EFFECT OF MERGER ON JOB SATISFACTION

OF BANK EMPLOYEES

Dissertation submitted to Mahatma Gandhi University for partial fulfilment of Bachelors

Degree in Psychology

Submitted by
PREETHI B
Reg No: 180021048418

Guided By: DR. RASHMI P

Department of Psychology

MES COLLEGE MARAMPALLY

(Affiliated To Mahatma Gandhi University, Kottayam)
2018-2021
IMPACT OF MERGER ON JOB SATISFACTION
OF BANK EMPLOYEES
Dissertation submitted to Mahatma Gandhi University for partial fulfilment of Bachelors
Degree in Psychology

Submitted by
PREETHI B
Reg No: 180021048418

Guided By: DR. RASHMI P

Department of Psychology

MES COLLEGE MARAMPALLY

(Affiliated To Mahatma Gandhi University, Kottayam)
2018-2021
 CERTIFICATION

This is to certify that this dissertation entitled ‘IMPACT OF MERGER ON JOB

SATISFACTION OF BANK EMPLOYEES’ was carried out by PREETHI B, register
number 180021048418, under my guidance and supervision in the Department of
Psychology, MES College, Marampally.

Dr. RASHMI P

Assistant Professor

Department of Psychology

MES College, Marampally

 DECLARATION

I, the undersigned, do hereby declare that this research work ‘IMPACT OF

MERGER ON JOB SATISFACTION OF BANK EMPLOYEES’ was carried in the

Department of Psychology, MES College Marampally, supervised by Dr. RASHMI P and

submitted to Mahatma Gandhi University as a part of partial fulfillment of the Undergraduate

Bachelor’s Degree in Psychology of the year 2018-2021. This work is bonefide and has not

been submitted by me for the award of any degree, diploma, titles and recognition before.

PREETHI B

S6, Department of Psychology

MES College Marampally

 ACKNOWLEDGEMENT

It is a great pleasure for me to undertake this project. I feel obliged and grateful for being

able to complete the project titled: “IMPACT OF MERGER ON JOB SATISFACTION OF

BANK EMPLOYEES”.

First and foremost, I thank the Lord Almighty for his showers of blessings throughout my

research work to complete the research successfully.

I give my thanks to the principal of MES College, Marampally, without whom this project

would be impossible. I sincerely express my deep sense of gratitude to Dr. Rashmi P, Head of

the Department of Psychology, for her constant encouragement, valuable suggestions and

useful comments throughout the research work. I take this opportunity to record my sincere

thanks to Dr. Susan Varghese, Class in Charge and all the faculty members of the department

of Psychology for their help and encouragement.

I also acknowledge with a deep sense of reverence and gratitude towards my family who has

always supported me morally and encouraged me to do well. I extend my gratitude to all my

friends and every person who helped me in the completion of my dissertation. Without you

all, this wouldn’t have been possible.

Any omission in this brief acknowledgement does not mean any lack of gratitude.

Thank You

Preethi B
 TABLE OF CONTENTS

CHAPTER TITLE PAGE No.

ABSTRACT

I INTRODUCTION & LITERATURE REVIEW

1.1 Introduction

1.2 Review of Literature

1.3 Statement of Problem

1.4 Objectives of Study

1.5 Hypothesis of Study

1.6 Operational definition

II METHOD

2.1 Participants

2.2 Measures

2.3 Procedure

2.4 Administration

2.5 Data Analysis

III RESULT AND DISCUSSION

IV CONCLUSION

4.1 Summary

4.2 Conclusion

4.3 Limitations

4.4 Recommendations

REFERENCES
APPENDICES
 LIST OF TABLES

PAGE NO.
SL NO. TITILE

Mean, S.D and t- value of Job Satisfaction with respect to

Table 1 gender

Mean, S.D and t- value of Job Satisfaction with respect to

Table 2 banks

Sum of Squares, Df, Mean Square, F, Sig Difference of job

satisfaction with respect to length of service
Table 3

Significant difference and mean of Economic Satisfaction

with respect to length of service.
Table 4

Mean, S.D and t-value of Job Satisfaction with respect to

Table 5 educational qualification
 ABSTRACT
Mergers have had a significant impact on the banking industry in India, and around the
world, over the last decade. As a result, many bank employees have experienced numerous
psychological effects of mergers. Mergers often have negative impacts on employee’s
behaviors resulting in counterproductive practices, absenteeism, and low morale and job
dissatisfaction.

This paper studied the effects of merger on the job satisfaction of the employees. It
identified the different stages in mergers and acquisition and also the problems that may
emerge at each stage of Mergers and Acquisition integration process. Variables such as age,
marital status, educational level, gender and job security were examined for a possible
significant relationship to employee job satisfaction. The study is a quantitative study which
was conducted by selecting individuals by using convenience sampling method. The sample
obtained from the given population constitutes of 60 employees. The data was gathered and
analysed effectively by using different methods of collecting and measuring data. The results
showed that males have higher job satisfaction with respect to social satisfaction. We found
that there is no significant difference between the two banks; A and B. Both the bank
employee’s job satisfaction did not get affected by the merger. Employees with experience of
10-year or higher have greater economic satisfaction in comparison to employees who have
experience of 2 years or below. There is no significant difference between the variable’s
masters and degrees. This shows that the education qualification of an employee is not
associated with merger.

Recommendations were made based upon the findings. Some of these include planning,
communication, training. talent/leadership development, improved communication skills and
recruitment.

The paper therefore suggests that open, timely, and accurate communication with
employees may effectively reduce the negative psychological and behavioral consequences,
thereby reducing employee’s anxiety, uncertainty, confusion, rumor activity, and labor
turnover.

Key Word: Mergers, Employees, Banks, Job Satisfaction

 CHAPTER I

INTRODUCTION

&

REVIEW OF LITERATURE
 Banks are defined as a monetary institute or a company that is allowed by the state or the
central government to manage cash by accepting deposits, giving out loan and finance
insecurities. The majority of banks relies on the growth and expansion of the economy by
providing funds for investment. In recent times the banking sector has been undergoing loads
of changes in terms of rules and the economic process. These changes have affected this
sector structurally and strategically. One such change is the consolidation of banks. This is
called merger of banks.

The expression ‘merger’ means combining two commercial companies into one. Mergers
offer grand opportunity for companies to grow and add value to shareholders wealth. When a
merger takes place one firm has to dissolve itself into another firm, but it’s not just the
transfer of tangible assets but also lives of employees associated with it. Mergers offer
tremendous profit in terms of financial gains and work performance. However, employees
often cope with the uncertainty surrounding a merger which might result in reduced levels of
commitments and instead use the energy either to cope with anxiety and confusion or try to
find new employment opportunities. (Fulmer & Gilley, 1998). The negative effects of
mergers do not seem to simply go away with time, but rather seem to get more serious as
time passes. It is quite obvious that when a merger is announced respective employees of the
firm may feel stressed, disoriented, frustrated and confused. At a personal level, these
feelings can lead to a sense of loss, psychosomatic difficulties and marital discord as well
(Joshi Vijay et al, 2013). It affects one’s job satisfaction as well.

