Article

Downsizings, mergers, and acquisitions: Perspectives of human resource development practitioners

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Abstract

Purpose This paper seeks to provide perspectives of HR practitioners based on their experiences with mergers, acquisitions, and/or downsizings. Design/methodology/approach This qualitative study utilized interviews with 13 HR practitioners. Data were analyzed using a constant comparative method. Findings HR practitioners were not involved in planning decisions related to downsizings, mergers, and/or acquisition. Neither the practitioners in this study nor other members of the HR team in their organizations had an upfront due diligence role in these change initiatives. Research limitations/implications Additional research is needed to guide HRD practitioners in repositioning their roles so that they are more central to an organization's strategic decisions. Given the method of this study, the findings are not intended for generalization to larger populations. Future research should address the needs of HRD practitioners who are affected by downsizings, mergers, and/or acquisitions. Practical implications The primary role of HR practitioners need to be more than transitional activities after these change events are announced. Rather, these practitioners need opportunities during the planning stages to ensure that training and development supports the financial goals of these change events. After these change events occur, HRD practitioners need support for interventions to counter the impact of dismissed cultural artifacts and broken human links. Originality/value Study participants explained that failure to identify employee issues in the pre‐downsizing due diligence phase creates a chaotic workplace atmosphere and increases employee fears and stress levels. Participants explained how these change events affect career uncertainty, fear, and stress in employees.

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... Although some M&As are successful, a high percentage of them often fail (Epstein, 2004). A merger of two companies is a merger of groups, or more specifically, it is ultimately a human process (Mavrides and Hadjichristodoulou, 2009;Antila and Kakkonen, 2008;Konstantopoulos et al., 2009;Shook and Roth, 2011). Marks and Mirvis (1998) stated: "[M]ore than threequarters of corporate combinations fail to attain projected business results. ...
... Cartwright and Cooper (1992, p.35) stated: "M&As represent a significant and potentially emotional and stressful life event", a view shared by others (Jayesh, 2013;Newton, 2015). Several studies emphasise the importance of human resources during M&As (Mavrides and Hadjichristodoulou, 2009;Antila and Kakkonen, 2008;Konstantopoulos et al., 2009;Shook and Roth, 2011;Jayesh, 2013;Bansal, 2015;Newton, 2015;Charoensukmongkol, 2016). The literature reviewed revealed two models that highlight specific steps in retaining talented employees. ...
... In general, there are a number of reasons that motivate corporations towards M&As one of which is that it is a strategy that enables firms to grow faster (Nikandrou and Papalexandris, 2008;Steynberg and Valdsman, 2011;Collett, 2015;Kyriazopoulos and Drymbetas, 2015). Other factors include globalisation, technological change, deregulation, achievement of synergies, diversification, market expansion, enhanced capabilities and knowledge (Konstantopoulos et al., 2009;Shook and Roth, 2011). Other academics, such as Gadiesh et al. (2001), stipulated additional factors: increased competitive pressure stemming from the external market environment; maintaining the company's market position; seeking a competitive advantage; achieving diversity and growth. ...
Article
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... A mudança organizacional é uma atividade constante nas empresas, visto que estas, mesmo que ocupem uma fatia dominante em sua área de atuação, têm de se adiantar às pressões de um ambiente cada dia mais global e competitivo (WOOD, 2009;IGBAL, 2011;BANUTU-GOMEZ, 2007;KOTTER;COHEN, 2002;SHOOK;ROTH, 2011;JIMMIESON et al., 2004). ...
... A mudança organizacional é uma atividade constante nas empresas, visto que estas, mesmo que ocupem uma fatia dominante em sua área de atuação, têm de se adiantar às pressões de um ambiente cada dia mais global e competitivo (WOOD, 2009;IGBAL, 2011;BANUTU-GOMEZ, 2007;KOTTER;COHEN, 2002;SHOOK;ROTH, 2011;JIMMIESON et al., 2004). ...
... Conclui-se que o processo de mudança sofreu influência do ambiente externo (funcionários da base/usuários finais, aumentos salariais, choques culturais etc.), bem como do interno (recursos humanos e materiais alocados ao projeto, metodologia, atrasos, falhas etc.), conforme tem ressaltado a literatura do tema (WOOD, 2009;IGBAL, 2011;BANUTU-GOMEZ, 2007;KOTTER;COHEN, 2002;SHOOK;ROTH, 2011;JIMMIESON;. ...
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Muitos pesquisadores e gerentes têm se empenhado na busca pela descoberta dos fatores que afetam o sucesso dos processos de mudança organizacional. Um dos fatores mais apontados na literatura sobre esse tema diz respeito à “resistência” à mudança por parte de alguns atores organizacionais, em especial os pertencentes aos níveis hierárquicos mais baixos. Mas como será que esses indivíduos percebem a si mesmos e aos outros em um processo de mudança organizacional? Como eles percebem o conteúdo e o gerenciamento da mudança? Qual o papel da comunicação nesse contexto? O presente trabalho contribui para um melhor entendimento sobre o processo de construção do significado para indivíduos e grupos em mudanças organizacionais planejadas e sua relação com a comunicação e os aspectos comportamentais apresentados por eles. Para tanto, foi conduzido um estudo de caso em uma empresa estatal brasileira que estava passando por um processo de intervenção organizacional na área de Tecnologia da Informação: implantação de um sistema de gerenciamento eletrônico de documentos e do fluxo de trabalho. A metodologia da pesquisa baseou-se na análise de questionários e entrevistas semiestruturadas aplicadas aos empregados da base e na observação-participante dos pesquisadores, utilizando-se, para tanto, o método Pesquisa-ação (THIOLLENT, 2005), cuja adoção justifica-se pelo alto grau de envolvimento do autor com o projeto em estudo. Os resultados comprovam que a mudança organizacional é sensível ao aspecto relacional e temporal e que a ação e o comportamento humano devem ser considerados como frutos da comunicação e fator determinante na construção dos significados e das identidades individuais e coletivas.
... In addition, the effectiveness of integration enablers helps building employees' psychological empowerment in the newly merged organization. Though empowerment has become immensely popular in contemporary management thinking, its roots which can be traced in previous management commentaries including well-grounded body of research on alienation (Blauner, 1964;Seeman, 1959), participative management (Lawler, 1994), and job enrichment (Hackman & Oldman, 1980). While earlier work conceptualized empowerment as a set of management practices focused on delegating decision-making authority (Mainiero, 1986), recent research provides the conceptual base for a more psychological definition of empowerment in the workplace (Bansal & Thakur, 2013). ...
... Competency provides a basis for integrating key HR activities such as selection and assessment, performance management, training, development and reward management, thus developing a coherent approach to the management of people in organizations (Lucia & Lepsinger, 1999;Thakur & Bansal, 2015). Shook and Roth (2011) in their research on M&As suggest that the limited number of training and development interventions contributes to the employee stress level. Nevertheless, problems can arise and, in another regard, research points towards a 'we versus they' attitude of employees during M&As and also antagonism, condescending attitudes, distrust, tension, and hostility (Astrachan, 1990;Blake & Mouton, 1986;Levinson, 1970). ...
... The lack or limited number of training and development interventions contribute to the employee stress level. In spite of all these potential risks, in the majority of the firms, there is, however, little planning to manage the changes that affect employees, and the employees have a tremendous impact on the successful implementation of major organizational changes (Shook & Roth, 2011). ...
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Article
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, secondorder 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 Copyright © 2016 by Emerald Group Publishing Limited All rights of reproduction in any form reserved.
... As suggested by current literature (see for instance Hamlin in Chapter 1 of this book), the impact of organizational change (OC) pressures have resulted in several undesirable and unwanted outcomes at every organizational level, and not least increasing stress levels at work (see, for example, Hamlin, 2001;Gunnigle, Lavelle & Monaghan, 2013;Shook & Roth, 2011). Facing successfully the impact of OC and, more generally, working with managers of an organization during this change is the real current challenge of both HR managers and practitioners. ...
