Research Methodology 52

Chapter 3
Research Methodology

3.1 Statement of Problem

Mergers and Acquisitions are the most crucial and composite means of corporate
restructuring. It involves massive funds but at the same time it also expands the
arms of expansion. These kinds of decisions fundamentally depend on the
monetary and economic strength of the organization. Merger or takeover brings
growth and development but at the same time it also brings inevitable challenges
for the merged company. These challenges are related to working environment and
culture as well as psychological factors, which are directly proportional with the
employees’ productivity. The merger of ICICI Bank and the Bank of Rajasthan
Ltd. portrayed the same picture, as the work force of Bank of Rajasthan opposed it
badly and were very disturbed after the announcement. For that reason, the main
objective of this study is to recognize those vital and crucial aspects which directly
have an effect on the psychological facet, attitude and job satisfaction level of bank
employees during post merger.

3.2 Review of Literature

Larsson, R., & Finkelstein, S. (1999) revealed that firstly, if the two firms have
some similarities in operations, they can merge and multiply benefits arising out of
synergy. Secondly, amalgamation of two companies having high grouping
potential was very much successful in comparison to the companies which are not
able to make significant endeavors for integration. Lastly, it was realized that
Mergers and Acquisitions which were based on earning more profits by combining
production and marketing procedure, faced more confrontation from their
employees in comparison to mergers which focused on gaining complementary
earnings. Love (2000) said that in 1980s remarkable transformations in the
international business environment gave rise to Mergers and Acquisitions and they
are still happening in Canada. Mergers and Acquisitions (M & A) occur for a good
Research Methodology 53

cause, however, several expensive Mergers and Acquisitions do not succeed in

accomplishing their goals, partially because of various reasons. Sometimes, the
problem occurs when it becomes difficult to understand the issues related to
human resource and also when they are not managed properly. Murthy (2007)
considered the example of 5 bank mergers which took place in India namely
Centurion Bank and Bank of Punjab, ICICI Bank with Bank of Madura, Punjab
National Bank with New Bank of India, Global Trust Bank and Oriental Bank of
Commerce, ICICI Ltd. with ICICI Bank. Instigator concluded that integration is
essential where there is wide customer base, spread in rural market, extensive
branch network, strong economical position, advanced resources, technological
edge and focus on core points. In addition to this, some problems which occurs
post merger were identified like merging of two different cultures, managing
human resources and dealing with customers. Prajapati (2010) opines that the
motive behind this paper is to explore different drives for Mergers and
Acquisitions in the Indian Banking sector. India is a country that is gradually but
certainly moving from a system of ‘large number of small banks’ to ‘small number
of large banks’. Though, literature is analyzed for finding different drives behind
the banks’ mergers and acquisitions. Apart from it, this paper also tells about the
worldwide mergers & acquisitions picture, in comparison to the Indian conditions.
It also examines a few serious issues of consolidations. Khan (2011) opined that
the rationale behind this paper is to discover diverse impulses for mergers &
acquisitions in the banking sector of India. It also covers various features of
mergers & acquisitions which occur in banking Industries. Moreover, it judge
against pre and post-merger financial health of the merged banks using monetary
constraints. The writer says that merger & acquisition is a helpful means for
development and expansion in the banking sector of India. A bank which is not
performing well can only survive if it is merged with a larger bank. This paper
illustrates the consequences of mergers & acquisitions in the Indian banking
sector. Tiwari (2011) The author says that in the new banking system in India,
there are three major aspects: Credit, Capital and Consolidation. The post-merger
repercussions of bank on employees, clientele, stakeholders, output, profitability,
Research Methodology 54

technology, society and culture in Indian framework are until now controversial
and researchable topics. The legal repercussions along with the ethical and
governance concerns must be redefined immediately to get favourable
consequences. Asopa (2011) talks about how globalization has changed today’s
scenario. The top management has to exploit the potential and resources to be at
top, and for that organizations have to focus on advanced management concepts
like continuous learning. In the present time competition is at peak due to changing
taste and preference of customer so in order to keep pace with the customer the
organizations have to have innovative products and services. Dharmalingam S &,
Kannan K V (2011) opined that banks have succeeded in developing innovative
products and that too according to the requirements of different classes of
individual clients. This happened because the banks adopted aggressive market
research and marketing strategies for creating business opportunities. In this era of
cut-throat competition, new private banks have to be very particular about the
requirements of the customers, in order to survive and grow. For measuring
customer satisfaction, overall satisfaction and SERVQUAL measures are used.

