Final Part Word

CHAPTER I
INTRODUCTION
1.1 Context information
Merger means a combination of two or more companies to form a new company and agree to
share their assets to move forward as a new organization instead of operating separately. With
the combined resources and efforts organization achieves a strong competitive advantage.
Mergers and Acquisition (M&A’s) is defined as term which refers to the consolidation of
companies or assets. Merger of separate entities into one firm or Acquisition of one firm by
another entity is the corporate combinations which have become an increasingly common
reality of organizational life. Area of corporate finances- Merger and Acquisition is the dealing
with purchasing or joining with other companies.
Companies today need to be fast growing, efficient, profitable, flexible, adaptable, future
ready and have dominant market position. Without these qualities, firms believe that is
virtually impossible to become competitive in today’s global economy. It has been seen that it
has become impossible in our global environment for firms to compete with others without
growing and expanding through deals that result in mergers and acquisition (Nayyar, 2015).
After the merger, the organization policies might be affected by these variables like fair wages
and encouragement, health and other services, work environment, job specification, prestige
and request, non-cash benefits and finally setting and defining goals along with cleanliness
factors.
Employee satisfaction is the terminology used to describe how content or satisfied employees
are with their jobs. It is typically measured using an employee satisfaction survey. This survey
addresses the topic such as pay remuneration, organization culture, employee performance, job
security. It includes business policy, quality management, relation with worker, personal life,
rate of pay, job security, working circumstances and play an important role in inspiring
employees in the banking segments. Merger and acquisition are, nowadays, frequent event in
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the lifecycle of companies. The reason for this is the current financial crisis, which has led to
weakening global demand and depressing commodity prices, perhaps the primary reasons for
the increase in M&As in the past ten years is due to the increase in the profitability of the
resultant entity through taking advantages of the ‘synergy effect’ by becoming more
competitive, economic condition and the difficulties facing small and medium-sized
businesses, this limiting their ability to work and grow (Al-Hemyari, 2012). Some of the other
reason behind mergers and acquisition being a part of today’s business environment is revenue
enhancement, cost reduction, vertical and horizontal operational strategies, growth of the
industry, need of the product and service diversification (Gabunia, 2009). When an M&A’s is
made, management should not only focus to the work but also focus on its human resources so
that M&A’s can be made successful.
The human capital theory, states that the mergers and acquisitions leads to improvement in the
firm performance and plant productivity, although they also result in the downsizing of
establishments and firms. These transactions also appear to enhance the careers of workers
because they provide a mechanism for improving the sorting and matching or workers and
managers to firms and industries that best suits their skills (Adembesa, 2014). In addition, the
theory of Synergy according to Polyarus et.al. (2013), concerns the kind of interaction which
takes place when two materials or two factors have together greater than a sum of two
independent constituents. For instance, in chemistry the action of synergy becomes apparent
when two substances have greater effect by combining than the summary result of their
independent influence. Bluntly speaking, synergy is a phenomenon, when “2+2=5”. In merger
it means the ability of an amalgamated structure to be more profitable than its single parts or
companies which amalgamated.
The incidence of mergers and acquisitions has continued significantly during the last decade,
both domestically and internationally. The sectors most affected by merger and acquisition
activity have been service and knowledge based such as banking (Kivuti, 2013). According to
Veen (2013) due to merger and acquisition employees’ skills are not matched with their work.
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Authors also mentioned that a reason could be that, supervisors are occupied dealing with the
merger and acquisition, leaving to neglect their employees. Roundy (2010) suggested that
organizations waiting to improve the organizational commitment of their employees and, in
turn, improve the economic success of their merger and acquisition activity, should pay greater
attention to understanding and developing a narrative of the Merger and Acquisition. Bibler
(1989) identified two major problems that can occur in merger and acquisition: the loss of key
people and the loss of organizational effectiveness. Buono and Bowditch (1989) address the
hidden costs of combining organizations that include absenteeism, turnover, reduced output,
declining morale, loyalty, commitment and trust of those who remain in the post combination
firm. Authors also includes separation costs, replacement costs, training costs for each
replacement workers, and the cost involved with a high level of turnover as the hidden cost
factors.
The continued performance and loyalty of surviving employees depends on the efficacy of the
M&A’s process itself. The uncertainty of the Merger and Acquisition signals risk to company
employees. It might be assumed that employees who feel threatened or scared might prove less
effective than those who feel secure and contented. The hardest-hit employees are almost
certainly those who lose their jobs after an M&A deal. As, employee performance is affected
by the conflicts brought through the difference in structure and cultures in merged banks.
In Nepalese context, employee’s issues are the most important aspect of M&A process which,
if not handled well, may negatively impact employees’ satisfaction and switching intention.
Employees were found less satisfied after M&A compared to before M&A but switching
intention of employees was not found after M&A. However, possibility of employees leaving
BFIs was existed because employees those were satisfied expressed that they can get better
opportunity than the present job, and there would not be any problem in their life to
discontinue present job. They felt safe to get similar job in case of termination. It shows that
liquid employees market in Nepalese Banking Industry. It is concluded that employee’s
involvement in job redesign process as a participatory approach will lead to enhanced
employees satisfaction and reduction in switching intention. BFIs should think involving their
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employees in the M&A process and positively address human resources issues during M&A
processes (Gautam, 2016).
Adhikari (2014) has studied on four merger bank of Nepal has find out that the employees
were not satisfied by the wages, salary and working hours. The study also concluded that
employees are optimistic about the future on new company and wish to continue their job. In
overall, 20 percent employees were lay-off from different working department of the merged
entity. Similarly, 80 percent of the merged entity clients and customer are not aware of recent
structural changes in Nepalese financial sector. However, M&A has created a high degree of
confidence and hope in doing better performance by the merged entity among employers,
corporate clients and customer as well as shareholder’s. A positive signal has been visible in
the whole financial market injected by M&A. The results indicate that significant differences
exists between employees of Public Sector and Private Sector Banks regarding various aspects
of job satisfaction, pay and fringe benefits, supervision, training and development. But they
are significant in case of the aspects, relation with co-workers, employee empowerment,
supervision, performance appraisal and nature of job. This conclusion therefore leads to
contradiction if whether employees are satisfied negatively or positively. So, this study
examines the impact of M&A’s on employee satisfaction of Global IME bank ltd.
From the above discussion, the studies dealing with effect of merger and acquisition on
employee’s satisfaction of Global IME bank are of greater importance. Though there are these
findings in the context of different countries and in Nepal, no such findings using more recent
data exist in the context of Nepal. Hence, this study attempts to analyze the relationship
between “Perceived Effects of Merger and Acquisition on Employee Satisfaction of Global
IME Bank ltd.”
1.2 Purpose of the study
The Major objective of this study is to find out the perceived effect of Merger and Acquisition
on Employee’s Satisfaction of Global IME bank ltd. The specific objectives of the study are
as follows:
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1. To examine the level of Employee Satisfaction in Global IME bank.
2. To analyze the relationship of job security with Employee Satisfaction in Global IME
bank.
3. To identify the most important factor affecting Employee Satisfaction in Global IME
Bank.
4. To examine the impact of organization culture on Employee Satisfaction of Global

IME Bank.
5. To analyze the relationship of employee performance with Employee Satisfaction in

Global IME bank.
1.3 Significance of the study
Merger & Acquisition are defined as both aspects of strategic management, corporate finance
and management dealing with buying, selling, dividing and combining of different companies
that can help an enterprise grow rapidly in its sector or location of origin or new location.
After M&A’s the purpose of this quantitative descriptive study was to examine potential
factors affecting bank employee’s job satisfaction. To address this problem and fill this gap in
the literature, the current study examined the effect of demographic factors of race, gender, job
tenure, job level, age and level of education on job satisfaction of Global IME bank employees
after M&A. This study focuses on an analyzing relationship between different variable and
employee satisfaction. Since different variables affect satisfaction level of employees after
Merger and Acquisition, it focuses on an analyzing current scenario of this bank. Various
insights into how pay/remuneration, organization culture, job security, employee performance
affects perceived effect on Employee Satisfaction. This study clearly highlights further
enlighten managers of organization on proper ways to go about merging and acquiring other
firms without risking productivity of employees. This study tends to find the communication
gap between the employees and manager of Global IME bank. It can be helpful for manager to
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manage the service according to demand of employees in Merged Commercial Bank.
Furthermore, this study will serve as guide to other researchers who may wish to explore more
into the Effects of Mergers and Acquisitions on Employee Satisfaction of Global IME bank
ltd.
1.4 Literature Survey
This section includes review of related literature. The review of literature has been conducted
based on the chronological order. This empirical research is surveyed into two categories that
are review of literature according to date. The literatures found in terms of popular write-ups,
reports, studies/articles were reviewed. Studies in fact demonstrative the relationship between
selected variables and merger and acquisition has been selected for review. In this section, a
brief review of exiting studies, pertinent to present study has been presented. The review of
literature has been undertaken as under.
1.4.1 Review of major studies
1.4.2 Review of Nepalese studies
1.4.1 Review of major studies
There are various studies conducted on the topic perceived effect of merger on employee’s
satisfaction on Global IME bank ltd. The major literatures review is shown in the Table 1.1.
Table: 1.1
Review of Major Studies
Year of Researcher Research Topic Findings

publication
6
& volume
2013 Maimuna Shika Effect of Merger The bank employees were satisfied as result
Aliyu and Acquistion of Merger and Acquisition process in
on the DMB’s employees of kaduna metropolis.
Employees’ Job
satisfaction of
Deposit money
banks in Nigeria
2013 Mary Kivuti The influence of Merger and Acquisition affects employee
Mergers and pay and remuneration, sense of ownership
Acquisition on and performance of the employee.
Employee
Performance: A
Case of
Equatorial
Commercial
Bank
2011, Vol.
2(2) Mohammed- How is the firm Human resources issues are important
Amina Sanda dealing with the aspects of Merger which, if it is not well
& Pearl Adjei- Merger: A study handled, may impact negatively on
Benin of Employee employee satisfaction with consequent
satisfaction with repercussions on productivity and the
the change success of the merger.
process?
2011, Vol. Naveed, Impact of Merger Pre & Post Mergers and Acquisition has
3(7) Muhammad, and Acquisition negative effect on Motivation of employees
Anuar, Melati on Job Security & Job Security. But employee having post-
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Ahmad, Bilal & Motivation merger experience have positive response
& Ahmad Raza towards Motivation & Job Security.
2011, Vol. Rizwan Managing Post- Acceptance or Rejection of specific post-

