ABSTRACT

This case focuses on the merger of Marel and Stork in 2008 and its effects on human resources. The two companies had different organizational structures, in addition to which their organizational cultures and HRM policies were quite dissimilar. Moreover, the two companies grew out of different national contexts. Marel developed in Iceland in an environment characterized by liberal labor legislation, strong optimism, informality and short-term orientation. Stork grew out of the Netherlands, with stricter labor legislation, more formality and a long-term orientation. How does one integrate such different traditions? This is the great dilemma facing the managers of the newly merged company. Which HRM policy should rule in the merged company? That of Marel or Stork? Or is there a need for an entirely new HRM policy in the united company? How will the merger affect recruitment processes, training of personnel, decision-making and the implementation of incentive schemes?