The role of employee spirituality in the survivor recovery process following corporate M&A.
Harrison-Walker, L. Jean ; Tombaugh, Jay R.
INTRODUCTION
More than $520 billion in U.S. merger and acquisition activity
occurred in the third quarter of 2000 (Gemignani, 2001). The most recent
figures from the World Bank show that $3.5 trillion dollars were
involved in mergers and acquisitions worldwide in 1999. The U.S. was the
most active merger market in 1999, making up 55 percent of the global
value. The work environment following the merger of two corporations may
be radically altered and present significant challenges for those
employees who have retained their positions. Recent research suggests
that these "job survivors" go through a multi-stage
"recovery process" that ultimately leads to personal growth
and improved performance and productivity (Harrison-Walker &
Alexander, in press). The transformational process of 'survivor
recovery' consists of seven stages: insecurity, embarrassment,
anger, guilt, searching, surrender, and personal growth.
The current research borrows from the literature on spirituality
and bereavement, stress, and coping to build a model to explain the role
of employee spirituality in the survivor recovery process. The paper is
presented in four parts. First, the literature regarding the impact of
corporate M&A on remaining employees is discussed. Second, the
literature on spirituality and the experience of life crises is
reviewed. Third, a model of spirituality and the survivor recovery
process is presented, along with a series of research propositions.
Finally, the authors set forth the managerial and organizational
implications of the proposed model.
JOB SURVIVORS AND CORPORATE M&A
When measured by either the number of incidents or their dollar
value, corporate merger and acquisition activity has increased
significantly in the last 15 years (Gemignani, 2001; Pryor, 2001). For
example, Pryor's (2001) research shows that total worldwide
activity increased from $142 billion in 1985 to almost $2 trillion in
1999. Similarly, the total volume of mergers and acquisitions rose an
average of 20.8 percent for the same time period.
Contrary to the expectations of M&A corporate partners, merger
and acquisition activity does not appear to have a positive impact on
shareholder value. According to a study by KPMG that looked at 700 of
the most expensive deals from 1996 to 1998, more than half resulted in
reduced shareholder value and another 30 percent added no discernible
value. Much of the existing literature that examines the aftermath of
mergers and acquisitions suggests that people issues are the root cause
of low performance following M&A.
While many companies provide support for those who have lost their
jobs in a corporate restructuring, few offer programs or develop
procedures designed to help workers who retain employment. Noer (1993)
suggests that those left behind experience "survivor
sickness," a "generic term that describes a set of attitudes,
feelings and perceptions that occur in employees who remain in
organizational systems following involuntary employee reductions."
The sickness arises because these individuals feel violated (Moore,
1994) and as a result experience anger, depression, fear, distrust, and
guilt (Noer, 1993; Brockner, 1983; Brockner, 1986; Pritchett, 1985).
Other symptoms of survivor sickness identified in the literature include
anxiety (Brockner, 1986; Noer, 1990), sadness (Spaniel, 1995),
skepticism (Moore, 1994), concerns about chances for advancement and
salary (Berman, 2000), concern about the impact on benefits (Berman,
2000), fatigue (Moore, 1994), health problems (Kanter, 1997; Vahtera,
Kivimaki & Pentti 1997), helplessness (Berk, 1996), resentment
(Berk, 1996; Moore, 1994), and low morale (Berk, 1996). The overall
effect is diminished productivity, which may leave the company worse off
than before the M&A (Noer, 1994).
Bourantas and Nicandrou (1998) argue that the reactions of
surviving employees are similar to those experienced during the
bereavement process. That is, the feelings of betrayal and the sense of
loss experienced by surviving employees are similar to the grieving for
a lost relative or close friend (Marks, 1988; Marks & Mirvis, 1986;
Schweiger, Ivancevich & Power 1987; Sinetar, 1981). According to
Bowlby (1980), the grieving process consists of four stages that involve
emotional numbing and disbelief, searching, disorganization and despair,
and acceptance and adjustment. In comparison, the literature on death
and dying identifies similar stages of recovery. Specifically,
Kubler-Ross (1969) identifies the five stages of death and dying as
denial and isolation, anger, bargaining, depression, and acceptance.
