Impact of Company Acquisition on Employees' Job Stress

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IMPACT OF COMPANY
ACQUISITION ON EMPLOYEES’ JOB
STRESS:
A STUDY ON A TELECOMMUNICATION
FIRM IN SRI LANKA
RAJAPAKSHAGE NADEESHA SAJEEWANI
119036V
DEPARTMENT OF MANAGEMENT TECHNOLOGY
UNIVERSITY OF MORATUWA
DECEMBER 2012

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IMPACT OF COMPANY ACQUISITION ON
EMPLOYEES’ JOB STRESS:
A STUDY ON A TELECOMMUNICATION FIRM IN
SRI LANKA
By
Sajeewani R.N.
Supervised by
Prof Vathsala. M. Wickramasinghe
The Dissertation was submitted to the Department of Management of Technology of the
University of Moratuwa in partial fulfillment of the requirement for the Degree of Master of
Business Administration.
Department of Management of Technology
University of Moratuwa
December 2012

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DECLARATION
“I certify that this thesis does not incorporate without acknowledgement any material previously
submitted for a degree or diploma in any University to the best of my knowledge and belief. It
does not contain any material previously published, written or orally communicated by another
person or myself except where due reference is made in the text. I also hereby give consent for
my dissertation, if accepted, to be made available for photocopying and for interlibrary loans,
and for the title and summary to be made available to outside organizations”
…………………………… ………………
Signature of candidate Date
To the best of my knowledge, the above particulars are correct.
…………………………… ……………...
Supervisor Date

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ABSTRACT
Company Acquisition is an extensively discussed topic in modern corporate world. During the
current phase of world economy one important form of corporate restructuring is achieved
through company acquisition. In empirical researches it has been indicated that most acquisition
does not live up to their promised potential. There are many reasons for acquisition failures
including poor program management, lack of courage, weak leadership, ignorance and poor
governance. Acquisition decisions typically center on financial and legal function whereas very
minimal consideration is given for personnel function.
This study focuses on a company acquisition in Sri Lankan telecommunication sector in order to
identify employee related problems occurred due to the acquisition and then it analyses the
relationship between employees’ of job stress and employee related problems. The study
explored the influence of an acquisition on employees’ job stress considering four key areas of
organizational factors, i.e. individual concerns, policies and procedural changes, job related
concerns and organizational changes. Two hundred and eighty three both from acquiring and
acquired organization participants’ responses were taken into consideration in order to capture
their experience on pre-acquisition, during the acquisition and post- acquisition era. The study
explored using a survey as employees of both organizations had to go through a change curve
immediately after the deal is made. Information was collected not only using secondary data,
questionnaires and interviews but also through the participant observations.
The study found that there was a clear alignment between company acquisition and employees’
job stress. Findings of this research has replicated that employee related problems such as
conflicts in shared goals, lack of communication, role overload, role ambiguity, issues with
regards to restructuring can be occurred due to the acquisition and those directly creating an
impact on employee job stress.

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ACKNOWLEDGEMENT
First and foremost I wish to express my sincere appreciation for my supervisor Prof. Vathsala
Wickramasinghe, Department of Management of Technology, Faculty of Engineering,
Univarsity of Moratuwa, for the support and guidance throughout the project. Her valuable
guidance and advices helped me to conduct this research survey a success.
My sincere gratitude and thank are extended to Mr. Dinesh Samarasinghe for support and
guidance provided for the project. Further I would like to thank all the staff of Department of
Management of Technology for supporting me every possible way.
I take this opportunity to convey my honest gratitude to my family members, colleagues and
friends for bearing with me the hardships that I have encountered during the past two years, for
the patience, kindness and encouragement, which kept me going until the end.
Finally yet importantly, I would like to thank the employees of two telecommunication
companies, participant of this case study who participated in my survey for sparing their valuable
time to provide information to this research success.