2(3) Ahmad, Majed Acquisition acquisition cultural changes among
Rashid, Cultural Change: organizational members can only be
Muhammad A Case Study of influenced by how post-acquisition
Zia-Ur-Rehman Union Bank integration process was managed and
and NUML Limited (Now largely depends on the perception of future
slamabad Standard organizational success and self-
Chartered Bank determination for the benefits they expect
Pakistan Limited) can be gained through integration.
Aliyu (2013) concludes that bank employees were satisfied as result of merger and acquisition
process in DMB’s employees of Kaduna metropolis. The study set out to investigate the effect
of M&A on employees’ satisfaction in DMB’S of Kaduna metropolis by examining the effects
of morale and psychological threat as it affects employee job satisfaction. The study
hypothesized that there is no significant relationship between job satisfactions of bank
employees due to M&A of DMB’s in Kaduna metropolis. The study is a quantitative
descriptive study using questionnaire (Minnesota Satisfaction Questionnaire) as instrument of
data collection. The research design adopted for the study was survey method using Chi square
test of goodness of fit to examine the research hypothesis. The survey data was subjected to
statistical data analysis to reveal the level of satisfaction of employees of the DMB’s. In
addition, it also concludes that morale of the bank staff is somewhat impressive and merger
and acquisition has not caused any threats as regards employees’ psychology due to the change
process.
Kivuti (2013) analyzed the influence of merger and acquisition on employee performance a
case of equatorial commercial bank. Merger and Acquisition are often associated with various
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effects on the human resource side of it. The study made use of a survey questionnaire
administered to each member of the sample population. The questionnaire had both open and
close-ended questions. The researcher carried out a pilot study with a group of 10 individuals
to pretest and validates the questionnaire with a qualitative research design methodology. The
empirical result of the study finds that employee pay and remuneration affects employee
performance in the merged organization. In addition, study concludes the Merger affects the
sense of ownership and belonging among the employee performance in the merged
organization. It also concludes that employees understood the procedures, policies and
responsibilities that are part of their job in the merged bank setting and job security affects the
employee performance in bank.
Sanda and Adjei-Benin (2011) concluded that human resource issues are important aspects of
merger which, if it is not handled, may impact negatively on employee satisfaction with
consequent repercussions on productivity and the success of the merger. The survey approach
was used in this study to obtain data. Since this study was organization-oriented, Convenience
sampling was used to select the study participants. A total of 200 questionnaires were
distributed. All the 200 questionnaires administered were returned, representing 100%
response rate. Out of this, 169 (84%) questionnaires were fully score and found usable
whereas 31 questionnaires were rejected. The data was then analyzed using the SPSS software.
The result also showed that mergers affect organizations in variety of ways, with people
management implications could potentially impact on employee satisfaction. The findings
have therefore showed that change management creates human resource issues and mergers,
employees may be dealing with feeling of loss, which they have to cope with uncertainty,
anxiety, possible geographic relocation, change in career paths and alternatives in work
practices. It was also concluded that employee satisfaction to a merger-induced organizational
changes could be enhanced by instituting effective two-way communication system and using
participatory approaches in job-redesign processes.
Naveed et.al. (2011) concluded that employees who works in the both pre and post-mergers
and acquisition environment strongly feels that their motivation level is unsatisfactory. In
addition, employee who works at both pre and post-merger and acquisition environment feel
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strong threat to their job security. In this research paper, data are collected through
constructive questionnaires, distributed to middle management as well as strategic apex of
various banks in operation under the environment of M&A’s. 165 questionnaires were
circulated among employees working under the environment of M&A’s with 94 respondents.
Employees and managers of few banks were personally interviewed. It found out the overall
impact of these processes have had on individuals employed in banking sector of Pakistan. On
the other hand, employees having only post-merger and acquisition job experience have shown
positive response towards motivation and job security.
Ahmad, et.al. (2011) empirically tested the significance of relationship in managing post
acquisition cultural changes. The target population was employees of a bank Pakistan. The
study was concluded by using five factors including; culture, approach/strategy, people and
organization. Data were collected through a questionnaire of five points. Likert scale which
was designed after conducting unstructured interview of respondents. Managing post
acquisition cultural changes the research variable show a fair relationship overall. Variable
approach/strategy has developed a modest relationship for a decision or development of
effective post acquisition transition. Non-probability convenience sampling method was used
for selection with sample size of 100. The finding shows moderate relationship among the
research variable.
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1.4.2Review of Nepalese study
The major Nepalese literature that have been reviewed are presented in Table 1.2
Table 1.2
Reviews of Nepalese study
Year of Researchers Research Topic Findings

publication
& volume
2016, Vol. Chinta Mani Employees’ Job Employees feel uncertainty after M&A of
3(2) Gautam Satisfaction and banking and financial institutions and shows
Switching intention dissatisfaction with merger and acquisition
associated with process comparing to before merger.
merger and
acquisition of
Nepalese Banks and
Financial Institutions
2013 Hari Prasad Corporate Merger in Merger enhances banking, financial, HR and
Pathak Nepal technical capabilities of FIs. By means of
mergers they could enhance the confidence
of public towards BFIs.
2013, Vol. Jackson Causes of Attrition of Working condition, nature of work,

3(2) Subedi Senior Level organizational philosophy, salary and career
Employees: A study progression are factors that caused attrition
on selected to some level.
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Commercial Banks of
Nepal
Feedback provided to the employees is the
2013 Mekh Khatri Job Satisfaction and most influencing factor for increasing
Employee employees’ job satisfaction followed by
Performance autonomy and task significance
2014 Santosh Merger and Employee of HRM tends to fall sharply

Adhikari Acquisition as an triggered by merger activity. It has been
Indispensable tool for observe no remarkable shift of employees. It
strengthening also appears that employees were not
Nepalese Banking satisfied by the wages, salary and working
and Financial hours and concerned by banking and
Institutions financial institutions.
Gautam (2016) concluded that employees feel uncertainty after M&A of banking and financial
institutions and show dissatisfaction with the merger and acquisition process comparing to
before merger and acquisition. Employees do not enjoy job after merger and acquisition, even
they do not show switching intention. However, satisfied employees expressed that they have
switching intention. They felt that they are competent enough to get better job. Education has
impact on job satisfaction but not in switching intention due to merger and acquisition process.
But the level of job has no impact on job satisfaction but has significant impact on switching
intention. Work experience has significant impact on both the job satisfaction and job
switching intention. In addition satisfaction level increases with the increase in work
experience and switching intention is higher if employees have work experience of more than
2 but less than 3 years with merged banking and financial institutions. To some extent
remuneration also impact on job satisfaction and switching intention due to merger and
acquisition process. The study shows that a survey among 180 employees of 27 Bank and
Financial Institution who witnessed M&A has been conducted using six point Likert scale
questionnaires. The study followed Survey research design. Survey was done among the
employees of those BFIs that went to M&A. The Convenience sampling was used to select the
sample respondents. Out of 210 questionnaires only 180 were taken for analysis.
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Pathak (2013) attempted to examine the forces that work behind the merger activity in Nepal.
The study covered all the 24 BFIs that were involved in merger during the sample period of
nine years from 2004 to 2012. Both primary and secondary data have been used for the study.
The result of the study showed that merger alone could not enhance the banking, financial, HR
and technical related capabilities, therefore, the study suggested the concerned authority to
establish a special cell of experts to deal with such problems of merged appraisal institutions.
This effort is also important to: (i) enhance the confidence of public towards BFIs, (ii) protect
the interest of depositors, (iii) maintain stability in financial sector, and (iv) upholdgood
governance.
Subedi (2013) carried out a study on causes of attrition of senior level employees on selected
commercial banks in Nepal to investigate the factors causing attrition in Nepalese banking
sector. The research was based on the data collected from senior level employees of 10
commercial banks out of 32. Structured questionnaires and interviews were used to receive the
responses from the respondents. Purposive sampling was used to identify the banks to choose
the respondents for this research. Similarly, convenience sampling was used to select the
commercial banks based upon availability of data from banks. Responses have been collected
from 102 senior level employees working in different branches of commercial banks inside the
Kathmandu valley. The study revealed that working condition, nature of work, organizational
philosophy, salary and career progression are the factors that caused attrition to some level.
Working condition and nature of work was positively associated with the attrition with high
level of significance. Similarly, organizational philosophy, salary and career progression were
negatively associated with attrition and were insignificant.
Khattri (2013) found that employee satisfaction has indirect impact on banks’ performance in
terms of loan growth, volume of deposit collection and net interest margin is contradicts with
Chi and Gursoy (2009) research which found that employee satisfaction has no direct
significant impact on performance of banks. Likewise, the study also concluded that increase
in job satisfaction level of employees increases the financial performance of commercial banks
because the results showed that motivating potential score have significant positive impact in
market financial performance and economic financial performance of commercial banks.
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Adhikari (2014) finds that employee of HRM trend to fall sharply triggered by merger activity.
In addition it implies that the employees working outside the capital city shows no fear of
losing job as well no remarkable shift of employees has been observe. Web based online
survey tool has been used to identify the impact of M&A’s on the employees & service
consumers of merged entities. The data is collected by using multiple choice question as well
as open ended questions. The questionnaire was distributed through the HRM department of
the merged entity. The survey was started to collect the information from the period of 2013 to
2014. The survey was conducted among four merged banks namely Macchapuchchhre Bank
Limited, Apex Development Bank, Yeti Development Bank &NICASIA Bank Limited. The
result has obtained by comparing pre and post-merger financial performance of sampled banks
namely Macchapuchchhre Bank Limited and Global IME Bank Limited. It concludes that
sampled bank can produce more return to its shareholders in the future. He found that 31 out
of 94 employees fully disagree, meaning that they were not enjoying working on sampled
bank. It also appears that employees were not satisfied by the wages, salary and working hours
concerned by bank and financial institutions.
.1.5 Conceptual framework
In this study, there are different Effects of Merger on employees of Global IME bank. The
conceptual framework in this study consists of four independent variables i.e.
pay/remuneration, job security, employee performance and organization culture. Whereas
there is single dependent variable i.e. Perceived Effect on Employee Satisfaction. The
conceptual frame work is shown in Figure 1.1
Independent Variable
Pay/Remuneration Dependent Variable