It is often said that “a happy employee is a productive employee”. Job satisfaction is very
important because most of the people spend a major portion of their life at the working place.
Job satisfaction describes how content an individual is with his or her job. There are a variety
of factors that influence a person’s level of job satisfaction. Some of the factors include:

1. level of pay and benefits

2. the perceived fairness to the promotion system within a company
3. the quality of the working conditions
4. leadership and social relationships

Job satisfaction has its importance on general life of the employees also because a
satisfied employee is a contented and happy human being. A highly satisfied employee has
better physical and mental well-being.
REVIEW OF LITERATURE

This reviews the literature about the research study as a foundation for developing a
theoretical framework to be tested in this research. It deals with mergers, mergers of banks
and the impact of mergers on employees.

Mergers and acquisitions (abbreviated M&As) are an aspect of corporate strategy,

corporate finance and management dealing with the buying, selling, dividing and combining
of different companies and similar entities that can help an enterprise grow rapidly in its
sector or location of origin, or a new field or new location, without creating a subsidiary,
other child entity or using a joint venture. The distinction between a "merger" and an
"acquisition" has become increasingly blurred in various respects (particularly in terms of the
ultimate economic outcome), although it has not completely disappeared in all situations.

Merger is a technique of business growth. It is not treated as a business combination.

Merger is done on a permanent basis. Generally, it is done between two companies. However,
it can also be done among more than two companies. During a merger, an acquiring company
and acquired company/companies, come together to decide and execute a merger agreement
between them.

1. Acquiring company is a single existing company that purchases the majority of

equity shares of one or more companies.
2. Acquired companies are those companies that surrender the majority of their
equity shares to an acquiring company.
After merger, acquiring company survives whereas acquired companies do not survive
anymore, and they cease to exist. Merger does not result in the formation of a new company.
The management of acquiring company continues to lead (direct) the merger.

Gaughan (1986) has divided merger into three main categories:

1. Horizontal merger: This happens when two firms in the same line of business
combine into one.
2. Vertical merger: This brings about a combination of two companies that have a buyer-
seller relationship.
3. Conglomerate merger: These merges two firms in different line of business, they are
not in competition, but also do not have a buyer-seller relationship.
 In India, the Reserve Bank of India acts as a central bank of the country. Banking system
has a wide mix, comprising of scheduled and non-scheduled banks, co-operative sector
banks, post office saving banks, foreign and exchange banks.

During last few decades, the environment under which Indian banking sector has operated,
witnessed remarkable changes. Technological progress and financial deregulation have
played an important role in accelerating the process of merger and acquisition in Indian
banking industry. Due to technological progress, the scale at which financial services and
products are produced has expanded which provide an opportunity for the banks to increase
their size and scale of production. At that, time mergers of banking institutions emerged as an
important strategy for growing the size of banks. The idea of bank consolidation was around
since 1991, when former RBI governor M. Narsimha had suggested the government to merge
banks in to a 3-tiered structure, with three large banks with a global presence at the top, 8
to10 national banks at term 2 and a large number of regional and local banks at the bottom.

Bank merger can be defined as a situation in which two banks pool their assets and
liabilities to become one bank. Mukherjee et al. (2002) examined the technical efficiency of
68 Indian commercial banks for the period 1996-1999 and found that public sector banks are
more efficient than both private and foreign banks. Ram Mohan and Ray (2004) also found
that public sector banks performed better than private sector banks but not differently from
foreign banks.

Banks can reap the benefit of consolidation only when the issues such as redeployment of
surplus staff, integration of technology platforms, systems and procedures and cultural issues
are addressed suitably.

Change is inevitable and ubiquitous in a rapidly expanding world. The landscapes of many
external forces make it most difficult for organizational survival and prosperity. The dilemma
faced by many businesses today is managing strategic change initiatives efficiently and
effectively. Managing the changes simultaneously poses great challenges to organizational
success in terms of the desired change. According to Fossum (1989), “It is apparent that
business, industry and even our homes have been highly affected by automation,
computerisation and new working conditions in recent years.” We need to embrace this
change.
 Change in management, however, is a very broad topic. Change in an organisation
essentially means a modification of the way things get done in the system (Fossum, 1989).
Managers assume that the problem is solved when employees verbally agree to a change.
Verbal agreement should not be mistaken for behavioural implementation. Managers need to
be agents of change to help employees adopt and implement new behaviour more effectively.

Smye and Mckague (1994) maintain that “if your team aren’t the first to spot the pain,
somebody else will be”. An organizations competition will see the need for themselves to
change in order to be more competitive, and this may result in your own organisation losing
some of your biggest customers and thus, most importantly, revenue and profits. If an
organisation needs to improve its competitiveness and stay ahead of the competition, the
business must be willing to embrace change. Sometimes an organisation has to merge or to
acquire some of the business that it feels can take them to the next level or to a niche market
that can even make them more competitive.

Smye and Mckaque (1989) identify the main types of ‘pain’ that constitute the essential
reasons for change:

1. Current pain – Major problems that the company is facing right now.
2. Foreseen pain – Pain or problems that are predicted, but can be avoided if there is a
quick response.
3. Inertia pain – Current practices which look fine but, when looked at in the light of
coming changes in the world, such as advanced technology, it becomes apparent that
there is a need to change current business practice now in order to survive.
Change management is about managing the ‘pain’ for change. Management needs to
understand that change needs to be managed effectively in order to avoid “pain”.

The following are some of the elements that allow management to manage pain for
change:

1. Communication – There must be a two-way communication channel that allows room

for discussion. This will help employees to feel that they are part of change. This will
also help employers to understand how their employees really feel about change.
2. Create an opportunity for change – Show employees how the company’s pain for
change affects them personally and how they can make a difference in the success of
the organisation and, most importantly, in their personal development.
 3. Offer hope – If employees are shown the benefit of change, this will help them
understand the need for change.
4. Make them listen to you cry “Ouch” – If those not in leadership positions do not make
themselves heard through communicating with management, they cannot 26 make a
difference.
Most importantly, lower levels must keep talking to those who will listen (Smye &
Mckague, 1994).

According to Smye and Mckague (1994) Change needs to happen at all the three levels
listed below. If one level is not satisfied, this may result in a failure of change.

1. Organisational level
2. Group level
3. Individual level
According to Scott and Jaffe (1989: 48) “People do not fear change; they fear their loss”.
Types of loss that employees experience when there is a merger shift or change can be listed
as follows:

1. Security: People may fear that they do not have control over their future.
Employees may feel threatened, as there are uncertainties about their jobs and
positions when they move to a new company.
2. Competence: People may feel that they no longer have control over what they
know. It is human nature to feel a sense of loss when change happens,
sometimes even to doubt that one has the right skills required to perform as
required. This may be caused by the overwhelming amount that employees
may need to learn such as new processes, procedures and systems when they
move to a new company.
3. Relationships: Family contacts may disappear, and people can lose a sense of
belonging. When people are comfortable with the status quo, it is difficult to
get them to change. This is mainly the reason why they will resist change.
People will rather remain with a status quo than move to new environment that
is as unfamiliar to them as the people who are managing the change.
4. Sense of direction: People may lose an understanding of where they are going.
Generally speaking, some people may not take risks because they fear to fail.
 However, many people do take the risk of losing everything in order to
change.
Change may be situational, for instance it may be in the form of a new boss; this is
transition. On the other hand, the psychological process that people go through to come to
terms with the new situation may have its own effect. If expected transition does not occur,
change will fail.