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TABLE OF CONTENTS
DECLARATION............................................................................................................................. i
ABSTRACT.................................................................................................................................... ii
ACKNOWLEDGEMENT.............................................................................................................iii
TABLE OF CONTENTS............................................................................................................... iv
LIST OF TABLES........................................................................................................................ vii
LIST OF FIGURES ....................................................................................................................... ix
LIST OF ABBRIVATIONS ........................................................................................................... x
1. INTRODUCTION .................................................................................................................. 1
1.1 Background of the Study.................................................................................................. 1
1.2 Identification of the Problem............................................................................................ 2
1.3 Objectives of the Study .................................................................................................... 4
1.4 Scope of the Study............................................................................................................ 4
1.5 Significance of the Study ................................................................................................. 4
1.6 Chapter Outline ................................................................................................................ 5
2. LITERATURE REVIEW ....................................................................................................... 6
2.1. Introduction...................................................................................................................... 6
2.2. Previous Studies............................................................................................................... 6
2.3. Motives for Merger .......................................................................................................... 7
2.4. Mergers and Acquisition.................................................................................................. 8
2.4.1 Merger....................................................................................................................... 8
2.4.2 Acquisition................................................................................................................ 9
2.5. Job Stress........................................................................................................................ 12
2.6. Job Stress vs Mergers and Acquisition .......................................................................... 15
2.7. Chapter Summary........................................................................................................... 17

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3 METHODOLOGY ............................................................................................................... 19
3.1 Introduction.................................................................................................................... 19
3.2 Conceptual Model .......................................................................................................... 19
3.3 Hypothesis of the Study ................................................................................................. 20
3.4 Sample of the Study ....................................................................................................... 24
3.4.1 Target Population.................................................................................................... 24
3.4.2 Sampling Method.................................................................................................... 25
3.5 Methods of Data Collection ........................................................................................... 26
3.5.1 Survey Research Approach..................................................................................... 26
3.5.2 Data Collection ....................................................................................................... 27
3.5.3 Research Questionnaire .......................................................................................... 27
3.5.4 Interviews................................................................................................................ 29
3.6 Methods of Data Analysis.............................................................................................. 29
3.6.1 Data Analysis.......................................................................................................... 29
3.6.2 Validity and Reliability........................................................................................... 29
3.7 Chapter Summary........................................................................................................... 30
4 DATA ANALYSIS AND DISCUSSION ............................................................................ 31
4.1 Introduction.................................................................................................................... 31
4.2 Data Analysis ................................................................................................................. 31
4.2.1 Nature of the Acquisition........................................................................................ 31
4.2.2 Characteristics of the Sample.................................................................................. 36
4.2.3 Statistical Analysis.................................................................................................. 41
4.2.4 Identification of Employee Related Problems........................................................ 43
4.2.5 Relationship between Employee Related Problems and Employees’ Job Stress ... 46
4.2.6 Employee Related Problems and Job Stress – Before the Acquisition................... 49
4.2.7 Employee Related Problems and Job Stress – During the Acquisition .................. 53

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4.2.8 Employee Related Problems and Job Stress – After the Acquisition..................... 57
4.2.9 Summary of Hypothesis Test Results..................................................................... 61
4.1. How Individual Cope with Job Stress? .......................................................................... 61
4.2. Chapter Summary........................................................................................................... 63
5 CONCLUSIONS, IMPLICATIONS & FUTURE RESEARCH.......................................... 64
5.1 Conclusions.................................................................................................................... 64
5.2 Implications of the Study ............................................................................................... 66
5.3 Recommendation............................................................................................................ 66
5.4 Future Research.............................................................................................................. 71
REFERENCES ............................................................................................................................. 72
APPENDIX................................................................................................................................... 75
Appendix A - Questionnaire................................................................................................. 75
Appendix B – Reliability Analysis ....................................................................................... 81
Appendix C – Factor analysis............................................................................................... 81

