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1 – 10 of 21Achieving a highly satisfied and committed workforce, during post-merger integration (PMI), has made employees’ perceived organizational justice a vital construct in the mergers…
Abstract
Purpose
Achieving a highly satisfied and committed workforce, during post-merger integration (PMI), has made employees’ perceived organizational justice a vital construct in the mergers and acquisitions (M&A) research. For example, employee attitudes like satisfaction and commitment influence overall M&A outcomes, but employee responses primarily depend on their perceptions of justice for the merged organization. Hence, the purpose of this paper is to investigate the cause and effect of employees’ perceptions of justice during M&A.
Design/methodology/approach
This research used a mixed-methods research design (qual and quan). The quantitative investigation of 207 M&A survivors from 3 M&A deals examined the relationship between perceived organizational justice (three dimensions) with employees’ level of affective commitment and satisfaction during PMI. The multivariate analysis was performed to analyze this data. A thorough thematic content analysis of the in-depth interviews of ten M&A experts and strategists helped to develop a detailed theoretical model of justice during M&A.
Findings
The resultant model highlighted the three antecedents of perceptions of justice, i.e. human integration, cultural integration and task integration, which together explained the employees’ perception of justice during M&A. Perception of justice was further found to influence employees’ psychological outcomes and overall synergy realization.
Originality/value
The current study adds to the literature by providing a holistic understanding of the justice phenomenon during M&A by focusing on its antecedents and outcomes, and thus, proposes a detailed framework. The current study also emphasizes on the relative importance of procedural and interactional justice over distributive justice in determining employee attitudes toward change.
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Anjali Bansal, C. Lakshman, Marco Romano, Shivinder Nijjer and Rekha Attri
Research on leaders’ knowledge management systems focuses exclusively on how leaders gather and disseminate knowledge in collaboration with external actors. Not much is known…
Abstract
Purpose
Research on leaders’ knowledge management systems focuses exclusively on how leaders gather and disseminate knowledge in collaboration with external actors. Not much is known about how leaders address the psychological aspects of employees and strategize internal communication. In addition, while previous work has treated high uncertainty as a default feature of crisis, this study aims to propose that perceived uncertainty varies in experience/meaning and has a crucial bearing on the relative balance of cognitive/emotional load on the leader and behavioral/psychological responses.
Design/methodology/approach
The authors contribute by qualitatively examining the role of leader knowledge systems in designing communication strategies in the context of the COVID-19 crisis by investigating communication characteristics, style, modes and the relatively unaddressed role of compassion/persuasion. In this pursuit, the authors interviewed 21 C-suite leaders, including chief executive officers, chief marketing officers, chief financial officers, chief human resource officers and founders, and analyzed their data using open, axial and selective coding, which were later extracted for representative themes and overarching dimensions.
Findings
Drawing from grounded theory research, the authors present a framework of knowledge systems and their resultant communication with employees in high uncertain and low uncertain crises. The authors highlight interactions of a set of concepts – leaders’ preparedness, leaders’ support to employees tailored communication adapted to perceived uncertainty, leading to enhanced trust – in the achievement of outcomes related to balancing operational and relational systems with employees. The findings suggest that a structured process of communication helps employees mitigate any concern related to uncertainty and feel confident in their leadership.
Originality/value
The research has implications for leaders in managing their knowledge systems, for human esources practitioners in designing effective internal communication programs, as well as for scholars in knowledge management, communication and leadership.
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Khalid Abed Dahleez, Mohammed Aboramadan and Anjali Bansal
Building on social exchange theory, this study aims to propose a research model to examine the relationship between servant leadership (SL) and employee affective commitment (AC…
Abstract
Purpose
Building on social exchange theory, this study aims to propose a research model to examine the relationship between servant leadership (SL) and employee affective commitment (AC) where psychological ownership (PO) and person–organization fit are theorized to play a mediating role.
Design/methodology/approach
The study used quantitative research methods with a deductive approach to examine the proposed relationships and the underlying mechanisms. Data were collected from 346 employees working at higher education sector in Palestine. Data were analyzed using structural equation modeling.
Findings
The results reveal a significant mediating role of PO and person – organization (P-O) fit in explaining the relationship between SL and employee AC. Results indicate that the service orientation and humble attitude of servant leaders toward employees help employees develop a sense of ownership, leading to a better fit with organizational values and thus to a more committed workforce.