Job Security
Employee Performance Perceived Effect on Employee Satisfaction
Organization Culture
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1.6 Operational Definition of V
1.6 Operational Definition of Variable
Pay/Remuneration
Remuneration is defined as total compensation received by an employee which includes not

only person’s base salary but also options, bonuses, expense accounts and other forms of
compensation. It also refers to the reward for employment in the form of pay, salary or wage
including allowances, benefits, bonuses, cash incentives and monetary value of the non-cash
incentives. It includes the factors like wage & benefits, terms of employment, performance
based pay and allowances/bonuses. It is one of the independent variable that effect satisfaction
level of employee. It means reward or compensation given to employee for their work
performance. Pay/Remuneration provides basic attraction to an employee to perform job
efficiently and effectively after merger process. It leads to motivation. It is expected that the
pay/remuneration has positive impact on employee satisfaction. Based on it, the study
develops the following hypothesis.
Hypothesis 1:There is positive relationship between Merger and pay/remuneration
Job Security
Job Security is the assurance a person receives that a current position is secure without the risk
of unemployment. After Merger and Acquisition, two companies will have a large number of
employees who will be doing the same job and that half of those job will be redundant. During
a merger, this period of uncertainty works as disadvantage to employees of the bank being
taken over. These employees may have less trust and commitment to the new organization,
which might has negative impact on employee satisfaction. Based on it, the study develops the
following hypothesis.
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Hypothesis 2: There is positive relationship between Merger and job security.
Employee Performance
Employee performance is defined as whether person executes their jobs duties and
responsibilities well. This are the job related activities expected of a worker & how well those
tasks are executed to satisfy rating system used to determine the abilities & output of an
employee. After Merger process, if the performance of the employee is high, then it is
expected that it has positive impact on employee satisfaction. Based on it, the study develops
the following hypothesis.
Hypothesis 3: There is positive relationship between Merger and employee’s performance
Organization Culture is a system of shared assumptions, values and beliefs which governs how
people behave in organization. During Merger and Acquisition effort, there are at least two
groups of employees involved, often coming from organizations with distinctly different
cultures and styles. A good organization culture can increase organizational usefulness and
raise productivity. The organization also needs a culture that encourages restructuring & this
requires being open with employees about what Merger and Acquisition involves. . It is
expected that the organization culture has positive impact on employee satisfaction. Based on
it, the study develops the following hypothesis.
Hypothesis 4: There is positive relationship between Merger and organization culture.
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1.7Research Methodology
Research methodology sets out overall plan associated with a study. It provides a basic frame
work on which the study is based. Before presenting the analysis and interpretation of data,
research methodology is necessary. Research Methodology is a systematic way to solve the
research problem. Research Methodology refers to various sequential steps to be adopted by a
researcher in studying problem with certain objective in view.. The chapter consists of research
design, sample size, selection process, data collection procedure and data processing
techniques and tools.
1.7.1 Research Design
A research design is the specification of methods and procedures for acquiring the information
needed. It is the operational pattern of framework for the project that specify what information
is to be collected from which sources and by what procedures.
1.7.2 Research Approach
This study has employed Descriptive Research design to deal with fundamental issues
associated with employees due to merger and acquisition in the Global IME Bank. This
research is based on Descriptive Research Design with the aim of accumulating facts and
involves the systematic collection and presentation of data to give clear picture of particular
situation. It classifies the variables related to the research problem and will analyze and
establish their relationship.
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This study also established the relationship between two or more variables. Hence, this study
also employs Correlational study to see the relationship and degree of relationship between
variables.
1.7.3 Population Sample
The target population is defined as all the number of real or hypothetical set of people, events
or objects the researcher wishes to generalize in the results of research. The population of this
study consists of all the employees of Global IME Bank. As Kathmandu is the hub of the
country’s economy where most of the commercial banks are there, Kathmandu valley has been
taken for the study. The employees who work in the Global IME Bank are selected as a
population for this study. 10 branches are taken as sample based on given sampling criteria to
draw conclusion about population.
1.7.4 Sampling Procedure
In this study, for the selection of the sample respondent, Convenience sampling has been used.
The total sample respondents are 70. This study is based on primary source of data collected
from the employees of Global IME Bank. A sample of 70 respondents (n=70) of Global IME
Bank employee’s is covered by the questionnaire concerning the factors which effects on the
employee’s satisfaction after merger. The number of employees of 10 branches of Global IME
bank that was taken as the sample for the study is shown in Table 1.3
Table 1.3: Name of 10 Branches of Global IME Bank along with the number of
respondents
SN Selected ten branches No of Respondents
1 Baneshwor branch 7
2 Gwarko branch 6
3 Kalanki branch 10
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4 Koteshwor branch 6
5 Kuleshwor branch 9
6 Anamnagar branch 7
7 Satdobato branch 4
8 Nakkhu branch 5
9 Langankhel branch 6
10 Kamaladi branch 10
Total 70
Thus, this study is based on 70 respondents
1.7.5 Data Collection Tools/Technique
This study is based on primary source of data collected from the employees. Primary data is
collected by means of questionnaire administration. The data is collected through
communicating with employees, assistant level of the merged bank. 5 point Likert scale is
used for this study. It is widely used rating scale that requires the respondents to indicate a
degree of agreement or disagreement with each of a series of statement. All the employees are
asked to give their view within 5 options.
For gathering the data in this field, questionnaire is prepared on the basis of literature review
and guidance of supervisor. Structured question is distributed to the employees of the Merged
Commercial banks. Questionnaire includes both close-ended and open-ended questions. The
questionnaire is design to collect the information of Perceived Effect of Merger on Employee’s
satisfaction of Global IME bank. The questionnaires is distributed among the respondents and
the responses will be collected thereafter. After gathering all the completed questionnaires
from the respondents, for the analysis and interpretation of the data, Excel and SPSS is used.
Total responses collected from the respondent will be coded and tabulated into SPSS
worksheet. Depending upon the nature of the question such as multiple choices, ranking scale
and Likert Scale, the coding is followed as per the rule. After the analysis and interpretation of
the responses, the results will be ready to present.
1.7.6 Data Analysis Tools
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The Descriptive techniques like Mean, Standard deviation, Weighted Average Mean,
Coefficient of correlation, Regression are used to analyze the data collected for this study.
1.7.7 Models and variables
The study aims to analyze the effect of merger on employee’s satisfaction of Global IME bank.
In this study, the model has been used to test the theoretical relationship of the bank merge
with effects on employees. The effect on employees dimensions are categorized into four
independent variables which are pay/ remuneration, job security, employee performance and
organization culture where as one dependent variable is perceived effect on employee’s
satisfaction of Global IME bank. Regression models are used in this study to analyze the effect
of merger on employee’s satisfaction of Global IME bank. The regression model used in this
study is as follows:
Model I
Model I represents the perceived effects on employees after merge of Global IME bank.
PE = β0 + β1PR + β2OC + β3 JS+ β4EP+e…… (i)
Where,
PE= Perceived effect on employees
PR= Pay and remuneration

JS= Job security
EP= Employee performance
OC=Organization Culture
β0 = Intercept of the dependent variable
e= error term and β1, β2, β3 and β4, are the beta coefficients of the explanatory variables to be
estimated
1.8 Organization of the study