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LIST OF TABLES
Table 2.1 Johnson & Johnson’s growth through acquisition strategy: Selected deals over period
1994-2009 ....................................................................................................................................... 8
Table 2.2 Pressure Measurement Indicator Scale items ............................................................... 14
Table 3.1 Operationalization table................................................................................................ 21
Table 3.2 Population of the study ................................................................................................. 24
Table 3.3 Number of employees in specialized area .................................................................... 25
Table 3.4 Number of subjects for the sample ............................................................................... 26
Table 3.5 Sample statistics............................................................................................................ 28
Table 3.6 Respondent’s statistics.................................................................................................. 28
Table 4.1 Internal consistency measure: Cronbach’s alpha for individual behavior, policies and
procedure, job related and organizational factors......................................................................... 41
procedure, job related and organizational factors (separate factors) ............................................ 41
Table 4.3 Internal consistency measure: Cronbach’s alpha for employees’ job stress................. 42
Table 4.4 Factor re-creation based on the loading factor.............................................................. 42
Table 4.5 Factor re-creation based on the loading factor.............................................................. 43
Table 4.6 Descriptive statistic analysis......................................................................................... 43
Table 4.7 Descriptive statistics for individual behavior, policies and procedural changes, job
concerns and organizational concerns occur during the merger stage.......................................... 44
Table 4.8 Pearson Correlation matrix for data: Pre acquisition.................................................... 46
Table 4.9 Pearson Correlation matrix for data – during the acquisition....................................... 47
Table 4.10 Pearson Correlation matrix for data –Post acquisition ............................................... 48
Table 4.11 Regression analysis (Individual behavior vs employee job stress): Pre acquisition... 49
Table 4.12 Regression analysis (Policies and procedures vs employee job stress): Pre acquisition
....................................................................................................................................................... 50
Table 4.13 Regression analysis (Job related & employee job stress): Pre acquisition................. 51
Table 4.14 Regression analysis (Organization related & employee job stress): Pre acquisition.. 52
Table 4.15 Statistical analysis for hypothesis 1............................................................................ 53

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Table 4.19 Regression analysis (Individual behavior & employee job stress): Post acquisition . 57
Table 4.20 Regression analysis (Policies and procedures & employee job stress): Post acquisition
....................................................................................................................................................... 58
Table 4.21 Regression analysis (Job related & employee job stress): Post acquisition ............... 59
Table 4.22 Regression analysis (Organization related & employee job stress): Post acquisition 60
Table 4.23 Summary of Hypothesis Test Results......................................................................... 61

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LIST OF FIGURES
Figure 2.1Announced mergers and acquisitions: Worldwide, 1985-2011 ................................... 11
Figure 2.2 Announced mergers and acquisitions: Telecommunication Industry, 1985 -2011..... 11
Figure 3.1 Conceptual Framework ............................................................................................... 19
Figure 4.1 Target Organizational Structure before the acquisition............................................... 32
Figure 4.2 Acquired organizational structure before the merger.................................................. 33
Figure 4.3 Merged Organization................................................................................................... 34
Figure 4.4 Sample representation: Acquired & Acquring organization ....................................... 36
Figure 4.5 Sample representation: Gender.................................................................................... 37
Figure 4.6 Sample representation – Age group ............................................................................ 38
Figure 5.1 Relationship between employee related problems caused due to company acquisition
and employee job stress ................................................................................................................ 65

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LIST OF ABBRIVATIONS
M&A – Mergers and Acquisitions
ANOVA – Analysis of variance
VRS – Voluntary Retirement Scheme
PMI – Pressure Measurement Indicators
SPSS – Statistical Package for Social Sciences

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1.INTRODUCTION
1.1 Background of the Study
Mergers and acquisitions (M&A) is a part of a strategic approach used by many firms to achieve
various objectives. For example, mergers and acquisitions can be used to expand into new
markets, gain technical expertise, synergy through economies of scale, risk reduction, revenue
enhancement and capital allocation.
An acquisition is the purchase of one business entity by another business entity with the intention
of controlling the target firm’s business operation and assets. Merger can be referring to any
takeover of one company by another, when the businesses of each company are brought together
as one (Glenlake and Fitzroy, 2000).
The increased pace of M&A activities in recent years has reflected powerful change forces in the
world economy including Sri Lanka. Technical and technological changes, ease of
communication and transportation, intensity of competitiveness, emerging of new industries and
restructuring activities are major forces which are simulating M&A.
It is important to mention that number of acquisitions and mergers currently taking place in Sri
Lanka has been increased. SLT acquired Mobitel, JKH acquired Asian Hotels, Phoenix and
Jewel knit have merged to form a group of their own by the name of Brandix, , Aviava Insurance
acquired NDB are some examples of Sri Lankan context. In many cases, organizations resort for
merger and acquisitions because they believe that is the easiest and fastest way to growth. In
2004, worldwide merger and acquisition activity increased by over 40 percent according to the
merger and acquisition survey done by Thomson (Thomson Financial 2012).
Even though the view is acceptable to a certain extent, many acquisitions do not produce the
expected results. Despite the fact that mergers and acquisitions look attractive in theory to
management and investors, the reality is execution of that transaction is seen as a threat to the
employees of the organization. It was established that 34 percent of deals enhanced shareholder
value, 32 percent reduced while and 34 percent makes no effect (KPMG, 2003). A.T. Kearney
found that total return of shareholders on 115 global merger transactions was negative 58 percent