Dahiya & Jain (2011) found that the percentage of respondents got better
attention in private banks then in public banks. However a great deal of
dissatisfaction was seen in the behavior of employees of both sectors towards the
rural customers. It is suggested that complete information should be provided to
the customers. Also proper feedback of the customer should be taken. As the
society expects many things from the banking and finance sector this compels the
banking corporations to develop new measures of performance instead of focusing
on profits. Bhatnagar et al., (2012) projected that the merger between ICICI bank,
India’s leading lender in private sector, and the Bank of Rajasthan, a much smaller
bank, possibly not be a marriage of equals but the deal, which captured the
attention of the market since it guaranteed growth for everyone. As a result ICICI
bank got the presence in India’s rewarding northern and western markets, which
would have been a long process otherwise. Goyal & Vijay (2012) suggested that
despite Indian Banking Sector soaring high still the banks have to understand their
customers well and they have to make their services quite affordable. Product
Research Methodology 55

differentiation is another facet to meet the challenges. Banks must come up with
some innovative products in addition to their conventional services to compete in
the market. Technology enhancement is also vital for facing challenges because
the level of awareness among customers is much higher than before.
Kangasabapathy et.al., (2012) This article talks about how the Indian banking
system is facing dilemma because of low availability of liquid resource, capital
and returns. Banks are basically in a credit constrained situation. Ling (2012) said
how the Malaysian bank has dedicated itself to Corporate Social Responsibility.
The public sector bank is committed to deliver value to its stakeholders whom
every bank must do as a priority. Every bank should be open transparent and must
have business practices based on ethical values and respect for community,
employees, environment, and shareholders. Sahanur et.al., (2012) examined the
consequences of Mergers and Acquisitions on the employees’ morale and
psychology in the State Bank of Indore. A model was generated to exhibit the
aspects which were not accepted easily by the employees. Primary data was
collected from the workforce of State Bank of Indore. According to this paper a
pre-merger team must be there to make the employees understand the advantages
of Mergers and Acquisitions in formal as well as informal way. The pre-merger
team should be responsible for taking the feedback from the employees as well.
Hans et.al ., (n.d.). The writer says that the declaration of a merger or an
acquisition is usually associated with fear of job cuts. Pre or post-merger
announcements must be clear in all respects to avoid confusion. Several Mergers
and Acquisitions in banking industry and other industries proved to be a complete
failure. Goyal & Joshi (n.d.). It is found that after the merger has taken place,
the satisfaction level among employees low down and the intensity of stress goes
high. The paper examines that the stressors are responsible for creating stress
among employees. The key aspects are fear of job loss, insecurity, ambiguity,
change in positions etc., due to these factors stress is produced among the
employees. Apart from these, the working cultural aspects such as technology,
reporting method, working hours, working environment and formal relationship
with superiors and subordinates are also the reasons of stress. Therefore, it can be
Research Methodology 56

concluded that if the alterations, which arise during the process of merger, are not
handled properly, then the stress can go to great heights. R. Srinivasan &
Chattopadhyay (n.d.) suggested that in last few decades Mergers and
Acquisitions in the banking sector have augmented, in India as well as globally.
This article clarifies about the major aspects related to Mergers and Acquisitions in
the banking sector of India. The article attempts to find reasons behind some of the
Mergers and Acquisitions that took place in India after 2000. The advantages
gained as well as the expenses incurred by both the parties were reviewed
thoroughly. Also the effects of merger on the merged unit were considered and
analyzed. The article also talks about the prospects and opportunities in Indian
banking sector in the near future. Allirajan. M (2014) in his article said that
Mergers and Acquisitions deals have increased in 2014 since 2011. Domestic
Mergers and Acquisitions increased at $11.1bn. on y-o-y basis as compiled by
Thompson Reuters. The health sector amounted to majority of acquisitions worth
$6.1 bn. followed by energy and power sector.