Broadly, this study has three chapters from introduction to summary and conclusions. The first
chapter, introduction, deals with the subject matter of the study which includes general
background, statement of the problem, research questions, purpose of the study (major and
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specific), review of related studies (review of major studies and Nepalese studies), conceptual
framework and research methods (research design, population & sample, sampling procedure,
data collection tools, data analysis tools, limitations of the study and organization of the
study). The second chapter, data analysis and major findings, include presentation and analysis
of the data collected through primary method and major findings and discussion. The last
chapter deals with summary, conclusion and recommendation.
CHAPTER II
DATA PRESENTATION AND ANALYSIS
This chapter provides systematic presentation and analysis of primary data. Different statistical
and regression model have been used for the study purpose. This section is divided into three
sections. The first section deals with the presentation and analysis of the primary data and
presents the results of questionnaire survey. The second section covers the analysis of
regression model including correlation analysis. The third section of this chapter deals with
concluding remarks associated on the basis of findings from primary data analysis.
21
2.1 Presentation and analysis
This study is primarily based on primary data analysis, which mainly deals with qualitative
aspects in terms of effect on employee’s satisfaction of Global IME bank. In this section,
primary data are taken in consideration to measure the influence of merger in the employee’s
satisfaction of Global IME bank. This section also reports the results of questionnaire survey
conducted among different groups of employees. Questionnaire survey was designed to
understand the views of the respondents in relation to the employee’s satisfaction of Global
IME bank with the factors like pay remuneration, job security, employee performance and
organizational culture. A set of questionnaire including yes/no types, multiple choices,
rankings, and Likert scale questions are provided. Altogether 70 respondents are surveyed and
analyzed in accordance with the objectives of the study. The questionnaires were distributed
among the respondents and the responses were collected thereafter. After gathering all the
completed questionnaires from the respondents, for the analysis and interpretation of the data,
Excel and SPSS are used. Total responses collected from the respondent were coded and
tabulated into SPSS worksheet. Depending upon the nature of the question such as multiple
choices, ranking scale and Likert Scale, the coding was followed as per the rule. The
respondents profile along with their personal characteristics and result of the survey are
presented in below.
2.1.1 Respondent Profile
The respondent’s demographic profile reveals the personal characteristics of respondents

combined on the basis of gender, age, academic qualification, banking experience, and job
grade of respondent. Thus, we can accept that demographic factors are frequently used as a
basis for understanding consumer characteristics. Demographic characteristics play a vital role
in understanding the buying behavior of consumers.
There are five demographic categories that the respondents were asked to complete in order to
fill out the demographic profile of them. The distributed collected sample based on these
demographics profile presented as follows. This section deals with gender, age, academic
22
qualification, banking experience and job grade of the respondents which are shown in Table
2.1.
Table 2.1
Demographic characteristics of respondents
(This table shows the number of respondents and percent with the classification on gender, age,
academic qualification, banking experience and job grade.)
Respondents’ character Number of Percentage (%)
respondents
Gender
Male 32 45.7
Female 38 54.3
Total 70 100
Age Group (Years)
Below 20 0 0
20 to 30 39 55.7
30 to 40 28 40
40 to 50 3 4.3
50 and above 0 0
Total 70 100
Academic qualification
PHD 2 2.9
Masters 33 47.1
Bachelors 33 47.1
Intermediate 2 2.9
SLC and below 0 0
Total 70 100
Banking experience
Less than 1 10 14.3
1 to 5 year 30 42.9
5 to 10 year 25 35.7
10 to 15 year 4 5.7
15 and above 1 1.4
Total 70 100
Job grade
Assistant 34 48.6
Supervisor 13 18.6
Officer 17 24.3
Manager 4 5.7
Senior Manager 2 2.9
Total 70 100
23
Source: Field Survey, (2017)
The Table shows that the majority of the respondents of this study are female (54.3 percent)
followed by 45.7 percent of male respondents. The figure shows that majority of the
respondents (55.7 percent) were in age group between 20 to 30 years and 40% percent were in
the age group between 30 to 40 years. Similarly, 4.3% of respondents were in the age group of
40 to 50 years. There were no respondent in the age group below 20 years and 50 and above
years. Among 70 of respondents, majority of respondent are qualified up to Masters (47.1
percent) and Bachelor (47.1 percentage) level. Similarly, 2.9 percentage of respondents were
qualified up to PHD and intermediate. There are no respondents of SLC and below. Among 70
respondents, 42.9% of respondent have experience of 1 to 5 years. Similarly, 35.7% of the
respondents have experience of 5 to 10 years, 14.3% of the respondent has experience of less
than 1 year, 5.7% of the respondents have experience up to 10 to 15 and 1.4% of the
respondents have experience of 15 years and above. The majority of respondent are assistant
(48.6percent). Whereas 24.3 % of the respondents are officer level, 18.6% of the respondents
are in supervisor, 5.7% of the respondents are manager and 2.9% of the respondents are senior
manager.
2.1.2 Responses regarding does merger affect employee’s performance in the bank
There are various effects of merger on employee’s performance. The effects of merger on
employee’s performance are shown in Figure 2.1
Figure: 2.1
Responses regarding does merger affect employee’s performance in the bank
24
5.71%
Yes No No idea
31.43%
62.86%
Figure 2.1 shows the response regarding does merger affect employee’s performance on the
banks. 62.8% of the respondent believes that merger affects the employee’s performance in the
banks and 31.4% respondents believe merger doesn’t affect the employee’s performance in the
banks. Similarly, 5.7% have no idea about it.
2.1.3 Responses regarding were employees informed about the merger before the final
decision
There are various information employee should get before the final decision of merger. The
information to employee about merger before final decision as per the respondents is shown in
Figure 2.2.
Figure: 2.2
Responses regarding were you informed about the merger

25
10.00% 24.30%
65.70%
Yes No Noi dea

Sour
ce: Field Survey, (2017)
Figure 2.2 shows that majority of employees (65.70 percent) were not informed about the
merger before the final decision. Whereas 24.3% of employees were informed about the
merger before the final decision and 10% of employees have no idea about the information
about the merger before the final decision.
2.1.4 Response regarding were employees involved in the merger process
The employees involved in merger process as per the respondents is shown in Figure 2.3.
Figure: 2.3
Responses regarding were employees involved in merger process
26
Sales
1.40% 5.70%
92.90%
Yes No No i dea
Sour
Figure 1.3 shows that the majority of employees were not involved in the merger process
(92.90 percent). Whereas 5.70% of employees were involved in the merger process and 1.4%
of employees have no idea about it.
2.1.5 Responses regarding job responsibility change after merger
The responses regarding job responsibility change after merger as per the respondents are
shown in Figure 2.4.
Figure: 2.4
Response regarding is merger necessary in the context of Nepal
27
Column1
7.10%
32.90%
60.00%
Yes No No i dea
Sour
Figure 2.4 show that 60% of employee’s believes that job status did not changed after merger.
Similarly, 32.9% thinks job status changed after merger and 7.1% have no idea about it.
2.1.6 Responses regarding is merger necessary in the context of Nepal
The responses regarding need of merger in context of Nepal as per the respondents are shown
in Figure 2.5.
Figure: 2.5
28
Response regarding is merger necessary in the context of Nepal
17.10%
2.90%
80.00%
Yes No No i dea
Sour
Figure 2.5 shows that 80% of employee’s believes that merger is necessary in context of
Nepal, 17.1% of employees have no idea about it and 2.9% of employees believe that merger
is not necessary in the context of Nepal.
2.1.7 Responses regarding bank can provide good working environment after merger
The responses regarding bank can provide good working environment after merger as per the
respondents are shown in Figure 2.17.
29
Figure: 2.6
Response regarding bank can provide good working environment after merger
10.00%
18.60%
71.40%
Yes No No i dea
Sour
Figure 2.6 shows that 71.40% thinks that banks can provide good working environment after
merger. Whereas 18.60% thinks banks cannot provide good working environment after merger
and 10% have no idea about it.
2.1.8 Response regarding bank can provide good remuneration after merger
The response regarding bank can provide good remuneration after as per the respondents is
shown in Figure 2.7.
30
Figure: 2.7
Responses regarding bank can provide good remuneration after merger
20.00%
57.10%
22.90%
Yes No No i dea
Figure 2.7 shows that majority of the employees thinks that bank can provide good
remuneration after merger (57.1%). Whereas, 22.90% of employees does not think that bank
can provide good remuneration after merger and 20% have no idea about it.
2.1.9 Responses related to ranking questions
The following tables show the responses related to the ranking questions from I to V Where ‘I’
indicates the most important factors and ‘V’ indicates the least important factors.
31
Major reasons for merger in Nepalese banks
The major reasons for merger in Nepalese banks are explained in Table 2.8
Table 2.8
Ranking scores of major reasons for merger in Nepalese banks
This table represents the responses on ranking scores major reasons for merger in Nepalese banks. The
rank order 1 indicates most important one and so on up to 6 indicating the least important one.Also
reported are the weighted mean value of rank score and overall ranks.
Major reasons Ranks Mean Overal