Practical implications
The results of this study may be useful for managers working in higher education in a non-Western context who are considering using SL behaviors to improve outcomes.
Originality/value
The study advances SL research currently in its early stages (Zhang et al., 2019). Moreover, it increases understanding of the mediating roles played by PO and P-O fit.
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In the literature of mergers and social justice, equality is regarded as a crucial phenomenon to achieve social integration. This paper is based on the philosophy that during…
Abstract
Purpose
In the literature of mergers and social justice, equality is regarded as a crucial phenomenon to achieve social integration. This paper is based on the philosophy that during mergers and acquisitions (M&As), the employees who experience the equal distribution of resources, equal respect to each other’s policies and procedures, and fair and respectful interactions, are more likely to have a sense of control and lower social isolation and hence tend to get influenced positively by the M&A process. Thus, the purpose of this paper is to study the relationship between perceived organizational justice and employee feelings of alienation during post-M&As.
Design/methodology/approach
A cross-sectional survey research design has been used. This study was undertaken on a sample of 315 employees from five organizations in India. The quantitative data were subjected to univariate and bivariate analysis, while qualitative data were subjected to relational content analysis. Different dimensions of justice were studied in relation to the feelings of alienation using multiple correlational analysis and hierarchical regression analysis.
Findings
Multiple correlational analyses revealed significant negative correlation of perceived organizational justice and of all of its dimensions with all the dimensions of alienation. However, the results of the hierarchical regression analysis found interactional justice and distributive justice to be the major predictors of alienation during M&As. Apart from the quantitative analysis, qualitative analysis also revealed interesting insights, unique to the individual organization.
Originality/value
The study has significant value for both MNCs and researchers. This study has strong implications for the multinational corporations that are making inroads into M&As but consistently failing due to employee issues. This study also presents future directions to the researchers to explore more in the area of soft issues of M&As.
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Mahima Thakur, Anjali Bansal and Rashmi Maini
Women experience insurmountable work life balance challenges, which are the reasons a large percentage of women leak out of the workforce pipeline. Flexible work systems empower…
Abstract
Purpose
Women experience insurmountable work life balance challenges, which are the reasons a large percentage of women leak out of the workforce pipeline. Flexible work systems empower women to contribute in meaningful ways to their personal and professional lives. Job sharing is one such strategy of flexible work system, which is proposed as an empowering management practice. This paper aims to create a model of empowerment for housewives. Non-working housewives are the most neglected lot of society in terms of getting their dues.
Design/methodology/approach
For the purpose of this study, qualitative study was conducted and data were analyzed using thematic content analysis. Focus group discussions with 266 housewives were conducted to find out their reasons of not joining the full-time workforce, and their willingness to contribute, if they have any. In-depth interviews of nine HR managers were also conducted to assess the openness of the corporate side toward job sharing as a work design. The paper has significance for the corporate as well as for the social and government agencies.
Findings
Qualitative data collected from 266 housewives presented three core themes – the bottlenecks to employment, the available opportunities of employment and growth and their preferred status of employment. The qualitative data further revealed that though they can easily do with some more money at their disposal, they cannot join in the full-time workforce as they have family responsibilities. They were willing to put in half a day’s work. Thus, the investigators recommended job sharing for them, which would engage this talented human resource and give them back their due for selflessly giving in their most productive years to their families. The interviews of nine HR managers from three multinational companies revealed the skillsets of these housewives as the major concern for putting them back on work.
Originality/value
The paper has significance for the corporate, women as the contingent workforce and social and government agencies.
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Cross-cultural mergers and acquisitions (M&As) can generate the number of negative feelings and emotions among the survivors of the deal. These negative outcomes can range from…
Abstract
Cross-cultural mergers and acquisitions (M&As) can generate the number of negative feelings and emotions among the survivors of the deal. These negative outcomes can range from lowered commitment, lack of productivity, and talent loss to the more serious work alienation. Hence, this chapter is an attempt to identify the employees’ level of commitment and their feelings of alienation in the post-M&A integration phase. Also, provided training has proven to be important in building employee commitment and mitigating the feelings of alienation, this studies the relationship of these psychological outcomes with the different kinds of training provided to them during post-M&A situations. The vast literature review studied revealed a significant relationship between employees’ perceived effectiveness of training and their level of commitment with the newly merged firm, while an inverse relationship was found with employees’ feelings of alienation. This chapter has crucial implications for researchers and practitioners.
