Organizational Justice in Mergers and Acquisitions : Antecedents and Outcomes

This book provides a unique account of how perceived justice is influenced by various aspects of an organizational merger and investigates the impact on behavior for those involved in the process. Drawing from both psychological and sociological insights, the author considers justice from an individual and group perspective in light of the political and strategic implications of mergers and acquisitions. Experiences from two empirical cases are used to consider the depth of theoretical analysis provided, in terms of practical outcomes for both organizations and employees alike. In this pioneering new book, the author explores communication, employee attitudes, trust and commitment, and the psychological contract between the employee and the organization, emphasizing the importance of developing a new meaning of organizational culture. Although primarily aimed at an academic audience, this book will also be useful to practitioners as it illuminates the potential pitfalls of overlooking the importance of fair treatment in the workplace. Preface 5 Contents 11 List of Figures 13 List of Tables 14 Part I: Mergers and Acquisitions 15 1: Introduction 16 1.1 Emerging Patterns and Trends 16 1.2 Methods, Typologies, and Objectives of Integration 19 1.2.1 Integration Method 20 1.2.2 Integration Typologies 22 1.2.3 Strategic Objectives 24 1.3 Common Features of Failure and Success 28 1.3.1 The Negative Legacy 29 1.3.2 Timing Is Everything 30 1.3.3 The Acquisition of Knowledge and Capabilities 31 References 32 2: Human Influence 36 2.1 Behavior Management 36 2.1.1 The Role of Communication 38 2.1.2 Frontline Managers 39 2.2 Employee Reactions 42 2.3 Influential Factors 44 2.3.1 Culture 45 2.3.2 Identity 46 2.3.3 Organizational Justice 48 2.3.4 Psychological Contract 50 Breach and Its Outcomes 51 2.4 Justice and Its Relationships with Culture, Identity, and the Psychological Contract 53 2.5 An Interrelated Process 56 2.5.1 Integration Management 57 References 59 3: Organizational Justice 68 3.1 Introduction 68 3.2 Origins of Organizational Justice 69 3.2.1 The Development of Organizational Justice 70 3.3 The Dimensions of Organizational Justice 72 3.3.1 Distributive Justice 72 Equity, Equality, and Need 72 An Exchange Relationship 75 3.3.2 The Role of Procedural Justice 76 Three Streams of Procedural Justice 76 Influential Factors 78 3.3.3 Interactional Justice 78 3.4 Antecedents of Justice 80 3.4.1 Voice 82 3.4.2 Group Influence 83 3.4.3 Trust and Uncertainty 84 3.4.4 Affective State of the Individual 86 3.4.5 Anticipatory Justice 87 3.5 Outcomes of Perceived Justice 90 3.5.1 The Relationship Between Power and Resistance 90 3.5.2 Influence of Perceived Justice upon Emotion 91 3.5.3 Organizational Commitment 92 3.5.4 Organizational Citizenship Behavior 93 3.5.5 Intention to Leave 93 3.6 Summary 93 References 94 Part II: The Organization System 105 4: Change 106 4.1 Introduction 106 4.2 Models of Change 107 4.3 Emotional and Behavioral Reaction to Change 112 4.3.1 Resistance to Change 114 4.3.2 Ritualistic Behavior and Resistance to Change 116 4.3.3 Reducing Resistance Through Employee Involvement 119 Case in Question 120 4.4 Uncertainty Avoidance 120 4.4.1 Communication and Uncertainty Avoidance 121 4.5 Case in Question 123 References 125 5: Organization Culture 131 5.1 Introduction 131 5.2 The Relationship Between Integration Strategy and Culture 132 5.3 Case in Question 135 5.3.1 The Role of Values in Fairness 135 5.3.2 Rituals, Routines, and Organizational Values 137 Shared Values 140 Social Structure 142 Commitment, Citizenship, and Intention to Leave 145 5.4 Conclusions 147 References 149 6: Social and Organization Identity 151 6.1 Introduction 151 6.2 Antecedents of Identity Integration 153 6.2.1 Facilitators of Social Identity Integration 153 The Similarity Effect 153 Coping Strategies 154 Support and Recognition 156 Identity Is Developmental 158 6.2.2 Inhibitors of Social Identity Integration 160 Feeling Threatened 160 The Interaction with Status and Power 162 6.3 Case in Question 164 6.3.1 The Importance of Organizational Justice 164 6.3.2 The Relationship Between