The Effects of Integration on Employee Job Satisfaction and Alienation in the Wake of Public Organization Mergers: An Empirical Study

YOON; Lee Geon

In recent years, mergers and acquisitions among organizations have gained popularity as a way of efficiently accomplishing organizational goals. While efficiency, economy, and synergy are emphasized in the process of mergers, employees’ negative emotions coming from mergers are frequently ignored. Fear, anger, and sadness are examples of negative emotions that employees may encounter in the merger process. Negative emotions may lead to negative employee attitudes (e.g., a lack of job satisfaction or alienation) in post-merger organizations, which, in turn, increases job turnover and decreases organizational performance. In this study, we explore to what extent integration affects job satisfaction and alienation in the wake of mergers. We use two types of integration as our main explanatory factors; human integration and functional integration. The empirical findings show that human integration significantly increases employees’ job satisfaction while decreasing alienation in post-merger organizations, and functional integration is significantly correlated with job satisfaction, not with alienation. Based on our empirical findings, we make the claim that post-merger integration management (PMIM) is important to balance the negative attitudes of employees in post-merger organizations, and ultimately enhance organizational performance.

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* 2021년 이후 발행 논문의 참고문헌은 현재 구축 중입니다.

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