Management Research Paper: Bancolombia

Bancolombia
Student’s name
Course
Professor
University
City
Date
Table of Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc60951580 \h 3Human resource issue PAGEREF _Toc60951581 \h 3Alternative solutions PAGEREF _Toc60951582 \h 4Recommendation PAGEREF _Toc60951583 \h 6Action plan PAGEREF _Toc60951584 \h 8Financial analysis PAGEREF _Toc60951585 \h 11References PAGEREF _Toc60951586 \h 13
Introduction
In the competitive business environment, organizations merge to achieve a competitive edge and attain potential growth of the business. Merged businesses such as Grupo Bancolombia enjoys increased market share, economies of scale, and increased profitability compared to individual firms. On the flip side, mergers often encounter numerous challenges like exogenous risks, loss of trust among vital stakeholders, assessing corporate cultures, communicating the mergers' reasons to employees, and comparing benefits, compensation, union contracts, and deciding on human resource policies and practices to adopt.
Human resource issue
This case study demonstrates vital human resource practices, including employee satisfaction, resourcing, integration, training and development, HR planning, teamwork, employee retention and compensation, job security, job design, and communication. These practices need to be stressed as they play a vital role in the success of the business. The practices are essential in the operational efficiency of the Grupo Bancolombia. For instance, employee satisfaction is crucial for Bancolombia and defines their productivity and performance.
Grupo Bancolombia is faced with the great challenge of integrating the different organizational cultures of the three individual firms (Bancolombia, Conavi, and Corfinsura). Typically the merged organization aspires to adapt to the new culture and embrace the new communication model. With this in mind, Grupo Bancolombia hopes to transform the three independent entities into a collective company with the same mission, vision, goals, and objectives. However, these results are not easily achieved as the merger encounters numerous problems, including loss of customers due to delays in assistance and the failure of the current employees to navigate the new operating system. These problems need to be addressed with speed as they can lead to poor performance from employees, negative customer perception, and financial costs in the future years. For instance, Conavi customers feel the effect of the new operating systems that have led to increased waiting times, needless to mention the increased confusion compared to the previous systems that were fast and friendly.
Grupo Bancolombia should focus on enhancing the benefits of the operational system, redesigning and re-implementing the organization's culture, and developing effective human resources strategies that ensure appropriate transition among the employees. It should also create more opportunities for the existing workforce to participate, advance, and contribute their knowledge in improving business performances. Although the Grupo Bancolombia merger make good financial sense, employees and customers of the merging firms often show signs of fear concerning their new roles in the newly formed orga...