The Role of Sociocultural Adjustment During an Internal Merger Change

Large-scale corporate restructures are a commonly used business strategy performed to streamline structure and systems, and hence, improve efficiency and competitive advantage. Reconfiguring a workforce is not an easy task, however, especially if it involves the amalgamation of previously distinct workgroups. The personal and work-related consequences of merger-related change have been well-researched and documented, as have the support mechanisms that change managers can use to support the change. Following the proposition that sociocultural adjustment may also contribute to merger outcomes, the current study used structural equation modelling to assess the experiences of two previously distinct employee groups as they interacted during an internal merger. The two employee samples were sourced from a multi-national communications organisation (N = 295; males = 45%, females = 55%). Data was collected through questionnaires at three points in time (baseline, 6 months and 12 months). Structural equation results indicated that sociocultural adjustment was an important factor that contributed to employees' personal (i.e. psychological distress) and work-related (i.e. role ambiguity, job satisfaction, and organisational commitment) outcomes of change over. Sociocultural adjustment played a role above antecedent mechanisms used by the employee (i.e. openness to change) and the organisation (communication, social support, and employee participation). A multiple-group model showed that sociocultural adjustment affected psychological distress, but not work-related outcomes, differently for the host and acculturated groups. Specifically, sociocultural adjustment contributed to the acculturated group’s psychological distress significantly more than to the host group’s. Overall, the findings of the current research highlight the importance of managing the sociocultural aspects of merger-related change.