Cynthia Scott & Dennis Jaffe proposed a model concerning organizational change. They
identified five stages of grief: anger, denial, depression, bargaining and acceptance. In a
similar manner, Scott and Jaffe described the entire psychological process and how
individuals respond to change.

The key highlights of this model are listed as follows:

 Change occurs over a period of time which is indicated on the horizontal axis from
the left to the right. The left side of the horizontal axis focuses on the past while the
right side focuses on the future.

 The vertical axis focuses on the general awareness and suggests that with the passage
of time our priorities change from focusing more on the external environment to
becoming more introspective and then once again paying importance to the external
environment.

 The U-Shaped curve demonstrates how an individual goes through the psychological
processes during a change. The U-shaped curve even indicates the effect of change on
individuals in terms of increasing disempowerments or re-empowerment. The left
quadrant of the curve indicates an increase in disempowerment and the right quadrant
of the curve indicates re-empowerment.

As per Scott and Jaffe, we all transition through 4 stages of change:

 Figure 1: Stages of Change

1. Denial: This is the stage in which the feeling of change does not easily sink in and we
ignore the change completely as if nothing has happened.

2. Resist: During this stage, we understand that the change has taken place and it cannot
be ignored, but the acceptability is resisted. The resistance is usually exhibited
through emotional upsurges in the form of anger, frustration, anxiety, fear of the
unknown and sometimes voice it out by opposing the change vociferously. It is during
this stage when the organization witnesses a loss in productivity as well as the overall
stability in the business environment due to this resistance.

3. Explore: This is the stage of exploration during which the organization builds up its
coping or adaptive mechanisms to tackle the resistance, focuses on the futuristic
priorities/goals by empowering people and encouraging them for trying out new
processes or testing things out gradually. This stage is very sensitive and tentative as
for any wrong step taken people may once again revert to the resistance stage of
change.

4. Commit: This is the stage during which the individuals are re-empowered and they
accept the new methods or processes. It is very important that commitment towards
 the change can be established by backing it up with appropriate recognitions and
clearly defining the Roles and Accountabilities of the employees.

The model of Change as propounded by Scott and Jaffe is regarded as a predictive model
which is far from the reality. But the model can be considered as a vital framework for
understanding the process of change and it provides crucial insights on how one can manage
change successfully by minimizing the resistance.

Mergers and acquisitions can be threatening for employees and produce anxiety and stress.
Hunsaker and Coombs (1988, 58) found identifiable patterns of emotional reactions
experienced by employees during a merger or acquisition; they have labelled this
phenomenon the merger emotions syndrome.

1. Denial: At first employees react to the announced merger with denial. They
say it must be just a rumour.
2. Fear: When the merger becomes a reality, employees become fearful of the
unknown. For example, workers become preoccupied with job loss.
3. Anger: Once employees feel that they are unable to prevent the merger or
acquisition from taking place, they begin to express anger towards those who
are responsible. In many instances, employees feel like they have been sold
out after providing the company with loyal service.
4. Sadness: Employees begin to grieve the loss of corporate identity and
reminisce about the good old days before the merger.
5. Acceptance: Once a sufficient mourning period has elapsed, employees begin
to recognize that to fight the situation would be useless, and they begin to
become hopeful about their new situation.
6. Relief: Employees begin to realize that the situation is not as inauspicious as
they had envisioned and that the new employees, they interact with are not as
bad as they had predicted.
7. Interest: Once people become secure with their new positions or with the
organization, they begin to look for positive factors and for the benefits they
can achieve through the new entity. They begin to perceive the new situation
as a challenge in which they can prove to their organization their abilities and
worth.
 8. Liking: Employees discover new opportunities that they had not envisioned
before and begin to like their new situations.
9. Enjoyment: Employees discover that the new situation is working out well and
feel more secure and comfortable.
The merger-emotions syndrome provides management and researchers with the
opportunity of pinpointing the emotional stage of the employees of an acquired corporation.
Management should recognize that these emotions exist among the employees and deal with
them as expeditiously as possible. At a minimum, managers should provide positive feedback
to employees, emphasizing that their performance is commendable under the stressful
situation brought about by the acquisition, in order to alleviate negative work-related feelings.
Calm, grounded managers can help temper the turmoil during the uncertainty of a change.
Managers play a crucial role in trying to beat the dismal odds. Even the simple act of
listening to employee’s concerns can go a long way.

Communicating in tough times is difficult but the best approach is to be open, honest and
say as much as possible. If an issue has not been decided, then say so – and, if possible,
explain why – rather than keep quiet and let people think the worst. Organizations that
communicate with staff regularly through times of change experience greater levels of
acceptance and engagement. Employees going through a change seek clarity and certainty,
and it is even more vital to ensure change communications are received and understood to
minimize uncertainty. Managers should clarify or re-clarify organizational goals, mission and
values. If those things have changed, be sure employees understand how that change affects
them and their role. Involve employees in decision making. Revive their self-esteem and
optimism by setting clear, achievable objectives and offering the proper tools to achieve
results. The most fundamental need people have in times of change or crisis is always the
same: support, from one another and from authority figures. Thus, organizations should give
employees ways to emotionally connect with each other and with leaders. Once senior
leadership provides the vision on what change is needed, the organization must then set out to
develop and execute a change management plan and engage their workforce in the process
(Jacobsen, 2012).

In the literature there is considerable support for a connection between change and job
satisfaction. Job satisfaction is simply how people feel about their jobs and different aspects
of their jobs. It is the extent to which people like (satisfaction) or dislike (dissatisfaction) their
jobs (Spector, 2000). According to Cavanagh (1992), when individuals perceive that the
outcomes of a job are met or exceeded, they are satisfied. When their expectations are not
met, they may feel betrayed by management and develop a sense of mistrust. Behavioural
consequences of job dissatisfaction, such as low morale, absenteeism, turnover, and poor job
performance can potentially threaten the quality and organisational effectiveness.

Attention to the people or human factor is crucial in making the acquisition of a company
a success or failure.

Luthans (2002) defines job satisfaction as three dimensioned:

1. As an emotional response to the job situation

2. Often determined by how well the outcome exceeds expectation
3. Representing several related attitudes.
Job satisfaction focuses on employees’ attitude towards their job. Locke (1976) defines
job satisfaction, as a pleasurable feeling that results from the perception that one’s job fulfils
or allows for the fulfilment of one’s important job values. Job satisfaction has many sources.

Locke summarised the existing research on the causal factors in job satisfaction: among the
most important values or conditions conducive to job satisfaction are:

1. Mentally challenging work with which the individual can cope successfully
2. Personal interest in the work itself
3. Work which is not too physically tiring
4. Rewards for performance which are just, informative, and in line with the
individual’s personal aspirations
5. Working conditions which are compatible with the individual’s physical needs
and which facilitate the accomplishment of his work goals
6. High self-esteem on the part of the employee
7. Agents in the workplace who help the employee to attain job values such as
interesting work, pay, and promotions, whose basic values are similar to his
own, and who minimise role conflict and ambiguity.
If employees develop a negative attitude about their jobs because of uncertainty or poor
pay, employees will probably be absent more often than employees who develop a positive
attitude about their job as a result of great pay or stability. According to Kruger et al. (1996)
role ambiguity is when individuals feel uncertain about certain aspects of their work, such as
the extent of their responsibilities, what is expected of them and how to divide their work
time between various duties. Role conflict may result in intense feelings such as anxiety,
tension and stress. Rapid change such as changes in the structure, or change in staff within
the organisation may lead to role ambiguity. When employees do not have a clear
understanding of what is expected of them, they may become dissatisfied and demotivated
about their job. Therefore, it is the responsibility of management to make sure that new
employees have a clear understanding of what is expected of them (Kruger et al., 1996).

