The Moral Side of M&A: Changing Morale Reflecting Moral Change?

• Is personnel resistance in deed as dysfunctional as it is assumed to be, in M&A theory? According to Hirschman (1970), voice is more loyal than exit, implying that employees telling their opinion should be understood as a sign of loyalty, rather than a problem. An important aspect of loyalty is its moral basis. Scanning M&A literature, it becomes evident that very little has been written on the moral aspects of M&A. A case study of a merger was conducted, with the purpose to understand the influence that moral aspects could have on morale (understood as an expression of personnel‟s sense of loyalty to the organization), using theory on the social/psychological contract and utilitarianism. Could a changing morale reflect moral change? The study showed that, in the beginning of the merger process, when the management style was democratic and open, management invited to a psychological contract with personnel. During the merger process, management gradually shifted to mainly utilitarian principles. Personnel assumed that the psychological contract was still valid and regarded management‟s new sense of reasoning as disloyal. Often, the purpose of personnel resistance was to make management return to the previous moral order.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

Nyckelord

Ethics

acquisitions

resistance

change management

mergers

Publikations- och innehållstyp

kon (ämneskategori)

ref (ämneskategori)