demoted for inappropriately allocating funds from the company to his personal bank account. Both of these issues were addressed and the matters closed without any further disciplinary action being taken with either of the individuals.
The CEO of the acquiring company asks the HR manager to make the needed changes to ensure compliance with laws and policies, as soon as possible, without upsetting the former owners.
In assessing the workplace culture of the smaller company, HR uncovers a significant degree of pro-union sentiment among its employees. What should the HR manager do with this knowledge?

A. Inform all employees that there could be negative consequences for them if they consider creating or joining a union.
B. Wait to see if there are any more rumors about union activity and then take action at that point.
C. Conduct employee meetings to inform the employees of the new, free benefits that will be in effect following the acquisition.
D. Conduct employee meetings. Acknowledge that there have been shortcomings, and ask employees for an opportunity to make things better.

Answer 1

The HR manager should hold employee meetings to acknowledge past issues and ask for an opportunity to improve workplace conditions, respecting employees' right to pro-union sentiment.

Step-by-step explanation:

Given the complexities of a corporate acquisition and workplace culture, the HR manager should approach the situation with care and professionalism. Upon discovering a significant degree of pro-union sentiment among the employees of the acquired company, the HR manager should opt for option D: Conduct employee meetings, acknowledge the past shortcomings, and request an opportunity to make improvements. This approach will help build trust, address employee concerns transparently, and demonstrate a commitment to a more positive work environment. It is also important to engage with employees in a way that does not impede their right to discuss or organize a union, as doing so could be in violation of labor laws.