3.3 Research Gap

Mergers & Acquisitions are connected to human resource, and this has been
proved by various researchers, but there are various aspects of changes felt by the
human resource due to process of Mergers & Acquisitions which have not been
covered by most of the studies.

3.4 Significance of the study

The changing scenario of speedy changing business within the market place, has
forced the companies to take up corporate restructuring. Globalization, the
requirement to hustle growth and also the shortening of product cycles has forced
firms to think about using "Mergers and Acquisitions" as a part of their business
strategy to satisfy their business goals. The challenges faced in this regard are
numerous. While one would expect that Mergers and Acquisitions would
Research Methodology 57

accelerate growth, a lot of failures have also been identified. Some failures are
explained by money and market factors; others are neglecting human resource
problems. In the last decade, Mergers and Acquisitions have became a worldwide
growth strategy, despite the high risks connected to it .Various studies has
explained that around 85% of Mergers and Acquisitions fail as the prime reason
being human resource neglect. It has been observed that a majority of staff takes
voluntary retirement while Mergers and Acquisitions process.

Despite a well-planned strategy Mergers and Acquisitions have found to be a

failure, the main reason attributed for the failure is that the challenges faced in
managing human resources. Mergers and Acquisitions might have a good
economic impact but it surely ignores the human aspect. Mergers and Acquisitions
may be troublesome for the workers of banks as there may be a likelihood of
layoffs because of various reasons. If the integrated bank is pretty adequate in
terms of business capabilities, it would like same quantity of staff that it previously
had in order to maintain its quantity of business. As a result, layoffs are quite
inevitable. Because of the changes within the in operation surroundings and
business procedures, staff may additionally suffer from emotional and physical
issues. This research thus talks about the impact of Mergers & Acquisitions on
Human resource particularly in banking sector of India.
Research Methodology 58

3.5 Research Model of the Study

Merger &
Acquisition

Impact on
Human Resource

Job Satisfaction

Figure 3.1 Model of the Study

3.6 Conceptual Framework of the study

The research focuses on understanding the impact of Merger & Acquisition on

various attitudes of Human Resource of both the target bank and acquirer bank. To
get a deeper insight of this ultimate base of the research, the study further intends
to determine the association between various changes in attitude experienced by
the human resource and their job satisfaction. This study determines various
changes experienced due to merger & acquisition and examines the relation of
these changes with job satisfaction, psychological impact and attitude of the
employees. For achieving the objectives, twenty one variables (based on intense
literature review) are introduced for measuring attitude of the employees and
fourteen variables were established after literature review for assessing their job
satisfaction after merger.
Ressearch Methodology 59

Variables seelected

IImpact of me erger &

acq
quisitio
on on Job
b Satisffaction
n
humaan resoource
•P
Psychologicaal Attitude
•PPA1: Job Unncertainty • Fringe Beenefits
•PPA2: Moralee & motivattion •FB1: Retiirement Beneefits
•PPA3: Fear of Unemploym ment •FB2: Day y Care
•PPA4: Fear of Demotion •FB3: Sick k Leave
•PPA5: Fear of Non Comp petence •FB4: Vaccation (Paid/N Non Paid)
•PPA6: Threatt of change of
o branch •FB5: Hotel Stay
•PPA7: Ego •FB6: Edu ucation funding
•PPA8: Discommfort •FB7: Hom me pick up & drop facilitty
•S
Social & Culltural Attituude •Infrastruccture
• SCA1: Work k Culture •I1: Workiing Environm ment
• SCA2: Atmo osphere •I2: Furnitture & fixturees
• SCA3: Statu
us •I3: Cafeteeria
• SCA4: Sociaal Well being g •I4: Enviro onmental Quuality
• SCA5: Presttige (heat, air, etc.)
•C
Corporate & Professional Attitude •I5: Wash rooms
•CCPA1: Chan nge in Comp pensation •I6: Car faacility
•CCPA2: Techhnological chhanges •Monetary Aspect
•CCPA3: Chan nge in leaderrship •MA1: Sallary
•CCPA4: Griev vance handliing •MA2: Inccentives
•CCPA5: Repo orting System
m
•CCPA6: Centtralization
•CCPA7: Relaation with boss
•CCPA8: Trannsformation ini top
m
management t

