The Impact of Merger & Acquisition on Employees’ Work Environs, Job Contentment, and Employee Morale in The Public Sector Banks of India

Abstract

The study aims to determine the before-and-after impact of mergers and acquisitions on employees' work environments, job contentment, and employee morale in public-sector banks in India. A conceptual model was developed based on a literature review, and three factors were identified for the purpose of the study. Data were collected from 134 employees from the Indian banking industry. The factors were analysed using SPSS software, reliability analysis, and t-tests. The result shows that there is a positive impact on employee work environs, job contentment and employee morale after the merger & acquisition of banks in the banking industry. Further analysis shows that employees of the banking industry are comfortable in the new work environment, morale is high and are much more motivated after the merger & acquisition. This study identifies the main factors that have an impact on the employees of the banking industry and also responsible for the positive impact on their personalities.  The study increases knowledge about employee behaviour before and after mergers & acquisitions in the banking industry and the factors have a significant impact on overall employees’ performance.