ABSTRACT
This chapter helps you explore theories about group processes and intergroup relations – social identity theory and self-categorisation theory. These theories will help you discover why employees can react to mergers and acquisitions from the lens of “us versus them” or “ingroups versus outgroups.” This chapter will help you understand key concepts within these theories, such as the meta-contrast principle and its implications for how people evaluate the relevance of their group membership in different social situations. We will then then give you an overview of the evidence about “us versus them” attitudes or behaviours after mergers or acquisitions, such as the power of the old organization, especially when employees feel that there is continuity in the identity of the organization after a merger or acquisition. We’ll then discuss evidence of the impact of status differences on employees after mergers or acquisitions, and the relevance of employees’ emotions as cognitions that fuel a sense of intergroup rivalry. We will also discuss the impact of group processes on emotions such as threat and employees’ pessimism about a merger or acquisition. By understanding the importance of group processes and intergroup relations in the attitudes and behaviours of employees, you will be able to help organizations (and employees) take preventative steps. Effectively rebranding and integrating two organizations after a merger or acquisition is important not just because it reduces the chances of intergroup rivalry within the new organization, but also because it improves employees’ commitment and satisfaction. This leads us to explore some of the ways that cultural differences between organizations can have an impact on the way that employees interact in Chapter 6, which will follow.
