Organizational factors of justice and culture leading to organizational identification in merger and acquisition

2017 ◽  
Vol 41 (8) ◽  
pp. 687-704 ◽  
Author(s):  
Maimunah Ismail ◽  
Nordahlia Umar Baki

Purpose This paper aims to examine the influence of two organizational factors, namely, organizational justice and organizational culture, on organizational identification as perceived by employees following merger and acquisition (M&A) in Malaysia. Design/methodology/approach The study, which adopts the Social Identity Theory as its theoretical foundation, was conducted among employees from selected Malaysian organizations that had undergone M&A from 2009 to 2016. Data were obtained from 302 respondents and analysed using Structural Equation Modelling procedures. Findings The results reveal that interactional justice and four dimensions of organizational culture contribute significantly to organizational identification, with a determination power of 61 per cent. Practical implications The study offers practical insights to human resource managers in strengthening organizational identification as perceived by employees after an M&A by considering the crucial role of interactional justice and organizational culture. Originality/value There have been few investigations that link employees’ perceptions of organizational justice and culture with post-merger organizational identity. This study theorizes on human issues in M&A and enriches the Western literature on organizational identification by providing insights from an Asian (Malaysian) perspective. Research limitations/implications The research is limited in terms of respondents who were employed in M&A organizations in the Klang Valley areas in Malaysia. The scope is also limited to an examination of two groups of organizational factors, namely, justice and culture, that lead to organizational identification. Implications to managing human resources from the perspective of organizational development are discussed.

2015 ◽  
Vol 4 (1) ◽  
pp. 68-84 ◽  
Author(s):  
Sumita Rai

Purpose – The purpose of this paper is to test the impact of organizational justice on employees’ mental health. This paper is also an attempt to understand the moderating role of organizational identification on organizational justice and employee mental health. Design/methodology/approach – Standard questionnaires were used to collect data. A survey study was conducted in two multinational companies located in northern and southern part of India. The sample size of the study was 321. Findings – The result of hierarchical regression highlights that distributive and interactional justice were significantly correlated with employee mental health with positive interaction effect in the case of strong identification. Moderating effect of organizational identification on mental health and organizational justice was also found significant. Research limitations/implications – The theoretical development from this paper will contribute to organizational justice research presenting its impact on employee mental health. The moderating effect of organizational identification will bring a new dimension to understand the relationship of organizational justice and mental health. Practical implications – This study will provide insight to practicing manager to reinforce organizational justice practices at workplace. This will also help manager and leader to understand the identification level of employee with organization, and its impact on mental health. Originality/value – This paper explores all the three forms of organizational justice as antecedents. It also studied employee mental health as consequence and the role of organizational identification as moderator on justice and mental health.


2018 ◽  
Vol 31 (3) ◽  
pp. 569-584 ◽  
Author(s):  
Arti Gupta ◽  
Vrijendra Singh

Purpose Despite the importance of employees’ perception of organizational justice and its impact on intention to stay, various loopholes have been identified that do not justify this relationship. The purpose of this paper is to posit a model, which postulates the effect of procedural and interactional justice on distributive justice, which further impact employees’ intention to stay. Subsequently, it also investigates the mediating role of employees’ affective commitment. Design/methodology/approach A questionnaire was prepared and a survey was conducted on 500 junior and middle-level software professionals. Structural equation modeling was employed to examine the proposed model. Findings The study concludes the positive effect of distributive, procedural and interactional justice on employees’ intention to stay. Moreover, the addition of affective commitment as a mediator, displayed an indirect influence of organizational justice on intention to stay. Research limitations/implications This study proposes a model to boost organizational justice to encourage employees’ intention to stay in an organization. Furthermore, considering the role of organizational commitment in enhancing intention to stay would be fruitful to the stakeholders in the IT industry. Originality/value No study has been reported in the context of the role of organizational justice on intention to stay while testing the contribution of affective commitment as a mediator, within a single framework. This study elucidates the influence of distributive, procedural and interactional justice on employees’ intention to stay in IT organizations.


Author(s):  
Manish Kumar ◽  
Hemang Jauhari

Purpose – In today’s scenario when loyalty can no longer be demanded from employees, the extent of organizational identification (OID) of employees predicts outcomes of organizational interest. It is therefore essential for organizations to foster the sense of oneness in employees. Since, need satisfaction lies at the core of human motivation, the purpose of this paper is to test if satisfaction of learning, performance, and relatedness needs at workplace could influence employees’ identification with the organization. Design/methodology/approach – For this study, the authors collected data from 365 professionals representing diverse work backgrounds and analysed it using structural equation modelling approach. Findings – Results suggest that OID is positively influenced by satisfaction of these three needs and about 45 per cent of its variance is explained by these needs. Originality/value – The study corroborates the relevance of the three needs in organizational context. Although not a part of design of the study, nonetheless the study sheds light on methodological and theoretical possibilities of salience of needs. Therefore to the best of awareness, this study stands apart from other studies exploring relationship of disparate needs with OID. The authors believe the study enriches social identity theory literature in indicating that researchers should not only consider focusing on relationship of needs variables with OID but also the dynamics of interaction between various needs among themselves as well as on their differential relationship with OID.


