Managing organizational diversity: Observations from cross-border acquisitions

This article examines the processes used over the course of a decade by a European firm managing organizationally diverse acquisitions. The parent company used various human resource management and structural approaches that tolerated diversity while allowing for learning to occur within parent and acquired firms. The parent also provided opportunities for the acquired firms to find their own approaches to working together and integrating, rather than imposing any particular approach on the acquired firms. © 1993 by John Wiley & Sons, Inc.     

The impact of psychological ownership on employee retention in mergers and acquisitions

Research has demonstrated that turnover rates among employees and executives in the acquired firm are much higher during an M&A event. Recent empirical and review articles on M&A have also shown that employee retention/turnover can best be understood by looking at psychological attributes and perceptions of M&As, thus drawing significant attention to the psychological and ‘human’ side voids to theoretically exploit and enhance understanding of people-related problems in M&A endeavors. In this article, we develop a moderated mediation model and propose that acquired firm employees' psychological ownership is positively related to acquired firm employees' retention through the direct and mediating effects of employees' commitment and involvement in M&A. We also propose that the effect of acquired firm employees' psychological ownership on employees' commitment and involvement and, ultimately, acquired firm employees' retention is moderated by loss of acquired firm autonomy. We also discuss implications for theory and practice, as well as future research directions of such an employees' psychological ownership perspective on retention effects.     

Leader creativity expectations motivate employee creativity: a moderated mediation examination

This study presents a moderated mediation model of leader creativity expectations to investigate the effects of leader creativity expectations on employee creativity. Using matched data from 255 employees and their supervisors in the R&D center of an automotive company in China, we found that creative self-efficacy mediated the positive relationship between leader creativity expectations and employee creativity. By integrating social cognitive theory and the interactionist perspective, we further identified job involvement and job autonomy as personal and situational moderators in the relationship between leader creativity expectations and employee creative self-efficacy. As the level of job involvement and job autonomy rose, the relationship between leader creativity expectations and employee creative self-efficacy was stronger. Furthermore, we also found job involvement served as a moderator in the mediational chain for the path from leader creativity expectations to employee creativity via creative self-efficacy. We discuss the theoretical contributions and practical implications for human resource management.     

Managing employee innovative behaviour through transformational and transactional leadership styles

ABSTRACT

This paper focuses on the associations between leadership styles and employee innovative behaviour. We studied the implementation of an ambitious innovation strategy in a large Danish municipality and examined how transformational and transactional leadership styles relate to innovative behaviour. We combined data from two sources rating leadership styles of immediate supervisors and employee innovative behaviour. The findings suggest that transformational leadership and one component of transactional leadership, namely verbal rewards, are positively associated with innovative behaviour. The interaction between the two shows that innovative behaviour is most likely when the leader combines transformational leadership with verbal rewards.     

Managing the locals: employee relations in South Asian restaurants

This paper examines the management of employee relations in South Asian firms in the UK independent restaurant sector. Key working practices pertaining to the employment relationship are examined in a particular socio-economic and spatial context. Acknowledging such contexts facilitates an appreciation of how ethnicity and employment relations interact, rather than abstracting culture from the material context in which it operates. Consistent with this analytic focus, a mixed embeddedness perspective (Kloosterman et al. 1999) is adopted which recognizes the importance of both economic and social aspects of ethnic minority entrepreneurship. A qualitative methodology, drawing upon 23 case histories (involving both employer and employee perspectives) is deployed. The indications from this research suggest that the employment relationship is an outcome of the fluid interaction of social, economic and geographical contexts. This renders problematic both culturalist and purely economic approaches to ethnic minority entrepreneurship. Future research should carefully consider how the employment relationship is influenced by its embeddedness within specific communities.     

Managing feedback systems to facilitate change in acquisitions: The introduction of a model and explanation of it's application

While feedback plays a key role in organization effectiveness, it is so oversimplified in the management literature as to become almost useless as a tool for understanding or improving organizations. Much of the current work on feedback is so narrowly focused that it fails to make its potential contributions to organization effectiveness. Using the special case of postacquisition integration as an illustration, the paper develops the concept of feedback in more detail, uses this to explain problems in organization performance from a feedback systems perspective, and suggests ways that feedback systems can serve as the focus for interventions to facilitate managed change.     

Managing work-life policies: disruption versus dependency arguments. Explaining managerial attitudes towards employee utilization of work-life policies

What factors shape managerial attitudes towards the utilization of work-life policies? The influence of disruptiveness (Powell and Mainiero 1999) and dependency (Klein, Berman and Dickson 2000) arguments on managerial attitudes is examined using a vignette design. In this study, managers in four financial firms in the UK and the Netherlands were asked to judge hypothetical requests from employees to utilize work-life policies. Findings indicate that managers are mainly interested in the performance of their department or work unit, and work-life policies are often seen as disruptive. However, when the least disruptive request is considered (short-term leave), we find that dependency arguments also play an important role and managers are more likely to respond to their employees' personal and family needs.     