... Organizations have had to deliver more value for money services and products and pursue the highest standard of effectiveness, but at the same time achieve the greatest level of cost saving and efficiency gains (see Barkema, Baum & Mannix, 2002;Champy & Nohria, 1996;Dess & Picken, 2000;Yukl, 2006). These pressures have often resulted in multidimensional restructuring, for instance in mergers (see, for example, Gunnigle, Lavelle & Monaghan, 2013;Hamlin, 2001;Shook & Roth, 2011). Contemporary literature suggests (Kunze et al., 2013) a prominent role in moderating organizational change outcomes could be played by organizational tenure. ...
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Chapter
This chapter aims to present the obstacles both scholars and practitioners must overcome in facing organizational change. Indeed, too often practitioners lack any rigorous evidence-based background and rely on their previous experience and common sense. At the same time, scholars too often work in a very separated academic world, thus ignoring the actual problems that professionals face in actual firms. Being both a scholar and a practitioner, the author highlights the common challenges likely to be faced by change agents when facilitating organizational change: recognizing the readiness of the involved people to change, their skill mismatch, their previous change history, and the level of cynicism. A fully reflective change agent must consider these factors in designing and implementing an evidence-based organizational change and development (EBOCD) initiative and change agency process if he or she wishes to achieve positive outcomes both from the organizational and the involved people's point of view.
... Downsizing is changing the structure of an organization to reduce its size either by decreasing the number of employees or by reducing the number of organizational units or managerial levels. It is a go-to option for organizations in a financial bind because labor is expensive and reducing it can bring immediate relief to the organization (Shook and Roth 2011). Downsizing also represents an opportunity for an organization to rethink its strategies due to the choices it presents to the company as it moves forward (Marlowe Jr, Hoffman, and Bordelon 1992). ...
... Most downsizing efforts are usually kept under wraps in the initial stages for fear that it can negatively affect employee productivity. It is recommended that organizations share information and engage employees by laying out the organization's status and strategies, providing for the needs of survivors and those who leave, and following through on growth plans (Shook and Roth 2011). In addition, companies will also do well to acknowledge the psychological transition that people go through during downsizing. ...
Chapter
A recent study found that as many as 45 percent of activities that people are paid to perform can be automated by adapting new technology. Interestingly, the activities that can be automated are not limited to low-level roles. High-paid occupations such as physicians and CEOs may soon find some of their work being done by machines as well. Although some may lament that introducing technology will mean fewer jobs, another perspective sees this as an opportunity to rethink how jobs can be performed.However, as organizations harness technology with the aim of improving their processes and increasing output, a tremendous amount of organizational flexibility, learning and re-learning, and redefining of jobs and processes are necessary. These organization development initiatives are classified under technostructural interventions. This chapter aims to describe the different forms of these interventions and showcase how they are used in Philippine organizations.
... In fact, the adoption of employee layoff strategies has enjoyed continued popularity in the first decade of this new millennium ( Datta et al., 2010;Gandolfi & Hansson, 2011). There is empiri- cal evidence indicating that some of the work- force reduction tools utilized in the 1990s have remained ubiquitous in many industries ( Mishra et al., 2009;Mu ~ noz-Bullon & Sanchez-Bueno, 2010;Shook & Roth, 2011). Interestingly, a variety of layoff-related terms, synonyms, and euphemisms have surfaced, including headcount Franco Gandolfi and Craig R Littler © eContent Management Pty Ltd IBM unveiled its 'resources actions' strategy focus- ing on skills rebalancing and the elimination of redundancies (Krane, 2002). ...
... Managers need to ensure that they do not mimic or 'clone' the actions of peers and industry leaders (McKinley et al., 1995). There exist 'best practices' in workforce reduction approaches suggesting that constructive damage control can be achieved and corporate goodwill created through open, candid, and timely communication (Gandolfi & Hansson, 2010;Shook & Roth, 2011). This paper has established that firms have completely abandoned downsizing language in formal, public communication with their constit- uencies over the past decade or so. ...
Full-text available
Article
Downsizing as a systematic reduction of employees is frequently utilized in order to increase productivity, efficiency, profitability, and competitiveness of organizations. As a strategy of choice for many firms around the world, downsizing produces far-reaching financial, organizational, and social consequences. Despite the large body of literature, there is inconclusive evidence as to whether downsizing is effective and whether it generates the widely anticipated benefits. Employee downsizing as a change management strategy has been actively adopted for more than three decades. This downsizing article presents a phase typology of job cutting including three distinct phases and three levels of argument. As a conceptual paper, it aims to examine, update, and extend Littler and Gandolfi's (2008) seminal work. The research paper culminates with a discussion of current downsizing practices, and posits that the downsizing phenomenon has remained a popular restructuring.
... Within the M&A process itself, there has been a ground swell of research identifying the importance of the human factor in successful organizational integration (Stahl and Mendenhall 2005), and the essential role that HRM, in particular, may play in a successful M&A process (Antila 2006;Shook and Roth 2011). This body of research however, has focused primarily on the post-M&A stage. ...
... Second, this study contributes to the broader literature on HRM during M&A by examining these practices in the pre-and post-merger phases. Although the study of HRM practices during the post-merger process has received significant attention in previous studies (Bastien 1987;Krug and Hegarty 2001;Schuler 2001;Schuler and Jackson 2001;Faulkner, Pitkethly and Child 2002;Aguilera and Dencker 2004;Papadakis 2005;Antila 2006;Shook and Roth 2011), the existing body of knowledge on HRM during the pre-merger stage remains limited with scholars continuing to call for further research (Schuler 2001;Aguilera and Dencker 2004;Angwin 2007;Budhwar et al. 2009). This is because HRM in the pre-deal stage of M&A may influence subsequent post-acquisition management of people Aguilera and Dencker 2004). ...
Chapter
Considering how corporate mergers and acquisition (M&As) are becoming an important component of the African business landscape, with significant activity recently reported for South Africa (360 deals valued at $21.98 bn), Egypt (117 deals valued at $6.84 bn) and Nigeria (24 deals valued at $0.713 bn) (Zephyr, 2010), and with countries which have previously prohibited M&A, such as Libya, now beginning to embrace it, African M&A has not received much attention from academic researchers. The growing research on M&As has largely been limited to western developed countries (c.f. Larsson and Finkelstein, 1999; Weber and Camerer, 2003) and more recently fast-growing emerging economies, with China (c.f. Dong and Hu, 1995; Cooke, 2006; Lin et al., 2009); and India (c.f. Kumar and Bansal, 2008; Budhwar et al., 2009) receiving special attention. Consequently, there is scanty knowledge about the challenges from M&As among African firms. Even within the M&A process itself, there has been a ground swell of research signifying the relevance of the human aspect in successful organizational integration (c.f. Stahl and Mendenhall, 2005). Specifically, recent articles in this journal have emphasized the role which human resource management (’HRM’) in particular may play in a successful M&A process (c.f. Antila, 2006).
... In fact, the adoption of employee layoff strategies has enjoyed continued popularity in the first decade of this new millennium ( Datta et al., 2010;Gandolfi & Hansson, 2011). There is empiri- cal evidence indicating that some of the work- force reduction tools utilized in the 1990s have remained ubiquitous in many industries ( Mishra et al., 2009;Mu ~ noz-Bullon & Sanchez-Bueno, 2010;Shook & Roth, 2011). Interestingly, a variety of layoff-related terms, synonyms, and euphemisms have surfaced, including headcount Franco Gandolfi and Craig R Littler © eContent Management Pty Ltd IBM unveiled its 'resources actions' strategy focus- ing on skills rebalancing and the elimination of redundancies (Krane, 2002). ...
... Managers need to ensure that they do not mimic or 'clone' the actions of peers and industry leaders (McKinley et al., 1995). There exist 'best practices' in workforce reduction approaches suggesting that constructive damage control can be achieved and corporate goodwill created through open, candid, and timely communication (Gandolfi & Hansson, 2010;Shook & Roth, 2011). This paper has established that firms have completely abandoned downsizing language in formal, public communication with their constit- uencies over the past decade or so. ...