Job satisfaction is a combination of cognitive and affective contentment for individuals

within a company. Affective satisfaction can be seen in terms of an employee’s overall
feeling while working. Herzberg’s theory gives a clear understanding of job satisfaction.
(Luthans, 2002).

American psychologist Frederick Herzberg is regarded as one of the great original

thinkers in management and motivational theory. Herzberg set out to determine the effect of
attitude on motivation, by simply asking people to describe the times when they felt really
good, and really bad, about their jobs. What he found was that people who felt good about
their jobs gave very different responses from the people who felt bad.

From these interviews Herzberg went on to develop his theory that there are two
dimensions to job satisfaction: motivation and hygiene. Hygiene issues, according to
Herzberg, cannot motivate employees but can minimize dissatisfaction, if handled properly.
In other words, they can only dissatisfy if they are absent or mishandled. Hygiene topics
include company policies, supervision, salary, interpersonal relations and working conditions.
They are issues related to the employee's environment. Motivators, on the other hand, create
satisfaction by fulfilling individuals' needs for meaning and personal growth. They are issues
such as achievement, recognition, the work itself, responsibility and advancement. Once the
hygiene areas are addressed, said Herzberg, the motivators will promote job satisfaction and
encourage production.

Frederick Herzberg theorized that employee satisfaction depends on two sets of issues:
hygiene issues and motivators. Once the hygiene issues have been addressed, he said, the
motivators create satisfaction among employees.

Although hygiene issues are not the source of satisfaction, these issues must be dealt with
first to create an environment in which employee satisfaction and motivation are even
possible.
 Hygiene factors include:

1. Company and administrative policies- An organization's policies can be a great source

of frustration for employees if the policies are unclear or unnecessary. Although
employees will never feel a great sense of motivation or satisfaction due to your
policies, you can decrease dissatisfaction in this area by making sure your policies are
fair and apply equally to all.
2. Supervision- To decrease dissatisfaction in this area, you must begin by making wise
decisions when you appoint someone to the role of supervisor. The role of supervisor
is extremely difficult. It requires leadership skills and the ability to treat all employees
fairly.
3. Salary- It is not a motivator for employees, but they do want to be paid fairly. If
individuals believe they are not compensated well, they will be unhappy working for
you. An organization must make sure you have clear policies related to salaries, raises
and bonuses.
4. Interpersonal relations- When an organization allows their employees a reasonable
amount of time for socialization, they develop a sense of satisfaction. At the same
time, supervisors should crack down on rudeness, inappropriate behaviour and
offensive comments.
5. Working conditions- The environment in which people work has a tremendous effect
on their level of pride for themselves and for the work they are doing. An organization
must keep their equipment’s and facilities up to date.

Motivating factors include:

1. Work itself- Perhaps most important to employee motivation is helping individuals

believe that the work they are doing is important and that their tasks are meaningful.
Emphasizing that their contributions to the practice results in positive outcomes can
affect an employee’s motivation.
2. Achievement- One premise inherent in Herzberg's theory is that most individuals
sincerely want to do a good job. An organization must make sure that employees are
placed in positions that use their talents and are not set up for failure. clear, achievable
goals and standards for each position must be set, and make sure employees know
what those goals and standards are.
 3. Recognition- Individuals at all levels of the organization want to be recognized for
their achievements on the job. Acknowledging an employee work publicly can
motivate an employee to work better. Their successes don't have to be monumental
but when a supervisor praises an employee, it goes a long way.
4. Responsibility- Employees will be more motivated to do their jobs well if they have
ownership of their work. This requires giving employees enough freedom and power
to carry out their tasks so that they feel they “own” the result. As individuals mature
in their jobs, supervisors must provide opportunities for added responsibility.
5. Advancement- Reward loyalty and performance with advancement. Even if an
organization does not have an open position to which to promote a valuable
employee, consider giving him or her a new title that reflects the level of work he or
she has achieved.

Today's workplace generations possess characteristics that derive, in large part, from the
political, social and economic climate of their youth. It is very important to understand that
individuals will deal with change differently as a result of the generation they belong to.

The best way of understanding generations in today’s workplace is by dividing them as

follows:

1. Traditionalists: born 1900 to 1945

Sometimes referred to as the World War II generation, traditionalists have worked longer
than any of the other generations. Experiencing two World Wars and the Great
Depression taught most members of this generation how to live within limited means.
Traditionalists are loyal, hardworking, financially conservative and faithful to institutions.

2. Baby boomers: born 1946 to 1964

When the baby boomers entered the workforce, they felt compelled to challenge the status
quo, and they're responsible for many of the rights and opportunities now taken for
granted. Their boundless optimism led many to fight for change. Because of their large
numbers, they faced competition from each other for jobs. Baby boomers all but invented
the 60-hour workweek, figuring that demonstrated hard work and loyalty to employers
was one way to get ahead. Their sense of who they are is deeply connected to their career
achievements. As a whole, this generation is politically adept when it comes to navigating
political minefields in the workplace.
 3. Generation X-ers: born 1965 to 1980
Generation X-ers are technologically savvy, having ushered in the era of video games and
personal computers during their formative years. But witnessing skyrocketing divorce
rates, their parents being laid off after years of dedicated service and challenges to the
presidency, organised religion and big corporations instilled a sense of scepticism and
distrust of institutions. Because they don't expect employer loyalty, they see no problem
changing jobs to advance professionally. In contrast to the Baby Boomers' overtime work
ethic, Generation X-ers believe that work isn't the most important thing in their lives.
They're resourceful and hardworking, but once 5 o'clock hits, they'd rather pursue other
interests.

4. Millennials: born 1981 to 1999

Many in this generation are still in school, but the oldest Millennials are recent college
graduates just now entering the work force. These are kids who've had access to cell
phones, pagers and personal computers all their lives. Millennials are eager to learn and
enjoy questioning things. They're confident and have high self-esteem. They're
collaborators and favour teamwork, having functioned in groups in school, organised
sports and extracurricular activities from a very young age. They reject the notion that
they have to stay within the rigid confines of a job description. Expect them to keep their
career options open. As opposed to Generation X-ers who change jobs, Millennials are
more likely to make entire career changes or to build parallel careers.

