Abstract:
Bank merger is a new restructuring concept to the banking industry in Sri Lanka.
Central Bank of Sri Lanka introduces Master plan on consolidation in 2014 to the
banking industry in order to achieve goals in 2016. This study was done to gather
employee perceptions regarding the bank merge in Sri Lanka. To collect data on
performing this research it was selected 150 bank employees from the Colombo
district as a sample and a structured questionnaire was developed to gather
employee perceptions on the current organization, whether bank can get benefit from
the mergers and the satisfaction level, if there is a merge in present organization. As
per findings majority of the employees are very happy to spend their career with
present organization. And they stated that the organization deserves their loyalty.
Majority of employees think that bank can gain benefits from the merge due to market
leadership, growth and diversification. The other employees think bank cannot gain
benefits due to the Cultural Mismatch and the lower Competition. If the merge is with
an underperforming bank, probably the bank has to bare the losses of the merged
bank while bearing own expenses and other losses of the company itself. This may
lead to Operational issues and Cutting down of employee promotion opportunities.
Even though majority of employees think bank can gain benefits through a merger,
majority dissatisfied if there would be a merge in current organization. It is evidenced
with the reasons concluded that the cultural differences and job loss due to mergers
are negatively affected to employees. These reasons paved the way for
recommending policy makers to conduct training programs and increase confidence
level of employees about job security to overcome negative perception about bank
merge.
