Human Resource Management in Corporate Restructuring


Human resource management (HRM) is the strategic management of people working in an organization as assets that help achieve the goals of the organization. The practice of human resource management entails recruiting people in an organization and ensuring that their capabilities are well utilized by the requirements of the organization. It also entails compensating the employees for the services they offer to the organization.

In a wider spectrum, the role of human resource management can be taken to include organizational management, manpower, and personnel management, and also industrial management which is the key component of the organization (Scarpello, Ledvinka & Bergmann, 1995, p.56). Human resources management is a continuous process that aims at equipping the employees with relevant and up-to-date expertise to ensure their development. The process of human resources management has to keep pace with the growing technology to ensure that the employees are well equipped to support business issues requiring a competent and well-equipped workforce.

The objective of this research is to explore the role of human resources management as a strategic partner in either a corporate restructuring or merger/acquisition of a health care facility/system. The research also describes the responsibilities of human resource management in a corporate restructuring or merger/acquisition concerning recruitment and retention training and development employee performance management regulatory compliance compensation and benefits.

Human resource management and corporate restructuring, mergers/acquisition

Corporate restructuring as used in corporate management entails all the activities in an organization that is aimed at reorganizing the structures of a business entity like the change of ownership, legal framework, and operational structure of the company to make it more profitable. Corporate restructuring takes the form of mergers and demergers, acquisition and other forms of reorganizing the structure of the company.

Corporate restructuring also calls for restructuring the human resources of the company and well-organized human resource management. This is because new job opportunities arise that require to be filled, the responsibilities may increase requiring more training, team spirit and team building may need to be reviewed, need for interdepartmental cohesion and change of responsibilities among others. For instance, corporate restructuring of a health care facility may result in new opportunities coming up which enquires intensive training to equip the employees with the necessary skills needed in their jobs.

The workers need to work together in a health system to offer people the right services. There is, therefore, a need to have a team spirit of the highest profile for all the workers to work in unison. The key roles of human resource management as a strategic partner in corporate restructuring will include recruitment and retention, training and development, employees’ performance management, regulatory compliance, and compensation and benefits (Wayne, 1991, p.23).

Recruitment and retention

According to Scarpello et al. (1995, p.63), these two processes entail hiring the most qualified candidates and maintaining them in the organization. The process starts with determining the employment needs and the skills needed for different positions in the organization. Then the job opportunities are identified and advertised for the interested persons to apply. The most qualified candidate is selected through interviews and aptitude tests.

Recruitment is based on academic qualifications and relevant experience. Employees retention is a big challenge to human resource management in the current world because companies are willing to pay the cost of poaching the best employees. However, there are HRM strategies that will help retain the best employees. The first is to offer competitive salaries and other benefits to the employees so that they do not move to other companies. To keep the best employees, the company can pay them according to their performance to recognize and reward performers.

Training, development, performance management, and compensation

The HRM is also charged with the responsibility of training employees to ensure they are endowed with the relevant skills to perform their duties. Training should be made continuous to update the employees with the new job requirements and technology demands. Human resource development ensures that the employees develop in their career and keeping with the company’s industry demand. According to Wayne (1991, p.23), development entails performance appraisal and giving feedback to the employees about their performance to enable them to perform personal appraisals. Job rotation and new skills programs also enhance employees’ development and motivates them.

Performance management entails continuous appraisal of employees’ performance to determine their progress and work to improve their performance. Compensation of employees entails paying them for the services they offer to the company. As mentioned earlier, the salaries should be competitive to retain the best employees. Compensation should be based on performance to reward the high performers in the organization. Employees should be paid all the benefits that relate to their responsibilities. It is the role of human resources management to determine the salary scale for various positions and ensure that all employees are compensated.

Regulatory Compliance

According to Scarpello et al. (1995, p.62), it is the responsibility of the HRM to ensure that the employees adhere to the rules, laws, and regulations of the organization and other authorities. The HRM trains the employees on the rules and regulations of the organization and ensures that they adhere to them. The employees who do not adhere to the rules and regulations are disciplined accordingly.


Human resources management is a very vital department of any organization. It is the future of the organization because it plays a big role in determining the future of the company like getting the right personnel to work for the company. Employees are one of the most important stakeholders of the organization because they carry out the activities of the organization to keep it ongoing.

Reference List

Scarpello, G., Ledvinka, J. & Bergmann, J. (1995). Human Resource Management. Cincinnati: South-Western.

Wayne, R. (1991). Human Resource Development: The Field. Englewood Cliffs, NJ: Prentice Hall.

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