Once one understands each generation, it will be easier to understand their reactions and
resistance to change. Generation X, for example, loves challenges and new opportunities
whereas Baby Boomers prefer a stable environment that allows them to have control. This
can be difficult when faced with changes, as their jobs may not be secure and they may lose
their sense of self and thus their sense of control. This is one reason for understanding that,
from generation to generation, there are norms that allow different people to live or think in
certain ways. That is why different generation will react differently to change. In recent
literatures there is considerable support showing Generation X managers are typically mature
beyond their years, very adaptable and flexible, and team-oriented. They have high
expectations of employees and don't buy into power structures. They rather prefer the project-
based approach to work. Generation X managers need positive validation for their work or
they will not hesitate to quit their jobs.
NEED AND SIGNIFICANCE

Employees are the central forces of an industry and only with their efficiency, an
organisation can move into success. Only with a group of satisfied employees a company can
led to success. For employee’s satisfaction the company must provide adequate welfare
measures. Through this study, we can analyse whether the employees are satisfied or not and
also whether they are motivated by the general, welfare, financial and other related factors.

STATEMENT OF PROBLEM

The purpose of this study is to assess factors that may link employee post-merger attitudes
(i.e., employee post-merger satisfaction), with organizational change (i.e., merger of the
banks.)

OBJECTIVES OF STUDY

The main objective of the study is to examine different factors that contribute to Job
Satisfaction in banking industry post-merger. Specifically, the objectives of this study are
listed below:

1. To compile the profile of respondents and examine its association with job
satisfaction.
2. To identify the general causes of job satisfaction and their relative propensity post-
merger in banking industry.
3. To study behavioural patterns exhibited at the work place post-merger in banking
industry.
4. To analyse the impact of merger & acquisition of banks on the lives of the bank
employees.
5. To assess the satisfaction level of bank employees after merger.

HYPOTHESIS OF STUDY
 The study attempts to examine various dimensions of job satisfaction post-merger in
banking industry. Based on the research problem and objectives, the following hypotheses
were formulated.

Ho: There is no significant difference between females and males in job satisfaction after
mergers.

Subscales include: Economic Satisfaction, Security Satisfaction, Social Satisfaction,

Psychological Satisfaction.

H1: There is no significant difference between the two banks: A and Indian Bank.

H2: There is no significant difference between the 3 categories of people with different
lengths of service on job satisfaction.

H3: There is no significant difference between the two educational qualifications: degree and
masters.

OPERATIONAL DEFINATION

Mergers & Acquisition

The terms "mergers" and "acquisitions" are often used interchangeably, although in
actuality, they hold slightly different meanings. When one company takes over another entity,
and establishes itself as the new owner, the purchase is called an acquisition. From a legal
point of view, the target company ceases to exist, the buyer absorbs the business, and the
buyer's stock continues to be traded, while the target company’s stock ceases to trade.

On the other hand, a merger describes two firms of approximately the same size, who join
forces to move forward as a single new entity, rather than remain separately owned and
operated. This action is known as a "merger of equals." Both companies' stocks are
surrendered and new company stock is issued in its place.

Job Satisfaction

Job satisfaction is defined as the extent to which an employee feels self-motivated, content
& satisfied with his/her job. Job satisfaction is sometimes regarded as a single concept; that
is, a person is satisfied or dissatisfied with the job. However, it actually is a collection of
specific job attitudes that can be related to various aspects of the job. For example, a popular
measure of job satisfaction, the job descriptive index. measures satisfaction in terms of five
specific aspects of a person’s job: pay, promotion, supervision, the work itself, and co-
workers. Obviously, an employee may be satisfied with some aspects of the job and, at the
same time, be dissatisfied with the other.

The sources of job satisfaction and dissatisfaction vary from person to person. Sources
important for many employees include the challenge of the job, the degree of interest that the
work holds for the person, the extent of required physical activity, the characteristics of
working conditions (e.g., temperature, humidity, proximity to others), the type of rewards
available from the organization (e.g., the level of pay), the nature of co-workers, etc. The
table below lists work factors that often are related to levels of job satisfaction.

Table 1: Effects of various work factors on job satisfaction

WORK FACTORS EFFECTS

1. Work itself
Mentally challenging work that the
a. Challenge
individual can successfully accomplish is
satisfying.

Tiring work is dissatisfying.

b. Physical Demands

Personally, interesting work is satisfying.

c. Personal interest

Rewards that are equitable and that provide

accurate feedback for performance are
2. Reward structure
satisfying.

3. Working conditions

Satisfaction depends on the match between

a. Physical
working conditions and physical needs.

Working conditions that promote goal

attainment are satisfying.
b. Goal attainment
 High self-esteem is conducive to job
4. Self
satisfaction.

Individuals will be satisfied with supervisor,

co-workers, and subordinates who help
them attain rewards. Also, individuals will
5. Others in the organization be more satisfied with
colleagues who see the things the same way
as they do.

Benefits do not show a strong influence on

7. Fringe benefits job satisfaction for most workers.

Indian banking sector

India has an extensive banking network, in both urban and rural areas. All large Indian
banks are nationalized, and all Indian financial institutions are in the public sector. The
Reserve Bank of India is the central banking institution. It is the sole authority for issuing
bank notes and the supervisory body for banking operations in India since 1935. It supervises
and administers exchange control and banking regulations, and administers the government's
monetary policy.

Banks are classified into classified into four categories –

1. Commercial Banks
2. Small Finance Banks
3. Payments Banks
4. Co-operative Banks

a. Commercial Banks

Commercial Banks are regulated under the Banking Regulation Act, 1949 and their
business model is designed to make profit. Their primary function is to accept deposits and
grant loans to the general public, corporate and government. Commercial banks can be
divided into-

1. Public Sector Banks

2. Private Sector Banks
3. Foreign Banks
4. Regional Rural Banks

i. Public Sector Banks

These are the nationalised banks and account for more than 75 per cent of the total banking
business in the country. Majority of stakes in these banks are held by the government. In
terms of volume, SBI is the largest public sector bank in India and after its merger with its 5
associate banks (as on 1st April 2017) it has got a position among the top 50 banks of the
world.

ii. Private Sector Banks

These include banks in which major stake or equity is held by private shareholders. All the
banking rules and regulations laid down by the RBI will be applicable on private sector banks
as well. 

iii. Foreign Banks

A foreign bank is one that has its headquarters in a foreign country but operates in India as
a private entity. These banks are under the obligation to follow the regulations of its home
country as well as the country in which they are operating. 

iv. Regional Rural Banks

These are also scheduled commercial banks but they are established with the main
objective of providing credit to weaker sections of the society like agricultural labourers,
marginal farmers and small enterprises. They usually operate at regional levels in different
states of India and may have branches in selected urban areas as well.

b. Small Finance Banks

This is a niche banking segment in the country and is aimed to provide financial inclusion
to sections of the society that are not served by other banks. The main customers of small
finance banks include micro industries, small and marginal farmers, unorganized sector
entities and small business units.

c. Payments Banks

This is a relatively new model of bank in the Indian Banking industry. It was
conceptualised by the RBI and is allowed to accept a restricted deposit. The amount is
currently limited to Rs. 1 Lakh per customer. They also offer services like ATM cards, debit
cards, net-banking and mobile-banking.

d. Co-operative Banks

Co-operative banks are registered under the Cooperative Societies Act, 1912 and they are
run by an elected managing committee. These work on no-profit no-loss basis and mainly
serve entrepreneurs, small businesses, industries and self-employment in urban areas. In rural
areas, they mainly finance agriculture-based activities like farming, livestock and hatcheries.
Co-operative banks can be divided into

1. Urban Co-operative Banks

2. State Co-operative Banks

i. Urban Co-operative Banks

Urban Co-operative Banks refer to the primary cooperative banks located in urban and
semi-urban areas. These banks essentially lent to small borrowers and businesses centered
around communities, localities work place groups.

ii. State Co-operative Banks

A State Cooperative Bank is a federation of the central cooperative bank which acts as
custodian of the cooperative banking structure in the State.