Full-text available
Article
Downsizing as a systematic reduction of employees is frequently utilized in order to increase productivity, efficiency, profit-ability, and competitiveness of organizations. As a strategy of choice for many firms around the world, downsizing produces far-reaching financial, organizational, and social consequences. Despite the large body of literature, there is inconclusive evidence as to whether downsizing is effective and whether it generates the widely anticipated benefits. Employee down-sizing as a change management strategy has been actively adopted for more than three decades. This downsizing article presents a phase typology of job cutting including three distinct phases and three levels of argument. As a conceptual paper, it aims to examine, update, and extend Littler and Gandolfi’s (2008) seminal work. The research paper culminates with a discussion of current downsizing practices, and posits that the downsizing phenomenon has remained a popular restructuring strategy.
... In fact, the adoption of employee layoff strategies has enjoyed continued popularity in the first decade of this new millennium ( Datta et al., 2010;Gandolfi & Hansson, 2011). There is empiri- cal evidence indicating that some of the work- force reduction tools utilized in the 1990s have remained ubiquitous in many industries ( Mishra et al., 2009;Mu ~ noz-Bullon & Sanchez-Bueno, 2010;Shook & Roth, 2011). Interestingly, a variety of layoff-related terms, synonyms, and euphemisms have surfaced, including headcount Franco Gandolfi and Craig R Littler © eContent Management Pty Ltd IBM unveiled its 'resources actions' strategy focus- ing on skills rebalancing and the elimination of redundancies (Krane, 2002). ...
... Managers need to ensure that they do not mimic or 'clone' the actions of peers and industry leaders (McKinley et al., 1995). There exist 'best practices' in workforce reduction approaches suggesting that constructive damage control can be achieved and corporate goodwill created through open, candid, and timely communication (Gandolfi & Hansson, 2010;Shook & Roth, 2011). This paper has established that firms have completely abandoned downsizing language in formal, public communication with their constit- uencies over the past decade or so. ...
Full-text available
Article
Downsizing as a systematic reduction of employees is frequently utilized in order to increase productivity, efficiency, profitability, and competitiveness of organizations. As a strategy of choice for many firms around the world, downsizing produces far-reaching financial, organizational, and social consequences. Despite the large body of literature, there is inconclusive evidence as to whether downsizing is effective and whether it generates the widely anticipated benefits. Employee downsizing as a change management strategy has been actively adopted for more than three decades. This downsizing article presents a phase typology of job cutting including three distinct phases and three levels of argument. As a conceptual paper, it aims to examine, update, and extend Littler and Gandolfi's (2008) seminal work. The research paper culminates with a discussion of current downsizing practices, and posits that the downsizing phenomenon has remained a popular restructuring.
... Within the M&A process itself, there has been a ground swell of research identifying the importance of the human factor in successful organizational integration (Stahl and Mendenhall, 2005), and the essential role which HRM in particular may play in a successful M&A process (Antila, 2006;Shook and Roth, 2011). This body of research however, has focused primarily on the post M&A stage. ...
... Second, this study contributes to the broader literature on HRM during M&As by examining these practices in the pre-merger as well as post-merger phases. Although the study of HRM practices during the post-merger process has received significant attention in previous studies (Bastien, 1987;Krug and Hegarty, 2001;Schuler and Jackson, 2001;Schuler, 2001;Faulkner, Pitkethly and Child, 2002;Aguilera and Denker, 2004;Papadakis, 2005;Antila, 2006;Shook and Roth, 2011), the existing body of knowledge on HRM during the premerger stage remains limited with scholars continuing to call for further research (Schuler, 2001;Aguilera and Denker, 2004;Angwin, 2007;Budhwar et al. 2009). This is because HRM in the pre-deal stage of M&A may influence subsequent post-acquisition management of people (Horwitz et al. 2002;Aguilera and Denker, 2004). ...
Full-text available
Article
Despite the increasing number of mergers and acquisitions (M&A) taking place in Africa, research of this phenomenon, particularly in this continent, is extremely scarce. There is also growing awareness amongst researchers of the importance of human resource management (HRM) practices in general throughout the merger process. This makes an enquiry into its role in this context opportune. By analysing the recent M&A wave in the Nigerian banking sector, this paper explores HRM practices throughout the M&A process. Through interviews of key informants in each merging bank, key HRM practices are identified and conclusions drawn about their contribution to overall M&A outcomes. Implications for theory and practice are discussed and future research directions offered.
... The HR issues which posed serious problems to the management were cultural incompatibility and communication problems, insufficient due diligence, risk that can neither be shifted nor diversified, productivity loss, salary decline, downsizing staff, losing old customers and problems in labour demand. The findings by Shook and Roth (2011) 43 also supported the previous study. They found that HR practitioners were not involved in planning decisions related to downsizings, mergers, and/or acquisition. ...
Full-text available
Article
Banking sector is referred to be lifeline of the Indian economy and occupies an important and fundamental place in a developing nation like India. Mergers and Acquisitions as a phenomenon are implemented to strengthen the banking system, embrace globalization, improve healthy competition, exploit economies of scale, adopt advanced technologies, raise efficiency and improve profitability. The main objective of this study to examine the profitability and liquidity analysis of select public sector banks in the pre and post merger periods. The study period covers five years the pre and post merger of banks. The year of merger as a base year and hence, it is excluded from the evaluation in order to have consistency in evaluation of pre and post merger performance of acquirer banks. The year of merger differs in all merger deals. For the purpose of the study, the census method has been adopted to select public sector banks namely the State Bank of India, Indian Overseas Bank, Bank of Baroda, Punjab National Bank, IDBI Bank and Oriental Bank of Commerce. The latest mergers have been taken for sample size of the study i.e. after the year 2000 has been considered. The data analysis is done using ratio analysis, descriptive statistics like mean, standard deviation, coefficient of variation, compound annual growth rate and paired t test.
... Psychologically, employees are under different pressures in process of mergers. Employees are particularly concerned and are afraid of perceived breach of employment contracts by employers (Shook & Roth, 2011). The more the employees feel that contract would be breached by the organization(s), the more turnover intentions and allied behaviors of employees would surge. ...
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Article
This study aims to investigate employees’ physical behaviors under the environment of mergers. Chaotic recognition and disorderly hierarchicalization of critical physical behaviors of employees resulting into unsuccessful mergers is the problem under investigation. Employees have power to dictate the fate of mergers; therefore, it is imperative to scientifically underpin the patterns of their physical behaviors while during execution of mergers. The study follows positivist approach as research philosophy. It has identified and developed a hierarchy of physical behaviors that emerge into employees during organizational mergers. It is an empirical study based on formalized in-depth analysis. A specially designed questionnaire has been used for collecting data from a medium sized heterogeneous panel of experts on mergers. Technique of discourse of literature has been employed for identification of behaviors, Interpretive Structural Modeling (ISM) for hierarchicalization whereas cross-impact matrix multiplication analysis (MICMAC) for investigation of driving and dependence power. Total eleven behaviors have been identified. ISM model depicts that bottom is occupied by conflict, middle by reduced organizational commitment and top by lower productivity. It means that conflict among employees is the most critical physical behavior, reduced organizational commitment is linking and lower productivity is least critical for mergers. MICMAC revealed that five behaviors fall in driving, four in dependent, one in linking and two in autonomous quadrant. The study is based on limited number of experts’ opinion, however, that may be envisaged on larger population for statistical investigation. The study provides insight to the policy makers, planners and executers of mergers.
... This raises the question whether Lean can be applied outside the original context in which it was developed (Bateman et al. 2014;. Notably, the constant reengineering and downsizing of many organizations appears to have dramatically decreased the (relative as well as absolute) numbers of middle managers in these organizations (Galagan 2010;Shook and Roth 2011;Sitlington and Marshall 2011). The remaining population of middle managers, though, may have gained a much more significant role in facilitating learning and balancing organizational change and stability (Béliveau 2013;. ...
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Thesis
In this dissertation, three studies are presented. First, a systematic review of the literature is conducted to develop a mechanism-based framework that explains the success and failure of CI initiatives (incl. Lean) in which middle managers are key agents. Secondly, an experimental vignette study serves to identify the differences in adopting a Lean approach as a management philosophy versus a cost-cutting program. Thirdly, the different roles that middle managers can play in CI (Lean) are analyzed and compared. Overall, this dissertation contributes to both theory and practice by providing new academic insights as well as recommendations for both top and middle managers involved in CI/Lean programs.