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(Admin, 2011). The main reasons behind these failures are problems on post merger integration,
unplanned personnel management practices, restructuring and lay off and stiff resistance from
the target firm. There are situations where acquisitions and mergers are opposed on grounds of
nationalism. When Nestle attempted to acquire Rowntree in the UK, a newspaper published the
headline “Help! The Swiss are coming for our Smartees" (Mahendra, 2001). Acquisitions and
mergers are a must as they help to ensure that firms enjoy economies of scale as well as
minimize unnecessary competition. Mergers such as Brandix can help to build strong Sri Lankan
firms, which can be competitive internationally.
Outcome of the merger or acquisition determines the success or the failure of the exercise which
ultimately creates the impact on the target firm’s operation. In order to judge the result of the
activity, outcome of the merger should be defined in terms of measurable and quantifiable
factors. Merger activity should be properly planned considering the core business, cultural values
and norms, key employee talents, due diligence and finally cost of the merger. Even though
merger transactions are carefully planned and orchestrated, employees of both organizations will
be impacted. In the case of two organizations; common concept of merger or acquisition is the
loss of identity of the employees of the acquired organization which occurs due to fear and
uncertainty of the future. Culture mismatches is another factor that leads to fail the transaction.
The prevailing culture usually comes from the acquirer and then the acquired company’s culture
needs to be pushed out from the newly formed company.
1.2 Identification of the Problem
In clarifying the research problem of the study, it is important to look into the studies that have
been carried out with reference to the mergers and acquisitions and its impact on employees’ job
stress. Merger or acquisition in some cases may be required by one or both organizations in order
to survive. In other cases, the merger or acquisition move can be seen as a strategic action that
will lead to create a leader, more profitable company once the transaction is completed – one that
is better positioned for growth. Uniqueness of M&A can be identified with respect to the motive,
performance of the acquirer and the target firm, cross borders or domestic, time and complexity
and the type of the transaction. Therefore each merger or acquisition yields a specific set of
result which is unique depending on the transaction.

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This research is based on an acquisition taken place in Sri Lankan telecommunication sector in
March 2012. Acquiring organization, largest mobile operator bought out second largest wireless
fixed line operator, by acquiring its entire 100 percent stake from the stakeholders. In order to
acquire economies of scale merged entity explored for amalgamation projects such as merged
telecommunication systems, tower and network consolidation, aligning of business operation and
employee reduction. As a result of this followed by the acquisition acquired organization
employees were offered a voluntary retirement scheme which caused almost half of the
employees was sent out homes. Throughout the acquisition employees of the acquired
organization often complained that they do not know what is happening, express fear about job
loss and feel demoralized about future uncertainty. Talent management practices, category
mapping and merged organization structure was not known by the employees as they proceed
with the acquisition. Employees faced difficulties figuring out what exactly the business need
behind the acquisition, why it is important and how they will be affected. Change was evitable
during the acquisition which created negative impact on employees’ morale.
It is important to analyze employee related concerns with respect to this case study as this is the
first acquisition in Sri Lankan telecommunication sector with organizational restructuring.
Telecommunications industry is one of the most profitable and rapidly developing industries in
Sri Lanka and it is regarded as an indispensable component in the services sector. The
acquisition was taken place between same industry and it can be regarded as a horizontal merger
simply because of the reason that the entities gone for the acquisition are operating in the same
industry, which is telecommunications. This acquisition ultimately created oligopolistic situation
in Sri Lankan telecommunication sector as it created two major players in the sector. The
negative aspect of this acquisition was it duplicated processes, operation, technology and
employees.
Hence considering all these factors identification of different M&A and its result is benefited for
a smooth transaction of M&A practices. With respect to above highlighted case identification of
M&A following research question was developed.
What are the impacts of company acquisition on employees’ job stress?

