Abstract:
The area of major concern for the general public after the Bank of Ghana (BoG) approved a
purchase and assumption of UT Bank and Capital Bank to Ghana Commercial Bank (GCB) was
the uncertainty surrounding the employment status of employees of the acquired banks (UT and
Capital bank). It was in this light that this research sought to fill the existing knowledge gap by
examining the effects of mergers and acquisitions on employee morale. The target respondents
were eighty seven (87) employees from former UT and Capital Bank now Ghana Commercial
Bank employees after the acquisition. Primary data collected was analysed using SPSS and a Chi
squared analysis and logistic regression approach was employed to analyse the data. The research
found out that the likelihood of employee morale after mergers and acquisitions being affected by
employee’s sense of ownership and belongingness, work place environment and job satisfaction,
and job security is very low. The value of this research points to the fact that management of
institutions should put in place measures and strategies to improve job security among staff in
merged or acquired institutions. This goal can be accomplished by developing a working
atmosphere that enhances the level of motivation and feeling of belongingness of employees in
such situations.
Key words: employee morale; job satisfaction; job security; merger; acquisition; ownership