Figure 3.2 Varriables seleected for the

t study

3.7 Scope off the Studyy

Forr the preseent study, Merger of

o ICICI Bank (Accquirer bannk) and Bank
B of
Rajasthan (Taarget bank)) has been taken
t into consideratiion as it was the mosst recent
andd one of thee biggest mergers
m in Indian
I bank
king sectorr. The colleection of data
d was
initiated in Auugust 20144 and conduucted till August
A 2015. The colllection of the
t data
from
m the empployees waas based prrimarily in the Jaipurr. Jaipur iss considereed to be
the strategicaally importtant regionn of Rajassthan. The choice off Jaipur co
ould be
Research Methodology 60

considered as sufficient as the population of Jaipur represents the population from

all across the Rajasthan.

Secondly, it was deemed imperative to have a sample based on the strata defined
from the very onset. Therefore, the employees were further stratified according to
the levels in the management hierarchy they were working in. Generally, it is not
feasible to reach out to the top level management of any bank like the CEO and
other board members, and assuming the practicality also it is not that important
because they form the top 1% portion of the intact realm. Therefore, in the top
level bracket the researcher included the managers, senior managers, branch
managers, and other executive senior officials having an experience of not less
than 5 years in the bank. Likewise in the middle level and junior levels also,
assignment of employee based on their position and seniority was taken up.

3.8 Research Questions

The study has attempted to consider and understand the upshot of merger &
acquisition in relation to its effect on Human Resource in banking sector. In order
to move ahead on this path it needs to figure out answers the following questions:

• What are the HR issues involved in Mergers & Acquisitions in banking

sector?
• Is there a relation between various aspects of attitude of Human
Resource and Mergers and Acquisitions?
• Is there any association between Job Satisfaction and mergers &
acquisition?
• Is there a difference between attitude of employees of target bank and
acquirer bank?
• Is there a difference between job satisfaction level of employees of
target bank and acquirer bank?
Research Methodology 61

3.9 Objectives of Study

• To explore the HR issues involved in Mergers and Acquisitions in

banking sector.
• To study the change in attitude of Human Resource after Mergers and
Acquisitions.
• To study the level of job satisfaction of Human Resource after Mergers
and Acquisitions.
• To find out impact of Mergers and Acquisitions on employee’s Job
satisfaction.
• To compare the attitude of employees of target bank and acquirer bank.
• To compare the job satisfaction level of employees of target bank and
acquirer bank.

3.10 Hypotheses

Ha1: There is a significant difference between attitudes of employees after

merger & acquisition in banking sector.

Ha2: There is a significant difference between level of job satisfaction of

employees after merger & acquisition in banking sector.

Ha3: There is an impact of merger & acquisition on Job satisfaction of employees

in banking sector.

Ha4: There is a significant difference between employees’ attitude of target bank

and acquirer bank after merger & acquisition.

Ha5: There is a significant difference between employees’ job satisfaction of

target bank and acquirer bank after merger & acquisition.

3.11 Research Design

Research design is a plan, structure and strategy of investigation conceived so as to

obtain answers to research questions. A detailed outline of how an investigation
will take place. A research design will typically include how data is to be
Research Methodology 62

collected, what instruments will be employed, how the instruments will be used
and the intended means for analyzing data collected. The present study was
Exploratory, Descriptive and empirical in nature.

3.12 Universe of the study

Universe for the present study was the employees of banks who have experienced
merger & acquisition in Rajasthan state. Bank employees included two categories
of employees a) employees of the banks which merged with the other bank
(Target bank) and b) employees of the banks which takeover the other bank
(Acquirer bank).

