Impact of Acquisition on Employees Performance: A case Study of RBS

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After acquisition of any firm/ organization management need to motivate their employees and make them feel satisfied about their jobs, if the employees feel satisfied they perform their duties efficiently and when acquired firm’s employee performed best it directly affect the acquired firm’s performance. Motivation is very necessary in any field when an employee get motivated they perform their duty with the best of their knowledge and try to work hard. According to different researcher there are many factors that could bring change and affect the organizational performance one of them is job satisfaction of the employees. It is also said that if employees are motivated and satisfied with their jobs then they performed efficiently and if employees performed sound, it means organization is performing well. Organizational performance is measured by means of employee performance and employee performance is measured by their motivation, satisfaction of employees towards the job and the organization. M&A are a source of thoughtful change for the organization, and change in any form is likely to be a cause of stress for the employees as it places unusual demands on them. One of the reasons for unsuccessful merger and acquisition is the negative perception of employees regarding M&A. As it is well known, too much stress increases job dissatisfaction and in turn, it is associated with a number of defect outcomes including increased turnover, and absenteeism and reduced job performance. Another main source of stress in the merger/acquisition process is the uncertain surrounding organizational and personnel changes that people are afraid of the upcoming change. This type of assumed uncertainties is more stressful to employees rather t... ... middle of paper ... ...n: University of the Free State. Surkund, D., Purang, P., & Gupta, M (2007). Managing expectations of acquire employees in a post merger scenario. Indian Institute of Technology Bombay. Retrieved May 30, 2010 from AABSS2009ManagingExpectationsOfAcquireEmployeesInAPostMergerScenario. Tom. (1971). The Role of Personality and Organizational Images in the Recruiting Process. Organizational Behavior and Human Performance 6, 653-669. Mylonakis, J. (2006). The Impact of Banks’ Mergers & Acquisitions on their Staff Employment & Effectiveness. International Research Journal of Finance and Economics, 3, 121-137. Retrieved March 24, 2010 from htttp://www.eurojournals.com/finance.htm. Fernandes, E., Knowles, K., & Erickson, R.A. Retention after a merger keeping your employees from “jumping ship” and your intellectual capital and client relationships “on board”.

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