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Introduction
Schweiger and Weber (1989), among others, have listed contributing factors to the level
of merger successes. The factors provided include: the degree of integration and
strategic fit, the appropriateness of purchase prices, and, most commonly, the ability of
merged organizations to manage the human element. Although researchers have
alluded to employees perceptions of trust and hope in the organization as potential
antecedents of their organizational commitment (Brockner et al., 1997; Cascio, 1993;
Journal of Management Development
Vol. 25 No. 9, 2006
pp. 870-883
q Emerald Group Publishing Limited
0262-1711
DOI 10.1108/02621710610692070
This research paper resulted from the researchers dissertation process. The researcher would
like to thank his committee members Dr Lisa Horvath, Dr David Schwandt, Dr Patricia Freitag of
the George Washington University.
Schweiger and DeNisi, 1991), few systematic attempts to understand the relationship
among the constructs has been made. Ozag (2002) reported that a statistically
significant relationship does exist between merger survivors perceptions of trust,
hope, and affective commitment. However, an examination of the literature indicated
no empirical investigations of the relationship between individuals perceptions of
trust and hope as antecedents of merger survivors normative or continuance
organizational commitment. The purpose, then, of this study was to investigate the
possible relationship between merger survivors trust and hope in the organization and
normative and continuance commitment to the organization.
Theoretical model
Organizational commitment focuses on a bond linking individuals to the organization
(Mathieu and Zajac, 1990; Meyer and Allen, 1991, 1997). Employees, in both
organizations that have and have not undergone mergers, demonstrate different forms
of commitment (Meyer and Allen, 1997; OReilly and Chatman, 1986). The forms of
commitment and the behaviors associated with the different forms of commitment are
not limited to organizations where mergers have occurred. However, organizations that
have undergone mergers usually provide particularly poignant examples of what
occurs when organizations respond to human issues.
Normative and continuance commitment
Following a merger, some employees exhibit a strong belief in and acceptance of the
new organizations goals and values. This group of employees also exerts considerable
effort for the new organization, and exhibits a strong desire to maintain membership.
Meyer and Allen (1997) call this form of commitment to the organization affective
commitment. A second group of employees displays behavior that is characteristic of
normative commitment (Wiener, 1982).
According to Wiener, this group of employees does not develop as strong an
emotional attachment to the organization. However, employees who possess high
levels of this form of commitment continue to work productively as a result of cultural,
familial, and organizational ethics that direct their behavior. Finally, a third group of
merger survivors exists. The third group of employees remains with the new
organization not out of loyalty or innate beliefs. This group of employees remains
because they have no job alternatives or have too much invested in the organization to
leave. According to Meyer and Allen, the investments include tenure, retirement,
status, and certain benefits. The third form of organizational commitment, presented
originally by Becker (1960), is referred to as continuance commitment.
Numerous studies (Mathieu and Zajac, 1990; Meyer et al., 2002) have reported
significant relationships between all three commitment forms and both desirable and
undesirable behavioral outcomes regarding attendance, productivity, and employee
well-being. Thus, in addition, to the previously reported results of the relationship
between merger survivors trust, hope, and affective commitment (Ozag, 2002), the
result of this study examine the relationship between merger survivors trust, hope,
and normative and continuance commitment.
Trust. Cummings and Bromiley (1996, p. 303) defined trust:
. . . as an individuals belief or a common belief among a group of individuals that another
individual or group (a) makes good-faith efforts to behave in accordance with any
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commitments both explicit or implicit, (b) is honest in whatever negotiations precede such
commitments, and (c) does not take excessive advantage of another even when the
opportunity is available.
872
Cummings and Bromiley constructed survey items that reflected the three components
of trust. For each of the three dimensions, they developed items that assessed affective
and cognitive elements of trust.
Hope. Another viable source of the organizational commitment of merger survivors
may be the hope they place in the new organization. Snyder et al. (1991, p. 570) defined
hope:
. . . as a cognitive set of a complementary derived sense of successful (1) goal-directed
determination, or agency, and (2) planning of ways to achieve goals, or pathways.
Mergers can create a variety of responses in employees who, in accord with Snyder
et al.s conception of hope, may or may no longer find the will nor, perhaps, the way
to succeed in the new organization.
Trust, hope and organizational commitment. Coping theory (Lazarus and Folkman,
1984) was used as the conceptual framework for explaining different merger survivors
reactions and for explaining the relationship between merger survivors trust, hope,
and normative and continuance commitment.
Stress is conceptualized as a process in which environmental stressors are
mediated by cognitive appraisal which, in turn, leads to individual coping responses
(Mishra and Spreitzer, 1998, p. 572). Cognitive appraisal is the process of categorizing
an encounter, and its various facets, with respect to the significance for well being
(Lazarus and Folkman, 1984, p. 31). Primary and secondary appraisal are
complementary, but distinct, elements of cognitive appraisal. Primary appraisal is
the process where individuals evaluate the potential threat of the stressor, (Mishra
and Spreitzer, 1998, p. 573) such as a merger and its related activities. Secondary
appraisal occurs when individuals evaluate their own resources and their ability to
cope with the stressor (Mishra and Spreitzer, 1998, p. 573). According to Mishra and
Spreitzer, primary and secondary appraisal influences various coping responses,
which explain a persons affective and behavioral efforts to manage a stressful event.
