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Organisational mergers: a behavioural perspective on identity management

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  • Giessner, S.R.

Abstract

Organisational mergers are one of the most extreme forms of organisational change processes. Consequently, they often result in difficulties for employees to adjust to the altered organisational conditions. This is often reflected in low levels of employee identification with the post-merger organisation. As a result, merging organisations experience more conflict, less employee motivation, higher turnover and lower performance levels. These low levels of post-merger identification thus often put the strategic and financial goals of the merger at risk. I argue that an organisational behaviour perspective focusing on the management of identity levels during an organisational merger provides important practical insights for employee management. I will first explain why I am personally so fascinated by this topic. I will then present an identity management perspective on organisational mergers. Here, I will consider three key aspects: (1) Identity processes; (2) Intergroup structure; and (3) Leadership. I will conclude by giving an overview of the potential challenges and directions for future research in this field.

Suggested Citation

  • Giessner, S.R., 2016. "Organisational mergers: a behavioural perspective on identity management," ERIM Inaugural Address Series Research in Management EIA-2016-067-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam..
  • Handle: RePEc:ems:euriar:79983
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    File URL: https://repub.eur.nl/pub/79983/EIA2016067ORG9789058924421.pdf
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    References listed on IDEAS

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    1. Giessner, S.R., 2011. "Is the Merger Necessary? The Interactive Effect of Perceived Necessity and Sense of Continuity on Post-Merger Identification," ERIM Report Series Research in Management ERS-2011-017-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    2. Johannes Ullrich & Jan Wieseke & Rolf Van Dick, 2005. "Continuity and Change in Mergers and Acquisitions: A Social Identity Case Study of a German Industrial Merger," Journal of Management Studies, Wiley Blackwell, vol. 42(8), pages 1549-1569, December.
    3. James O. McKinsey, 1929. "Effect of Mergers on Marketing, Production, and Administrative Problems," The Journal of Business, University of Chicago Press, vol. 2, pages 326-326.
    4. Giessner, Steffen R. & van Knippenberg, Daan, 2008. ""License to Fail": Goal definition, leader group prototypicality, and perceptions of leadership effectiveness after leader failure," Organizational Behavior and Human Decision Processes, Elsevier, vol. 105(1), pages 14-35, January.
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    More about this item

    Keywords

    mergers; acquisitions; esprit de corps; identity management; post-merger identification; social identity; human resource management; employee adjustment; uncertainty;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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