XXXXXXXXXXTask Description Assessment task 3 requires the preparation of a full project proposal that should contain the following components: A detail statement of the problem that you would like to...

What are the consequences of public sector bank mergers in India and how it affects employee’s performance?
Introduction
Within the globalized economy, the concept of M&A has turned out to be a vital tool for the expansion and growth for the economy. The chief objective behind the M&A is creating synergy. M&A helps the corporations in obtaining the advantages of higher marketplace share and cost effectiveness (Srinivas, 2012). Corporations are challenged with the actualities that the just big giants could continue since there prevails extreme competition within the marketplace and the effectiveness of any merger depends greatly upon the way how two corporations incorporate themselves in conducting everyday procedures (Devarajappa, 2012). Growth is at all times considered as being the top priority of all corporations and reflects serious concerns for expanding the business procedures. Corporations opt for M&A for accomplishing greater level of profit and growing marketplace share (Khan, 2011). Moreover, M&A is considered as being the need of business institutions for accomplishing the economies of scale, growth, diversification, financial planning, synergy and economic globalization. The monopolistic approach also builds interest among companies for M&A for increasing the marketplace power. Additionally, M&A is not a one day procedure, it requires time as well as decisions need to be made subsequent to scrutinizing all the aspects (Khan, 2011).
Moving ahead, Mergers within India in common have faced an augmented number in several segments chiefly subsequent to the New Economic Policy during 1991 that has unlocked the options for worldwide marketplaces (Devarajappa, 2012). Banking Segment in India has observed several Mergers during the years due to several different reasons like Economies of Scale; Restructuring of Weak Banks, Expansion of Market and Business Consolidation (Srinivas, 2012). Moreover, having a look over the history of Mergers within the Banking segment of India, at first mergers have occurred like a means for protecting customers interests of the weak banks nevertheless afterwards some Mergers also have taken place voluntarily during the period of Post Liberalisation among several banking institutions due to various different reasons (Khan, 2011). The economy of India that is one among the speedily expanding economies worldwide, is dignified for maintaining its prominent standing, in spite of the worldwide economic slowdown and financial crisis. Additionally, India has effectively managed to manage the worldwide financial disorder because of sound regulation, proactive policies and prudent financial supervision (Srinivas, 2012). The growth of India is directed chiefly through domestic consumption along with investment. The Indian banking system involved no direct revelation to the United States sub-prime mortgage assets or towards the unsuccessful organizations. Further, taking the above discussion into consideration this particular paper attempts the consequences of public sector bank mergers in India and how it affects employee’s performance.
Research aim, objectives and research questions
Research Aim
This particular research attempts to explore the consequences of public sector bank mergers in India and how it affects employee’s performance.
Research Objectives
Like every research study, this particular research also involves specific research objectives. These include:
· To explore the employee’s mindset, behavior and confidence
· To explore office culture of merged or acquired organization
· To explore the pros and cons of banking merger and acquisition
Research Questions
All the data collected for this particular research revolves around the below stated research questions. These include:
· What is the mindset, behavior and confidence of the employees in the Indian Banking sector regarding mergers?
· What changes take place in the culture of merged or acquired banking organization?
· What are the pros and cons of banking merger and acquisition in India?
Justification and potential output of the research project:
Merger is not a new concept. The reasons might change from time to time and might also differ from institution to institution. This approach of combination has become highly expedient subsequent to the new economic policy i.e. liberalization policy during the year 1991 (Srinivas, 2012). Moreover, there have been a large number of research studies within the sphere of mergers and acquisitions, nevertheless the majority of them concentrated upon manufacturing segment. Additionally, just few research studies have made an effort for analysing the M&A activity within the service sector. Also, the literature present on M&A vis-a-vis banking segment has been quite less. Thus, there exists a need for a research of the current nature (Devarajappa, 2012).
The way how bank employees cope up with the changing environment of organization and how they can maintain their performance is seen as being a big challenge with mergers in the Indian banking sector (Khan, 2011). It has been observed that Organizational merges disturb the status quo of an organization, chiefly in case if the staff members fail to view the arriving merger. Staff members could get highly concerned of the way how the merger would affect them professionally and personally (Reddy et. al., 2013). Issues associated with job accountabilities and outcome, prevailing pay structures as well as benefits packages could result in stress and anxiety amongst the staff members (Devarajappa, 2012).. The study focused on various issues relating to mergers and acquisitions in Indian Banking Sector. It covers the different aspects like- legal implications for M&As, trends and progress of M&As, physical, financial performance and share price performance of selected merged banks before and after the merger (Srinivas, 2012). Further, taking the above discussion into consideration this particular paper attempts to examine the consequences of public sector bank mergers in India and how it affects employee’s performance.
Literature Review
The banking sector is considered as being one among the speedily expanding sectors within India (Devarajappa,...