A revelation of employee feelings of alienation during post-mergers and acquisition

Abstract

Purpose In the literature of mergers and social justice, equality is regarded as a crucial phenomenon to achieve social integration. This paper is based on the philosophy that during mergers and acquisitions (M&As), the employees who experience the equal distribution of resources, equal respect to each other’s policies and procedures, and fair and respectful interactions, are more likely to have a sense of control and lower social isolation and hence tend to get influenced positively by the M&A process. Thus, the purpose of this paper is to study the relationship between perceived organizational justice and employee feelings of alienation during post-M&As. Design/methodology/approach A cross-sectional survey research design has been used. This study was undertaken on a sample of 315 employees from five organizations in India. The quantitative data were subjected to univariate and bivariate analysis, while qualitative data were subjected to relational content analysis. Different dimensions of justice were studied in relation to the feelings of alienation using multiple correlational analysis and hierarchical regression analysis. Findings Multiple correlational analyses revealed significant negative correlation of perceived organizational justice and of all of its dimensions with all the dimensions of alienation. However, the results of the hierarchical regression analysis found interactional justice and distributive justice to be the major predictors of alienation during M&As. Apart from the quantitative analysis, qualitative analysis also revealed interesting insights, unique to the individual organization. Originality/value The study has significant value for both MNCs and researchers. This study has strong implications for the multinational corporations that are making inroads into M&As but consistently failing due to employee issues. This study also presents future directions to the researchers to explore more in the area of soft issues of M&As.