The human resource management challenges of post consolidation mergers and acquisitions in Nigeria's banking indsutry

Abstract

This study examines the human resources challenges of the post consolidation mergers and acquisition in Nigeria's banking industry. The industry went through structural changes which has posed great human resources management challenges. The study adopted the survey research design. A sample of 115 respondents was selected from six of the banks that merged to become two. The simple random sampling technique was used in the selection of sample elements. The instrument for data collection was the questionnaire. Four hypotheses were tested. The hypotheses tested indicated a relationship between the mergers and acquisitions and productivity, job security, labour turnover and level of level of technological innovations. The implementation of the consolidation policy induced a shake-off in the industry which infused anew set of human resource challenges in the sector; some of which include those of job-cutting, outsourcing, downsizing, rightsizing, incompatibility in technologies, equipment or corporate culture. The study posits that human resource is an essential part of mergers and acquisitions and should be given adequate emphasis throughout the processes of mergers and acquisitions. Intended objectives may not be achieved when human resources factors are overlooked. For successful integrations, it is imperative that merger talks and negotiation should go beyond the balance sheet figure to an in-depth understanding and evaluation of cultural compatibility that will promote the realization of the objectives. With the emergence of mega-banks employees must be given necessary training and skill development for the current level of activities in today's banks. © Medwell Journals, 2012.