Perceived effects of mergers and acquisitions on employee productivity in commercial banks in kenya
Abstract
The banking industry has in the last couple of years seen a transformation and dramatic
changes which are brought about by competition. The study looked and analyzed as study
objective, the type of mergers and acquisitions that the banks have adopted to achieve
competitive advantage over its rivals. On another objective, it ventured on determining the
effects of mergers and acquisitions on employee productivity. The design used was ideal for
the research problem since it allowed for a quantitative study for an expansive data collection
and thorough analysis of the data collected. By using the research design, the researcher was
able to collect data and explain phenomenon more deeply and exhaustively. The study found
out that a higher percentage of banks were either in acquisition then horizontal mergers and
vertical mergers and most respondents had worked in the bank at the time of mergers or
acquisitions. The study found that this is usually as stress and tension times for the employees
for the both bank which leads to staff turnover, absenteeism due to the uncertainty. The study
made the conclusion that before mergers or acquisitions management needs to have equal
treatment to all staff. It should not create any sense of job insecurity so communication in
regards to such a venture needs to be communicated at all times so that staff feels they are
part of the team. The study recommended that organisations needs to maintain its standard
and always be keen on employee‟s perception .Further research on this study should be undertaken in different industries so as to get the employees perception on effects of employee productivity.
Publisher
University of Nairobi