1 2 3 4 5 Tota
l ranks
l
Improved employees 7 11 13 7 32 70 3.65 I
satisfaction
Increased size of the bank 22 22 10 11 5 70 2.35 V
Improved service and product 9 16 13 23 9 70 3.1 III
of bank
Increased profitability of the 4 8 27 17 14 70 3.41 II
bank
Fulfillment of Nepal Rastra 28 13 7 12 10 70 2.47 IV
Bank obligation
Table 2.8 indicates the most important reason for merger in Global IME bank. Mean rank score for
the “Improved employees’ satisfaction” is 3.65 making it most important reason for merger in
Global IME bank. The second most important factor is “Increased profitability of the bank” with
mean score 3.41. “Improve service and products of banks” has been ranked third by the respondent
with the mean score 3.1. Mean score for “Fulfillment of Nepal Rastra Bank obligation” and
“Increased size of the bank” are 2.47 and 2.35 respectively and are ranked as fourth and fifth.
Major importance of merger
The importance of merger is explained in Table 2.9

32
Table 2.9
Ranking scores of importance of merged banks
This table represents the responses on ranking scores of major importance of merger. The rank order 1
indicates most important one and so on up to 5 indicating the least important one. Also reported are
the weighted mean value of rank score and overall ranks.
Importance Ranks Mean Overall

1 2 3 4 5
ranks
More opportunities for growth 30 11 10 7 12 2.42 V
Gain higher competitiveness 16 19 15 9 11 2.71 IV
To improve profitability 4 24 16 13 13 3.1 III
Achieve administration benefits 5 8 17 27 13 3.5 I
Enter new market 15 8 12 14 21 3.25 II
Table 2.9 indicates the major importance of merger in Global IME bank. Mean rank score for the
“Achieve administration benefits” is 3.5 making it major importance of merger in Global IME
bank. The second most important factor is “Enter new market” with mean score 3.25. “To improve
profitability” has been ranked third by the respondent with the mean score 3.1. Mean score for
“Gain higher competitiveness” and “More opportunities for growth” are 2.71 and 2.42 respectively
and are ranked as fourth and fifth.
2.1.10 Pay/ Remuneration of employees satisfaction
This section discusses about the various statements regarding ‘pay/remuneration’ as an

independent variable under which different questions are prepared on the basis of it is shown
in the Table 2.10
Table: 2.10
Respondent’s responses regarding Pay/Remuneration
33
This table shows the pay/ remuneration of employees of merged banks. The number as frequency, percentage,
average, weighted average and aggregate weighted average of respondent in five Likert scale 1 as strongly
disagree, 2 disagree, 3 neutral, 4 agree and 5= strongly agree.
Statement Scale
1 2 3 4 5 Total Average
F 2 4 22 32 10 70
31. 45.
A% 2.9 5.7 4 7 14.3 100
I am satisfied with responsibility of 31.
my job after merger. % 8.6 4 60 100 3.62
F 5 12 20 22 11 70
17. 28. 31.
A% 7.1 1 6 4 15.7 100
I am paid based upon my 28.
performance after merger. % 24.2 6 47.1 100 3.31
F 7 9 19 24 11 70
12. 27. 34.
A% 10 9 1 3 15.7 100
I feel that wages and benefits are fair 27.
enough after merger. % 22.9 1 50 100 3.32
Weighted average mean 3.41
The table shows the analysis pay /remuneration of merged bank employees. The respondent’s
opinion regarding pay remuneration of merged Global IME Bank is presented in the table
which explains that majority of the respondents agree with the second statement that this firm
focus on performance based pay in merged bank and disagree with the first statement that
employees are satisfied with their job responsibility.
The majority of the respondents (60 percent) believe that employees are satisfied with their
responsibility of merged banks while 31.4 percent of the respondents neither agrees nor
disagrees with this statement and 8.6 percent of the respondents do not believe that employees
are satisfied with the responsibility. While the mean value for the statement that I am satisfied
with responsibility of my job is 3.62.
34
The majority of the respondents (47.1 percent) believe that employees are paid based on their
performance while 28.6 percent of the respondents neither agrees nor disagrees with this
statement and 24.2 percent of the respondents do not believe that employees are paid based on
their performance. While the mean value for the statement that employees are paid based upon
their performance is 3.31.
The majority of the respondents (50 percent) feel that employees wage and benefits are fair
enough. While, 27.1 percent of the respondents neither agrees nor disagrees with this.01
statement and 22.9 percent of the respondents are against the statement that employee’s wages
and benefits are fair enough. While the mean value for the statement that employee’s wages
and benefits are fair enough are 3.32.
Weighted average mean value for pay remuneration of merged bank is 3.41 which indicate that
effect of merger on employee’s satisfaction of Global IME bank has been executed properly.
This also indicates that employee satisfaction of merged bank is more focused on increasing
employee satisfaction level through enhancing the pay /remuneration of employees’. This
shows variation does not exists in the perception of effect on employees of Global IME bank.
2.1.11 Job Security of employees satisfaction
This section discusses about the various statements regarding ‘job security’ as an independent
variable under which different questions are prepared on the basis of it is presented in the
Table 2.11
Table: 2.11
Respondent’s responses regarding Job Security
This table shows the job security of employees of merged banks. The number as frequency, percentage, average,
weighted average and aggregate weighted average of respondent in five Likert scale 1 as strongly disagree, 2
disagree, 3 neutral, 4 agree and 5= strongly agree.
35
Statement Scale
F 5 11 23 20 11 70
A% 7.1 15.7 32.9 28.6 15.7 100

I feel totally secured in my
job after merger. % 22.8 32.9 44.3 100 3.3
F 3 4 15 40 8 70
A% 4.3 5.7 21.4 57.1 11.4 100

I am satisfied with the
work I am assigned. % 10 21.4 68.5 100 3.65
F 12 10 21 17 10 70
I feel possibility of
promotion and more A% 17.1 14.3 30 24.3 14.3 100
opportunity in merged
bank % 31.4 30 38.6 100 3.04
The table shows the effect on employee satisfaction associated with merger. The respondent’s
opinion regarding the job security of employee is presented in the table which explains that
majority of the respondents agree with the third statement that I feel possibility of promotion
and more opportunity in merged bank While majority of the respondents disagree with the
second statement that I am satisfied with the work I am assigned.
The majority of the respondents (44.3 percent) believe that employees are totally secured in
their job after merger while 32.9 percent of the respondents neither agrees nor disagrees with
this statement and 22.8 percent of the respondents does not believe that employees are totally
secured in their job after merger While the mean value for the statement that employees are
totally secured in their job after merger is 3.3.
The majority of the respondents (68.5 percent) believe that employees agrees with this
statement that employees’ are satisfied with the work assigned while 21.4 percent neither agree
36
nor disagrees that employees are satisfied by assigned while 10 percent of the respondents
does not agrees with this. While the mean value for the statement that employees’ are satisfied
with the work assigned is 3.65.
The majority of the respondents (38.6 percent) agree that employees have opportunity in
merged bank. While, 30 percent of the respondents neither agrees nor disagrees with this
statement and 31.4 percent of the employee disagrees that there is possibility of promotion and
more opportunity in Global IME bank .While the mean value for the statement that there is
possibility of promotion and more opportunity in merged bank is 3.04.
Weighted average mean value for job security of merged bank is 3.33 which indicate that
effect of merger on employee’s satisfaction of Global IME bank has been executed properly.
This also indicates that employee satisfaction of merged bank is more focused on increasing
employee satisfaction level through enhancing the job security of employee’s. This shows
variation does not exists in the perception of effect on employees of Global IME bank
regarding the job security.
2.1.12 Employee Performance of Global IME Bank employees
This section discusses about the various statements regarding ‘employee performance’ as an
independent variable under which different questions are prepared on the basis of it is
presented in Table 2.12
Table: 2.12
Respondent’s responses regarding Employee Performance
This table shows the employee performance of employees of merged banks. The number as frequency, percentage,
37
Statement Scale
F 0 11 11 35 13 70
A% 0 15.7 15.7 50 18.6 100

I can achieve my goals
working in this bank. % 15.7 15.7 68.6 100 3.71
F 2 11 10 35 12 70
I feel employee A% 2.9 15.7 14.3 50 17.1 100

performance has increased
after merger. % 18.6 14.3 67.1 100 3.62
F 1 13 16 27 13 70
A% 1.4 18.6 22.9 38.6 18.6