3.13 Sampling Distribution

Total 4,450 branches of ICICI were operating across India and out of this total 453
Branches were operating in Rajasthan. Out of these 453 branches, there were total
78 branches in Jaipur division. For our study purpose, we considered only 25
branches of Jaipur city to determine our sampling frame.

Selected ICICI Banks – Jaipur

Table No. 3.1
S. Branch Address Contact No.
No.
1 C Scheme C - 99, SHREEJI TOWERS, Contact:
IFSC Code: ICIC0000012 SUBHASH MARG, NEAR PHONE - 022 -
MICR Code: 302229002 AHIMSA CIRCLE, C 67574314 / 4322
Branch Code: 000012 SCHEME, JAIPUR. 302001
2 Vaishali Nagar C - 2, SAURAV TOWERS, Contact:
IFSC Code: ICIC0000235 VAISHALI NAGAR, PHONE - 022 -
MICR Code: 302229004 JAIPUR 302021 67574314 / 4322
Branch Code: 000235
3 Johari Bazaar 305 - 306, BAIRATHI Contact:
IFSC Code: ICIC0000315 BHAWAN, JOHARI BAZAR, PHONE - 022 -
MICR Code: 302229005 JAIPUR 302003 67574314 / 4322
Branch Code: 000315
4 Mansarovar ICICI BANK LTD, L & B - 2, Contact:
IFSC Code: ICIC0000550 SHIPRA PATH, RIICO , NEAR K. DHEERANDRA
MICR Code: 302229006 P. AUTOMOTIVES, GOYAL, 0141-
Branch Code: 000550 MANSAROVAR INDUSTRIAL 5180173-75 ,
AREA, MANSAROVAR, 9828577550
JAIPUR. 302020
Research Methodology 63

5 Malviya Nagar Branch: JAIPUR - MALVIYA Contact:

IFSC Code: ICIC0000576 NAGAR RAJEEV AWASTHI
MICR Code: 302229007 0141-5127811,
Branch Code: 000576 BHAGWAN MAHAVEER 9828171712
VIKLANG SAHAYATA
SAMITI, GURUNANAK
PATH, MALVIYA NAGAR,
JAIPUR.302017
6 Vidhyadhar Nagar SHIV SHAKTI, CENTER Contact:
IFSC Code: ICIC0000650 SPINE, VIDYADHAR ASHISH SHARMA
MICR Code: 302229008 NAGAR, JAIPUR, 0141-5170803/02,
Branch Code: 000650 RAJASTHAN, JAIPUR – 982687287
302020
7 Banipark ICICI BANK LTD., E4 & E5, Contact:
IFSC Code: ICIC0000651 SUBHASH NAGAR, RAJEEV 0141-
MICR Code: 302229009 SHOPPING CENTER, 5110432, 0141-
Branch Code: 000651 JHOTWARA ROAD, OPP. KK 5110422, 9772212399
TOWER, BANIPARK, JAIPUR.
302001
8 Tonk Road ICICI BANK LTD., A8 & A9, Contact:
IFSC Code: ICIC0000969 ANUPAM CHAMBER, MUKESH
MICR Code: 302229010 DISTRICT SHOPPING GOYAL0141-
Branch Code: 000969 CENTRE, TONK ROAD, 5112741, 1762522359,
JAIPUR., 302015 9888914707
9 Bani Park Branch: JAIPUR, BANI PARK Contact:
IFSC Code: ICIC0006746 SURENDER
MICR Code: 302229020 RAJ BANK BLDG KUMAR
Branch Code: 006746 BHARDWAJ, 0141-
3256138, 0141-
3226737, 9314639039
10 Bapu Nagar UNIVERSITY CAMPUS, Contact:
IFSC Code: ICIC0006747 BAPU NAGAR, JAIPUR - ANIL V MOREY,
MICR Code: 302229018 302004 0141-3256131, 0141-
Branch Code: 006747 3227719, 9314639019

