Yousef Al Hosani, Fauzia Jabeen, Justin Paul and Agata Stachowicz-Stanusch
The objective of this study was to examine the significant factors leading to employee alienation in post-merger integration (PMI).
Abstract
Purpose
The objective of this study was to examine the significant factors leading to employee alienation in post-merger integration (PMI).
Design/methodology/approach
Data were collected from 482 middle- and low-level employees in two organizations in the real estate and banking sectors in the United Arab Emirates. The analysis was carried out using structural equation modeling (SEM).
Findings
Organizational justice, employee commitment, organizational trust, perceived effectiveness of human resource (HR) initiatives and employee communication strategy played an important role in developing or mitigating a feeling of alienation among employees during PMI. Employee tenure in the organization affected individual work performance.
Research limitations/implications
The study was limited to middle- and low-level employees and did not consider other organizational variables important in mergers. This study will help merger strategists to deliver appropriate HR practices during PMI, facilitating mitigation of uncertainties among employees and maximizing their trust and commitment.
Originality/value
The study results will help organizations understand employee trust, commitment and determinants in an emerging economy.
Details
Keywords
Aditya Simha and Agata Stachowicz-Stanusch
– The purpose of this paper is to explore the effects of ethical climate types on two components of organizational trust, i.e. trust in supervisor and trust in organization.
Abstract
Purpose
The purpose of this paper is to explore the effects of ethical climate types on two components of organizational trust, i.e. trust in supervisor and trust in organization.
Design/methodology/approach
A sample of 178 managerial employees from seven hospitals in Poland was used to investigate the specific relationships between ethical climates (i.e. egoistic, benevolent, and principled) and trust in supervisor and trust in organization. Structural equation modeling was used to explore the relationship between ethical climates and the two trust components.
Findings
It was found that egoistic climates were negatively associated with trust in organization and trust in supervisor, whereas benevolent climates were positively associated with trust in supervisor and trust in organization. No support was obtained for any sort of association between principled climates and either of the two trust components.
Research limitations/implications
Future research should examine the role of trust as a mediating variable in the relationship between ethical climates and variables such as commitment or productivity or satisfaction. Future research should also examine different national and work contexts to test out these relationships.
Practical implications
Managers and organizations should try and establish benevolent ethical climates as opposed to egoistic ones, in order to bolster levels of trust among their employees.
Originality/value
The findings of this paper are unique and original because this is the first study to suggest a relationship between ethical climate types and the two trust components. The value of this study is that it provides managers and organizations with a way by which they could potentially increase levels of trust among their employees.
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Jörn Obermann, Patrick Velte, Jannik Gerwanski and Othar Kordsachia
Although principal–agent theory has gained a prominent place in research, its negative image of self-serving managers is frequently criticized. Thus, the purpose of this paper is…
Abstract
Purpose
Although principal–agent theory has gained a prominent place in research, its negative image of self-serving managers is frequently criticized. Thus, the purpose of this paper is to examine how existing theories of agency and stewardship can be combined by using behavioral characteristics.
Design/methodology/approach
This study reviewed articles on the behavior of agents and stewards from the domains of finance, economics, management, corporate governance and organizational research. Additional theoretical and meta-analytical empirical literature from the fields of psychology and sociology was used to account for general patterns of human behavior.
Findings
The results indicate that goal congruency and the perception of fairness can serve as moderators distinguishing agency theory and stewardship theory. Goal congruency can be achieved by stipulating psychological ownership. The perception of distributive and procedural fairness is demonstrated by two major corporate governance mechanisms: performance-based compensation and board monitoring. The results are summarized in six hypotheses that allow a situational, customized corporate governance. These hypotheses can be tested in future research.
Originality/value
Prior work either focused on the merits of principal-agent theory or advocates the utilization of positive management theories, such as stewardship theory. However, little work has been done on bridging the gap between both constructs and develop a more extensive view of management theory.