I feel creativity has been
increased after merger. % 20 22.9 57.2 3.54
opinion regarding the employee performance of employee is presented in the table which
explains that majority of the respondents agree with the third statement that I feel creativity
has increased after merger. While majority of the respondents disagree with the one statement
that I can achieve my goals working in this bank.
The majority of the respondents (68.6 percent) believe that employees can achieve their goals
working in the merged bank while 15.7 percent of the respondents neither agrees nor disagrees
with this statement and 15.7percent of the respondents do not believe that employees can
achieve their goals working in the merged bank. While the mean value for the statement that
employees enjoy can achieve their working in the merged bank is 3.71.
38
The majority of the respondents (67.1 percent) of the respondents believe that employees
performance has increased after merger while 14.3 percent of the respondents neither agrees
nor disagree that employees performance has increased after merger and 18.6 percent of the
respondents disagrees with this statement. While the mean value for the statement that
employees performance increased after merger is 3.62.
The majority of the respondents (57.2percent) believe that employees feel creativity has
increased after merger while 22.9 percent of the respondents neither agrees nor disagrees with
this statement and 20 percent of the respondents do not believe that employees feel creativity
has increased after merger. While the mean value for the statement that employees feel
creativity has increased after merger is 3.54.
Weighted average mean value for employee performance of merged bank is 3.62 which
indicate that effect of merger on employee’s satisfaction of Global IME bank has been
executed properly. This also indicates that employee satisfaction of merged bank is more
focused on increasing employee satisfaction level through enhancing the employee
performance of employees’. This shows variation does not exists in the perception of effect on
employees of Global IME bank regarding the employee performance.
2.1.13 Organization Culture of Global IME Bank employees
This section discusses about the various statements regarding ‘Organization culture’ as an
independent variable under which different questions are prepared on the basis of it is
presented in Table 2.13
Table: 2.13
Respondent’s responses regarding Organization Culture
This table shows the organization culture of employees of merged banks. The number as frequency, percentage,
39
Statement Scale
F 1 3 14 28 24 70
I enjoy working with
A% 1.4 4.3 20 40 34.3 100
the employees of
different cultures. % 5.7 20 74.3 100 4.01
F 2 5 8 36 19 70
I feel all co-workers
A% 2.9 7.1 11.4 51.4 27.1 100
respect each other ideas
and values. % 10 11.4 78.5 100 3.92
I have to change my F 7 4 19 28 12 70
behavior to suit
A% 10 5.7 27.1 40 17.1 100
different cultural
situation and people. % 15.7 27.1 57.1 100 3.48
opinion regarding organization culture of employee is presented in the table which explains
that majority of the respondents agree with the third statement that I have to change my behavior
to suit different cultural situation and people. While majority of the respondents disagree with the
first statement that I enjoy working with the employees of different cultures.
The majority of the respondents (74.3 percent) believe that employees enjoy working with the
employees of different cultures in the merged bank while 20 percent of the respondents neither
agrees nor disagrees with this statement and 5.7 percent of the respondents do not believe that
employees enjoy working with the employees of different cultures in the merged bank. While the
mean value for the statement is 4.01.
40
The majority of the respondents (78.5 percent) of the respondents believe that employees feel
all co-workers respect each other ideas and values. While 11.4 percent of the respondents
neither agrees nor disagree with the statement and 10 percent of the respondents disagrees with
this statement. While the mean value for the statement that that employees feel all co-workers
respect each other ideas and values is 3.92.
The majority of the respondents (57.1 percent) believe that employees have to change their
behavior to suit different cultural situation and people. While 27.1 percent of the respondents
neither agrees nor disagrees with this statement and 15.7 percent of the respondents do not
believe that employees have to change their behavior to suit different cultural situation and
people after merger. While the mean value for the statement that employees have to change
their behavior to suit different cultural situation and people after merger is 3.48.
Weighted average mean value for employee have to change their behavior to suit different
cultural situation and people after merger is 3.80 which indicate that effect of merger on
employee’s satisfaction of Global IME bank has been executed properly. This also indicates
that employee satisfaction of merged bank is more focused on increasing employee

satisfaction level through enhancing the organization culture of employees’. This shows
variation does not exists in the perception of effect on employees of Global IME bank
regarding the organization culture.
2.1.14 Perceived effect on Employee Satisfaction of Global IME Bank
This section discusses about the various statements regarding ‘employee satisfaction’ as
dependent variable under which different questions are prepared on the basis of it is presented
in the Table 2.14.
41
Table: 2.14
Respondent’s responses regarding Employee Satisfaction of Global IME Bank
This table shows the employee satisfaction of Global IME bank Employees.. The number as frequency,
percentage, average, weighted average and aggregate weighted average of respondent in five Likert scale 1 as
strongly disagree, 2 disagree, 3 neutral, 4 agree and 5= strongly agree.
Statement Scale
F 3 8 22 27 10 70
A% 4.3 11.4 31.4 38.6 14.3 100

I am satisfied and motivated after
the merger of this bank. % 15.7 31.4 52.9 100 3.47
F 2 5 17 30 16 70
A% 2.9 7.1 24.3 42.9 22.9 100

I have never felt humiliation
while working in the bank. % 10 24.3 65.8 100 3.75
F 2 9 5 32 22 70
I can see the chances of my A% 2.9 12.9 7.1 45.7 31.4 100
career growth working in this
bank. % 15.4 7.1 77.1 100 3.9
opinion regarding the employee satisfaction is presented in the table which explains that
majority of the respondents agree with the first statement that I am satisfied and motivated
after the merger of this bank. While majority of the respondents disagree with the third
statement that I can see the chances of my career growth working in this bank.
The majority of the respondents (52.9 percent) agree with the statement that employees are
satisfied and motivated after merger while 31.4 percent of the respondents are neutral with the
statement and 15.7 percent of the respondents do not believe that employees are satisfied and
motivated. While the mean value for the statement that employees are satisfied and motivated
is 3.47.
42
The majority of the respondents (65.8 percent) believe that employees never felt humiliation
while working in bank while 24.3 percent of the respondents neither agree nor disagree with
this statement and 10 percent of the respondents do not believe that they never felt humiliation
working in bank. While the mean value for the statement that employee’s never felt
humiliation while working in bank is 3.75.
The majority of the respondents (77.1 percent) agree that employees finds chances of growth
while 7.1 percent of the respondents neither agree nor disagree with this statement and 15.8
percent of the respondents do not believe that employees finds chances of growth. While the
mean value for the statement that employee’s see chances of growth is 3.9.
Mean value of the employee performance of employees of merged bank ranges from 3.47 to
3.9. Among them, the most significant observation of employee satisfaction of employees of
merged bank is that employees are satisfied and motivated after merger of this bank. Whereas
the most insignificant observation is that the employees can see the chances of their career
growth working in this bank.
2.1.15Correlation analysis
Correlation is a term that refers to the strength of a relationship between two variables. A
strong or high correlation means that two or more variables have strong relationship with each
other while a weak or low correlation means that the variables are hardly related. Table 2.15
shows the computation of Kendall’s tau correlation coefficients.
Table: 2.15
Kendall’s tau correlation matrix for the dependent and independent variables
43
This table presents bivariate Kendall’s tau correlation coefficient between perceived effect of merger in
employees and different dimensions of perceived effect of merger on the employees. Dimensions of
perceived effects of merger in employees are pay/ remuneration, job security, employee performance,
organization culture.)
The study found that there is positive relationship between pay /remuneration and employee
satisfaction of merged bank. This indicates that higher the pay /remuneration in merged banks,
higher would be
Std.
Mean Deviation PR JS EP OC PE
PR 3.42 0.81 1
JS 3.33 0.85 0.315 1
EP 3.63 0.88 0.421 0.363 1
OC 3.81 0.82 0.357 0.308 0.305 1
PE 3.71 0.80 0.492 0.450 0.448 0.206 1

employee’s satisfaction. Similarly, there is positive relationship between organizational culture
and employee satisfaction of Global IME bank indicating that more the employees are
dedicated to the organization, higher would be employee’s satisfaction. Likewise, job security
and employees satisfaction are also positively related. This means, higher the job security,
higher would be employees satisfaction. Similarly, employee’s performance and satisfaction
are also positively related.
2.1.16Regression analysis
Having indicated the Kendall’s tau correlation coefficients, the regression of pay
remuneration, organization culture, job security and employee performance on employee’s
satisfaction is presented in Table 2.16.
44
Table 2.16
Regression
(Table 2.16 represents the regression results of pay /remuneration, job security, organization culture
and employee performance. The regression results are estimated using regression equation PE= β ₒ+
β1PR + β2OC + β3JS + β4EP. PE stands for perceived effect of employee satisfaction is dependent
variable and PR stands for pay/ remuneration, OC stands for organization culture, JS stands for job
security, and EP stands for employee performance are independent variable.)
model Constan adj_r-

t PR JS OC EP sqr S.e F
0.65
1 1.688*** 0.591*** 0.350 0 38.09
(5.013) (6.172)
0.65
2 1.821*** 0.567*** 0.348 0 37.88
(5.751) (6.155)
0.76
3 2.481*** 0.322*** 0.95 7 8.224
(5.665) (2.868)
0.605** 0.60 52.81
4 1.516*** * 0.429 9 0
(4.882) (7.267)
0.374** 0.59 30.15
5 1.125*** 0.391*** * 0.458 3 8
(3.301) (3.842) (3.821)
0.578** 0.025 ** 0.65 18.80
6 1.637*** * * 0.340 4 6
(4.007) (5.131) (0.223)
0.434** 0.57 35.34
7 1.011 0.329*** * 0.499 0 3
(3.064) (3.240) (4.610) Source: Field
Survey, (2017)
Notes:
(1) Figures in parentheses are t-values.
(2) * * *denotes that the results are significant at 1% level of significance.
(3) * * denotes that the results are significant at 5% level of significance.
(4) Employee satisfaction as dependent variable.
45
Table 2.16 indicates that beta coefficient for remuneration is positive with employee
satisfaction of Global IME bank. It shows that higher the pay/ remuneration, higher would be
the employee satisfaction of Global IME bank. The study also supports that beta coefficient for
organization culture is positive with employee satisfaction of Global IME bank. The result
indicates that higher the culture, higher would be the employee satisfaction.
According to the table, the beta coefficient for job security practices is positive with employee
satisfaction of Global IME bank. It reveals that higher the job security, higher would be the
employee satisfaction level of Global IME bank. Similarly, the beta coefficient for employee
performance is positive with employee satisfaction of merged bank. It reveals that higher the
employee performance, higher would be the employee satisfaction of merged banks. Beta
coefficients are significant at 1 and 5 percent of significance.
2.2 Major findings and discussion

