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

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Acquisitions of a firm have been vital tools of corporate growth and have become an attractive means by which to grow an enterprise. Acquisition refers to a purchase of a firm by another firm these are either in same size or in different sizes. When one company acquire/ take over another company and clearly establishes itself as the new owner of the company, this type of purchase is called an acquisition. An acquisition, also known as a takeover, is the buying of one company by another. In the former case, the companies cooperate in negotiations in the latter case, the takeover target is unwilling to be bought or the target's board has no prior knowledge of the offer. Acquisition is the process through which one company takes over the controlling interest of another company. The act of contracting or assuming or acquiring possession of something; "the acquisition of wealth"; "the acquisition of one company by another" WordReference.com dictionary.

The present study addresses the influence and impact of acquisition on Employees performance particularly focusing employees on every level of the organization by different factors, which are related to acquisition. This change directly affects the employees. These impacts studied by the variables like job satisfaction, motivation and performance. According to different researcher there are many factors that could affect the job satisfaction of the employees and it turn could affect the organizational performance. It is also tried to prove that if employees are motivated and satisfied then they performed in better and efficient manners and if employees performed well, it means organization is performing well because Organization performance directly related to the employees performance. For this purpose, bank is selected as research organization because banks keep the largest human capital. The RBS is chosen so far because it is one of the largest banks, discussed earlier, and having number of employees working in its number of branches all over the world. This study first determines the impact of merger/acquisition on employees and then finds the variables, which are affected by acquisition. This study will determine the factors that are affected by this change mainly, the impact on employees.

Works Cited

Agho, A.O., Mueller, C. W., & Price, J. L. (1993). Determinants of Employee Job Satisfaction: An Empirical Test of a Casual Model. Human Relations Journal, 46(8), 1007-1027. Retrieved January 06, 2010 from 10.1177/001872679304600806.

Becker, B. E., & Olson, C. A. (1987). Labor relations and firm performance.

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