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Impact of Employee Merger Satisfaction on Organizational Commitment and Turnover Intentions: A Study of a Canadian Financial Institution

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This study was conducted to examine the impact employee post-merger satisfaction has on employee organizational commitment and turnover intentions. Employees of a Canadian Financial Institution (N=70) completed surveys approximately seven months after a merger between two comparably sized banks. Partial Least Squares (PLS) approach to structural equation modeling (SEM) provided evidence for the relationship between satisfaction with a merger and the affective and normative components of organizational commitment. Support was also found for the hypotheses that proposed that affective and normative commitments are negatively correlated with turnover intentions. We discuss the implications for theory and practice in organizational change.IntroductionOrganizational change, such as merger and acquisition (MA Herold & Fedor, 2008). However, in organizational change literatures, M A Marks, 2006). There is undoubtedly a range of contributing explanations of these high MA Shin, Taylor, & Seo, i

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This study was conducted to examine the impact employee post-merger satisfaction has on employee organizational commitment and turnover intentions. Employees of a Canadian Financial Institution (N=70) completed surveys approximately seven months after a merger between two comparably sized banks. Partial Least Squares (PLS) approach to structural equation modeling (SEM) provided evidence for the relationship between satisfaction with a merger and the affective and normative components of organizational commitment. Support was also found for the hypotheses that proposed that affective and normative commitments are negatively correlated with turnover intentions. We discuss the implications for theory and practice in organizational change.IntroductionOrganizational change, such as merger and acquisition (MA Herold & Fedor, 2008). However, in organizational change literatures, M A Marks, 2006). There is undoubtedly a range of contributing explanations of these high MA Shin, Taylor, & Seo, i

Keywords

Organizational commitmentFinancial institutionNormativeJob satisfactionPsychologyInstitutionBusiness administrationSocial psychology

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