Based on the analysis of data, the major findings of the study are summarized as follows:
 The result shows that the majority of the respondents of this study are female (54.3
percent) followed by 45.7 percent of male respondents.
 The study shows that majority of the respondents (55.7 percent) were in age group
between 20 to 30 years and 40% percent were in the age group between 30 to 40 years.
Similarly, 4.3% of respondents were in the age group of 40 to 50 years. There were no
respondent in the age group below 20 years and 50 and above years.
 The study revels majority of respondent are qualified up to Masters (47.1 percent) and
Bachelor (47.1 percentage) level. Similarly, 2.9 percentage of respondents were
qualified up to PHD and intermediate. There are no respondents of SLC and below.
 The study shows Among 70 respondents, 42.9% of respondent have experience of 1 to

5 years. Similarly, 35.7% of the respondents have experience of 5 to 10 years, 14.3% of
the respondent has experience of less than 1 year, 5.7% of the respondents have
46
experience up to 10 to 15 and 1.4% of the respondents have experience of 15 years and
above.
 The study shows that majority of respondent are assistant (48.6 percent). Whereas 24.3
% of the respondents are officer level, 18.6% of the respondents are in supervisor,
5.7% of the respondents are manager and 2.9% of the respondents are senior manager.
 The study shows the response regarding does merger affect employee’s performance on
the banks. 62.8% of the respondent believes that merger affects the employee’s
performance in the banks and 31.4% respondents believe merger doesn’t affect the
employee’s performance in the banks. Similarly, 5.7% have no idea about it.
 The study shows that majority of employees (65.70 percent) were not informed about
the merger before the final decision. Whereas 24.3% of employees were informed
about the merger before the final decision and 10% of employees have no idea about
the information about the merger before the final decision.
 The study shows that the majority of employees were not involved in the merger
process (92.90 percent). Whereas 5.70% of employees were involved in the merger
process and 1.4% of employees have no idea about it.
 The study show that 60% of employee’s believes that job status did not changed after
merger. Similarly, 32.9% thinks job status changed after merger and 7.1% have no idea
about it.
 The study shows that 80% of employee’s believes that merger is necessary in context
of Nepal, 17.1% of employees have no idea about it and 2.9% of employees believe
that merger is not necessary in the context of Nepal.
 The study shows that 71.40% thinks that banks can provide good working environment
after merger. Whereas 18.60% thinks banks cannot provide good working environment.
 The study shows that majority of the employees thinks that bank can provide good
remuneration after merger (57.1%). Whereas, 22.90% of employees does not think that
bank can provide good remuneration after merger and 20% have no idea about it.
47
 Likewise, mean rank score for the “Improved employees’ satisfaction” is 3.65 making
it most important reason for merger in Global IME bank.
 Similarly, mean rank score for the “Achieve administration benefits” is 3.5 making it
major importance of merger in Global IME bank is ranked highest as the importance of
merged bank.
 Weighted average mean value for pay /remuneration of employees of merged bank is
3.41 which indicate that pay and remuneration given to merged bank employee is
satisfactory.
 Weighted average mean value for job security of merged bank is 3.33 which indicate
that job security of merged bank employee is satisfactory.
 Weighted average mean value for employee performance of merged bank is 3.62 which
indicate that employee performance of merged bank is satisfactory.
 Weighted average mean value for organization culture of merged bank is 3.80 which
indicate that organization culture of bank employees is satisfactory.
 Weighted average mean value for employee satisfaction of merged bank is 3.70 which
indicate that overall employee satisfaction level in merged Nepalese Commercial Bank
is satisfactory.
 The study found that there is positive relationship between pay remuneration and
employee satisfaction of merged bank. This indicates that higher the pay remuneration
in merged banks, higher would be employee’s satisfaction. Similarly, there is positive
relationship between organizational culture and employee satisfaction of Global IME
bank indicating that more the employees are dedicated to the organization, higher
would be employee’s satisfaction. Likewise, job security and employees satisfaction
are also positively related. This means, higher the job security, higher would be
employees satisfaction. Similarly, employee’s performance and satisfaction are also
positively related.
48
 As per the survey the beta coefficient for remuneration is positive with employee
satisfaction of Global IME bank. It shows that higher the pay /remuneration, higher
would be the employee satisfaction of merged bank. The study also supports that beta
coefficient for organization culture is positive with employee satisfaction of merged
banks. The result indicates that higher the culture, higher would be the employee
satisfaction. The beta coefficient for job security practices is positive with employee
satisfaction of merged bank. It reveals that higher the job security, higher would be the
employee satisfaction level of merged bank. Similarly, the beta coefficient for
employee performance is positive with employee satisfaction of merged bank. It
reveals that higher the employee performance, higher would be the employee
satisfaction of merged banks.
 From the study, it can be concluded that there is positive relationship between pay
/remuneration (PR) and employee satisfaction (ES). Therefore, first hypothesis which
states that there is a positive relationship between pay/ remuneration and employee
satisfaction is accepted.
 From the study, it can be concluded that there is positive relationship between job
security (JS) and employee satisfaction (ES). Therefore, second hypothesis which
states that there is a positive relationship between job security and employee
satisfaction is accepted.
 From the study, it can be concluded that there is positive relationship between
employee performance (EP) and employee satisfaction (ES). Therefore, third
hypothesis which states that there is a positive relationship between employee
performance and employee satisfaction is accepted.
49
 From the study, it can be concluded that there is positive relationship between
organization culture (OC) and employee satisfaction (ES). Therefore, fourth hypothesis
which states that there is a positive relationship between employee performance and
employee satisfaction is accepted.
 The adjusted R square is 49.9 percent reveals that 49.9 percent change in employee
satisfaction is due to four independent variables and rests are due to other factors.
CHAPTER III
CONCLUSION AND ACTION IMPLICATIONS
3.1 Conclusion
The major conclusion of the study is that a factor of merger of Global IME Bank Limited
greatly influences employee satisfaction. The result shows that employees of Global IME bank
satisfied with responsibility of job is ranked highest for pay/ remuneration of merged bank.
Likewise, satisfied with the work assigned is ranked highest for job security. The study also
showed that achievement of goals of employees through merged bank is ranked highest for
employee performance. The study also revealed that they enjoy working with the employee of
different cultures is ranked highest for organization culture. Similarly, the study showed that
employee believes that merged banks motivates employees for their job satisfaction.
50
The study also concludes that the pay/remuneration, job security, employee performance and
organization culture have positive relationship with employee satisfaction in the merged
Global IME Bank. This study also concludes that the conceptualization of effect of merger and
acquisition in Nepal is in the primary stage and few institutions have been merged and are
taking initiations on the broad aspects of employee satisfaction during merger as practices in
developed countries.
3.2 Action Implications
With the objective of investigating effect of merger on the employee’s satisfaction working in
Global IME bank, this study has been able to document the significant influence of employee’s
satisfaction and effect of merger of Global IME bank. Based on the findings, the following
major recommendations have been proposed:
1. As there is positive relation between pay/ remuneration and employee satisfaction. Thus,
the merged banks willing to increase employee satisfaction should increase current pay
remuneration of employees.
2. The study observed a positive relation between job securities and employee satisfaction.
Thus, the merged banks willing to increase employee satisfaction should focus on rewards
and commitment of employees.
3. The result showed a positive relation between chain of command and employee
satisfaction, merged banks willing to increase employee satisfaction should focus on co-
ordination and proper supervision of employees.
4. As there is positive relationship of organization culture with employee satisfaction. Hence,
the merged banks willing to increase employee satisfaction should focus to maintain
proper organization culture of employees.
3.3 Scope for future research
This study can be regarded as the preliminary steps in investigating the relationship between
factors effecting employee satisfaction due to merger in Global IME Bank. The study remains
enough ground for future researchers which are listed below:
51
1. This study has surveyed only about 70 observations and observations are from Kathmandu
valley only. The future studies can select larger sample and more number of observations
from more banks from different location of Nepal to find the better results.
2. This study has used only primary data collected through questionnaire; future researchers can
use secondary data to find the accurate results on effect of merger on employee satisfaction of
Nepalese Commercial Banks.
3. This study has collected data from mergers but has not clearly mentioned weather the
employees are from small bank or larger bank before merger. So it is recommended for the
future researchers to include those observations carefully and clearly.
4. This study has failed to identify the difference in satisfaction level for same group of
employees before and after the merger. So, future researchers can collect opinion from
employees of merger bank about satisfaction difference before the bank merger and after the
merger.
5. This study has tried to find out difference in satisfaction level for different group of employees
in the bank, but has failed to identify which group is more satisfied and which is less, so
future researcher can use more tools and technique to find those queries.
REFERENCES
Adembesa, J. L. M. (2014). Perceived effects of mergers and acquisitions on employee

productivity in commercial banks in kenya (Doctoral dissertation, University of Nairobi).
Adhikari, S. (2014). Merger and Acquisition as an Indispensable tool for strengthening

