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.