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Abstract
The study explores employee perceptions of mergers and acquisitions (M&A) in commercial banks,
emphasizing key factors that shape these perceptions. It focuses on determinants such as performance
management and employee turnover, which significantly influence employees’ outlook during
organizational transitions. Using a descriptive and causal-comparative research design, data was collected
from 362 employees of 20 commercial banks in Butwal Sub-Metropolitan City, selected via convenience
sampling. Analytical methods, including mean, standard deviation, correlation, and regression analysis,
were employed to interpret the findings. The results highlight that performance management has the most
substantial positive impact on employee perceptions, with effective evaluation and feedback mechanisms
fostering trust and optimism. Conversely, employee turnover negatively affects perceptions, with higher
turnover rates contributing to increased dissatisfaction and negative sentiments during transitions. The
study concludes that robust performance management systems and strategies to reduce turnover are
essential for promoting positive employee perceptions during M&A. These measures enable organizations
to create a supportive environment, enhance engagement, and facilitate smoother transitions.
Policymakers, academic institutions, researchers, and stakeholders can leverage these findings to improve
performance management practices, enhance HR curricula, explore additional influencing factors, and
invest in talent retention and transparent communication to optimize M&A outcomes.
Key words: Employee perception, mergers and acquisitions, performance management, employee turnover,
organizational transitions.