Thus, individual coping responses are contingent upon how individuals interpret
environmental stressors (Lazarus, 1993).
Trust in management may influence the primary appraisal process of merger
survivors by reducing the threat assessments of merger survivors, which, in turn,
may also increase their normative commitment to the organization. Likewise, the
lack of trust in management may have little influence on the primary appraisal
process of merger survivors, which may, in turn, have little affect in reducing their
perceptions of threats and their continuance commitment to the organization.
Cummings and Bromiley (1996) have identified several key dimensions of
trustworthiness. Each dimension additively contributes to a merger survivors
perception of the organizations trustworthiness. Ozag (2001) used the different
dimensions of trust to explain how trust may produce less threatening primary
appraisals.
According to coping theory (Lazarus and Folkman, 1984), merger survivors may
also evaluate their ability to cope with the merger. This process is referred to as
secondary appraisal. Hope may increase survivors perceptions that they have the
ability to cope with the merger. Merger survivors who demonstrate high hope may
demonstrate high normative commitment toward the organization. On the other hand,
the lack of hope may perpetuate continuance commitment of merger survivors. Snyder
et al. (1991, 1996) identified several key dimensions of hope. Each dimension additively
contributes to a merger survivors perception of hope in the organization. Ozag (2001)
used the different dimensions of trust to explain how hope may produce more
productive secondary appraisals.
Research questions and hypotheses
Based on the research framework and the issues cited, the following research question
was proposed and investigated:
RQ1. What is the relationship between merger survivors trust and hope in the
organization, and their normative and continuance commitment?
Employees who demonstrate a high degree of normative commitment are affective
neutral (Meyer and Allen, 1997). Merger survivors whose predominant commitment
type is normative commitment are expected to demonstrate high levels of trust and
organizational commitment across a broad range of organizational actions. Merger
survivors who demonstrate normative commitment are also expected to display high
levels of hope in the form of greater goal determined behavior that creates higher levels
of goal planning and goal attainment. Thus:
H1. There will be a significant positive relationship between merger survivors
trust and hope in the organization, and their normative commitment.
Merger survivors who deem that the organization is not to be trusted may act
destructively (Mishra and Spreitzer, 1998) and may demonstrate lower commitment
(Brockner et al., 1997; Cascio, 1993; Schweiger and DeNisi, 1991). Employees who
predominately demonstrate continuous commitment may also react passively, and
demonstrate less goal determined or agency behavior. Diminished agency behavior
creates diminished pathway behavior and results in decreased goal attainment (Snyder
et al., 1991). Thus:
H2. There will not be a significant relationship between merger survivors trust
and hope in the organization, and their continuance commitment.
Previous research has shown a significant, but small, correlation between personal
characteristics and organizational commitment (Mathieu and Zajac, 1990; Mowday
et al., 1982). Although the researcher did not formulate hypotheses regarding the
demographic influences upon organization members trust and hope in and their
normative or continuance commitment, those factors may play a role in explaining the
relationship between the constructs being investigated. Mathieu and Zajacs
meta-analysis indicated that age, gender, education, organizational tenure, and job
level are among the demographic variables that exercise the most influence upon the
multiple forms of organizational commitment. Thus, to enhance the analysis of merger
survivors normative and continuance commitment, correlation and multiple
regression analysis examining the relationship between merger survivors trust,
hope, normative and continuance commitment and the aforementioned demographic
variables was performed.
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Table I.
Independent variables
descriptive statistics
Trust
Hope
Mean
SD
49.99
33.42
13.16
8.43
1.
2.
3.
4.
Continuance commitment
Normative commitment
Trust
Hope
0.332 * *
0.036
0.176 *
0.623 * *
0.627 * *
0.556 * *
OTI subscales
Honesty
Reliability
Integrity
Affective
Cognitive
State hope scale subscales
Agency
Pathway
Notes: n 132; * *p , 0.01
Normative commitment
Continuance commitment
0.610 * *
0.574 * *
0.503 * *
0.541 * *
0.646 * *
0.055
0.026
0.016
0.022
0.045
0.571 * *
0.496 * *
0.144
0.148
875
Table II.
Quantitative pearson
product moment
correlations
Table III.
Pearson product-moment
correlations between
normative and
continuance commitment
and OTI and the state
hope scale subscales
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Table IV.
