Abstract:
Purpose:
Merger transactions are extending throughout the world for accomplishing business growth
and enhancing efficiency and effectiveness ofthe firm. Many merger deals also took place in
banking industry of Pakistan. While going through merger activity management overlook
human factor and give their full attention to financial aspect and synergies. This research is
conducted to check the impact of mergers on organizational commitment of employees
working in banks and also examine whether there is a significant relationship between the
impacts ofmerger and organizational commitment.
Methodology/Sample:
Impacts of merger on commitments and relationship between variables were assessed by
using correlation and regression techniques. Self constructed questionnaire was used to
collect data from respondents. Sample of this research consists of 60 employees from three
banks of Karachi namely Faysal Bank Limited, Summit Bank Limited and Islami bank
limited.
Findings
On the basis of findings, it is concluded that impact of merger significantly and negatively
effect organizational commitment of employees.
Practical implication
When merger is made, management should not only focus on the synergies and financial
aspect but also pay attention to human factors and organizational commitment that can lead to
the success. The results ofthis study will provide organizations which are planning to go for
merger with better insights into some practices that could elevate organizational commitment of the employees.