Limited-dependent rational expectations models with future expectations

This paper examines limited-dependent rational expectations (LD-RE) models containing future expectations of the dependent variable. Limited dependence is of a two-limit tobit variety which may, for example, arise as a result of a policy of imposing limits on the movement of the dependent variable by means of marginal as well as intramarginal interventions. We show that when the forcing variables are serially independent the model has an analytical solution which can be computed by backward recursion. With serially correlated forcing variables, we discuss an approximate solution method, as well as a numerically exact method that, in principle, can be implemented by stochastic simulation, although in practice it is limited by available computational capacity. The paper discusses some properties of the approximate solutions and reports the results of a limited number of Monte Carlo experiments in order to illustrate the computational feasibility of using the exact solution when the fundamentals are serially independent and the approximate solution when they are serially correlated.     

The relationship between employee benefit management and employee retention

The purpose of this study is twofold. The first purpose is to investigate the hypothesis as follows: the enrichment of the employee benefit management and the improvement of job attitudes mediate the relation between the adoption of family-friendly policies and the employee retention. The second purpose is to investigate the gender gap in the above-mentioned model. The facts and conclusions presented in this paper were obtained from a study of 1228 employees. Analysis of covariance structures was adopted for testing hypothesis. About the first one, significant mediator effects of the enrichment of the employee benefit management and the improvement of job satisfaction were clarified. About the second point, there was no gender gap in the above-mentioned retention process by the employee benefit management, except for the number of the employee benefit management practices and the organizational tenure. The necessity of additional research about international comparison, investigation of organization, longitudinal investigation, etc. was pointed out.     

Weakly rational expectations

Aumann and Drèze (2008) characterised the set of interim expected payoffs that players may have in rational belief systems, in which there is common knowledge of rationality and a common prior. We show here that common knowledge of rationality is not needed: when rationality is satisfied in the support of an action-consistent distribution (a concept introduced by Barelli (2009)), one obtains exactly the same set of rational expectations, despite the fact that in such ‘weakly rational belief systems’ there may not be mutual knowledge of rationality, let alone common knowledge of rationality. In the special case of two-player zero-sum games, the only expected payoff is the minmax value, even under these weak assumptions.     

Range of employee voice

Voice, recently defined as employees' response to job dissatisfaction, is redefined to encompass a wide range of symbolic communicative behaviors. Variations of employee voice are described in light of the concern for corporate conformity. Voice in the workplace is explained as rooted in moral, political-economic, and psychological grounds. The model presented positions voice on active/passive and constructive/destructive axes. Voice in its various types is described as necessarily instrumental to the ongoing constructing and restructuring process of organizing. This essay concludes with a discussion of the several ways voice is legitimized.     

Employee buyouts and employee involvement: a case study investigation of employee attitudes

This article investigates the association between employee share ownership (ESO) and employee involvement (EI) in an employee‐owned firm.Based on data from the firm’s employers and employees, the article concludes that the mere presence of share ownership is no guarantee on increased involvement for employees, highlighting instead the significance of other variables.     

Government intervention in European mergers and acquisitions

The increasing globalization of economies has leveraged protectionist attitudes in different countries during the last decades. In the context of cross-border mergers and acquisitions (M&A), national governments have intervened to “protect” big domestic firms and their industries from foreign bidders. Despite the potential for severe implications of these actions on the internationalization of firms and development of markets, the research in this area is relatively scarce, and we still know very little about the real causes and consequences of government intervention. In this paper, we study government opposition to cross-border European M&A during the period 1997–2017, an era of important changes in Europe. Using an event study methodology, we examine abnormal returns for targets and their rivals in the time period prior to actual intervention to gauge if investors perceive intervened deals as harmful events for the industry, which could justify government intervention. We use a hand collected sample of 1,574 EU15 rival firms for 48 mergers, of which 18 experience government intervention. Entropy balanced regression models show that rivals of intervened targets earn significantly lower returns relative to rivals of non-intervened targets on deal announcement. Nevertheless, rivals’ abnormal returns are not negative, suggesting that intervened deals are not perceived ex ante as harmful for industry competitiveness. The results are more consistent with investors’ ability to identify likely blocked deals, which puts downward pressure on abnormal returns to both the target companies and their rivals. These findings indicate that government interventions against foreign bidders seem to have an economic cost in the sector that is anticipated by the investors.     

Bringing along the young employee

The value systems of different generations is bound to be at variance, so if a job is to be redesigned to attract young men, it must be redesigned on the basis of what the young man needs, not on the basis of what today's mature manager needed at that age.