2021 ◽  
Vol 30 (3) ◽  
pp. 571-592
Author(s):  
Luka Zlatić ◽  
Zoran Sušanj ◽  
Ana Jakopec

This paper examines the relationship between perceived organizational justice, external prestige, organizational identification and work engagement. Data were collected by questionnaire, using a convenient sampling method. The results of structural equation modeling show that employees are more likely to identify with the organization if they perceive it as fair and prestigious, and are therefore more engaged at work. Perceived organizational justice and external prestige shape positive experiences of the organization and meet the employee’s need for the development of a positive self-image, thus leading to identification of the individuals with the organization and, indirectly, to a greater employee engagement. In addition to the theoretical contribution, this study's findings can also be used in organizational development interventions planning.


2019 ◽  
Vol 40 (7) ◽  
pp. 749-763 ◽  
Author(s):  
Iyad Alamir ◽  
Rami M. Ayoubi ◽  
Hiba Massoud ◽  
Louna Al Hallak

Purpose The purpose of this paper is to examine the impact of transformational leadership (TL) on organizational commitment (OC) with the mediating role of organizational justice (OJ) in the higher education (HE) sector in Syria. Design/methodology/approach The data were collected from 502 employees from six HE institutions. Two measures of organizational outcomes were selected for this study, namely, job satisfaction (JS) and OC. Using structural equation modelling (SEM), the authors tested four alternative models to indicate the relationship between leadership and organizational outcomes. Findings TL has both direct and indirect effects on OC through interactional justice (IJ). TL has an impact on JS through procedural justice (PJ) and IJ as intermediate variables, while transactional leadership (TrL) has an impact on JS through distributive justice (DJ). The three types of OJ have an impact on OC through JS. The authors found that the national culture may not influence the impact of the leader in the current globalization context, as the results were similar to the Western studies. Practical implications The findings of the study provide managers of the HE sector with insights into the formations of employees’ fairness perceptions, and with some guidelines for managing employees by documenting OJ to draw positive attitudinal and behavioral responses from employees. Originality/value While most previous research has focused on exploring the relationship between leadership and OJ or between OJ and JS in the business sector, the study, however, seeks in addition, to pinpoint the effect of OJ as a mediate variable between the leadership and JS and OC in HE.


2018 ◽  
Vol 9 (2) ◽  
pp. 233-250
Author(s):  
Maimunah Ismail ◽  
Nordahlia Umar Baki ◽  
Zoharah Omar

One of the knowledge gaps in relation to merger and acquisition (M and A) research is an analysis from the perspective of human resources, specifically the extent to which organizational culture and organization justice play a role in group cohesion of the employees. This research investigates the influence of organizational culture and organizational justice factors on group cohesion in selected M and A organizations in Malaysia. This study is driven by the Person-Environment (P-E) Fit Theory. A total of 219 respondents from the M and A organizations in the areas of Klang Valley were involved in this study in which they were identified through the cluster random sampling method. Data were analyzed using Structural Equation Modeling (SEM). This study provides insights to the theory and practice of human resource management in organizations experiencing M and A.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Radoslaw Nowak

Purpose This paper aims to provide an alternative explanation for how organizations could increase levels of organizational identification, in turn reducing employee turnover intention. Specifically, the study empirically tests the joint effect of two types of organizational resources – structural empowerment and serving culture (SE*SC) – on employee identification. Moreover, it investigates the mediating effect of organizational identification on the relationship between the joint effect (SE*SC) and turnover intention. Design/methodology/approach The data were collected in 2018 from employees working in a higher education institution located in the USA. Structural equation modeling was used to test the proposed model. Findings Statistical analysis reveals the positive joint effect (SE*SC) on organizational identification and the mediating effect of identification on the relationship between the joint effect (SE*SC) and turnover intention. Originality/value This study contributes to past research by revealing a new important mechanism. Business organizations could increase levels of employee identification and, in turn, reduce turnover by providing empowering resources that allow employees to successfully complete their jobs. Moreover, the study also contributes to practice by providing some recommendations that managers may implement to improve internal effectiveness in their respective organizations.