... Human resource development and organisation development play a key role 'in helping organisations to change themselves' (Cummings and Worley 2018, p. 5). However, contemporary literature suggests that 70% or more of rightsizing, mergers, acquisitions and other organisational change programmes either fail or are just partially successful, and that the workplace challenges posed by OCD initiatives typically have a negative impact on employees (Hamlin et al. 2019a;Shook and Roth 2011;ten Have et al. 2017). As a result of such failure rates, various scholars (see Hamlin 2001b) have suggested that organisational leaders, line managers and professional HRD practitioners should strive to become more critically reflective and evidence-based in their OCD-related change agency practices to improve the chances of change success. ...
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Chapter
This chapter positions coaching as a learning and development tool. The focus within this chapter is to analyse and discuss how coaching can be effectively used in the workplace to enhance employees' development in their jobs and careers. For this purpose, it explores how coaching closely links with andragogy, reflective, social and transformative learning as we focus on unlocking the potential of coaching in the organisations. We also argue that, for example, the open, flexible, non-judgemental and supportive nature of coaching positions it as a highly applicable tool to enhance creativity. This chapter offers an opportune discussion at a time when organisations are focused on promoting creativity and innovation as a means of addressing unprecedented change and where human resource development needs to evidence its alignment to business goals. Practical implications and future challenges to implement coaching as a workplace learning tool are also discussed.
... Ideally, mergers should complement existing operations and have a similar culture. However, often cultural patterns of behavior can be broken when a merger or acquisition occurs which can create an uncertain working environment for employees (Shook & Roth, 2010). ...
... The findings suggest that Western transactional models of perceived control to explain how people manage change may have far more limited application within a Bruneian context. Shook and Roth (2011) conducted a qualitative study using a constant comparative method to assess the perspectives of HR practitioners based on their experiences with mergers, acquisitions, and downsizings. They interviewed 13 HR practitioners to collect the data. ...
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Article
Mergers and Acquisitions (M&As) is one of the most accepted inorganic strategic tool in the hands of decision makers. Though, it is a major decision as it requires huge investments but it propels the wings of growth instantaneously and such investment decisions are largely based on financial aspects of business. It brings growth as well as unavoidable challenges for Transferor and transferee Company. Such challenges may include work culture related factors and psychological factors, which directly affect the work force of the transformer company as it is observed in case of ICICI Bank and the Bank of Rajasthan Ltd. BoR amalgamation when all the bank employees of BoR agitated. Therefore, the aim of this research paper is to identify the most prominent factors (merger stressors) which affect the stress level of bank employees during post merger. The factors are divided into two heads i.e. work culture related factors and psychological factors which covers total 13 and 11 factors respectively. For this purpose, a large sample of 60 BoR bank employees has been drawn from Udaipur city and the factor analysis has been performed. We found that cultural fit and HR policy framework are two prominent factors for high level of stress and dissatisfaction among bank employees. This study is a small contribution for the betterment of the bank employees and provides guidelines for bank policy makers, strategists, scholars and researchers.
... Furthermore, M&A involves substantial change for an organization, indeed, Bartunek and Moch (1987) describe M&A, as a third-order organizational change event (i.e. a major event requiring the ability of an entity or system to change schemata and structures in response to the demands of events which inherently necessitate active engagement of the management of employees before, during and after the merger (Schuler & Jackson, 2001). As a consequence, the HR function finds itself center stage during M&A, and especially so in the post-M&A context where often differing cultures, both corporate, and national in the case of cross-cultural mergers, have to be synthesised (Quah & Young, 2005;Shook & Roth, 2011). HR managers are thus positioned to play a strategic role in company-wide integration, post-merger processes and a support role for business unit transitions (Antila, 2006). ...
Article
This paper examines bi-cultural talent in relation to human resource management (HRM) practices in cross-cultural merger and acquisitions (M&A). The intersection of HRM, bi-cultural talent management and cross-cultural M&A literature proposes a conceptual framework to capture the complexity of bi-cultural talent management and reveals the dominant macro-characterization of the extant HRM literature focussing on a more micro-orientated perspective. The paper develops a matrix by underlining spatial dimensions (spanning micro-aspects of the individual employee through to the macro-entity of firm and its location in the macro-national cultural context) and temporal dimensions (consisting of pre-merger, during merger and post-merger phases). This provides a template which examines the multi-level dynamics of bi-cultural talent management. The argument identifies ways in which extant cross-cultural lenses require deeper understanding of bi-cultural talent management in M&A settings. Future research directions and agendas are identified.
... The HR issues which posed serious problems to the management were cultural incompatibility and communication problems, insufficient due diligence, risk that can neither be shifted nor diversified, productivity loss, salary decline, downsizing staff, losing old customers and problems in labour demand. The findings by Shook and Roth (2011) 43 also supported the previous study. They found that HR practitioners were not involved in planning decisions related to downsizings, mergers, and/or acquisition. ...
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Various academic and professional discourses consider that joining-up government is a remedy for all kinds of coordination problems. However, contrary to this popular belief, research shows that joining-up initiatives are not effective in all situations. This article argues that a careful study of the public administration system and structure is of paramount importance before launching any joining-up initiative, and thus rejects the notion that problems surrounding coordination and performance will disappear merely by implementing a joined-up approach. Issues such as turf, disagreement over the solution, budget sharing, protection of information and different stakeholder perspectives are discussed in order to explicate that joining-up instead of improving coordination and performance creates further difficulties. Examples from the Indian and French public administrations are referred to throughout this article to further clarify the issues addressed.
... In their study, Shook and Roth (2011), suggest the significance of the active role of experts in the sphere of human resources management in integration processes. ...
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Takeover processes imply integration of different organizational cultures, especially in case of crossborder takeovers. Using a survey questionnaire, authors conducted a research to examine the changes and satisfaction with all interest groups in taken over companies operating in fields of food industry, retail sector and financial activity in the Serbian market. Method applied to process the data is discriminant analysis, and research results are presented tabular form as well as graphically in form of ellipses. The aim of the study is to examine the differences of impact of takeover processes on various interest groups of production company, retail chain and financial institution and assessment of their satisfaction. Study's contribution is an informative support for managers of both company acquirer and target company in future acquisition processes, because analysis of differences, change and satisfaction of employees provides a concrete answer regarding elements influencing success of takeover process in terms of management of human.
... Notably, the constant reengineering and downsizing of many organizations appears to have dramatically decreased the (relative as well as absolute) numbers of middle managers in these organizations [72,73,74,75,76,77]. The remaining population of middle managers, though, may have gained a much more significant role in facilitating learning and balancing organizational change and stability [78,79,80,81]. ...
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Many organizations adopt the Lean management approach to create a culture of continuous improvement (CI), but often fail to accomplish such a change. Previous studies have explained this high failure rate in terms of poor leadership and management, including the role of middle managers. However, the body of knowledge about the role and influence of middle management in Lean CI is underdeveloped and highly dispersed. Some earlier work suggests that middle managers can both enable and hinder CI initiatives, but a systematic overview is missing. This paper provides a systematic review of the literature to develop a mechanism-based framework that explains the success and failure of CI initiatives in which middle managers are key agents. This study therefore aims to develop an evidence-based framework of key aspects of middle management roles in CI practices drawing on Lean. We conducted a mechanism-based systematic review of the literature. In total, 203 publications were selected and then reviewed in detail. This review focuses on how middle managers influence the implementation and success/failure of Lean CI initiatives. The review of the literature on CI/Lean and middle management results in two frameworks. Each of these frameworks assumes that top management consistently seeks to implement a particular (archetypical) philosophy of CI/Lean: the first framework assumes an integral management approach and the second one starts from the assumption that a cost-cutting strategy is adopted. Each of these two frameworks in itself reflects some of the key tensions and challenges arising from any CI/Lean change effort, especially for middle managers. In practice, the two conditions may overlap, which creates an additional level of complexity. Overall, our review provides an understanding of the (non)conditions in which continuous improvement initiatives are likely to succeed or fail, and as such also provides a starting point for future research as well as practical work in this area.
