Suncor/Petro Canada Merger - Impact on Stakeholder

Impact on stakeholders

Top-level Management

The management team of the Suncor and Petro Canada has decided that the best way to start the downsizing is from top to bottom (O’Meara, 2009). The fact that top level positions such as executives and high level managers will be limited after the merger, it makes sense to begin the layoff from the top to avoid redundancy. However, the process of cutting off top level employees will have to be performed in a flawless fashion as those who remain will effectively pave a new direction for the newly merged Suncor and Petro Canada.

Risk

One of the key task for Suncor and Petro-Canada to initiate now is to identify and retain top performers and knowledgeable senior management. However, knowing that a layoff is upon them, some of the senior management team from both companies will lessen their commitment to the companies and are prepared to jump ship given the opportunities. Not only that they will be joining competing companies with inside knowledge of the companies, it will hit Suncor and Petro-Canada hard without their considerable experience and leadership throughout the merger.

Recommendation

At this critical stage for the new organization, what the organization need is a right blend of experience, drive and technical capability with a long-term emphasis; preventing key employees from jumping ship (Schwind, Das & Wagar, 2007). The Human Resource Management Department should start by reviewing job performance and track record of each and every top-level management, and then make a shortlist of potential personnel to be laid off based on the result. After that, the organization should create a program that offers early retirement and voluntary severance incentive packages.

Influences of Labour Unions

Retaining top performing employees has got to be one of the top priorities for Suncor and Petro Canada during this crucial stage of merger. However, one of the potential roadblocks for them to achieve this goal are the...