The Effect of Mergers and Acquisitions on Employee Morale: A Case Study of Ghana Commercial Bank.

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