Using the experience of bereavement as an analogy, Harrison-Walker
and Alexander (in press) suggest that the effects of corporate M&A
on survivors should be conceptualized as a multi-stage process through
which individuals pass, rather than as a syndrome (defined as a group of
related symptoms) (c.f. Marks, 1988; Marks & Mirvis, 1985) or
sickness that must be "cured". More specifically,
Harrison-Walker and Alexander (in press) conceptualize the survivor
experience as a "recovery process"; that is, a
transformational process with seven identifiable stages. These seven
stages of survivor recovery include: (1) insecurity; workers feel
anxiety regarding the significant changes in the work environment, (2)
embarrassment; relationships become awkward as workers feel shame and
embarrassment over retaining their positions while others are
terminated, (3) anger; workers feel anger and resentment toward the
organization for taking these disruptive actions, (4) guilt; concerned
that they share some responsibility for what has happened, workers,
workers feel guilty, (5) searching; workers seek logical explanations
for the changes, and to understand their new roles and responsibilities,
(6) surrender; with sadness, workers accept the "death" of
their old organization, and (7) personal growth; a sense of security is
restored as workers adapt to the new work environment and experience
personal and professional growth.
SPIRITUALITY AND THE EXPERIENCE OF LIFE CRISES
Definitions of religion typically focus on the expression of
existential belief systems through the practices of an organized group
or institution (Corbett, 1990; Mahrer, 1996). Spirituality, while
including religious beliefs and practices, is often conceived in broader
terms, focusing on a person's subjective relationship with a God or
Higher Power, a sense of transcendence, the search for meaning and
purpose in life, and subjective experiences not associated with
traditional religious institutions (Zinnbauer, 1997). Similar to other
researchers (see e.g., Fabricatore, Handal & Fenzel, 2000), the
authors use the general concept of "personal spirituality" to
describe an individual's overall religious and spiritual belief
system and practices, and their integration into daily life. Just as
psychological well-being is a reflection of our psychological health,
spiritual well-being reflects our inner spirituality and spiritual
health. More specifically, the concept of spiritual well-being refers to
the extent to which an individual applies spiritual principles to daily
activities, feels grounded in his/her relationship with God or a higher
power, sense of transcendence and spiritual growth, and finds meaning
and purpose in life (Hatch, Burg, Naberhaus & Hellmich, 1998;
Ellison, 1983).
To date, there appears to be no research that directly examines the
spirituality of job survivors. As previously suggested, however, the
experiences of job survivors may be similar to those of individuals
dealing with a significant life crisis such as the loss of a spouse or
loved one. Accordingly, the authors borrow from the literature on
spirituality and bereavement, stress, and coping to build a model for
the role of employee spirituality in the survivor recovery process.
An abundance of literature shows that people, when struggling to
find understanding and purpose in life events or cope with problems,
turn to their religious and spiritual beliefs. For example, strong
evidence suggests that religion and spirituality play an important role
in moderating the negative effects of perceived stress on various
psychological and behavioral outcomes (Belavich, 1995; Hathaway &
Pargament, 1992; Kim, 2002; Pargament, 1990, 1997; Worthington, 1989).
Pargament (1997) reviews a relatively large body of literature
showing that various religious variables have a positive impact on
psychological and emotional adjustment for individuals coping with such
life events as death of a loved one, natural disasters, chronic illness,
and acts of terrorism. Spilka, Shaver and Kirpatrick (1985) suggest that
religion and spirituality enhance coping with stress by providing the
person with a greater sense of control, self-esteem, and sense of
meaning in life.
Research further demonstrates that positive spiritual identity is
related to healthier lifestyles, helps people cope more efficiently on
an interpersonal, emotional and spiritual level (Bergin, et al, 1994;
Richards & Potts, 1995), and is predictive of positive aspects of
mental health, such as individual subjective well-being (see Diener,
Suh, Lucas & Smith, 1999 for a review). Fabricatore, Handal, and
Fenzel (2000) suggest that individuals with a stronger sense of
spirituality are able to maintain a more positive sense of overall
satisfaction with life when faced with daily and life stressors.
