FACILITATING INCLUSIVE IDENTITY: HR PRACTICES, PERCEIVED FAIRNESS, AND INTERGROUP COGNITIONS IN CORPORATE MERGERS A Dissertation by SHUNG

Facilitating Inclusive Identity: HR Practices, Perceived Fairness, and Intergroup Cognitions in Corporate Mergers. (August, 2003) Shung Jae Shin, B.A., Seoul National University; M.B.A., University of Sydney Chair of Advisory Committee: Dr. Angelo S. DeNisi Based on social identity theory, self-categorization theory, and justice theories, this study proposed a theoretical framework for studying the psychological processes that employees go through during the period of post-merger implementation. Specifically, this study investigated: (a) the effects of HR practices on employees’ intergroup cognition and perceived fairness; and (b) the antecedents and consequences of intergroup cognition (e.g., “us” versus “them” cognition) during post-merger implementation. In addition, I examined the mediating role of intergroup cognition in the psychological process. In Study One, a scenario-based experiment with MBA students, I found that more favorable HR practices after a merger led to a significantly higher level of distributive justice than less favorable post-merger HR practices. Furthermore, more favorable HR practices after a merger led to a significantly lower level of intergroup cognition than less favorable post-merger HR practices. In addition, equally favorable HR practices between the members of two groups in the merged company led to both a significantly higher level of distributive justice and a significantly lower level of