EFFECT OF MERGER ON EMPLOYEE SATISFACTION

OF NMB BANK IN POKHARA VALLEY

BY
Shushil Poudel
Exam Roll No: 20031249
P.U. Registration number: 2019-2-03-0573

A project work report Submitted to NTHMC collage

In a partial fulfilment of the requirements for the degree

Bachelor of Business Administration (BBA)

At the
Nepal tourism and hotel management college (NTHMC)
Pokhara University
Gairapatan, Pokhara

May, 2023

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 STUDENT DECLARATION

I hereby declare that the project work report entitled “EFFECT OF MERGER ON
EMPLOYEE SATISFACTION OF NMB BANK IN POKHARA VALLEY”
Submitted to Nepal Tourism and Hotel Management College affiliated to Pokhara
University, is my original work to fulfill the requirement for the degree of Bachelor of
Business Administration (BBA) and Project Work Report has not formed on the basis of
any degree, diploma or other similar titles. The results and findings of the research is not
submitted to any institutions or any other university.

––––––––––––

Signature

Shushil Poudel

P.U Registration No: 2019-2-03-0575

Nepal Tourism and Hotel Management College (NTHMC)

Date: July, 2023

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 ACKNOWLEDGEMENT

I would like to thank Pokhara University and Nepal Tourism and Hotel Management
College for providing me an opportunity to get practical knowledge in research. It was a
significant learning experience for me.

The final outcome and completion of entire research required a lot of guidance and
supervision from many people, so I would like to thank Mr. Harihar Poudel, Coordinator,
NTHMC for providing us the opportunity and necessary materials and guidelines for
conducting this research.

I am grateful to Mr. Pusparaj Koirala, Research Supervisor for his constant guidance
towards various research problems and providing insights and suggestions focused on the
topic and also for his considerable help and support in data entry components, data analysis
of the research project.

We are highly indebted to NMB Bank for their guidance and constant supervision as well
as for providing necessary information regarding the project & also for their support in
completing the project. I would like to extend my gratitude towards all the respondents
who were willing to co-operate and gave their time and effort to fill in the required
questionnaire.

Therefore, I would like to thank everyone who has helped me to complete research directly
or indirectly.

Thank you

Name: Shushil Poudel

P.U. Registration No: 2019-2-03-0573

P.U. Roll No: 20031249

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I would like to express my heartfelt gratitude to all those helping hands for preparing this
report.

TABLE OF CONTENTS
Declaration ii
Acknowledgement iii
Table of contents iv
List of Tables v
List of figures vi
Abbreviation vii
Executive Summary viii

CHAPTER I: INTRODUCTION 1-11

1.1 Background of the Study 1
1.2 Objective of the Study 4
1.3 Research Questions 4
1.4 Significance of the Study 5
1.5 Literature Review 5
1.6 Research Methodology 9
1.7 Limitation of the Study 11

CHAPTER II: DATA PRESENTATION AND ANALYSIS 12-32

2.1 Respondent Profile 12
2.2 Data Presentation and Analysis 19
2.3 Major Findings of the Study 30

CHAPTER III: CONCLUSION AND ACTION IMPLICATIONS 33-34

3.1 Conclusion 33
3.2 Action Implications 34
REFERENCES

APPENDIX

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 LIST OF TABLES

Table Title Page No.

2.1 Age of the Respondents 12

2.2 Gender of the Respondents 13
2.3 Academic Qualification of the Respondents 14
2.4 Numbers of Years Served in the Merged Bank 16
2.5 Department of the Respondents 17
2.6 Salary of the Respondents 18
2.7 How Respondents Perceive Merger 20
2.8 Mergers Influence on Attitude and Behavior 21
2.9 Anxiety due to Merger Announcement 22
2.10 Satisfaction level with Change Process 23
2.11 Substantial Drop in Job Satisfaction 25
2.12 Salary and Remuneration 26
2.13 Job Safety and Security 28
2.14 Communication and Participation 29

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 LIST OF FIGURES
Figure Title Page No.

2.1 Age of the Respondents 13

2.2 Gender of the Respondents 16
2.3 Academic Qualification of the Respondents 15
2.4 Numbers of Years Served in the Merged Bank 16
2.5 Department of the Respondents 18
2.6 Salary of the Respondents 19
2.7 How Respondents Perceive Merger 20
2.8 Mergers Influence on Attitude and Behavior 21
2.9 Anxiety due to Merger Announcement 23
2.10 Satisfaction level with Change Process 24
2.11 Substantial Drop in Job Satisfaction 25
2.12 Salary and Remuneration 27
2.13 Job Safety and Security 28
2.14 Communication and Participation 30

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 LIST OF ABBREVIATIONS

% : Percentage
& : and
BAFIA : Bank and Financial Institution Act
BBA : Bachelor of Business Administration
etc. : Etcetera
Fig. : Figure
HRM : Human Resource Management
M&A : Merger and Acquisition
NMB : Nepal Merchant Bank
No. : Number
NRB : Nepal Rastra Bank
ODBL : Om Development Bank Limited
P.U. : Pokhara University

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 EXECUTIVE SUMMARY

This study has been conducted in order to know about the effect of merger on employee
satisfaction of NMB Bank in Pokhara Valley. Employee satisfaction means the extent to
which an individual is happy with their job and the role it plays in their life. The
satisfaction depends on the gap between what an employee expects from o job and what
they actually get. The main purpose of the study is to gain an understanding relation
between the organizational merger and employee satisfaction. The study focuses on
whether the employees are satisfied with the existing merger services such as salary and
remuneration, job safety and security, participation and communication, provided by the
bank. This study investigates the effects of three independent variables such as salary and
remuneration, job safety and security, participation and communication, on the dependent
variable employee satisfaction.

Quantitative analysis of data is done with the use of descriptive research design. Here, the
convenience sampling is used to collect the data. The research was based on primary data
where self-developed questionnaires were provided to the respondents to collect data.
Employee of NMB Bank Limited were taken as the respondents to collect the data. 50
employees of NMB Bank were taken as sample size and collected data were analyzed,
tabulated, and presented by using financial and statistical tools such as Microsoft Excel,
Word, frequency, percentage, etc. and presented through table, chart and diagram. The
tabulation of collected data can be seen on second chapter.

The major findings of the study were that majority of the respondents perceive merger as
better and believes that merger influences their attitude and behavior towards work. They
believe that merger does not led to drop on job satisfaction at all. Majority of the
respondents were satisfied and have positive attitude towards the view of salary and
remuneration, and participation and communication factors provided by the merged bank,
whereas majority of respondents have neutral attitude towards the aspects of the job safety
and security provided by merged bank. It is found that among all the independent variables
communication and participation has the highest positive response to the dependent
variables – employee satisfaction. The conclusion and action implication is based on
findings of the study.

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