Those conducting research in the field of thanatology have argued
that, as with other forms of stress, spirituality and religious beliefs
moderate the bereavement process following the loss of a loved one
(Bowlby, 1980; Parkes, 1993; Richards, Acree & Folkman, 1999;
Scuchter & Zisook, 1993). For example, Richards and Folkman (1997)
find that the spiritual beliefs of survivors in relationships are
reported to be a significant source of emotional comfort, enabling
survivors to find positive meaning in life despite the intense feelings
of anxiety, sadness and grief. Similarly, Fry (2001) finds that
religious and spiritual variables are significantly related to the
psychological well-being of widows and widowers following the death of
the spouse. Fry (2001) concludes that existential variables, including
religiousness and spirituality, may in fact be better predictors of
psychological adjustment following loss than the traditional predictors
of health, education, income and social resources.
EMOTIONAL CRISES AS A CATALYST FOR SPIRITUAL DEVELOPMENT
Some researchers posit that a significant life crisis can actually
serve as a catalyst for personal spiritual development. Balk (1999)
argues, for example, that bereavement, as a life crisis, can trigger
spiritual change because the crisis (a) allows for sufficient time for
reflection, (b) permanently impacts the life of the individual, and (c)
creates a psychological imbalance that that resists being quickly
stabilized. Marrone (1999, p.498) describes the "psychospiritual
transformation" phase of reaction to loss as "a profound,
growth-oriented spiritual/existential transformation that fundamentally
changes our assumptions beliefs, and attitudes about life, death, love,
compassion and God." Similarly, others argue that spiritual
development occurs when an individual is forced to examine, assess and
reconstruct his or her values and beliefs (Butman, 1990). Those involved
in a life crisis must consider the meaning of the event and attempt to
comprehend its personal significance (Moos & Schaefer, 1986).
Batten and Oltjenbruns (1999) provides some limited evidence of
spiritual growth during the bereavement process. Based upon interviews
with four adolescents who had lost a sibling, the authors find that the
crises suffered by these individuals triggered profound changes in their
perspectives on the meaning of life, self, relationships, death, and God
(Batten & Oltjenbruns 1999).
SPIRITUALITY AND VULNERABILITY: THE ROLE OF COGNITIVE APPRAISAL AND
THE COPING PROCESS
Personal spiritual development has been shown to be a positive
mediator of stress and various psychological, emotional and physical
outcomes. Individuals with stronger spiritual well-being tend to be able
to adjust to and recover from significant negative life events more
quickly than others. An explanation for this phenomenon may lie in the
literature on cognitive appraisal, vulnerability, and coping processes
relevant to a cognitive-phenomenological theory of stress (Lazarus,
1966; Lazarus, 1967; Lazarus & Folkman, 1984).
Seminal work by Lazarus and Folkman (1984) identifies cognitive
appraisal and vulnerability as key concepts in understanding an
individual's perceptions of and reactions to stressful situations.
Cognitive appraisal is the act of attributing meaning to environmental
events. Thus, while many events may have the potential to become
stressors to a person, those that actually do tend to do so because of
the meaning attributed to them. An individual's sense of
vulnerability increases as his/her perceived resistance to environmental
threats (e.g., perceptions of stressors) decreases. Lazarus and Folkman
(1984) argue that a person's commitments (motivation to achieve
valued goals) and beliefs (cognitive schema regarding what one believes
to be true about the world and his/her place in it) are the major
components of cognitive appraisal.
Coping, the other critical process involved in stressful
encounters, is defined by Lazarus and Folkman (1984, p.141) as "...
cognitive and behavioral efforts to manage specific external and/or
internal demands that are appraised as taxing or exceeding the resources
of the person." The two major coping strategies include
emotion-focused coping (the regulation of distressing emotions) and
problem-focused coping (attempts to change the source of the distress).
Research shows that most people use both strategies (Folkman &
Lazarus, 1985; Folkman & Lazarus, 1980).