Identity, Culture, and Organizational Justice 165 The Impact of Values on Perceived Justice 167 References 170 7: Organization Communication 177 7.1 Introduction 177 7.2 Change and Communication 179 7.2.1 The Strategic Importance of Communication 179 7.3 Uncertainty Avoidance 181 7.3.1 The Role of Disseminating Information 182 The Quality of Information 182 Sources of Information 183 7.4 Interpretation and Employee Involvement 184 7.4.1 Process Control 186 Supporting Academic Arguments 187 7.5 Case in Question 188 7.5.1 The Business School 188 7.5.2 The NHS Trust 189 7.5.3 Discussion 190 References 194 Part III: The Employee 199 8: Trust 200 8.1 Introduction 200 8.2 Trust Defined 201 8.3 Developing Organizational Trust 203 8.3.1 Trust Formation 203 Influence of the Interaction 204 8.3.2 Sense-making 205 Emotion and Trust 207 8.3.3 Expectations 208 Psychological Contract 210 8.4 Case in Question 211 8.5 The Relationship with Justice 215 8.5.1 Case in Question 216 8.5.2 Case in Question: Trust and Uncertainty 217 8.5.3 The Role of Leadership 218 References 223 9: Organizational Commitment 228 9.1 Introduction 228 9.2 A Three-Tier Framework 229 9.2.1 Affective Commitment 231 9.2.2 Normative Commitment 232 9.2.3 Continuous Commitment 233 9.3 Referents of Commitment 233 9.4 Organizational Commitment and Commitment to Change 234 9.4.1 Short- and Long-Term Commitment Considerations 235 9.4.2 Case in Question: Expectations of Justice 237 9.5 Commitment and Its Reciprocal Relationships 238 9.5.1 Organizational Justice 238 9.5.2 Perceived Organizational Support 240 9.5.3 Case in Question: Perceived Organizational Support 241 9.5.4 The Relationship with Organization Socialization 243 Social and Economic Exchange 244 9.5.5 Turnover Intentions 248 Case in Question: Commitment and Behavioral Changes 249 References 250 10: Interpersonal Communication 257 10.1 Introduction 257 10.2 An Exchange Relationship 258 10.3 Interactional Justice 260 10.3.1 Interpersonal Justice 260 10.4 Relationship Interactions 261 10.4.1 Communication as Social Action 264 Social Interaction and Decision-Making 265 10.4.2 Social Accounts 267 Role of Actors in the Process 268 10.5 Relationship Transgressions 270 10.5.1 Exchange 270 10.5.2 The Impact on Trust 272 Integrity and Competence 272 10.5.3 Affective State 274 10.6 Case in Question: The Role of Social Exchange in Fairness 275 References 279 11: Psychological Contract 286 11.1 Introduction 286 11.2 Characteristics of the Psychological Contract 287 11.2.1 The Role of Trust 290 11.2.2 Psychological Contract Breach and Violation 291 The Nature of PC Breach 293 Reneging and Incongruence 294 Individual Differences 295 11.3 Impact on the Employment Relationship 298 11.4 The Nature of Change 301 11.4.1 Minor and Major Change 301 11.4.2 Frequency of the Change 302 11.5 Case in Question 304 11.5.1 Relationships with Psychological Contract Breach 304 11.5.2 Organizational Justice and the Employment Relationship 306 References 306 12: Conclusion 312 12.1 Introduction 312 12.2 Overview of Findings 313 12.2.1 A Summary of the Main Findings 313 12.2.2 A Model of Justice and Its Antecedents 315 12.3 Implications of the Findings for Current Theory 316 12.3.1 The Role of Expectation in Fairness 318 12.4 Practical Implications of the Study 320 12.4.1 The Effect on Employee Attitudes and Behavior 321 Recommendations 321 12.5 Summary 323 References 323 Index 324 Front Matter ....Pages i-xv Front Matter ....Pages 1-1 Introduction (Nicholas Jackson)....Pages 3-22 Human Influence (Nicholas Jackson)....Pages 23-54 Organizational Justice (Nicholas Jackson)....Pages 55-91 Front Matter ....Pages 93-93 Change (Nicholas Jackson)....Pages 95-119 Organization Culture (Nicholas Jackson)....Pages 121-140 Social and Organization Identity (Nicholas Jackson)....Pages 141-166 Organization Communication (Nicholas Jackson)....Pages 167-188 Front Matter ....Pages 189-189 Trust (Nicholas Jackson)....Pages 191-218 Organizational Commitment (Nicholas Jackson)....Pages 219-247 Interpersonal Communication (Nicholas Jackson)....Pages 249-277 Psychological Contract (Nicholas Jackson)....Pages 279-304 Conclusion (Nicholas Jackson)....Pages 305-316 Back Matter ....Pages 317-321