... The HR issues which posed serious problems to the management were cultural incompatibility and communication problems, insufficient due diligence, undiversifiable risk, loss of productivity, decrease in salary, downsizing, losing old customers and problem in labour demand. The findings by Shook and Roth (2011) also supported the previous study. They found that HR practitioners were not involved in planning decisions related to downsizings, mergers, and/or acquisition. ...
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The paper aims to review scholastic research on the effect of M&As on firm performance and present a comparative analysis of Indian M&As vis-a-vis those occurring in other nations. 108 articles in referred journals published between 2005 and 2015 have been surveyed with a focus on comparing firm performance parameters prior and post the M&A. Firm performance has been inspected via three measures i.e. accounting measures, stock market performance measures and qualitative measures. On the basis of these three measures, literature on mergers in India with those occurring in another 23 countries was compared. The review has shown that irrespective of the nation, M&As may impact the accounting and stock market performance measures of the acquirer and target firms in a positive, negative or mixed manner. M&As in nations other than India have received more academic attention with respect to the effect on qualitative issues like cultural compatibility, downsizing and innovation. Cultural incompatibility and downsizing are problems of M&As in India as well as other nations. Indian domestic M&As have resulted in greater market share whereas majority of the M&As in other nations have lost customer base. Although literature studying the outcomes of M&As on firm performance from a pre-post perspective are multifarious, a comparative assessment of the studies on M&As occurring in India with those carried out in other nations of the world is a novel attempt.
... Research specific to overall acquisition integration focuses on employees (Harrison-Walker, 2008;Shook & Roth, 2011), operating results or synergies (Devos, Kadapakkam, & Krishnamurthy, 2009;Ismail, 2011;Vancea, 2011), business systems integration (Chen & Nunez, 2010), and unanticipated liabilities (Peaks, Arbogast, & O'Keefe, 2009). Acquisitions are a major life event and the cause of heightened stress for employees (Cartwright & Cooper, 1993b;Maden, 2011;Raukko, 2009). ...
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Thesis
Acquisitions fail to deliver on their stated objectives at a rate of 50% to 80%. One of the most prevalent explanations places blame on conflicting organizational cultures and associated sociocultural morès. Acquisitions that successfully integrate sociocultural components more likely achieve the stated objectives of the acquisition, and failure to meet the stated objectives of an acquisition can negatively influence the viability of an organization. Most organizational development (OD) consultants view sociocultural integration of acquisitions from a systems perspective, affording consideration of multiple facets of an organization in sociocultural integration activities. Yet little scholarly research exists on sociocultural integration of acquisitions from the perspective of veteran OD consultants. Veteran OD consultants' experiences with sociocultural integration of acquisitions comprised this qualitative exploratory inquiry. Literature on organizational culture and leadership, OD and large-scale change, acquisitions, and sociocultural integration were critically reviewed, and data from qualitative in-depth telephone interviews with 15 participants informed the question of how veteran OD consultants describe and explain their experiences in sociocultural integration of acquisitions. The participants in this study indicated that acquisitions are chaotic, complex, and typically overwhelming to senior managers and organizational members. The study participants indicated that senior management teams that exhibit collective certainty regarding the purpose of the acquisition can positively influence integration. These veteran OD consultants also indicated that senior managers who communicate the purpose of the acquisition with certainty, and communicate effectively throughout the newly formed organization during all steps of the integration process could positively influence integration. The study participants indicated that organizational members' understanding of what the acquisition means to them on a practical level can influence integration positively. The participants also indicated that at times senior managers are distracted by the demands of ensuring profitability of the newly formed organization and do not have the time to attend to the people side of integration. These veteran OD consultants indicated that senior managers who do not make decisions based on assumptions, and demonstrate trustworthiness in how they communicate and facilitate employee redundancy, retention, and recruitment during integration can positively influence integration.
... It is said that the "HR can make or break the Mergers and Acquisitions" (Schraeder and Self (2003)). Yet Shook and Roth (2011) found that HR practitioners were not involved in planning decisions related to downsizings, mergers and/or acquisition. So they suggested that these practitioners need to play a more active role during the planning stages to ensure that training and development supports the financial goals of these change events. ...
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Reforms implemented by Telecom Regulatory Authority of India (TRAI) and Department of Telecommunications (DoT) post liberalization have drastically altered the business environment in the Indian telecom sector. This sector has emerged as a significant performer in the Indian services domain. The telecom companies have opted for Mergers and Acquisitions (M&A) as a strategic tool to enhance their performances. The objective of this study is to explore the overall strategic impact of M&A in the telecom industry. Previous research has shown that M&As in the telecom sectors of USA and Europe have not been fruitful. In this paper, we have concentrated on 10 M&A deals in the BSE-listed Indian telecom companies during a timeframe spanning from 2000 to 2010 to determine the effect of M&As in this sector and how they have brought about changes, if any, in the business performance of the acquirer companies. The focus of our study is to measure the change in performance levels of the companies, if any, in the post merger phase as compared to the pre merger ones through selected HR and financial parameters like HCROI (Human Capital Return on Investment), Compensation of employees to PAT ratio, EPS (Earnings Per Share) and market share. The findings indicate a mixed outcome.
... People integration is receiving more and more attention in recent years as a result of research outcomes.In our survey of 16 companies acquired by Hewlett Packard, we find that people factors like Employee Stress, attitude, culture conflicts do not form part of business narrative in decision making. Generally Stress audit, Culture audit, culture conflict assessment studies, Narrative analysis, Optimism audit is not conducted and this is gap in management practice.LaVerne andRoth (2011) 55 explained that failure to identify employee issues in the postmerger era downsizing due diligence phase creates a chaotic workplace atmosphere and increases employee fears and stress levels. They have explained how these change events through case study in US healthcare industry. ...
Article
Abstract: Mergers are highly emotional events for employees and high stake events for all leaders associated with deal. We investigate the impact of employee optimism and explanatory style on merger outcome. Does high employee optimism result in successful merger? Does explanatory style of employees influence merger outcome? What explanatory style results in successful merger outcome? We investigate 16 serial acquisitions by Hewlett Packard. Seligman’s Attribute Style Questionnaire is administered to sample of 1075 respondents (n=1075) to measure employee optimism and explanatory style. Co-relation study is done between Merger outcome (output variable) and Employee optimism and Explanatory style (input variables). Neural network is used to predict merger outcome and check the efficacy of predicting merger outcome with optimism and explanatory style as input variables. We conclude that high optimism of employees is strongly co-related to successful merger outcome. Explanatory style characterized by taking personal ownership of good events, giving specific explanation (rather than generic explanation) and attributing good events to permanent causes (rather than temporary causes) facilitates post merger integration. Neural network predicts (n=1075 ) merger outcome with 91% accuracy – neural network used optimism and explanatory style as input variables. This research brings out the importance of optimism audit as essential and useful practice while undertaking M&A. Number of Pages in PDF File: 86 Keywords: M&A, Optimism, Explanatory Style, ASQ, Neural Network, Positive Psychology
... Stahl, 2006;Lodorfos and Boateng, 2006). Acquisitions themselves impose stress on the employees due to a potential restructuration and downsizing, and reduce their efficiency (Shook and Roth, 2011), while cross-border deals 'add another layer of complexity to the merger process' (Kanter and Corn, 1994, p. 10). The differences in cultures both national and organisational lead to integration problems. ...
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The aim of the paper is to portrait some winning as well as failing strategies in human resource management (HRM) in cross-border acquisitions in Poland. The focus is on barriers to interactions in cross-border acquisitions that affect personnel management. There is an assumption that effective overcoming of these barriers reduces tensions in interpersonal relationships in acquisitions and thus contributes to the winning HRM strategies. The author tries to identify the determinants of successful approaches to managing interactions of people within foreign subsidiaries of multinational companies (MNCs) established via acquisitions, basing on the cases from Poland.
... Organization change is also defined as intentionally generated response to environmental shift (Jimmieson, Terry & Callan, 2004). Organizations adopt change in order to remain competitive in the market, for that they need competitive strategies like mergers, acquisitions and downsizing and these competitive strategies has negative impact on employees (Shook & Roth, 2011). Researchers have found that organizational change is different than the Lewin's unfreezing-moving-refreezing model (Lewin, 1947) because in reality it is difficult for the employees to reach refreezing state due to uncertainty and stress. ...