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1.3 Objectives of the Study
Following listed items were identified as objectives of this research study in order to find the
answers for above research question.
• To investigate the nature of the acquisition (nature/type/consequences/merger period)
occurred between two firms in Sri Lankan telecommunication sector
• To investigate employee related problems occurred due to the above acquisition
(Individual/ organizational/ job related/ policies and procedures)
• To analyze the relationship between employee related problems which occurred due to
the acquisition and employee level of job stress
• To identify how employees cope with job stress
Coping up with the situation is analyzed through observation and interviews.
Based on above four objectives, the researcher aims to recommend strategies to overcome
employee related problems which are caused due to company merger.
1.4 Scope of the Study
It is important to know the representation group of the study. This study done based on an
acquisition taken place in telecommunication firm in Sri Lanka. The total employee base affected
by this transaction is 2000 including employees of both organization. The impact toward
technology, marketing, culture and employee related factors can be discussed under the topic of
company acquisition. But in this research the impact toward employee related factors were
discussed in order to analyze employees’ job stress.
1.5 Significance of the Study
The intended research findings about employees’ job stress due to company acquisition would be
a great source of information for the modern corporate era. As a corporate strategy most
organizations are engaged in mergers and acquisitions to improve overall performance. Multiple
organizational factors such as technological, marketing, corporate culture, employee related
concerns are impacted upon a mergers and acquisition in an unpredictable manner. Even though
the primary purpose of merging and acquiring new firms is usually for profit enhancement,
human side of this transaction was completely neglected.

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The research identifies employee related problems that can occur due to company acquisition
such as change in individual behavior, job related concerns, organizational changes & changes in
policies and procedures. Based on these factors, the research was designed to examine
employees’ responses towards the organizational acquisition. The impact of these factors is
negatively affected to employee job stress.
This research identifies the reason for employees’ job stress and recommends preventive actions
based on the case study. Failure to clarify leadership issues, lack of communication with key
stakeholders during the merger, poor strategic rationale, mismatch in culture are some of the
weak strategies that should be identified during the acquisition.
This study may be one of the first efforts to examine the corporate acquisition in Sri Lanka in
telecommunication firm. Also identification of employees’ reaction towards a change is vital for
a corporate acquisition, which has been identified in this study using participant observation. The
recommendation of this study can be taken as best practices for corporate acquisition in the same
degree.
1.6 Chapter Outline
The study on the impact on employees’ job stress due to company acquisition is outlined into
five major chapters, namely Introduction, Literature Review, Methodology, Data Analysis and
Discussion and Conclusion and Recommendations. In addition, appendices include references
and calculation details. Chapters are organized as follows.
Chapter 2 – Literature review is for reviewing of existing literature related to this study.
Chapter 3 – Methodology chapter discuss the design of the study, development of conceptual
model, data collection methods and operationalization of measurements.
Chapter 4 – Data Analysis is presented based on secondary data and collected data.
Chapter 5 – Conclusion, Recommendation and Limitation of the study is presented in the final
chapter. It concludes entire study and findings of the study and recommended suggestions,
guidelines and strategies to identify human related problems which caused due acquisition and
how those create impact towards employees’ job stress.

