Analysing the effect of Mergers and Acquisitions on employee performance: A Case Study of Access Bank

Abstract

The study investigates the impact of mergers and acquisitions (M&As) on employee performance at Access Bank Zambia following its mergers with Cavmont Bank in 2021 and Atlas Mara in 2024. These strategic moves aimed to strengthen financial performance and market presence but also introduced significant challenges, including organizational restructuring, cultural integration issues, changes in management structures, access to resources, and remuneration systems. While Organizational Change Theory, Human Capital Theory, and Social Exchange Theory provide insights into the effects of M&As on employees, the specific impact on morale, job satisfaction, and overall performance at Access Bank remains unclear. This study bridges this knowledge gap by analyzing how these changes have influenced employee performance. The study adopted a mixed-methods approach, utilizing a cross-sectional survey design to collect both quantitative and qualitative data. Structured questionnaires, including multiple choice and Likert-scale questions, were distributed to a sample of 222 employees, derived using Yamane's formula, with 181 valid responses analyzed. Data analysis was conducted using SPSS software, focusing on descriptive statistics, correlation analysis, and frequency distributions. The findings revealed that cultural integration posed significant challenges, leading to dissatisfaction and reduced morale among employees. A weak positive correlation (r = 0.172, p = 0.021) was found between perceptions of cultural integration and employee performance, highlighting the need for improved cultural alignment strategies. Changes in management structures showed mixed results, with moderate improvements in leadership but ongoing dissatisfaction with communication and collaboration processes. The study recommends enhanced communication channels, leadership training, and structured management support. Regarding access to resources, employees reported improved productivity post-merger. However, a weak positive correlation (r = 0.137, p = 0.066) and fairness concerns (r = -0.211, p = 0.004) were observed, indicating that while access to resources improved, fairness in distribution remains a concern. Changes in remuneration, rewards, and benefits had a predominantly negative impact on employee satisfaction and motivation. Employees expressed dissatisfaction with declining transparency and fairness in compensation structures, undermining morale and performance. In conclusion, while mergers and acquisitions at Access Bank Zambia have brought some structural and resource-based benefits, significant challenges persist in cultural integration, management practices, resource fairness, and reward systems. Addressing these challenges through transparent policies, cultural alignment, and improved communication strategies is essential for optimizing employee performance and achieving the intended benefits of the mergers.