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The purpose of the current paper is to provide a conceptual framework for studying the impact of organizational change on employee job involvement while communication, emotions and psychological contract plays mediating role in this relationship. The current study conceptualize that organizational change followed by effective communication generate the positive emotions which ultimately increase the employee job involvement where as organizational change with ineffective communication causes negative emotions which results in low employee job involvement. The study also founds that organizational change may break the psychological contract between employee and employer which reduces the employee job involvement.
... Leaders of the iron filings group could be incorporated in the dominant group. This is likened to mergers and acquisitions in organizations (Shook and Roth 2011). The leaders could resist the temptation of leaving their group as the members did. ...
Article
The aim of the study was to present the magnet and iron filings model of intergroup attraction. The model presented in this study is theoretical and it is likened to the magnetic attraction between a magnet and iron filings. This theoretical study looked at stages of intergroup attraction and associated consequences. The stages of intergroup attraction discussed are group stability, group attraction, group dysfunction and group bonding. The argument presented by the model could be used in educational, health, family, community, organisational, and political settings. The model seeks to strengthen capacity building initiatives in groups and organisations. Future studies on the magnet and iron filings model of intergroup attraction could focus on empirical research on the usefulness of the concept in applied settings.
... The findings suggest that Western transactional models of perceived control to explain how people manage change may have far more limited application within a Bruneian context. Shook and Roth (2011) conducted a qualitative study using a constant comparative method to assess the perspectives of HR practitioners based on their experiences with mergers, acquisitions, and downsizings. They interviewed 13 HR practitioners to collect the data. ...
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Employees of banks are supposed to be proactive, proficient enough to bear responsibility and to perform under very stiff competitive environment. The existing banking industry is going through very critical situations, for example, global market is facing recession, the growth rate of emerging economies are going down; the pressure of competition is very high and apart from this dynamic environment of banking industry; various banks are restructuring their path of growth. At this juncture, banks are adopting and spreading their wings of mergers and acquisition to fly high and augment their strength and market size by approaching global as well as the rural market. Here, the impact of mergers and acquisitions on employees is a major concern because this may create stress among employees. Employees and their families have to go through with a certain paradigm during the course of a merger. The aim of the study is to identify the various stressors which contribute in increasing the level of stress among employees. Further, the article discusses the employee attitude and works related behavior and at the end we conclude. There is scope for further research to explore the employees' behavior towards strategic issues like mergers and acquisitions. This study will present guidelines for policy formulators, bankers and researchers to consider employees' view before taking further decision towards mergers and acquisition.
Chapter
This chapter aims to present the obstacles both scholars and practitioners must overcome in facing organizational change. Indeed, too often practitioners lack any rigorous evidence-based background and rely on their previous experience and common sense. At the same time, scholars too often work in a very separated academic world, thus ignoring the actual problems that professionals face in actual firms. Being both a scholar and a practitioner, the author highlights the common challenges likely to be faced by change agents when facilitating organizational change: recognizing the readiness of the involved people to change, their skill mismatch, their previous change history, and the level of cynicism. A fully reflective change agent must consider these factors in designing and implementing an evidence-based organizational change and development (EBOCD) initiative and change agency process if he or she wishes to achieve positive outcomes both from the organizational and the involved people's point of view.
Chapter
This chapter first discusses the complexities of change in organizations and why so many OCD programs fail and makes the case for change agents to become evidence-based in their change agency practice. The author then offers a definition of evidence-based organizational change and development (EBOCD) and outlines the types of “best evidence” that can be used to inform and shape the formulation and implementation of OCD strategies and to critically evaluate the associated processes and change agency practices. Various distinctive evidence-based initiatives for OCD are discussed and several case examples from the United Kingdom are presented. The chapter closes with a discussion of the specific merits of “design science,” “professional partnership” research, and “replication” research.
Chapter
This chapter provides an assessment of the role of professional human resource development (HRD) practitioners as organisational change consultants in addition to their role as training consultants and learning consultants. It then discusses the critical change agency role they can and should play in bringing about effective and beneficial organisational change and development (OCD) in strategic partnership with line managers. This is followed by a compelling rationale for the adoption of evidence-based practice approaches for managing and/or facilitating OCD initiatives. Next, an overview of findings from a study conducted and previously reported elsewhere (see Hamlin, Jones, and Ellinger, Concluding reflections and presentation of an EBOCD conceptual process model. In Evidence-Based Organisational Change and Development. Edited by Hamlin, R.G., Ellinger, A.D. and Jones, J. Hershey, PA: IGI Global, 2019b), that was designed to glean common insights from the critical reflections upon the practice of more than 70 evidence-based OCD practitioners who had used bodies of best evidence of various strengths to help enhance their change agency capabilities is provided. A conceptual model is then presented and it is anticipated that this model will provide relevant and useful insights for managers and professional HRD practitioners to lead and/or help facilitate more effective OCD initiatives in their respective organisations.
Chapter
This chapter is targeted mainly toward HRD practitioners and line managers who are actively involved in bringing about effective and beneficial organizational change and development (OCD) within their own respective organizations and/or within host organizations. Its purpose is to help them to appreciate more fully the complexities of the process issues of managing change, and the value of using theory and results of rigorous internal research in a very conscious and focused way to inform, shape, and evaluate their own change agency practice. After discussing why so many OCD programs fail, the author argues that ‘evidence-based management' and ‘evidence-based HRD', coupled with HRD's understanding of and alignment with the strategic thrust of the business, will likely lead to more effective OCD initiatives and programs. Several case examples of evidence-based OCD from the United Kingdom are presented, and the merits of ‘design science', ‘professional partnership research' and ‘replication research' are discussed.
Chapter
This chapter first discusses the complexities of change in organizations and why so many OCD programs fail and makes the case for change agents to become evidence-based in their change agency practice. The author then offers a definition of evidence-based organizational change and development (EBOCD) and outlines the types of “best evidence” that can be used to inform and shape the formulation and implementation of OCD strategies and to critically evaluate the associated processes and change agency practices. Various distinctive evidence-based initiatives for OCD are discussed and several case examples from the United Kingdom are presented. The chapter closes with a discussion of the specific merits of “design science,” “professional partnership” research, and “replication” research.
Chapter
This chapter aims to present the obstacles both scholars and practitioners must overcome in facing organizational change. Indeed, too often practitioners lack any rigorous evidence-based background and rely on their previous experience and common sense. At the same time, scholars too often work in a very separated academic world, thus ignoring the actual problems that professionals face in actual firms. Being both a scholar and a practitioner, the author highlights the common challenges likely to be faced by change agents when facilitating organizational change: recognizing the readiness of the involved people to change, their skill mismatch, their previous change history, and the level of cynicism. A fully reflective change agent must consider these factors in designing and implementing an evidence-based organizational change and development (EBOCD) initiative and change agency process if he or she wishes to achieve positive outcomes both from the organizational and the involved people's point of view.
Chapter
The claim that fair treatment breeds organizational commitment has been supported in several studies and is recognized in a reciprocal exchange relationship. Evidence supports a link between lower commitment where there are perceived inequities from procedural justice and distributive justice leading to an increase in negative employee attitudes, such as intentions to leave the organization. However, where positive expectations of the newly-emerging organization are experienced and subsequently fulfilled, employees are more likely to form an emotional attachment (affective commitment) to the organization and identify with its goals and objectives; outcomes that leaders of integration will aim to inspire. The close relationship between commitment and the psychological state of identity, experienced where an employee shares the values of the organization and aligns with its objectives, are also discussed along with different frameworks of organizational commitment. The socialization process can be a critical aspect of forming prosocial behaviors for employees of the newly-merged entity and thereby encouraging an alignment of values, emotional attachment to the organization, and commitment to change. In this chapter, I discuss the processes involved in developing commitment and the forces that will have an impact, including its other reciprocal relationships with perceived organizational support and social exchange interactions between leaders and members. Once again, I draw from the running case study for practical observations.
