Final answer:
One major challenge of HRM during mergers is managing Organizational Culture, as it involves blending diverse corporate cultures and can impact Employee Satisfaction due to changes in staff and systems.
Step-by-step explanation:
During mergers, Human Resource Management (HRM) faces a range of challenges as two companies consolidate into a single entity. One significant challenge is managing Organizational Culture. Mergers often combine organizations with different histories, values, practices, and norms. HR must navigate through these differences to create a cohesive culture that aligns with the strategic goals of the combined entity. Consequently, employees may experience stress and uncertainty as they adjust to changes in culture and operational practices, which can impact Employee Satisfaction. It involves not only blending different corporate cultures but also addressing redundancies in staffing and systems, which can result in downsizing and affect staff morale.