Psychological Effects of Mergers and Acquisition on Employees (Evidence from Commercial Banks of Pakistan through a Qualitative Study)
Author(s)
Mirza Osama Shahid , Syed Jamal , Dr. Ather Akhlaq ,
Download Full PDF Pages: 105-116 | Views: 737 | Downloads: 233 | DOI: 10.5281/zenodo.3702075
Abstract
The goal of any organization is to grow and expand the business. Over the past two decades, companies have expanded their business to serve global customers through mergers and acquisitions. Mergers and acquisitions are a strategy followed by organizations around the world to meet the demands of a dynamic new business environment. It has attracted much attention and importance in the business world. In Pakistan, this strategy is widespread in the banking sector. The available literature shows that the post-merger financial success rate is less than 50% and that the main reason for this percentage is that the administration focuses on financial factors and not on human or soft-issues. Employee’s identification with merged companies and their job satisfaction are important factors in the success of mergers and acquisitions. The aim of the study is therefore to assess the psychological effect of the merger and acquisition process on employees. The data were extracted from nine commercial banks from 2000 to 2018. The primary source of data collection interviews was used to collect data from respondents. The deductive and inductive approach of thematic analysis used to analyze the data. The results of the study demonstrated the negative effect of the M & A process on the Bank's employees in Pakistan. The outcome of this study is useful for both academicians and policymakers.
Keywords
Commercial Banks, Merger and Acquisition, Soft Issues.
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