11 BMCHRC BHAGWAN MAHAVEER Contact:

IFSC Code: ICIC0006748 CANCER HOSP.& RES. CTR. UMMED SINGH
MICR Code: 302229063 JLN MARG JAIPUR 302017 SANKHLA, 0141-
Branch Code: 006748 3202286, ,
9314639081
12 C- Scheme OPPOSITE S.M.S.HOSPITAL, Contact:
IFSC Code: ICIC0006750 SAWAI RAM SING ROAD, C - RAMAN LAL
MICR Code: 302229016 SCHEME, JAIPUR - 302001 GUPTA, 0141-
Branch Code: 006750 3256134, 0141-
3227727, 9352497955
13 Pratap Nagar DY.HOUSING Contact:
IFSC Code: ICIC0006751 COMMISSIONER, RHB, VIMAL KUMAR
MICR Code: 302229055 PARTAP NGR. SECTOR - 5, JAIN, 0141-3211228, ,
Branch Code: 006751 PARTAP NGR SANGANER 9314639087
JAIPUR - 303906
14 Sindhi Camp RSRTC BLDG, STATION Contact:
IFSC Code: ICIC0006783 ROAD, SINDHI CAMP BUS SATISH KUMAR
MICR Code: 302229033 ST, JAIPUR, 302006 AJMERA, 0141-
Branch Code: 006783 3203747, 9314639044
Research Methodology 64

15 St.Xavier School ST.XAVIERS SCHOOL Contact:

IFSC Code: ICIC0006784 CAMPUS, VARDHMAN SHIV KUMAR
MICR Code: 302229034 PATH, C - SCHEME, JAIPUR SHARMA, 0141-
Branch Code: 006784 302001 3205578, ,
9314639053
16 JDA Campus JAIPUR DEVELOPMENT Contact:
IFSC Code: ICIC0006754 AUTHORITY BUILDING JLN RAM PRAKASH
MICR Code: 302229045 MARG 302024 MATHUR, 0141-
Branch Code: 006754 3205633, ,
9314639050
17 Jhotwara PLOT 62, SCHEME Contact:
IFSC Code: ICIC0006759 3(MANSAROVAR), MAIN RAJESH KUMAR
MICR Code: 302229057 KALWAD RD, JHOTWARA, KHANDELWAL,
Branch Code: 006759 JAIPUR 302012 0141-3256155, ,
9314639086
18 Johari Bazaar RAJ BK BLDG, JOHARI Contact:
IFSC Code: ICIC0006760 BAZAR, JAIPUR - 302003 ANIL KUMAR
MICR Code: 302229014 MEHTA, 0141-
Branch Code: 006760 3256151, 0141-
3220740, 9314639064
19 Janta Colony JANTA COLONY, JAIPUR - Contact:
IFSC Code: ICIC0006757 302004 KULWANT ANAND,
MICR Code: 302229023 0141-3256135, 0141-
Branch Code: 006757 3220861, 9314639070
20 Jawahar Nagar C C 140 - 141 COMMERCIAL Contact:
IFSC Code: ICIC0006758 COMPLEX, JAWAHAR RAJENDRA KUMAR
MICR Code: 302229028 NAGAR, JAIPUR, 302004 GUPTA, 0141-
Branch Code: 006758 3256136, 0141-
3220728, 9314639071
21 KishanPole Bazaar KISHANPOLE BAZAR, Contact:
IFSC Code: ICIC0006762 OPP.ARYA SAMAJ KARNI DAN
MICR Code: 302229013 MANDIR.JAIPUR - 302003 SHARMA, 0141-
Branch Code: 006762 3256141, 0141-
3226800, 9314639073
22 M.I Road RAJ BANK BUILDING, SIR Contact:
IFSC Code: ICIC0006764 MIRZA ISMAIL ROAD, CHANDRA
MICR Code: 302229015 JAIPUR - 302001 PRAKASH
Branch Code: 006764 SHARMA, 0141-
3256145, 0141-
3227721, 9314639079
23 Mahaveer Marg C - 58A, AYODHYA Contact:
IFSC Code: ICIC0006767 ENCLAVE MAHAVEER AJAY KUMAR
MICR Code: 302229064 MARG JAIPUR JAIPUR KALA, 0141-
Branch Code: 006767 302001 3256137, 0141-
3220726, 9314639001
24 MNIT MALVIYA REGIONAL Contact:
IFSC Code: ICIC0006768 ENG.COLLEGE CAMPUS, DINESH CHANDRA
MICR Code: 302229031 MALVIYA NAGAR, JAIPUR - MITTAL, 0141-
Branch Code: 006768 30207 3227720, ,
9314639074
25 Ram Bagh Palace Hotel RAMBAGH PALACE HOTEL Contact:
IFSC Code: ICIC0006778 RAMBAGH CIRCLE JAIPUR SUSHIL KUMAR
MICR Code: 302229040 302004 VYAS, 0141-
Branch Code: 006778 3205604, 9314661382
Research Methodology 65