Nepalese Banking and Financial Institutions
52
Ahmad, R., Rashid, M., Zia-ur-Rehman, M. & Islamabad, NUML (2011). Managing post-
acquisition cultural change: A case study of Union Bank Limited. International Journal of
Trade, Economics and Finance, 2(3)
Al-Hemyari, A. B. A. (2012). Merger and acquisition laws in UK, UAE and Qatar:
Transferring rights and obligations (Doctoral dissertation).
Aliyu, M (2013), Effects of merger and acquisition on job satisfaction of deposit money bank
in Ngeria, MSBA Thesis, AHMADU BELLO UNIVERSITY, ZARIA
Bibler, R. S. (1989). The Arthur Young management guide to mergers and acquisitions. John
Wiley & Sons Inc.
Buono, A. F., & Bowditch, J. L. (1989). The human side of mergers and acquisitions:
Managing collisions between people, cultures, and organizations. San Francisco, CA: Jossey-
Bass Publishers.
Gabunia, Valerian (2009), Implication of job satisfaction shifts with different merger
categories, A Master Degree Dissertation (Chester Business School)
Gautam, C. M. (2016). Employees’ job satisfaction and switching intention associated with
mergers and acquisition of Nepalese Banks and Financial Institutions. International Journal,
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Khattri, Mekh (2013), Job satisfaction and employee performance”, MBA Thesis, Uniglobe
College, Pokhara University
Kivuti, M. (2013). The influence of mergers and acquisitions on employee performance: a case
of Equatorial commercial Bank (Doctoral dissertation, University of Nairobi).
Naveed, M., Anuar, M. A., & Bilal, A. R. (2011). Impact of Mergers & Acquisitions on Job
Security and Motivation. Interdisciplinary Journal of Contemporary Research in Business,
3(7), 667-673.
53
Nayyar, N (2014), Role of human resources in merger and, International Journal of
Information Research and Review Vol. 02, Issue, 12, pp. 1542-1545 December, 2015
Pathak, H. (2013). Corporate merger in Nepal: A case of financial institutions, M.Phil. Research
Project, Tribhuvan University
Polyarus, A. V., Severgina, A. A., &Borzenkova, K. S. (2013). Synergetic Effect of Merger and
Acquisition of Industrial Organizations. World Applied Sciences Journal, 24(12), 1701-1706
Roundy, P. T. (2010). Can stories breed commitment? The influence of mergers and
acquisitions narratives on employees’ regulatory focus. Journal of Behavioral and Applied
Management, 12(1), 88.
Sanda M.A and Adjei-Benin, P. (2011). How is the firm dealing with the merger: A study of
employee satisfaction with the change process, Journal of Management and Strategy, 2(2)
Subedi, J. (2013). Causes of attrition on senior level employees: A study on selected

commercial bank of Nepal, Banking Journal, Vol. 3, pp. 37-56
Veen, N. (2013). The effect of mergers and acquisitions on voluntary turnover.
Appendix
Summer Project Questionnaire
Dear respondent,
I am student of Kathmandu Model College conducting a purely academic study on “Perceived

Effect of Merger and Acquisition on Employee Satisfaction: A Case From Global IME
Bank Limited” to meet the partial fulfillment of the requirements for the Bachelor Degree in,
Tribhuwan University. The major objective of this study is to find out the perceived effect of
merger on employee satisfaction of Global IME Bank. You are humbly requested to fill up the
questionnaire and feel free to answer the given questions as on your best understanding. Please
be confident that your responses will be maintained absolutely confidential and used for only
academic purposes. Your participation in the study is anonymous, voluntary and will be very
much appreciated.
Regards,
54
Sona Panta
Section A: Respondent’s Information / Basic Information
Name of the Bank you are working currently: ……………………………………………
Gender: Male [ ] Female [ ]
Age: Below 20 [ ] 20 to 30 [ ] 30 to 40 [ ] 40 to 50 [ ] 50 and above [ ]
Academic qualification: PhD [ ] Masters [ ] Bachelor [ ] Intermediate [ ] SLC and below

[ ]
Banking Experience (In Year): Less than 1Year ( ) 1-5Year ( ) 5-10 ( ) 10-15( )
15 and above ( )
Level of job responsibility / your job Grade: Assistant ( ) Supervisor ( ) Officer ( )

Manager ( ) Senior Manager ( )
Section B: Multiple choice type answer questions
Please make a tick mark ( ) in an appropriate option for each of the following questions
1. Does merger affect employee’s performance in the banks?
a) Yes b) No c) No idea
2. Were you informed about merger before the final decision?
If yes, what type of information did you get? ………………………………..
3. Were you involved in the merger process?
4. Is your job responsibility changed after merger?
55
5. Is merger necessary in the context of Nepal?
6. Banks can provide good working environment after merger, do you agree?
7. Banks can provide good remuneration after merger, do you agree?
b) Yes b) No c) No idea
Section C: Please make a rank for the following questions
1. What do you think is the major effects of merger of banks of Nepal? ( Please rank the
following in order of their importance by assigning 1 for most important one, 2 for second
most and so on)
Factors Rank
1.Improved employees satisfaction
2. Increased size of banks
3. Improved service and product of bank
4. increased profitability of banks
5. Fulfillment of Nepal Rastra Bank obligation
2. Which of the following do you think is the major importance of merger? (Please rank the
following in order of their importance by assigning 1 to most important one and so on)
Importance Rank
1. More opportunities for growth
2. Gain higher competitiveness
3. To improve Profitability
4. Achieve administration benefits
5. Enter new market
Section D: Likert type question
56
How far do you agree/disagree with this statement? (Please tick mark at in the appropriate
number for each statement based on the following)
[1=Strongly disagree, 2=Disagree, 3=neither agree nor disagree, 4=Agree, 5=Strongly Agree
Statements 1 2 3 4 5
Pay/remuneration
1. I am satisfied with responsibility of my job after merger.
2. I am paid based upon my performance after merger.
3. I feel that wages and benefits are fair enough after merger.
Job security
1. I feel totally secured in my job after merger.
2. I am satisfied with the work I am assigned.
3. I feel possibility of promotion and more opportunity in
merged bank.
Employee Performance
1. I can achieve my goals working in this bank.
2. I feel employee performance has increased after merger.
3. I feel creativity has been increased after merger.
1. I enjoy working with the employees of different cultures.
2. I feel all co-workers respect each other ideas and values.
3. I have to change my behavior to suit different cultural

situation and people.
Perceived effect on employees satisfaction
1. I am satisfied and motivated after the merger of this bank.

2. I have never felt humiliation while working in the bank.
3. I can see the chances of my career growth working in this
bank.
Thank you for your kind information
57
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CHAPTER I

1.1 Context information

1.2 Purpose of the study

4. To examine the impact of organization culture on Employee Satisfaction of Global

5. To analyze the relationship of employee performance with Employee Satisfaction in

1.3 Significance of the study

1.4 Literature Survey

1.4.1 Review of major studies

1.4.2 Review of Nepalese studies

1.4.1 Review of major studies

Review of Major Studies

Year of Researcher Research Topic Findings

2011, Vol. Rizwan Managing Post- Acceptance or Rejection of specific post-

Reviews of Nepalese study

Year of Researchers Research Topic Findings

2013, Vol. Jackson Causes of Attrition of Working condition, nature of work,

2014 Santosh Merger and Employee of HRM tends to fall sharply

.1.5 Conceptual framework

Pay/Remuneration Dependent Variable

1.6 Operational Definition of Variable

Remuneration is defined as total compensation received by an employee which includes not

Hypothesis 1:There is positive relationship between Merger and pay/remuneration

Hypothesis 3: There is positive relationship between Merger and employee’s performance

Hypothesis 4: There is positive relationship between Merger and organization culture.

1.7.1 Research Design

1.7.2 Research Approach

1.7.3 Population Sample

1.7.4 Sampling Procedure

SN Selected ten branches No of Respondents

Thus, this study is based on 70 respondents

1.7.5 Data Collection Tools/Technique

1.7.6 Data Analysis Tools

1.7.7 Models and variables

PE= Perceived effect on employees

PR= Pay and remuneration

1.8 Organization of the study

DATA PRESENTATION AND ANALYSIS

2.1.1 Respondent Profile

The respondent’s demographic profile reveals the personal characteristics of respondents

Source: Field Survey, (2017)

Responses regarding were you informed about the merger

Yes No Noi dea

2.1.4 Response regarding were employees involved in the merger process

Responses regarding were employees involved in merger process

2.1.5 Responses regarding job responsibility change after merger

Response regarding is merger necessary in the context of Nepal

2.1.6 Responses regarding is merger necessary in the context of Nepal

Responses regarding bank can provide good remuneration after merger

Source: Field Survey, (2017)

2.1.9 Responses related to ranking questions

Major reasons Ranks Mean Overal

Major importance of merger

The importance of merger is explained in Table 2.9

Importance Ranks Mean Overall

2.1.10 Pay/ Remuneration of employees satisfaction

This section discusses about the various statements regarding ‘pay/remuneration’ as an

2.1.11 Job Security of employees satisfaction

A% 7.1 15.7 32.9 28.6 15.7 100

A% 4.3 5.7 21.4 57.1 11.4 100

2.1.12 Employee Performance of Global IME Bank employees

Respondent’s responses regarding Employee Performance

A% 0 15.7 15.7 50 18.6 100

I feel employee A% 2.9 15.7 14.3 50 17.1 100