Author(s):  
Sevcan KILIÇ AKINCI

This study extends Social Identity Theory by examining the link between organizational identification (OI) and work engagement (WE) through enhanced job satisfaction (JS) and testing it in a non-US environment, which makes contribution to the literature. The study was conducted on a large sample (527) of Turkish blue and white-collar employees from business units of 15 independent companies from 10 different industry types and data was analyzed with Structural Equation Modelling. The results showed that organizational identification is positively related with work engagement. Job satisfaction did not moderate the relationship between OI and WE, but it mediated 54 % of the effect of OI and thus, confirmed the applicability of Social Identitiy Theory in a Turkish context. Results revealed that a sense of identification may be a precondition for work engagement; but it is the mediating effect of job satisfaction, which enhances this relationship.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Deepu Kurian ◽  
Fredrick M. Nafukho

PurposeThe primary purpose of this study was to determine the relationship between a positive style of leadership, specifically authentic leadership, and organizational justice perceptions of employees' in the hotel industry. The following research questions guided the study: What relationship existed between hotel employees' perception toward authentic leadership and organizational justice? What relationship existed between hotel employees' perception toward authentic leadership and distributive justice, procedural justice, interactional justice and informational justice dimensions? What relationship existed among hotel employees' perception toward organizational justice, authentic leadership and their demographic background?.Design/methodology/approachThe study approached the research questions from a quantitative, non-experimental research perspective utilizing a cross-sectional survey and descriptive correlational design, which describes the relationship or association between two or more variables in the study which are authentic leadership and organizational justice.FindingsThe results indicate that authentic leadership has a strong relationship with hotel employees' organizational justice perceptions, and authentic leadership predicted the employees' perceptions of organizational justice. Authentic leadership is a relative new leadership approach rooted in positive psychology emphasizing on the ethical and moral aspects of leadership, and the results of the study found that when employees perceive their leaders to follow the authentic leadership paradigm, they also perceive high levels of organizational justice. Authentic leadership has stronger relationships with informational and interpersonal dimensions of justice which implies that authentic leaders are strategic in their interactions with their employees. The results also imply that when employees perceive justice in terms of procedures and outcomes, they believe that organizations determine those more than their supervisors.Research limitations/implicationsThe differences in the strengths of relationship between authentic leadership and structural forms of justice (distributive and procedural), and authentic leadership and interactional forms of justice (informational and interpersonal), have implications for both justice and leadership theories. The results suggest that authentic leader behaviors create a fair climate – an interpersonally and informationally fair climate which promotes all forms of justice perceptions in individual followers. However, it needs to be further researched whether leaders with high interpersonal skills and information-sharing abilities showing consideration and respect to employees may result in higher levels of organizational justice perceptions. Thus, further research is needed to determine the relationship of authentic leadership and each of the organizational justice (distributive, procedural, informational and interpersonal) dimensions, which may provide more insights as to whether leader behavior contains element of justice itself.Practical implicationsThe findings showcase the need for organizations in the hotel and hospitality industry to establish programs that focus on leadership practices which improve employees' perceptions of organizational justice and, in turn, lead to positive organizational outcomes including reducing the considerable costs of employee turnover. It is also important that employees are aware of the policies and procedures and have a perception that they can connect and communicate to their supervisors and managers.Social implicationsThis study falls into the larger conversation of social justice and how an organization's leadership can be a strong associate for social justice movements by supporting equity within the organization.Originality/valueThe study integrates leadership and justice theories in a hotel context. The results of this study may motivate hospitality/ hotel leaders to include authentic leadership development as an actionable strategy to bolster fairness and mitigate some of the negative features of the industry.


2020 ◽  
Vol 10 (1) ◽  
pp. 128
Author(s):  
Amelia Yuhana Prativi ◽  
Praptini Yulianti

<em>This study uses objects in one of the state-owned companies engaged in microfinance services, namely PT. Investment Management. In this case, of course, PT PNM Investment Management has growth that is very dependent on the service of employees to customers. Therefore, companies must continually improve services to customers and be able to maintain and improve employee performance. This research aims to determine the effect of organizational justice on employee engagement through organizational identification. This quantitative study is based on data collected using a questionnaire distributed to 78 respondents of PT. Investment Management is then analyzed using partial least square. In the results of the analysis using PLS it was found that organizational identification was able to mediate the effect of organizational justice (distributive justice, procedural justice, interactional justice) on employee engagement. This shows that the employee engagement can be achieved by many factors and some of them are about the concept of justice applied by the company and identification of the organization owned by employees, especially employees of PT. PNM Investment Management.</em>


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