Management is the process of guiding the development, maintenance, and allocation of

resources to attain organizational goals. Managers are the people in the organization
responsible for developing and carrying out this management process. The four primary
functions of managers are planning, organizing, leading, and controlling.

a. Planning
 It is the basic function of management. It deals with chalking out a future course of action
& deciding in advance the most appropriate course of actions for achievement of pre-
determined goals. According to Kootnz, “Planning is deciding in advance - what to do, when
to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a
future course of actions.

b. Organizing

It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of organizational goals.
According to Henry Fayol, “To organize a business is to provide it with everything useful or
it’s functioning i.e., raw material, tools, capital and personnel’s”. To organize a business
involves determining & providing human and non-human resources to the organizational
structure.

c. Leading

It is that part of managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes. It is considered life-spark of the
enterprise which sets it in motion the action of people because planning and organizing are
the mere preparations for doing the work. Direction is that inert-personnel aspect of
management which deals directly with influencing, guiding, supervising, motivating sub-
ordinate for the achievement of organizational goals.

d. Controlling

It implies measurement of accomplishment against the standards and correction of

deviation if any to ensure achievement of organizational goals. The purpose of controlling is
to ensure that everything occurs in conformities with the standards. An efficient system of
control helps to predict deviations before they actually occur.
CHAPTER II

METHOD
 The study is a quantitative study which was conducted by selecting individuals by using
convenience sampling method. Since post-merger the banks constitutes the employees of
both the acquired and acquiring bank, therefore convenience sampling method was used as a
sample design. The population of this study covers the staff of both the banks. The sample
obtained from the given population constitutes of 60 employees. They were given a
questionnaire consisting of two components: A sociodemographic questionnaire that require
them to fill their age, gender, relationship status, formal position in the organization,
education qualification, length of service; and a job satisfaction questionnaire- this assesses
the level of satisfaction the employees have with their work.

This chapter gives an outline of research methods that were followed in the study. It
provides information on the participants, that is, the criteria for inclusion in the study, who
the participants were and how they were sampled. It also describes the research design that
was chosen for the purpose of this study. The instrument that was used for data collection is
also described and the procedures that were followed to carry out this study are included. The
methods used to analyse the data are also discussed in this chapter.

PARTICIPANTS

The population of this study covers the staff of both the banks (acquired and the acquiring
banks). The sample obtained from the given population constitutes of 60 employees.

MEASURES

The measurement instrument used for the study was job satisfaction questionnaire adapted
from Opatha, H.H.D.N.P. (2001), Factors Contributing to Labour-Management Relationships
in Sri Lanka: An Empirical Analysis in Manufacturing Sector, PhD Thesis, UUM I
Repository, University Utara Malaysia.

A clear and user-friendly questionnaire consisted of 2 sections. Section A consists of the

questions to gather the information about the profile of the respondent. Section B sought to
measure items that were related to job satisfaction. Two scales were used in this
questionnaire. First is nominal scale used for respondent ‘s profile in section A and 5-point
Likert scale was used for section B. The layout of the questionnaire can be represented as:

1. Socio-Demographic data:
This included age, gender, relationship status, formal position in the organization, education
qualification and length of service.

2. Work Satisfaction Scale

The questionnaire comprises of nineteen items under four categories, to examine the
employees’ level of satisfaction with their work. To measure these motivations, a one-to-five-
point scale which ranged between “highly unsatisfied” and “highly satisfied” was used. The
scores obtained under each category is calculated individually and compared with each other.
Higher scores in this scale represents higher work satisfaction in an individual. The scale
ranges from 19 to 95 points, with 95 being the highest score possible.

PROCEDURE

The questionnaires were distributed through online means. All participants were asked to
fill up the questionnaires. There were two sections. The first one is the Socio-Demographic
data and the second is the Work Satisfaction Scale (Opatha, H.H.D.N.P, 2001). There were
19 items in 4 categories which were Economic Satisfaction, Social Satisfaction, Security
Satisfaction, Psychological Satisfaction. Narcissism and Self Expression, Media Drenching
and Performance, Passing Time, Information Seeking, Personal Status, Relation Maintenance
and Entertainment along with Bergen Social Media Usage Scale. A survey design was used
for this study; the independent variable was Work Satisfaction.

ADMINISTRATION

The participants were given the following instructions: “carefully fill up the questionnaire
honestly. Read the instructions given in your questionnaire carefully. You are required to
read each question carefully and answer them without hesitation. There is no time limit.
Please do not spend much time in any particular question. Give the first natural answer that
comes to you”. Make sure that both the socio demographic data and all the questions in the
questionnaires are filled before submitting.

DATA ANALYSIS

The data collected were entered into a spread sheet, and analysed using the statistical
software SPSS 20 version. Inferential statistics was done in which correlation and t-tests,
were done to analyse the results. To protect the confidentiality of the 2 banks, they are re-
named as A and B.
CHAPTER III

RESULT

&

DISCUSSION
 The purpose of this study is to assess factors that may link employee post-merger attitudes
(i.e., employee post-merger satisfaction), with organizational change (i.e., merger of the
banks). Through this study, we can analyse whether the employees are satisfied or not and
also whether they are motivated by the general, welfare, financial and other related factors.
The population of this study covers the staff of both the banks. The sample obtained from the
given population constitutes of 60 employees. Survey method was used for the data
collection. The questionnaires consisted of 2 components. The first one is the Socio-
Demographic data and the second is the Work Satisfaction Scale (Opatha, H.H.D.N.P, 2001).
The data collected were entered into a spread sheet, and analysed using the statistical
software SPSS.

Table1: Mean, SD and t- value of Job Satisfaction with respect to gender

Std.
Std.
Gender N Mean Error t-value P- value
Deviation
Mean
Job
Female 22 66.32 11.990 2.556 1.617 0.133
Satisfaction
Male 38 61.00 12.751 2.069
Economic
Female 22 11.00 1.877 .400 1.215 0.23
Satisfaction
Male 38 10.37 2.046 .332
Security
Female 22 13.95 3.214 .685 1.63 0.251
Satisfaction
Male 38 12.95 3.263 .529
Social
Female 22 7.27 1.638 .349 2.168 0.035
Satisfaction
Male 38 6.26 1.899 .308
Psychological
Female 22 34.09 6.803 1.450 1.43 0.157
Satisfaction
Male 38 31.42 7.146 1.159
 The table shows that there is no significant difference between male (Mean= 61,
SD=12.751) and female (Mean= 66.32, SD= 11.99). The t- value was found to be 1.6, thus
accepting the null hypothesis. Ho: Is not accepted. There is no significant difference between
male and female bank employees in job satisfaction. There was no significant difference in
the sub scales economic satisfaction, security satisfaction and psychological satisfaction.
Females have a higher score in social satisfaction (t-value= 2.168, p-value= 0.3).

