Merger and Acquisition †Proposal Essay

Chapter -I Introduction Merger, corporate combination of ii or more independent dividing line corporations into a single enterprise, normally the absorption of integrity or more firms by a p allowhoric one. A coalition whitethorn be accomplished by one firm purchasing the some others assets with cash or its securities or by purchasing the others shares or stock or by issuing its stock to the other firms stockholders in ex transpose for their shares in the acquired firm (thus acquiring the other companys assets and liabilities). In a nuclear fusion reaction, institutions combine to form a nonher different institution, which be heralds a legal entity in its own right and at that placefore mergers are not instant events, they are processes .A merger freighternot be considered as truly palmy unless it also achieves employee comfort.This is vital to an organization as a whole. Employee joy is real important and necessary in order to gauge the success of the company. Employee blessedness reflects the degree to which individuals needs and desire are met and the outcome to which this is perceived by other employees. Employee satisfaction is generally perceived as the scope of the work and all the positive attitudes regarding the work environment. In this, there are several words which have been describe the impact of merger in staff- Traumatic Disruptive Distressing Painful Uncertainty difference in commitment Dampening on work motivation ball over Anger Disbelief Depression Anxiety Disappointment Disillusionment separationThus Mergers have become a key part of many corporate growth strategies, with diversification being the primary reason for merging. Banks research to diversify in order to reduce risks and enlarge returns, and geographic diversification, that is expanding operations into multiple locations, is used to obtain greater market power. Banks merge with other banks that have branch locations in multiple states in order to chip in a larger customer base. The anticipated benefits are less disputation and increased profits for the resultant bank. The corporate diversification strategy has guide to an increase in bank Merger.The mainly purpose to conduct this see on merger and acquisition of banks and its effect on employee job satisfaction because there has been seen a big change in shape of merger activities after the big financial crises that do the whole world business strategies in different mode so many employees getting jobless. all segment of work or business and individuals of the nation is change by the financial crisis due to the cycle of collecting deposits and lending money kitchen stove broken.Peoples do not have the power to save the money in the banks because of less profitability and more expenses that reduced the profitability of the banks too and let them to merge and acquisition themselves with another well- grounded bank that bear their costs and their universe too. During me rger and acquisition activities lots of employees victimize in different terms. They produce from the stiffed phase of their job. Most of the employees job satisfaction train goes eventual(prenominal) down as they think they will be getting discharged or jobless as new management would be come up with new teams of professionals and new procedure of working conditions in this focusing their morale level simulateed.Statement of the Problem Whether the banks are public or private the main thing is the success of their business and that depends upon its employees. If the employees are not satisfied from their job, working conditions, work culture, management they can never furbish up the customers satisfied with better quality services. The purpose of this research is to inhabit the effects of Merger on employee satisfaction. Recently, Machhapuchhre Bank Limited merged with Standard finance and Himchuli Bikas Bank merged with Birgunj Finance, I believe that these institutions ar e perfect to gibe the effects of merger on employees satisfaction.Identified Problems* To what extent does change impact on employee movement? * How satisfied are employees of these two banks with their ongoing working environment? * What are the factors that affect employee satisfaction level during a merger phase?Research Objective Based on the in a higher(prenominal) place identified problems, the goals of this study are * To identify factors that affect employee satisfaction during a merger phase. * To measure the satisfaction level of employee after merger of bank. * To establish the extent to which employees are satisfied with their current working conditions.Chapter II belles-lettres Review A number of researchers and theorists have been paying attention to know the satisfaction level of employee after merger of bank and institution. more higher and further education institutions in South Africa are struggling to brook in a context of financial stringency, declining st udent enrolments and increasing competition, hence for some of these institutions merging with other institutions in the near future is decorous a strong likelihood (Hay, Fourie & Hay, 2001100).In an attempt to survive, institutions are reduce costs by cutting down on the number of faculties, redeploying staff and placing a moratorium on overtime pay, conference attendance, new appointments and new superior projects (Bott, quoted by Hay, Fourie & Hay, 2001100). Hay, Fourie and Hay (2001100) state that perceptions of employees who will be directly moved(p) by the merging process seem to be very important, as knowledge and understanding of those perceptions will empower decision makers and suss out that impressive management of the merging process can be accomplished therefore careful consideration needs to be given to particularly individualised factors, and employee fears will have to be addressed in the process to ensure effective merging.According to Smit & Cronje (19953 07) when an organisation employs people, it is the managers task to advert the needs of its employees and formulate strategies to promote personal goal attainment. If workers are adapted to achieve their personal goals in the work situation, they will be vigilant to render outputs that lede to the attainment of the organisations goal therefore it follows that if the individuals outputs are satisfactory, the organisation will reward him and this, in turn, will satisfy him. Strydom (2005) (as quoted in the Centre for Quality Management journal, S.a.), states that the level of satisfaction that a staff member feels will directly affect his work functioning and attitudes, impacting on the companys success.Strydom (2005) believes that an organisations primary objective is to determine the needs of its employees and the ways in which these can be satisfied, therefore research emphasizes the importance of the role that employee satisfaction plays in the success of an organisation. Str ydom (2005) further states that organisations need to provide good recruitment strategies and elicitation processes, strong leadership, personal development opportunities, a positive work environment, actualisation of a job well done and good communication to ensure that employees needs are met. Phillips Consulting (2005) points out that tackling issues such as employee challenges, motivation, career advancement, performance management and cultural issues are key to the success of any variety exercise. The employee drives the process and strategy, not the other way round.Researchers have attributed the less than starring(p) record of M&A outcomes, in part, to how the integration of the participating firms affected the employees of the acquired company (Range, 2006 Schreyogg, 2006 Van Dick, Wagner, & Lemmer, 2004). Furthermore, research has shown that M&As can be a traumatic event in the lives of the individuals and organizations involved in the change. Many employees experience feelings of loss, resentment, and a decline in job satisfaction, and their reactions can lead to the failure of the M&A (Appelbaum et al., 2007 Cartwright & Schoenberg, 2006 Sperduto, 2007).Appelbaum et al. concluded that such human resources (HR) difficulties may add costs to the integration process and undermine the ability of a firm to achieve synergy, and thereby offset the hoped-for benefits of merging. Hunt and belt down (2006) concluded that, in the majority of successful mergers, the purchasers predicted that personnel problems would arise and acted apace when such problems surfaced. Thus, understanding the job facets that lead to positive job satisfaction may help other business leaders deploy strategies that could increase their chances for achieving successful mergers.