3.14 Sample Details

Sampling is simply the process of learning about population on the basis of sample
drawn from it. There are two types of sampling techniques a) probability sampling
b) non probability sampling. The sample details for the present study are as
follows:

• Sampling Technique: Proportional Stratified Random Sampling

• Sample Frame: Rajasthan
• Sample Size: 300 employees of each category of employees

3.15 Data Collection

The study was empirical in nature, i.e. it was based on primary sources of data. In
addition to primary sources, secondary sources were also be used for the present
study. For the purpose of this study the sources were be as follows:

• Primary Data sources: It was collected with the help of non disguised
structured questionnaire based on Likert scaling, duly filled in by the
respondents (employees of bank). In the present study, five point Likert
scale has been used for measuring attitude and level of satisfaction of
employees. To find the attitude of employees, they were asked to rank
their feelings at the time of pre-merger phase, acquisition phase and post
merger phase on the scale of 1-7, where 1 means denial & 7 means
enjoyment.
• Secondary Data sources: It was collected with the help of Books,
Journals, Magazines, Newspapers, Websites and other published
sources.

3.16 Pilot Study

A pilot test has been conducted with 30 employees each from both categories of
banks. In all, 60 respondents provided their responses to the questionnaires. The
Research Methodology 66

result from the pilot test assures the content validity of the questionnaire. Construct
validity of the questionnaire has also been checked with the help of statistical
parameters used. To access the reliability of the scale, Cronbach’s alpha measure
has been used. The reliability coefficient for questionnaire- A has been 0.827 and
for questionnaire- B, it has been 0.743. Generally, 0.6 value or above is considered
a satisfactory reliability level.

Kaiser-Meyer-Olkin (KMO) test has been used to measure the sampling adequacy.
It is computed as 0.911 and 0.876 respectively of each questionnaire that indicates
adequacy of sample. The questionnaire used has been verified with the help of
content validity (face validity). For the purpose, opinion survey of experts in the
merger & acquisition and review of literature on the banking sector has been
systematically evaluated to determine validity of scale represented for
measurement.

Table 3.2 : Summary of results of pilot study

Questionnaire Cronbach’s Kaiser-Meyer-

Alpha Measure Olkin (KMO) test
Questionnaire- A (for 0.827 0.911
employees of target
bank)
Questionnaire- B (for 0.742 0.876
employees of master
bank)

3.17 Tools and Techniques

The below mentioned techniques and tools were used in order to derive the results
of the study. The techniques used were:

• For Descriptive Statistics: Arithmetic Mean & Standard Deviation.

• For Checking the Reliability: Cronbach’s Alpha
• For Checking sampling adequacy: (KMO) Kaiser-Meyer-Olkin
Research Methodology 67

• To find out the relationship & testing of hypothesis: One way Analysis of
Variance (ANOVA), Independent sample t test, Multiple Correlation and
Multiple Regression.

MS-Excel and IBM SPSS Statistics 22 are used to tabulate, classify and analyze
the data.

References
• Asopa M. (2011).Promoting Innovation The Role of HR. HRM Review IUP

Publications.11(4) ,29-34.

• Bhatnagar ., Abhinn B., Sinha N. (2012) Strategic move of ICICI Bank: A

Case study of Merger of ICICI Bank and Bank Of Rajasthan, Zenith

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