Similar to the cognitive-phenomenological approach to stress, other
authors note the importance of individual cognitive style in the
relationship between spirituality, stress, and coping. For example,
Pargament (1996) asserts that a person could use his or her religious or
spiritual beliefs to "reframe" a stressful situation in an
attempt to find purpose and meaning. Similarly, Richards, Acree and
Folkman (1999) find that a study group higher in spiritual development
reported greater "positive reappraisal" and coping. Finally,
Marrone (1999) argues that the phases of bereavement following loss of a
loved one include (1) "cognitive restructuring" or the
reorganization of one's thoughts and concepts to assimilate new
information, (2) "emotional expression" or the process of
identifying and accepting the emotional turmoil and confusion, and (3)
"psychological reintegration" which focuses on new coping
behaviors and cognitive strategies.
Marrone further discusses the importance of religious beliefs and
cognitive assimilation strategies following personal loss. Individuals
may use their existing cognitive schema (i.e., their religious or
spiritual beliefs) to more easily assimilate a traumatic event. A person
may, for example, deal with profound grief and sadness with the belief
that a departed loved one is happy in an afterlife. Such assimilation
strategies help individuals find ways of explaining, understanding and
minimizing their loss. Those without well developed spiritual or
religious beliefs may experience longer periods of emotional and
cognitive upheaval while new schema are developed. That is, it may take
longer and considerably more effort for such individuals to find meaning
and purpose in the traumatic loss as well as their own lives.
A MODEL OF EMPLOYEE SPIRITUALITY AND SURVIVOR RECOVERY
Clearly, the literature shows that spirituality is an important
factor in a person's ability to cope with stress, especially if
that stress is a catastrophic life event such as the loss of a spouse or
loved one. As Fry (2001, p.71) notes, "In a variety of life
spheres, religious involvement and spirituality are increasingly
recognized to be a solid basis for providing faith, hope, and
psychological well-being even in the face of horrendous external
conditions over which an individual may have no control."
The authors believe that spiritual well-being will have a
significant impact on employees surviving layoffs and restructuring
following corporate M&A. The underlying mechanisms that account for
the positive influence of spirituality are similar regardless of the
nature of the specific triggering event. That is, personal spirituality
is a positive mediator for both a surviving spouse and a job survivor.
In either case, the traumatized individual must deal with issues related
to cognitive reappraisal, perceived vulnerability, and both emotional
and problem-focused coping strategies. A model of the role of employee
spirituality in the survivor recovery process is presented in Figure 1.
The model shows the precipitating traumatic event to be the radically
altered job environment (e.g., changes in job roles and
responsibilities, reporting relationships, policies and procedures,
culture, etc.) following a merger and acquisition. After the M&A,
the surviving employees begin and progress through the stages of the
recovery process as outlined previously in this paper (see
Harrison-Walker & Alexander, in press, for a more in-depth
discussion). Emerging from the recovery process, surviving workers show
greater psychological and emotional adjustment to the altered
environment, with an overall improvement in performance and
productivity. The focus of this paper is the impact an employee's
spiritual well-being has as he/she progresses through the recovery
process. As we have discussed, however, the act of experiencing a
traumatic life event can serve as a catalyst for a person's own
spiritual growth and development.
The altered job environment following restructuring and M&A
would seem to meet the three criteria suggested by Balk (1999) for a
"significant life crisis" in that the employee would (1) have
time for personal reflection, (2) be permanently impacted by the event,
and (3) experience a severe psychological upheaval. As the model
indicates, after the M&A experience, the employee may begin to
consider previously ignored "spiritual" explanations in a
search for the reason and meaning of the experience. Such spiritual
growth and development would impact the employee's sense of
spiritual well-being.
Research Proposition 1:
Experiencing M&A as a traumatic life event may itself trigger
an employee's spiritual growth and development and sense of
spiritual well-being.
[FIGURE 1 OMITTED]
The model further shows that an employee's sense of spiritual
well-being impacts progression through the recovery process by
influencing the individual's cognitive appraisal process. As
previously noted, individuals with stronger spiritual well-being tend to
be able to adjust to and recover from significant life events more
quickly than others. Their spiritual commitments and beliefs allow them
to more readily restructure or cognitively assimilate what has happened
to them. That is, their spirituality allows them to find meaning and
purpose in, or "make sense of", life events.
