Working Under a Black Cloud: How to Sustain Organizational Identification after a Merger^*

Abstract

This article argues against the merger folklore that maintains that a merger negatively affects well-being and work attitudes primarily through the threat of job insecurity. We hold that the workplace is not only a resource for fulfilling a person's financial needs, but that it is an important component of the self-concept in terms of identification with the organization, as explained by social identity theory. We unravel the key concepts of the social identity approach relevant to the analysis of mergers and review evidence from previous studies. Then, we present a study conducted during a merger to substantiate our ideas about the effects of post-merger organizational identification above and beyond the effects of perceived job insecurity. We recommend that managers should account for these psychological effects through the provision of continuity and specific types of communication.

The Effect of Trust on Acquisition Success: The Case of Israeli Start-Up M&A

“…Despite significant advances in this field, our understanding of the role of trust in M&A still remains incomplete. M&As increase negative reactions such as ambiguity [7,8] and a lack of organizational commitment [9,10]. Uncertainty arising after the announcement of an M&A for innovative ideas [24].…”

Effects of procedural justice on employees job satisfaction and new identification after merger and new identification s mediating role in this relationship

“…İşletme birleşmeleri, yapısı itibari ile çok büyük ve hızlı değişiklikleri kapsayan, belirsizlik içeren dönemler olup, çalışanın kurumları ile özdeşleşmelerini etkilemektedir 12 . Belirsizlik çalışanın veriminin düşmesi ve işten ayrılma niyetinin artmasına da neden olmaktadır 13 .…”

Group processes, intergroup relations and human resource practices in mergers and acquisitions post-combination: A critical review and research agenda for the future

“…In the cases of M&As which rarely assume equal partners and where formerly distinct corporate members are re-categorized into the new merged entity (van Dick, Ullrich and Tissington, 2006), the existing social comparisons between merging partners and the merged organization, are activated, utilizing the Social Identity Approach (SIA) to describe the shift from the pre-to the post-merger organizational membership and identity: to explore and explain the intergroup relations in merger activities (Giessner, et al 2006).…”

“…Since the history of M&As indicates little evidence on the existence of mergers of equals often considered -s imply symbolic‖ (Drori, Wrzensniewski and Ellis, 2011;Alluru and Thomas, 2016, p625), issues relating to formerly distinct corporate partners being re-categorized into the new merged organization (van Dick, Ullrich and Tissington, 2006)and existing social comparisons between merging partners and the merged organization, are activated. These reflect the essentials of the -s ocial psychological theories of group processes and intergroup relations‖, in other words, the Social Identity Approach (SIA) (Ullrich and van Dick, 2007, p2) which integrates both the Social Identity Theories (SIT) (Tajfel and Turner, 1986) and SelfCategorization Theories (SCT) (Turner et al 1987), constitutes a major challenge during merger process and is -r arely considered‖ (Giessner, Horton and Humborstad, 2016, p2).…”