THE REPORT ON ACQUISITION OF DJT LTD BY CARD CO LTD: PEOPLE ISSUES

TO BE CONSIDERED

WRITTEN BY
SADIE BARRON
JAMIE
ABBY JINAD














Introduction
The acquisition of DTJ Ltd by Card Co Ltd is a very important strategy which must be
embarked upon in order to complement the existing businesses of the company. The present
situation puts DTJ Ltd as the main supplier for the company. Therefore, the power of supplier
as explained by Porters five forces analysis is high. The importance of DTJ Ltd cannot be
ignored in the continuous success of Card Co Ltd. Effective and efficient access to raw
materials can help any organisation to achieve its goal and objectives. Marrying Card Co Ltds
best practices, procedures and operations with DTJ Ltd can create a robust organisation with
a greatly enhanced capability to help deliver better services to customers. However, it is
important to critically look into the present situation in DTJ Ltd before finalising the
acquisition of the company. People issues must be considered because employees are the
most important asset of a company (Cook, 2006).
This report looks into the current issues being faced by the employees in DTJ Ltd. The
financial analysis of the company is also considered. Recommendations are given to deal
with issues identified. In the end, the conclusion is based on the people issues in DTJ Ltd and
suggestions given by this group.

Important Issues in DTJ Ltd
There are several issues in DTJ Ltd which currently affect employees of the company and
adversely affecting the performance of the company. Some of these issues are leadership
style, non-standardised recruitment and selection process, inappropriate HR planning,
improper employee appraisal, inappropriate reward management system, low feedback, lack
of proper communication and improper employee relations. These issues are explained
below:

Leadership Style: The present leadership style in DTJ Ltd is autocratic. Daft and Lane
(2008) define an autocratic leader as someone that tends to centralize power and authority
from position, control of rewards, and coercion. The current owners of DTJ currently make
all key decisions themselves. This implicates that the communication style in the company is
one way. Autocratic leaders tell employees exactly what they want done. The opinions of
employees at DTJ Ltd are usually neglected which makes the company appears to be an
organisation of zombies with no fresh ideas. Unlike Card Co Ltd with low labour turnover
and absent rate, the autocratic leadership style in DTJ has created an environment of fear and
resentment, high labour turnover and high rate absenteeism.

Non-standardised Recruitment and Selection: The recruitment and selection process at
DTJ is not following the due process of recruitment and selection. Vaghela and Rughani
(2012) assert that recruitment and selection process is very vital for any organisations that
need to gain competitive advantage. Improperly conducting recruitment and selection in DTJ
Ltd has been viewed as a corrupt practice by many of their employees. If the recruitment and
selection processes are questionable or corrupt, such organisations are unlikely to be able to
recruit or keep people who will improve the ethical climate of their organisation. It is
essential that favouritism, nepotism, and other conflicts of interest do not influence
recruitment and selection processes. This is what is actually going on in DJT Ltd.

Reward Management: Armstrong (2010) states that employee reward policies and practices
are to help attract, retain and motivate high-quality people. DTJ Ltd employees are not been
fairly rewarded because of improper appraisal system. Appraisal ideally contributes to both
organisational and personal learning, plus achieving the organisation's objectives. It is the
employers way of telling employees what is expected of them in their job and how well they
are meeting those expectations. DTJ Ltd has no standard appraisal process which does not
allow managers to monitor and develop their staff. There have been several complaints about
the appraisal process by the employees who believe that salary increases and bonuses are not
fairly awarded.
Low Feedback and Lack of Communication: Atwater and Waldman (2012) affirmed that
low feedback and lack of proper communication is a dilemma to leadership in any
organisation. This is evidence in DJT Ltd where the current owners makes all key decisions
themselves and do appraisals, with limited information provided for the employees. When
limited information is provided to employees about decisions being made by the company,
this is always a big issue which might affect the loyalty and commitment of employees.
HR Planning: Any organisation that lacks human resources planning may have difficulty
developing and maintaining a strong relationship with employees. Kleynhans (2006) states
that effective human resource planning means matching the internal and external supply of
people with the demand that is expected over a certain period of time. DTJ Ltd lacks proper
HR functions between company management and employees and offers employees the
opportunity to release their frustrations with the company and report wrongdoings. If
employees at DTJ Ltd become frustrated with the company or their jobs become
dissatisfying, production of employees can drop and company revenue may decrease.
Employee Relations and Legal issues: Employee relationship management is concerned
with resolving conflicts and problems arising with employer-employee relationships to
improve productivity, moral and motivation (Zaman 2011). DTJ has series of employee
related issues. PLEASE COMPLETE











SUGGESTIONS
Leadership style autocratic
Non-standardised recruitment and selection
Employee appraisal: Appraisal ideally contributes to both organisational and personal
learning, plus achieving the organisation's objectives.
Reward management
Low Feedback /lack of communication Give feedback to encourage people to
continue "putting-in" great effort, or to help them through setbacks, or when people
lack confidence or skills. Respect people for the value of their time, their work and
their commitment. Show your respect with words that make employees feel good.
Try saying, "You're right!" when someone successfully challenges an idea or work
practice. Ask, "Can you spare a few minutes?" when you need to interrupt someone at
work. Then wait for the positive reactions.

HR planning
Legal issues
Employee relations- equal opportunities and diversity management

CONCLUSION
Cadbury's Employee Relationship Management: The Practices of a Place to Be
By Nadeem Uz Zaman

Leadership, Feedback and the Open Communication Gap By Leanne E. Atwater, David A. Waldman

Armstrong's Essential Human Resource Management Practice: A Guide to People
management 2010 By Michael Armstrong
Daft, Richard L. and Lane, Patricia G. 2008. The Leadership Experience, 4th ed., Cengage
Learning
Vaghela, Anvi and Rughani, Dharin 2012. Recruitment and Selection, New Delhi: LAP
Lambert Academic Publishing.

Leadership, Feedback and the Open Communication Gap
By Leanne E. Atwater, David A. Waldman Atwater and Waldman (2012)

Human Resource Management By Ronel Kleynhans (2006)