IMPACT OF MERGER ON ORGANIZATIONAL COMMITMENT OF EMPLOYEES WORKING IN BANKING INDUSTRY OF PAKISTAN

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.