Aftermath of post-merger and acquisition on employee performance in the banking sector
Keywords:
acquisitions, banking, mergers, cultural incompatibility, job satisfaction, employee commitmentAbstract
Mergers and acquisitions, as well as other types of business combinations, provide desirable strategic benefits. However, the fear of undermining employee performance is inherent in these business combinations. This paper aims to conduct a literature review on mergers and acquisitions and their effects on employee performance. This manuscript tries to focus on the factors that trigger employee performance in the banking sector in the post-merger era. Through this paper, we intend to understand how these bank marriages affect the human resource of the banks which play a very significant role during this transition. This review of the literature is divided into two sections. The first section of this paper summarises the literature on the mergers and acquisitions-fundamental concept, while the second section summarises the factors influencing employee performance. Culture incompatibility, job insecurity, change in the work environment, ambiguous compensation structure, and emotional issues are all factors that affect employee performance in the post-merger and acquisition period in the banking sector. A conceptual model has been extracted to explain the relationship between factors affecting employee performance and employee performance.
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