Correlations between
normative commitment
and selected demographic
variables
Organizational tenure
Age
Job level
Gender
Education
Notes: n 132; *p , 0.05
0.008
0.192 *
20.018
0.093
20.181 *
Independent variables
Intercept
Organization tenure
Age
Job level
Gender
Education
Trust
Hope
R2
Adjusted R 2
F-score
SE
T-score
23.748
20.068
0.53
0.737
0.137
0.046
0.226
0.381
5.798
0.465
0.539
0.801
1.817
0.617
0.047
0.071
0.497 *
0.469 *
17.254 *
2 0.646
2 0.146
0.989
0.921
0.075
0.075
4.796 * *
5.386 * *
Constant
Hope
T-ratio
Trust
T-ratio
R2
0.569
0.380
0.224
0.389
0.472
877
Table V.
Multiple linear regression
analysis of normative
commitment; n 130
Step
3
2 0.696
0.379
5.449
0.237
5.312
0.502
Table VI.
Stepwise regression of
normative commitment
on seven predictor
variables; n 130
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Normative commitment
n
132
Table VII.
Bivariate regression of
normative commitment
on merger survivors hope
R2
Adjusted R 2
0.394
0.389
Predictor
SE
T-score
Constant
Hope
4.276
0.584
2.191
0.064
1.952 * *
9.187 * * *
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responses may be effective for the organization. As a result, researchers should begin
to identify the conditions under which different survivor responses will be most
effective. For instance, it is easy to speculate that different levels of trust and hope
exact direct and indirect costs on the organization. It seems that trust in the
organization may exist along a continuum. Assume an employee is at one end of the
continuum, where he or she exhibits high trust in the organization. Some events occur
in the employees relationship with the organization where his or her trust is violated.
For example, the employee did not receive an agreed upon bonus for completing a
project. The employee can continue to work for the organization, and may remain
affectively committed to the organization. However, the next time the employee is
asked to work on a project, he or she may seek more detailed confirmation of any
rewards he or she is to receive. Thus, the reduction in trust may not affect the
commitment of the employee, but as the employee becomes less trustful of the
organization, the cost of negotiating with the employee increases.
The costs associated with reduced hope, however, appear to be more costly to the
organization. Like trust, merger survivors hope also appears to exist along a
continuum. However, at a much shorter point along the continuum, when
organizational actions lead to perceptions by the employee that he or she can no
longer meet his or her life and or career expectations at the organization, he or she is no
longer hopeful in or committed to the organization. It is plausible to assume that in
todays work environment, where mergers occur often and where employees are
presented with unprecedented job and career opportunities, employees are much
quicker to make the assessment that their expectations will not be met at a particular
organization and move on. Testable hypotheses along with more sophisticated
statistical analysis will help researchers further investigate the interaction between
trust, hope, and merger survivors organizational commitment and the cost of different
levels of the constructs.
Second, researchers can help to identify both the dynamics and sufficiency of trust,
hope, and organizational commitment within threatening or rapidly changing
organizational contexts. That is, the theoretical model Ozag (2001) developed can also
be tested by examining whether trust and hope are limited in their capacity or are
sufficient conditions for reducing uncertainty and providing constructive responses in
their roles as primary and secondary appraisal mechanisms. Longitudinal research
designs, which take place within such volatile circumstances as mergers provide an
excellent context in which to evaluate whether, trust, hope, and affective organizational
commitment must deteriorate or whether they can be sustained or even enhanced
during significant organizational change. Longitudinal studies can also be used to
evaluate the efficacy of organizational interventions in preserving trust, hope, and
organizational commitment.
Third, although the findings of this study are not generalizable, the studys findings
may be applicable to explaining normative and continuance commitment in different
work and non-work contexts. Therefore, future research in different merger and
non-merger work situations may be appropriate. Testing of the findings in different
organizational contexts will also assist in understanding of the profiles Ozag (2001)
identified. For instance, research has indicated that trust (Fukuyama, 1995) and hope
(Snyder, 1994) varies among genders and across different cultures. Thus, research to
investigate the relationship among the constructs between genders and across cultures
may be appropriate. Also, theorists have hypothesized that trust (Tyler and Kramer,
1996) and hope (Ludema et al., 1997) varies among different organizational cultures.
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Further reading
Brockner, J., Grover, S., Reed, T., Dewitt, R.L. and OMalley, M.N. (1987), Survivors reactions to
layoffs: we get by with a little help from our friends, Administrative Science Quarterly,
Vol. 32 No. 4, pp. 526-41.
Marks, M.L. and Mirvis, P.H. (1985), Merger syndrome: stress and uncertainty, Mergers and
Acquisitions, Vol. 20 No. 2, pp. 50-5.
Meyer, J.P., Allen, N.J. and Smith, C.A. (1993), Commitment to organizations and occupations:
extension and test of a three-component conceptualization, Journal of Applied Psychology,
Vol. 78 No. 4, pp. 538-51.
Mirvis, P.H. and Marks, M.L. (1986), Merger syndrome: management by crisis, Mergers and
Acquisitions, Vol. 21, pp. 70-6.
Randolph, B. (1998), Disconnected: How Six People from AT&T Discovered the New Meaning of
Work in a Downsized Corporate America, The Free Press, New York, NY.
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