Recapitalization and Personnel Integration among Selected Banks in Ibadan Metropolis

Abstract

Mergers and Acquisitions though a recent phenomenon in the Nigerian Banking sector has come stay as more mergers and acquisitions are in the making. The reason for the action of the mergers in the industry includes need for bigger banks with strong capital and the need for larger size that is a pre-requisite for competition in the global market.

However, as consolidation proves beneficial to organizations the same cannot be said for employees, who can be regarded as instruments in achieving synergy in a Merger/Acquisition. These employees are the ones who bear the brunt of consolidation much more than benefits. They are made to become cost cutting variables in the event of a merger or an acquisition, through job cuts and retrenchment.

This study examined the impact and effect of mergers and acquisition on bankers as well as their remuneration, work schedule and job security prior and after mergers and acquisition. Secondly, the study `examined the difference in working time before and after mergers and acquisition. Thirdly, the study examined sense of belonging among workers and their attitude to work.

Herzberg's two-factor model was used in the theoretical explanation of this study, which identified two sets of factors. The first preventing an employee from dissatisfaction, but not necessarily leading to motivation. The second, which enhances employees' satisfaction from within (intrinsic), that is content factors, which is prerequisite for motivation, stimulating a  worker for better performance and higher productivity.

The research was carried out in five selected banks in Ibadan metropolis. The Purposive method was utilized in the study. Data was gathered using the questionnaire, total of 200 questionnaires were distributed, after which data was coded and analyzed using the Statistical Package for the Social Sciences (SPSS).

Findings from the study indicate that, there is no significant difference in the quality of working conditions of bankers with values at (P>0.05) as such workers are not favored by the working conditions available to them after merger and acquisition. Findings also indicate that working time of bankers after the merger and acquisition exercise has increased, with values at (P>0.05) indicating longer working hours for bankers. The finding also revealed that sense of belonging among bank workers is low, with values at (P>0.05) indicating a gap in between workers and management in working relationship.

The study suggests that adequate compensation should be prepared for bank employees that will be laid off in the event of future mergers and acquisition. Human resources issues should begiven equal consideration like financial and legal aspects of consolidation. As it is important for integration of banking operations in the event of merger or acquisition.