Fountain Journal of Management and Social Sciences: 2014; 3(2) 47-56 EFFECT OF MERGERS AND ACQUISITIONS ON EMPLOYEE DEVELOPMENT: THE NIGERIAN BANKING INDUSTRY EXPERIENCE

The study examined the attitude and reactions of bank workers to mergers and acquisitions in the industry, investigated methods used to curb redundancies and joblessness arising from mergers and acquisitions, and examined the different strategies employed by banks involved in mergers and acquisitions to manage employment issues in the industry. Primary and secondary data were used for this study; and questionnaires were administered to 300 employees of 8 purposively selected banks of the 24 post-consolidated banks and in-depth interviews conducted on human resources Managers of the 8 selected banks. Data collected were analyzed using descriptive statistics. The results also showed that banks workers’ attitudes and reactions are positive towards mergers and acquisitions, and that training and re-training of workers, job re-designing, and intra and inter branches transfers, were various methods used to curb redundancies and job loss. Finally, the results showed that provision of support services, provision and prompt payment of severance package, ceiling on voluntary resignation are strategies adopted by these banks to address employment issues arising from mergers and acquisition. The study concluded that as much as the positive contributions of mergers and acquisitions in achieving organizational effectiveness, profit maximization, increase in productivity, career opportunities, better job opportunities, the associated job losses and redundancies, which are aftermath of merger and acquisition, are issues that could not be ignored if successful mergers and acquisitions would be achieved