Managing Emotions in Organizations

Table of Contents

1. Frontmatter

2. Chapter 1. Introduction

   Riikka Harikkala-Laihinen

   Abstract

   This chapter provides a detailed overview of the relevant concepts and theories that this book builds on. The increasing interest in the soft side of business has been found to have influenced the emergence of emotion research in organizations. Based on cognitive appraisal theory, emotions are short-term reactions to events in our surroundings that we believe to be personally relevant. At work, affective events theory suggests such emotions arise from interpersonal or task-related incidents and that they modify behaviour. Change periods, such as post-acquisition integration, are very likely to trigger emotions. However, whereas previous acquisition research has focused on negative emotional states, this book builds on emerging discoveries of how positive emotions can ease change.

3. Chapter 2. Finding Positivity in a Merger of Equals

   Riikka Harikkala-Laihinen, Niina Nummela, Melanie Hassett, Johanna Raitis

   Abstract

   This chapter highlights how, through management interventions, positive emotions can be generated and fostered during post-acquisition integration. The findings are based on a Finnish–German acquisition completed in late 2013. Data collection via interviews and employee satisfaction surveys conducted in both involved organizations centred on exploring the emotions that arise when two organizations come together to set up a new entity. The integration setting represents a merger of equals, making this case unique and particularly interesting. The findings suggest that positive emotions, such as happiness and pride, have an engaging effect, motivating employees to work towards change. To cultivate post-acquisition positivity, organizations can offer employees positive emotion triggers, such as experiences of ownership and a compelling vision of the future of the company.

4. Chapter 3. Finding Unity in a Friendly Takeover

   Riikka Harikkala-Laihinen

   Abstract

   This chapter centres on finding unity when the us versus them thinking that is common in acquisitions is heightened. This setting often triggers negative protectionist attitudes in the target company employees. However, with careful emotion management, the integration process can become swifter and smoother. This chapter introduces a German–Finnish acquisition completed in early 2017. The findings stem from interviews, memo-like diaries and an employee satisfaction survey collected between 2017 and 2018. The findings indicate that understanding how group-shared and group-based emotions emerge in organizations based on either co-presence or identification can increase companies’ ability to influence employee emotions. Moreover, offering the employees positive emotion triggers through a positive emotional climate at work can greatly enhance unity during integration.

5. Chapter 4. Finding Continuity in a Serial Acquirer

   Riikka Harikkala-Laihinen

   Abstract

   This chapter focuses on the acquiring company. The data was collected from a 30-year-old company, which, during its life course, has undergone both a change from family ownership to investor ownership and rapid growth through a series of acquisitions. During this turmoil, the organizational identity and strategy have changed, causing organizational and emotional disorder. Thus, this chapter explores the connection between employee emotions and concerns over organizational identity, asking how acquiring organizations can signal continuity following acquisitions. Post-acquisition change is recognized as a potential identity threat, often leading employees to adopt protectionist attitudes. Nevertheless, based on social identity theory and organizational socialization, it is possible for companies to encourage organizational identification. Building on these notions, this chapter suggests how organizations can increase perceptions of continuity when undergoing constant change.

6. Chapter 5. Conclusion

   Riikka Harikkala-Laihinen

   Abstract

   This chapter discusses how each of the three cases portrays positive change management following acquisitions, detailing the theoretical and managerial insights that were uncovered. This chapter provides scholars with a map of interrelated emotion concepts and their connection to acquisition research, detailing how concepts such as emotion or emotional identification can be used in high-quality empirical research. This collection of concepts also acts as a guideline in choosing theoretical lenses for different types of acquisition studies considering employee emotions. Furthermore, this chapter highlights the practical guidelines for successful emotion management following acquisitions, detailing crucial points of attention with regard to managers, employee emotions, the emotional climate and identity. Finally, this chapter discusses the key limitations of the book and indicates fruitful future research directions.

7. Backmatter