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A policy‐modeling approach to examining fairness judgments in organizational acquisitions
Author(s) -
Citera Maryalice,
Stuhlmacher Alice F.
Publication year - 2001
Publication title -
journal of behavioral decision making
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.136
H-Index - 76
eISSN - 1099-0771
pISSN - 0894-3257
DOI - 10.1002/bdm.379
Subject(s) - perception , context (archaeology) , autonomy , mergers and acquisitions , psychology , hostility , social psychology , knowledge acquisition , process (computing) , knowledge management , business , computer science , political science , paleontology , finance , neuroscience , law , biology , operating system
Organizational acquisitions may be characterized by the degree of friendliness or hostility as well as the degree of autonomy or absorption of the organizations following the merger. This study examined judgments of fairness across four types of organizational acquisitions. Students read fictitious newspaper accounts of a university acquisition and rated their expectations and perceptions of fairness about possible changes. Results indicated that in an acquisition, both the procedures used and the outcomes provided influenced how fair the acquisition was perceived. As predicted, the relative importance of procedures and outcomes in overall perceptions of fairness shifted depending on the context of the acquisition. As the desirability of the acquisition increased, individuals placed greater importance on the procedural elements. In a friendly and low integration acquisition, the processes and outcomes became equally important. Individuals faced with a high integration acquisition expected more unfair changes and fewer fair changes to occur. Furthermore, these results highlight the importance expectations play in perceptions of fairness. The type of acquisition will influence expectations for fair treatment. Under less desirable conditions (hostile and high‐integration mergers), organizations should take steps early in the process to manage fairness perceptions. Copyright © 2001 John Wiley & Sons, Ltd.