| dc.description.abstract | Mergers and acquisitions as an external growth strategy has gained surge because of
increased deregulation, privatization, globalization and liberalization adopted by several
countries. Mergers have become a common phenomenon in Kenya over the recent past.
As a result of the challenging local and global macroeconomic environment, slowed
economic performance and credit rating downgrades of major economies, Central Bank
of Kenya (CBK) embarked on a significant monetary tightening stance, in an effort to
reduce rising inflation and stabilize the Kenya shilling. The constrained economic
condition resulted in the merger between Equatorial Commercial Bank and Southern
Credit Bank. The main reason behind this merger was the need to enlarge branch network
and balance sheet. Studies focusing on the project planning and management aspect of
mergers and acquisitions appear scanty especially in the commercial banks where
employee performance is affected by the conflicts brought about by the difference in
structures and cultures in the merged organizations. It was in this light that this study
aimed to fill the existing knowledge gap by carrying out a study on the influence of
mergers and acquisitions on employee performance in Kenya where the focus was on
Equatorial Commercial Bank. The specific objectives were to assess the influence of
remuneration, sense of ownership and belonging, job security and chain of command on
the performance of employees working in Equatorial Commercial Bank. This research
problem was studied through the use of a survey descriptive research design. The target
respondents included the 159 departmental heads, assistant departmental heads and lower
cadre staffs like the supervisors, accounts and finance officers from the Equatorial
Commercial Bank. A sample of 112 respondents was selected from within each group in
proportions that each group bears to the study population. The study used a survey
questionnaire administered to each member of the sample population. The study
administered the questionnaire individually to all respondents of the study. Quantitative
data collected was analyzed by the use of descriptive statistics using SPSS and presented
through percentages, means, standard deviations and frequencies. Inferences were made
by testing relationships among variables using Karl Pearson Correlation and multiple
regression analysis. The study concludes that employee pay and remuneration affect
employee performance in the merged organization. Mergers affect the sense of ownership
and belonging among the employees in the Bank hence their performance. Job security
affects the employee performance in the Bank. Chain of command affects the employees’
performance in the Bank. The management of the Bank should also check the quantity of
work and compare with the salary given to the employees. The Bank should increase
formal and informal training programs to their staff so as to enhance their sense of
ownership and hence performance through mergers and acquisitions. Measures and
strategies in order to enhance job security among employees in the merged banks should
be achieved by creating environment that enhances their motivation level to satisfactory
levels. | en |