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Purpose: This paper aims to examine how employee perceptions of organizational context relate to willingness to mentor. This research will help organizations to understand the relationship between organizational context and willingness to mentor to encourage mentoring. Design/methodology/approach: This study used a survey approach. Employees who worked in the development, production and marketing of pharmaceuticals were administered a survey questionnaire. Data were analyzed through structural equation modeling. Findings: The findings showed that the downsizing experience was negatively related to willingness to mentor, and the threat of being downsized was negatively related to perceived organizational support. In contrast, perceived organizational support was positively related to organization-based self-esteem, which, in turn, was positively related to willingness to mentor. Research limitations/implications: The relationship between perceived organizational support and organization-based self-esteem, with its subsequent positive effect on willingness to mentor, indicates the importance of organizations’ providing their employees with needed organizational support. Conversely, the negative relationship between the downsizing experience and willingness to mentor, and the threat of being downsized and perceived organizational support, indicates the need to separate mentoring programs from downsizing events even if it means delaying the initiation of a mentoring programs. Originality/value: Research on the impact of organizational context on willingness to mentor is limited, and this study helps to address that gap.
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Do Power-gap Affecting Performance? New Evidence on Emerging Markets Aries Heru PRASETYO, Wei LO Abstract Due to tremendous trends in having co-CEO at publicly companies, we tried to uncover the impact of larger power gap to firm performance. Using 10-years of analysis among 34 selected companies, our finding indicated that power gap positively contributed to firm performance. This proved that co-CEO structure succeeded in dealing with shared-power challenges. Wider gaps might results in higher performance. Our finding seems neglected the unity of leadership command while proposing new thoughts that dual power may exhibits stronger spirits to increase the level of productivity in managing groups of company. By having –almost equal – counter party, a leader has the opportunity to perform the best on specific particular task while distributing authority and power to the other partner. Statistically, the model count for 42.12%, higher than the previous research. Therefore we conclude that the co-CEO model work best for emerging markets. Full Text: PDF DOI: 10.15640/smq.v4n2a3
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Communication is generally viewed as a critical component in mergers and acquisitions (M&A) performance, yet surprisingly little research has examined the link between different communication approaches and M&A outcomes. This paper provides a systematic empirical study to evaluate the link between communication approaches and M&As outcome. Specifically, a typology is created to examine interaction between the process and content of communication and M&A outcomes, in terms of employee commitment to merged organization strategy and M&A survival. Using data drawn from a single clearly defined M&A wave in the Nigerian banking sector, different communication practices are related to M&A outcomes. The findings are the first to show the effects of communications practices in African M&A and answer the calls for extending M&A research beyond western developed countries. They confirm the importance of communication practices in M&A, extend earlier findings on the importance of post-acquisition integration communication in US and European contexts and show the importance of communicating throughout the whole M&A process.
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This study investigates the relationship between the helpfulness of organizational socialization practices and organizational commitment (OC) during the post-merger integration period. Drawing on questionnaire data collected from two acquired firms in Turkey, the results show that training programs have a positive impact while observation and social activities have a negative impact on the OC of employees during the post-merger integration period. The implications for human resource development field are specifically discussed.
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This article discusses triangulation as a strategy for increasing the validity of evaluation and research findings. Typically, through triangulating we expect various data sources and methods to lead to a singular proposition about the phenomenon being studied. That this is not the case is obvious to most researchers and evaluators. Given that this expectation is unrealistic, an alternative perspective of triangulation is presented. This alternative perspective takes into account that triangulation results in convergent, inconsistent, and contradictory evidence that must be rendered sensible by the researcher or evaluator.
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Crisis management has been a largely overlooked territory in human resource development (HRD) despite the increasingly recognized impact of organizational crises on the individual and organizational performance. This article explores the strategic role of HRD in the context of organizational crisis management using Garavan's strategic HRD model as a guiding framework to understand the various ways in which HRD can build crisis management capability in organizations. The authors apply various components of the model to the crisis management context and integrate ideas from both sets of literatures. The authors offer specific guidelines for HRD practitioners regarding how to align strategic human resource development focus, orientation, and strategies with the organization's overall crisis management efforts and identify areas for further research.
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The problem and the solution. This article reviews the literature on strategic human resource development. It proposes a model of strategic Human Resource Development (HRD) which is multi-level and focuses on the interactions between context, HRD processes, stakeholder satisfaction, and characteristics of the HRD profession. The article discusses the implications of this model for both research and practice.
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Promotion stress is the experienced feelings of anxiety, concern, or tension with one's career reality in terms of the level one has reached in the organization. This study considers how promotion stress may differ depending on an individual's internal career orientation (balance, high, free, ahead, secure) as well as an individual's external, professional career stage (apprentice, colleague, mentor, sponsor). The results suggest no clear pattern of differences based on internal career orientation; however, there is a clear pattern with regard to external career stage such that as an individual progresses in his/her professional career, promotion stress decreases. Implications for research and practice are discussed. © 2001 John Wiley & Sons, Inc.
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Organizations frequently downsize in the hopes of creating a ‘lean and mean’ company able to be flexible and quick to adapt to changing environmental needs. The purpose of the current research was to assess the effects of job insecurity on productivity, counterproductivity, and creativity in a simulated organizational environment and a field setting. In the first study, 104 non-traditional undergraduate students (M = 30.48 years) participated in a laboratory experiment that manipulated the threat of lay-offs (job insecurity) and measured creativity and productivity over two time periods. Compared to control group participants, results indicate that participant productivity increased in the condition of higher levels of job insecurity, whereas creative problem solving decreased. In the second study, 144 employees in five organizations completed a survey measuring their job insecurity perceptions, enactment of counterproductive work behaviours, and creative problem-solving ability. Regression analyses indicate that job insecurity predicted lower creativity scores, yet was also related to lower numbers of counterproductive work behaviours. Taken together, these studies suggest that job insecurity may have adverse effects on creativity, yet moderately beneficial effects on productivity. Results are interpreted in light of the increasing prevalence of job insecurity and organizational downsizing in today's workplace.
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Weiner’s (1986) theory of attribution was used for analyzing discrete emotions survivors of downsizing may experience as a function of perceived causes for survival. The study considered emotions not studied in previous research (e.g., pride) and their relation to organizational factors (e.g., organizational citizenship behavior). Moreover, this analysis goes beyond previous research that studied broad affective constructs such as anxiety by also considering positive emotions. Suggested understandings can advance research and facilitate better personal and organizational consequences of downsizing as these are reflected in human resource and human resource development policies and interventions.
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Despite all that's been written about mergers and acquisitions, even the experts know surprisingly little about them. The author recently headed up a year-long study sponsored by Harvard Business School on the subject of M&A activity. In-depth findings will emerge over the next few years, but the research has already revealed some interesting results. Most intriguing is the notion that, although academics, consultants, and businesspeople lump M&As together, they rep resent very different strategic activities. Acquisitions occur for the following reasons: to deal with overcapacity through consolidation in mature industries; to roll up competitors in geographically fragmented industries; to extend into new products and markets; as a substitute for R&D; and to exploit eroding industry boundaries by inventing an industry. The different strategic intents present distinct integration challenges. For instance, if you acquire a company because your industry has excess capacity, you have to determine which plants to shut down and which people to let go. If, on the other hand, you buy a company because it has developed an important technology, your challenge is to keep the acquisition's best engineers from jumping ship. These scenarios require the acquiring company to engage in nearly opposits managerial behaviors. The author explores each type of M&A - its strategic intent and the integration challenges created by that intent. He underscores the importance of the acquiring company's assessment of the acquired group's culture. Depending on the type of M&A, ap preaches to the culture in place must vary, as will the level to which culture interferes with interation. He draws from the experiences of such companies as Cisco, Viacom, and BancOnr to exemplify the different kinds of M&As.
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How to Design and Evaluate Research in Education provides a comprehensive introduction to educational research. The text covers the most widely used research methodologies and discusses each step in the research process in detail. Step-by-step analysis of real research studies provides students with practical examples of how to prepare their work and read that of others. End-of-chapter problem sheets, comprehensive coverage of data analysis, and information on how to prepare research proposals and reports make it appropriate both for courses that focus on doing research and for those that stress how to read and understand research. The authors' writing is simple and direct and the presentations are enhanced with clarifying examples, summarizing charts, tables and diagrams, numerous illustrations of key concepts and ideas, and a friendly two-color design.
