Existential Phenomenology

Running Head: MERGING VERSUS ACQUISITION 1

MERGING VERSUS ACQUISITION 4

Merging Versus Acquisition

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Merging Versus Acquiring for a Business

Mergers and acquisitions are strategies that enable a business to grow especially when faced with financial constraints. Merging requires two separate firms to voluntarily fuse and operate as one new bigger firm while acquisition calls for one company to buy and take over another business entity. Each of the two strategies has advantages and disadvantages and the decision on whichever is picked depends on some other factors such as the circumstances at hand and the needs of the firm. According to Kumar, (2019), merging a company is better than being acquired since a merger is known to be a more friendly corporate restructuring strategy Research Paper Writing Service. Specifically, merging a business is voluntary and mutually advantageous to the companies involved. When a business merges with another one, most of its values and functions will still exist in the new entity unlike when it is acquired where its existence ceases. Additionally, a company does not benefit when it is acquired as it is disbanded and taken over by the bigger company.

Merging a company is better than having it acquired since in merging the two companies have equal power-sharing while in the acquisition, the acquired company becomes powerless or retains an insignificant amount of power (Dierickx, & Henman, 2018). Precisely, merged companies make major operational decisions together as none of them is superior or inferior to the other one history help. On the other hand, in the acquisition, the acquiring firm makes the major decisions and dictates the terms of operation after acquiring the smaller firm. Generally, the acquired firm is rendered powerless and can hardly participate in decision-making. Although both mergers and acquisitions are helpful strategies for businesses, merging is more beneficial as each of the two firms mutually benefit while in acquisition only one firm benefits, the acquiring firm while the acquired one ceases to exists. Therefore, it is better to merge a firm than to be acquired by another one.

References

Dierickx, C., & Henman, L. (2018). The Merger Mindset: How to Get It Right in the High-Stakes World of Mergers, Acquisitions, and Divestitures. Routledge.

Kumar, B. R. (2019). Mergers and Acquisitions. In Wealth Creation in the World’s Largest Mergers and Acquisitions (pp. 1-15). Springer, Cham.

Workers’ Incentives

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Are Higher Salaries the Best incentives for Workers?

Normally, workers are motivated to be more productive and yield better results through the use of incentives. Ideally, incentives make employees happy and work and thus are motivated to even work harder. Higher salaries can be used as incentives to motivate workers to be more productive. Specifically, an increase in the commissions that employees get after-sales will motivate them to put more effort and sell more. However, according to the SHRM, higher salaries are not the best and most effective in enhancing employee performance since with time the employees develop a sense of being entitled to high salaries which decrease motivation and lower performance Custom Essay. Although high salaries make employees feel highly valued, they do not necessarily motivate employees to work hard as they take it as their right. Additionally, high salaries are mostly associated with high expectations and thus the employees need extra motivation.

High salaries are likely to create a competitive workforce that focuses less on quality. All the employees will compete to get the high pay especially when only some segments get them which might make them ignore the quality of their work and only focus on getting the payment in whichever way possible. Additionally, the employees are likely to work under pressure to earn high salaries which is likely to lower their job satisfaction. Consequently, with low job satisfaction, employees would not be motivated to perform better. Using high salaries as incentives can create tension among colleagues especially when the high performers are the only ones entitled to high pay. The low performers will work under pressure to get to the same level with others which they cannot achieve. Additionally, it can also increase pay inequality especially in terms of gender since it is quite difficult for women to catch up with men’s pace to earn high salaries.

References

George Boué, SHRM-SCP, and Danielle M. Corradino. (2019). Does Incentive Pay Work? SHRM. Accessed 2nd March 2021 from https://www.shrm.org/hr-today/news/hr-magazine/summer2019/pages/does-incentive-pay-work.aspx https://smashingessays.com/services/custom-essay-writing-service/