Table 2: Mean, SD and t- value of Job Satisfaction with respect to banks

Std. Error
Bank N Mean Std. Deviation t-value P-value
Mean

Job A 33 61.36 14.006 2.438 1.105 0.274

Satisfaction B 27 64.89 10.682 2.056

Economic A 33 10.55 2.048 .356 0.233 0.816

Satisfaction B 27 10.67 1.961 .377

Security A 33 12.85 3.598 .626 1.271 0.209

Satisfaction B 27 13.89 2.736 .527

Social A 33 6.48 2.017 .351 0.694 0.490

Satisfaction B 27 6.81 1.665 .320

Psychological A 33 31.48 7.612 1.325 1.129 0.264

Satisfaction B 27 33.52 6.339 1.220

There is no significant difference between the two banks B (Mean=64.89, SD=10.682)

and A (Mean= 61.36, SD= 14.006). The t-value was found to be 1.105, thus accepting the
null hypothesis. H1: There is no significant difference between the two banks: B and A. We
can interpret that merger did not affect the employees. We can interpret that both the bank
employees job satisfaction did not get affected by the merger.
Table 3: Sum of Squares, Df, Mean Square, F, Sig Difference of job satisfaction with respect
to length of service

Sum of
Df Mean Square F Sig.
Squares

Between
742.172 2 371.086 2.435 .097
Groups
Job
Within
Satisfaction 8686.678 57 152.398
Groups

Total 9428.850 59

Between
36.137 2 18.069 5.195 .008
Groups
Economic
Within
Satisfaction 198.263 57 3.478
Groups

Total 234.400 59

Between
47.397 2 23.698 2.339 .106
Groups
Security
Within
Satisfaction 577.586 57 10.133
Groups

Total 624.983 59

Between
6.247 2 3.123 .901 .412
Groups
Social
Within
Satisfaction 197.686 57 3.468
Groups

Total 203.933 59

Between
167.434 2 83.717 1.709 .190
Groups
Psychological
Within
Satisfaction 2792.966 57 48.999
Groups

Total 2960.400 59
There is no significant difference between the 3 categories of people with different lengths of
service on job satisfaction. Null hypothesis was accepted. H2: there is no significant
difference between the three categories of lengths of service: below 2 years, 6-10 years,
above 10 years. Sub-scales were compared. It can be seen that as the employee’s experience
increases their economic satisfaction increases as well. Employees with experience of 10-year
or higher have greater economic satisfaction in comparison to employees who have
experience of 2 years or below.

Table 4: Significant difference and mean of Economic Satisfaction with respect to length of
service.

Subset for alpha = 0.05

Length of Service N Mean
1 2

below 2 years 6 54.50 9.33

6-10 years 29 61.83 10.10 10.10

above 10 years 25 66.28 11.48

Table
Sig. .591 .193
4 shows
the significant difference and mean of economic satisfaction with respect to length of service.
Even though economic satisfaction increases as years of experience increases, there is no
significant difference between the 3 groups. For economic satisfaction there are two subsets.
This shows that they don’t belong to a single group but two groups. Thus, we can interpret it
as there is significant difference between the two groups; below 2 years and above 10 years.
 Table 5: Mean, SD and t-value of Job Satisfaction with respect to educational qualification

Education Std. Error

N Mean Std. Deviation t-value p-value
Qualification Mean

Job Degree 34 61.12 13.867 2.378 1.338 0.186

Satisfaction Masters 26 65.35 10.621 2.083

Economic Degree 34 10.24 2.270 .389 1.738 0.088

Satisfaction Masters 26 11.08 1.468 .288

Security Degree 34 13.18 3.563 .611 0.390 0.698

Satisfaction Masters 26 13.50 2.860 .561

Social Degree 34 6.32 2.026 .347 1.544 0.128

Satisfaction Masters 26 7.04 1.562 .306

Psychological Degree 34 31.38 7.624 1.307 1.315 0.194

Satisfaction Masters 26 33.73 6.200 1.216

There is no significant difference between the categories of educational qualification:

Degrees (Mean= 61.12, SD= 13.867) and Masters (Mean= 65.35, SD= 10.621). The t-value
was found to be 1.338, thus accepting the null hypothesis. H3: There is no significant
difference between the two categories of educational qualifications: degrees and masters.

The aim of the study is to assess factors that may link employee post-merger attitudes with
organizational change. The results showed that there is no significant difference between
males and females in job satisfaction after mergers. Females have a higher score in social
satisfaction. This can be because woman have a greater capacity to socialize than males. We
found that there is no significant difference between the two banks; A and B. Both the bank
employee’s job satisfaction did not get affected by the merger. Significant difference was
found between the two groups; above 10 years and higher & below 2 years. As the
employee’s experience increases their economic satisfaction increases as well. Employees
with experience of 10-year or higher have greater economic satisfaction in comparison to
employees who have experience of 2 years or below. Even though economic satisfaction
increases as years of experience increases, there is no significant difference between the 3
groups; below 2 years, 6-10 years and above 10 years. There is significant difference between
the two groups; below 2 years and above 10 years. there is no significant difference between
the variable’s masters and degrees. This shows that the education qualification of an
employee is not associated with merger.

Mergers and acquisitions are two corporations which come together to form one. Mergers
take place when there are some significant aspects of equality between the two entities in the
process of becoming one. Mergers and Acquisitions played a very important role in Banking
Sector. The small and medium-size banks are working under threat from the economic
environment which is full of problems for them, viz, the inadequacy of resources, outdated
technology, and weak financial structure. All the merged entities after mergers and
acquisitions are continuously growing rather than before the merger. There is an increase in
no. of branches and ATMs as well as in deposit amount, their net profit and worth. The
employees were nervous initially about the information of merger, communication from the
management helped them to cope with the change. In fact, the employees were very happy
with the sufficiency of information and communication from their supervisors.

Job satisfaction can be defined as positive and pleasurable emotions resulting from the
appraisal of one’s job or experience. Attention to the people or human factor is crucial in
making the acquisition of a company a success or failure. According to Marosini and Steger
(2004: 161)” it is in fact very hard to find acquisitions where people issues do not matter”.
This suggests that, when acquisitions happen, it is imperative that management should make
sure that the employees’ work environment is manageable. In reality work plays a very vital
role in our lives. We spend most of our time at work. Schneider and Bowen (1985) found that
there is an important connection between branch employees’ perceptions of organizational
human resource practices and branch customers’ attitudes towards service.

In the present study the banks have undergone horizontal merger. The present study
showed that gender, educational qualification does not have any association with the merger.
When discussed with some of the employees in A they talk about how the top-level
authorities could focus a little more on the lower-level employees. The employees also
reported that they do not have a proper work life balance and many of the times they are
under intense pressure to complete the target. Effective communication during a merger can
move an organization from a singular, top-down direction of information to a more integrated
approach that engages everyone in the organization which will build trust and goodwill.
Employees also feared privatization and how they would cope up with incoming
responsibilities. Due to intense pressure from the top management, it has also affected the
family life of the employees. In the study it can be seen that economic satisfaction is seen in
employees with experience greater than 10 years. This can be because the banks offer greater
compensation to employees with greater experience. During the merger if incentives is also
given to employees with less experience, they too would be motivated to work and would
have higher job satisfaction.
CHAPTER IV

SUMMARY
&
CONCLUSION
 This chapter presents the major findings, limitations of the study and suggestions for
further research.