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This book introduces the reader to terms and concepts that are necessary to understand OB and their application to modern organizations. It also offers sufficient grounding in the field that enables the reader to read scholarly publications such as HR, CMR, and AMJ. This edition features new material on emotional intelligence, knowledge management, group dynamics, virtual teams, organizational change, and organizational structure.
Article
Downsizing is a process to make a company more efficient and costeffective by eliminating nonvalue-added work processes and people. Unfortunately, it has become a common business practice in today’s firms in order to stay competitive and strong. The practice, however, can be disastrous if the company does not treat the human aspect of the process. During and after downsizing the workforce may suffer from what is known as the “survivor syndrome”. This article addresses the work overload felt by employees in the aftermath of a downsizing. Afirm’s effective management of downsizing is intricately related to the possible strategies of alleviating work overload and addressing employees’ concerns. This relationship is especially important between the organisation and the employees during and after the change. The success or failure of downsizing relies on the remaining workforce.
Article
This book assesses the competitive strengths and weaknesses of the management practices of North American companies. It undertakes four tasks: (1) compilation and analysis of the results of "Laborforce 2000," an intensive survey of the human resource strategies of more than 400 Conference Board member companies; (2) examination of practices across firms of different sizes and industries; (3) outline of the innovations of leading companies that have had a demonstrable result; and (4) comparison of U.S. companies with their European and Japanese competitors in such areas as education and training, work and family programs, health care costs, productivity, and quality improvement. The eight chapters of the book cover the following: "A Competitive Workforce: The Issues and the Study" (Philip H. Mirvis); "Strategic Human Resource Management" (Edward E. Lawler III, Susan G. Cohen, Lei Chang); "Restructuring and Downsizing" (Mitchell Lee Marks); "Company Policies on Education and Training" (Michael Useem); "Workplace Flexibility: Faddish or Fundamental?" (Victoria A. Parker, Douglas T. Hall); "Corporations and the Aging Workforce" (Michael C. Barth, William McNaught, Philip Rizzi); "The Changing Nature of Employee Health Benefits" (Karen Davis); and "The Findings and Their Implications" (Philip H. Mirvis). (KC)
Article
Our intent, then, is to propose and describe a method of making evaluations that is based on the themes of responsive evaluation and that uses naturalistic methodologies in its application. Part One of the book is devoted to analyzing a variety of models of evaluation in order to provide the background and information necessary to an understanding of the responsive approach. Part Two delves into the nature of inquiry paradigms, contrasts the scientific and naturalistic paradigms, argues for the use of the latter whenever the study of human behavior is involved, and discusses the methodological issues inevitably associated with any proposed new paradigm. In Chapter Six in Part Three we draw special attention to the advantages, as well as the problems, associated with the use of a human being as an assessment instrument and discuss ways in which that human instrument may be continuously improved. In Part Three we also devote a series of chapters to a discussion of skills—the methods and methodologies—commonly associated with qualitative inquiry. In Part Four we attempt an exposition of the actual steps by which naturalistic, responsive evaluation is carried out. It is our belief that this book will provide useful information for a variety of readers. Practicing evaluators and students of evaluation will find in it useful guidelines and principles for the conduct of a very different and unconventional kind of evaluation. Members of the audiences for which evaluations are made, especially such stakeholders as funders, developers, and/or users of an evaluand, will discover more productive ways of relating to evaluation. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Article
This paper focusses on a number of processes and transitions that have dominated the world of work in the 1990s, namely downsizing, restructuring, and privatization. In this article we present a more socially complete view of the impact of these changes by examining their organizational behaviour and human resource management (HRM) implications from a qualitative perspective. We argue for a broader analytical and contextual framework than is currently applied. The review is used to show that downsizing, restructuring, and privatization herald deeper shifts in the patterns of work and society. As such, they are fundamentally influencing HRM by shaping employees' perceptions of work. After outlining the broader frameworks in which the HRM and organizational behaviour issues must be placed, we build on the work-leisure literature of the 1960s and psychological contract literature of the 1990s to identify four possible future scenarios for employees: (a) the self-correcting animal scenario, (b) the reconfigured labour market diversity scenario, (c) the limited capacity scenario, and (d) the new rules of the game scenario. Each scenario creates very different degrees of concern for HRM academics, and the different implications are high-lighted.
Article
As new trends in business operations take hold, the need for a redefined human resource department, including what it should look like and what functions it should perform, seems imminent. HR departments are moving toward a stronger involvement in strategic decision-making and an attunement between a worker's and an organization's needs and the worker's work-life balance. The result of this new HRD-focused perception will be the hiring of new workers with a consideration of current and future needs and a streamlining of processes and applicable skills.
Book
Most writing on sociological method has been concerned with how accurate facts can be obtained and how theory can thereby be more rigorously tested. In The Discovery of Grounded Theory, Barney Glaser and Anselm Strauss address the equally Important enterprise of how the discovery of theory from data--systematically obtained and analyzed in social research--can be furthered. The discovery of theory from data--grounded theory--is a major task confronting sociology, for such a theory fits empirical situations, and is understandable to sociologists and laymen alike. Most important, it provides relevant predictions, explanations, interpretations, and applications. In Part I of the book, "Generation Theory by Comparative Analysis," the authors present a strategy whereby sociologists can facilitate the discovery of grounded theory, both substantive and formal. This strategy involves the systematic choice and study of several comparison groups. In Part II, The Flexible Use of Data," the generation of theory from qualitative, especially documentary, and quantitative data Is considered. In Part III, "Implications of Grounded Theory," Glaser and Strauss examine the credibility of grounded theory. The Discovery of Grounded Theory is directed toward improving social scientists' capacity for generating theory that will be relevant to their research. While aimed primarily at sociologists, it will be useful to anyone Interested In studying social phenomena--political, educational, economic, industrial-- especially If their studies are based on qualitative data.
Article
In this survey research study, the researcher employed a causal-comparative, or ex post facto, design to explore the relationship between how union employees of a U.S. county government perceived implementation of a new electronic performance appraisal process and how they responded to the planned organizational change along cognitive, emotional, and intentional dimensions. Using Chin and Benne's seminal classification of change strategies (1961), three groups of respondents were formed according to how they perceived the change implementation process: as rational-empirical, normative-reeducative, or power-coercive. Multiple analysis of covariance was used to explore cognitive, emotional, and intentional response differences across the three groups. The findings suggest that a significant relationship exists between the perception of planned organizational change leadership strategy and response to change along cognitive, emotional, and intentional dimensions. Hypothesis testing revealed that perception of a rationalempirical or normative-reeducative change leadership strategy elicits positive responses along cognitive, emotional, and intentional dimensions; perception of a power-coercive strategy produces ambivalence across those dimensions. The study offers insights into the complex nature of resistance and the relationship between change leadership strategy and response to planned organizational change. [ABSTRACT FROM AUTHOR] Copyright of Human Resource Development Quarterly is the property of John Wiley & Sons, Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Article
Sumario: What culture is and does -- The dimensions of culture -- How to study and interpret culture -- The role leadership in building culture -- The evolution of culture and leadership -- Learning cultures and learning leaders
Easing the transition during a merger or acquisition
  • R Reece
The myth and realities of downsizing
  • S Abbasi
  • K W Hollman
The Downsizing of America
  • R Ayling
Organization dynamics
  • W W Burke
How people problems can sap value from a deal
  • D M Burrows
Implementation stage
  • M. Cianni
The OD core: understanding and managing planned change
  • J V Gallos
Corporate Downsizings Demystified: A Scholarly Analysis of Business Phenomena
  • F. Gandolfi
Human lessons from the M&A wars
  • J Gemingnani
Strategically Integrated HRD
  • J Gilley
  • A. Maycunich
Bouncing back from downsizing
  • L Gurin
Experts say HR lacks business know-how”
  • D M Katz
Will this marriage work?
  • B. Leonard
M&A integration: an insider's look at Dow's strategy”
  • A Liveris
From Turmoil to Triumph: New Life after Mergers, Acquisitions, and Downsizing
  • M.L. Marks
The care of the undownsized”
  • B Nelson
How can we make our leaders more effective?
  • D M Noer