Research Proposition 2:
Employee spiritual well-being directly impacts the
individual's cognitive appraisal process following M&A
activity.
Directly related to an individual's cognitive appraisal of a
situation is their adoption of coping strategies to deal with the event
aftermath. Surviving employees are likely to use both problem-focused
and emotion-focused coping strategies when attempting to adjust to a
post-MA work environment. Employees high in spiritual well-being, able
to more effectively assimilate the meaning and purpose of what has
happened, will also be able to use more positive coping strategies.
Research Proposition 3:
The cognitive appraisal process has a direct impact on the
emotion-focused and problem-focused coping strategies used by the
employee.
Research Proposition 3a:
Spiritual well-being will indirectly effect the emotion-focused and
problem-focused coping strategies used by an employee by way of
cognitive appraisal.
Effective problem-focused coping strategies, for example, deal with
the person's ability to identify various problem sources and plan
for appropriate action. Through emotion-focused strategies the employee
might assert self-control, assume responsibility, maintain a safe
emotional distance when appropriate, and seek social support (Lazarus
& Folkman, 1984). Effective use of coping strategies will aid the
job survivor as he/she progresses through the insecurity, embarrassment,
anger, guilt, and search for meaning inherent in the recovery process.
Research Proposition 4
The positive emotion-focused and problem-focused coping strategies
used by an employee will enhance the survivor recovery process.
As outlined by Harrison-Walker and Alexander (in press), job
survivors emerge from the recovery process following M&A activity,
adapting to the changes in the work environment with a greater sense of
psychological and emotional adjustment. With appropriate opportunities
provided by management, the worker's performance and productivity
should flourish.
MANAGERIAL AND ORGANIZATIONAL IMPLICATIONS
Several key factors regarding corporate M&A activity seem
evident: 1.) There has been a significant increase in the number of
mergers and acquisitions (Pryor, 2001), and there is every reason to
believe this activity will continue, 2.) The performance and
productivity of employees surviving M&A activity is critical for the
organization's continued operation, and 3.) Following M&A
activity, management must take a more active role in assisting surviving
employees' adjustment to the altered work environment.
The spiritual well-being of job survivors is one factor important
to their psychological and emotional adjustment after M&A activity.
Fortunately, the issue of employee spirituality is becoming more
accepted as relevant in the workplace, and amenable to management
intervention. Numerous authors have noted the significant increase in
the number of publications that focus on employee spirituality as a
central issue in employee and organizational development (Ashmos &
Duchon, 2000; Craigie, 1999; Conger, 1994; Biberman & Whitty, 2000;
Cavanaugh, 1999; King & Nicol, 1999). Moreover, several authors have
presented data indicating the relevance of spirituality as an
organizational behavior variable. For example, in their recent text, A
Spiritual Audit of Corporate America, researchers Ian Mitroff and
Elizabeth Denton (1999) present data that showed managers believe
spirituality is an appropriate topic for the workplace, and that
organizations described as "spiritual" were also rated as
showing greater warmth, flexibility, caring and ethics (Mitroff &
Denton, 1999). Bruce (2000) presents data showing that almost half of
the employees surveyed indicated their work was an important part of
their spiritual path. Trott 's (1996) data shows that employee
spiritual well-being was related to greater commitment to the
organization, increased individual self-efficacy, and a greater
willingness to cooperate, grow, learn, and adapt to challenges.
Spirituality seems to be an integral part of many people's
lives, even if they are at work. Helping employees recognize and develop
their own spirituality can greatly benefit both the worker and the
organization. As presented here, employees stronger in their sense of
spiritual well-being are likely to more quickly adjust to the
difficulties of working in a post-M&A environment. Thus,
organizations can and should actively promote the spiritual development
of workers. This may be accomplished through programs designed to
increase the awareness of spiritual issues and their relevance to the
workplace, providing opportunities to share spiritual values (e.g.,
spiritual teambuilding), spiritual leadership training, and structured
activities related to spiritual experiences (e.g., yoga and meditation
classes, prayer groups, guest speakers, and community involvement).
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