The prime reasons for most mergers and acquisition are to maintain or increase market
share and to increase shareholder value by cutting costs and initiating new improved services.
According to Hafiza et al. (2011), there are several factors that can affect employee
performance like training and development opportunities, working conditions, worker-
employer relationship, job security and company over all policies and procedures for
rewarding employees. Among the factors that affect employee performance, job satisfaction
is of utmost importance. Job satisfaction describes how content an individual is with his or
her job. There are a variety of factors that can influence a person’s level of job satisfaction.
Some of these factors include the level of pay and benefits, the perceived fairness to the
promotion system within a company, the quality of the working conditions, leadership and
social relationships and the job itself.

Through this study, we can analyse whether the employees are satisfied or not and also
whether they are motivated by the general, welfare, financial and other related factors.

The purpose of this study is to assess factors that may link employee post-merger attitudes
(i.e., employee post-merger satisfaction), with organizational change (i.e., merger of the
banks.)

It was found that age, education qualification and gender do not have an effect on job
satisfaction. The length of service was found to have an effect on job satisfaction. As the
employee’s experience increases, their economic satisfaction increases as well. Employees
with experience of 10-year or higher have greater economic satisfaction in comparison to
employees who have experience of 2 years or below.

SUMMARY

OBJECTIVES OF THE STUDY

1. To compile the profile of respondents and examine its association with job
satisfaction.
 2. To identify the general causes of job satisfaction and their relative propensity post-
merger in banking industry.
3. To study behavioural patterns exhibited at the work place post-merger in banking
industry.
4. To analyse the impact of merger & acquisition of banks on the lives of the bank
employees.
5. To assess the satisfaction level of bank employees after merger.

PARTICIPANTS

The population of this study covers the staff of both the banks (acquired and the acquiring
banks). The sample obtained from the given population constitutes of 60 employees.

MEASURES

1. Socio-Demographic data:

2. Work Satisfaction Scale

DATA ANALYSIS

The data collected were entered into a spread sheet, and analysed using the statistical
software SPSS 20 version. Inferential statistics was done in which correlation and t-tests,
were done to analyse the results.

MAJOR FINDINGS

1. Higher significant difference was found in Social Satisfaction; males have higher job
satisfaction with respect to social satisfaction.
2. No significant difference was between the two banks. Both the bank employees job
satisfaction did not get affected by the merger.
 3. There is significant difference between the two groups; above 10 years and higher &
below 2 years. It can be seen that as the employee’s experience increases their
economic satisfaction increases as well.
4. Even though economic satisfaction increases as years of experience increases, there is
no significant difference between the 3 groups; above 10 years, 6-10 years, below 2
years.
5. No significant difference between any of the variables Degree and masters.

TENABILITY OF THE HYPOTHESES

Hypothesis 0

“There is no significant difference between males and females in job satisfaction after
merger”.

The results obtained indicates that there is no significant difference between males and
females. Females were found to have more social satisfaction than males.

Hypothesis is Accepted.

Hypothesis 1

“There will be no significant difference between the two banks: A and B”.

The results obtained indicated that there is no significant difference. Merger did not affect the
employees of the 2 banks.

Hypothesis is Accepted.

Hypothesis 3

“There will be no significant difference between 3 categories of people with different lengths
of service on job satisfaction”.

The results obtained indicated that there is no significant difference. Economic satisfaction
increased with the length of service.

Hypothesis is Accepted.
Hypothesis 4

“There will be no significant difference between the education qualifications: Degrees and
Masters”.

The results obtained that there is no significant difference.

Hypothesis is Accepted.

LIMITATIONS

There were not many limitations were present during research

1. Sample size: Since the sample size of 60 is not being very large, the results can‘t
always be generalized to the entire population. Convenient sampling was used and
hence the results of the sample selected need not to be the true representative of the
universe.

RECOMMENDATIONS

For future mergers the following strategies can be recommended:

1. The need for careful planning in the merger process prior the implementation.
Organizations need to involve employees in the M&A process right at the outset.
2. Employees should be well informed in advance about the changes in order for them to
make prior decisions before accepting the new responsibilities.
3. Open and honest communication with employees during changes is vital for a
successful M&A in an organization. Face-to-face communication between
management and employees is the most effective way of communicating changes
within the organization.
4. Every attempt should be made by top management to share all the necessary
information with the employees accurately and at appropriate times. This will create
an atmosphere of trust and commitment amongst employees and will also enhance the
integrity and credibility of management and their intentions.
5. The management should discuss the benefits of mergers with the employees of
acquired bank so that it does not adversely affect the morale and motivation of the
 employees, ensuring that they enjoy their work and put an extra effort to meet the
objectives of the organization.
6. The management should adopt training and sustained learning programmes for
employees on the basis of need identification. It can then implement programs, such
as individual counselling on new career opportunities to alleviate them. Voluntary
stress management training can be provided on a group basis to allow employees to
share their concerns.
7. Flexible working hours should be introduced in the organization. Work pressure can
be minimized by consulting the concerned person to fix deadlines to complete the
work.

CONCLUSION

One of the fasters growing sector in Indian is the banking sector. One of the tools for the
growth of economy is M&A, which was evoked by all the researchers and scholars. Banking
sector was one of the sectors which has witnesses a fast pace of growth in the Indian
economy. The best option for all the week banks is merging it with the larger bank and this
the tool M&S in banking sector has provide eminent example for the survival of all week
banks. As out study brings out various benefits merger, it is concluded that all small and local
banks who are all facing the difficulty in bearing the impact of global economy and needs
some supports, merger is one of the options.
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APPENDICES
Following instrument measures your satisfaction at work. Circle the number, which indicates

how much satisfied you are with each of the following aspects of work.

Neither

Highly unsatisfied
Highly
Aspect unsatisfied Unsatisfied nor Satisfied
Satisfied
satisfied

1.Adequacy of pay to meet food

and 1 2 3 4 5

cloth needs

2. Possibility of saving some

money for 1 2 3 4 5

Housing

3. Adequacy of comfortable

working 1 2 3 4 5

Conditions

4. Job security 1 2 3 4 5
 5. Adequacy of pay increments 1 2 3 4 5

6. Adequacy of safe working

1 2 3 4 5
conditions

7. Adequacy of medical,
1 2 3 4 5
retirement and insurance facilities

8. Opportunity to have friends and

1 2 3 4 5
social interactions

9. Manager friendliness 1 2 3 4 5

10. Internal equity-My pay

matches the relative worth of my

1 2 3 4 5
job i.e.; similar jobs get similar

pay.

11. External equity- My pay is

equal to the pay that similar 1 2 3 4 5

employee receive in other firms.

12. Opportunities for promotions 1 2 3 4 5

13. Management encouragement

1 2 3 4 5
for high achievement

14. Permission given by the

management to me to develop 1 2 3 4 5

new and original ideas.

15. Opportunity to use my various

1 2 3 4 5
skills and knowledge

16. Opportunity to do a complete 1 2 3 4 5

 work (from beginning to end)

17. Importance of my work on the

1 2 3 4 5
lives of others

18. Legal power given to me by

the management to plan and 1 2 3 4 5

control my job

19. Information given to me by

the management about my work

1 2 3 4 5
performance, progress and

improvement