Trust

The context of a merger provides a situation for employees that is unpredictable and easy to misinterpret, arousing feelings of vulnerability and creating an environment of distrust. Because of the more radical form of change associated with mergers and acquisitions (M&A) (e.g. downsizing), employee anxiety will often have negative repercussions for the trusting relationship formed between the employee and the employer. Employees have expectations that management decision-making is both unbiased and honest and anything else will challenge their integrity. A loss of trust in decision-makers encourages uncertainty, placing greater emphasis on the scrutiny of procedures and negative perceptions of procedural fairness. The seeds of a meaningful relationship between justice and trust are supported in various studies as it is recognized that aspects of both distributive justice and interactional justice are antecedents of perceived trustworthiness. The interaction between managerial activities and how they are perceived through the lens of justice is critically appraised in this chapter. Drawing from these propositions, I investigate the various factors impacting the quality of interactions within this relationship and the significant role for interactional justice in helping to maintain levels of trust.