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Mahima Thakur, Anjali Bansal and Peter Stokes
This empirical investigation studies the correlates and predictors of employees’ psychological outcomes during mergers and acquisitions (M&As) in the context of India. This study…
Abstract
This empirical investigation studies the correlates and predictors of employees’ psychological outcomes during mergers and acquisitions (M&As) in the context of India. This study examined the role of different types of training initiatives (awareness training, human capital development training, and cross-cultural training) on building employees feeling of psychological empowerment and thriving. Further, second-order attitudes were studied in the form of employee satisfaction and commitment. A cross-sectional research design was adopted where quantitative and qualitative data were collected to investigate the interplay between the variables. Data were collected on an adapted standardized questionnaire from the employees of a public sector organization (N = 117) which had merged with a software company to deliver its IT services. Descriptive analysis, multiple correlational analysis, and stepwise regression analysis have assisted in exploring the different relationships amongst the variables. This study produces a prescriptive framework for merger success based on the model of growth and thriving (Spreitzer & Porath, 2012). Broadly, the results point towards the facilitative role of training in developing feelings of psychological empowerment, thriving, commitment and satisfaction with the merger, however qualitative data identified significant cultural undercurrents.
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The purpose of this paper is to explore the relationship of employees’ element of organizational trust with the processes and practices of the merged organization during…
Abstract
Purpose
The purpose of this paper is to explore the relationship of employees’ element of organizational trust with the processes and practices of the merged organization during post-M & A integration post-merger integration (PMI) phase. Specifically the variables of employees’ perceptions of effectiveness of HR initiatives, communication, and cultural convergence were studied as important determinants of employees’ trust.
Design/methodology/approach
A mixed method research design was adopted, where quantitative data were collected through questionnaires, and the qualitative support has been gained asking open ended elaborated questions. The analysis was performed on the data obtained from 117 respondents having experienced merger or acquisition in past two to three years. Univariate and bivariate analysis were performed on the data using SPSS.
Findings
The results of the study indicated the significant positive relationship amongst the variables understudy. It has been found that the poor management of the underlined processes and practices during PMI phase would negatively impact the employees’ phenomenon of trust in the merged organization.
Practical implications
This research has significant implications for researchers and practitioners. This study contributes to the understanding of the psychological outcomes of M & A survivors as an imperative for strategic human resource management.
Originality/value
This research is an extension of M & A performance research in terms of psychological variables, and is an initiative to discuss M & A cases from the context of a fast developing economy.
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The purpose of this paper is to report a study of post-integration mechanisms carried out by five multinational mergers and acquisitions (M & A) transactions taken place in…
Abstract
Purpose
The purpose of this paper is to report a study of post-integration mechanisms carried out by five multinational mergers and acquisitions (M & A) transactions taken place in Indian context. This study has been woven around the concept of human integration and task integration as separate objectives of acquiring organizations to be achieved.
Design/methodology/approach
This study is based on descriptive research design. Qualitative data were collected, where the managers from the acquiring organizations and employees from the acquired firms have taken part in the data collection process through interviews. Interview schedule was developed for managers consisting questions on organizations’ strategy to achieve success post-M & A integration (PMI), while interview schedule developed for employees investigated their reactions after organizational change.
Findings
Results revealed that the organizations where human integration mechanisms were given due credence also harbored highly committed employees from their organizational counterparts, whereas the transactions where task integration objective was given preference while ignoring human integration, employees developed the negative emotions of anger and insecurity for their newly merged firm.
Research limitations/implications
The M & A literature observes a huge gap in the field of M & As in India, especially in PMI mechanisms worldwide, as the emphasis has always been on financial and operational aspects of M & As. Thus, this study addresses this gap in research and opens the avenues for M & A researchers to consider HR as the strategic partner during M & As.
Practical implications
The study has important implications for MNCs operating in India and for those which want to excel the Indian market through M & A.
Originality/value
This paper is based on the original field work and every information given is authentic.
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