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2.LITERATURE REVIEW
2.1. Introduction
Before going for a detail design of this research, it is worth to have a clear understanding of the
areas such as company merger, acquisition, employee job stress and the literature related to the
study. Therefore this chapter is written down to cater that requirement.
In literature it is stated that firms go for mergers and acquisitions in order to obtain various
financial objectives. The process of planning, negotiation and transaction information are
available with regards to different mergers and acquisitions. But when it comes to the discussion
of human side of mergers and acquisitions, it is mentioned that due to the implementation issues
there can be human resource conflicts. Therefore it is essential to identify the relationship
between human resource management practices with regards to different motives for merger.
2.2. Previous Studies
There are researches, which were carried out to study employees’ job stress and company
acquisition.
Post merger stress due to the group differences in a sample of field sales employees was
investigated using a survey methodology (Panchal and Cartwright 2001). Due to the higher
workload, changes in responsibilities and duties, role ambiguity, role overload and role conflict
can create occupational stress as per the survey conducted at a medium sized, multinational
biotechnology company approximately six months following a merger (Andreassi and Grotto
2011). Human resource issues and there outcomes were discussed in a journal article with
regards to different types of mergers such as collaborative mergers, extension, redesign mergers
(Napier, 1989). A model was formed to address cultural and communicational impact due to
company merger in healthcare center. The model comprises of two variables, communication
and corporate culture and further it describes how those were influenced by the each stage of the
merger process (Appelbaum and Gandell, 2003). Communication, corporate culture, change,
stress and managing strategy are the main organizational factors which are impacted upon the
merger were discovered by another research paper based on empirical researches (Appelbaum, et
al., 2000). Further research paper article mentioned that mergers and acquisitions represent a

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significant and potentially emotional and stressful life event because they change an individual’s
working life significantly but fail to provide an individual with any control over the event
(Cartwright and Schoenberg, 2006).
Each merger and acquisition transaction is unique and yields specific set of results at the end of
the process. Based on that guide line it is worth to analyze the process and the results of any
transaction in order to arrive for common model which explains impact of the transaction with
regard to human resource point of view. This study contributes to identify the major impacts on
the employees’ job stress due to M&A considering a case study in Sri Lankan
telecommunication sector. Ultimately, the strategic recommendation derived from the study can
be applied to build up a framework for measuring employees’ job stress and their behavioral
changes and how they cope up with the situation.
2.3. Motives for Merger
Literature review motives for mergers preliminary come from finance, economics and strategic
management. Financial or value maximization motive and managerial or non-value
maximization motive are two generally accepted categories in corporate world (Halpern, 1983;
Mueller, 1977 cited in Napier, 1989). Value maximization motives such as increase profit,
increasing synergy through economies of scale or scope, applying knowledge and skills from one
organization to another and controlling target organization’s management and resources are the
major reason for mergers (Halpern, 1983; Jensen and Ruback, 1983; Salter and Weinhold, 1979
cited in Napier 1989). Non value-maximizing motives assume that there are other reasons such
as increase management’s prestige or power, decrease uncertainty in the firm’s external
environment and increase sales or assets (Halpern, 1983; Rhoades, 1983 cited in Napier 1989).
Most often cited motives for M&As are faster growth and synergy. Companies often merge in an
attempt to diversify into another line of business which is the most fundamental motives for
M&A. Johnson & Johnson is a manufacturer and marketer of a wide range of health care
products. Over the period 1995-2010, the company engineered over 68 significant acquisitions as
part of its growth acquisition strategy. The company is an assemblage of multiple acquisitions
leading to a corporate structure that includes 230 subsidiaries (Gaughan, 2011).

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Table 2.1 Johnson & Johnson’s growth through acquisition strategy: Selected deals over period
1994-2009
Company Acquired Primary Focus Date Size in Billions
Pfizer Consumer Healthcare Consumer health care 2006 16.6
Alza Drug delivery 2001 12.3
Centocor Immune-related diseases 1999 6.3
Depuy Orthopedic devices 1998 3.6
Scios Cardiovascular diseases 2003 2.4
Cordis Vascular diseases 1996 1.4
Inverness Med. Tech Diabetes self management 2001 1.4
Mentor Corporation Medical products 2008 1.1
Neutrogena Skin and hair care 1994 0.9
Omrix Biopharmaceuticals Bio-surgery products 2008 0.4
Closure Tropical wounds 1997 0.3
Source: Gaughan 2011
Synergy on the other hand mostly associated with mergers as a motivational factor. The two
main types of synergy are operating synergy and financial synergy. Operating synergy comes in
two forms; revenue enhancements and cost reductions. These revenue enhancements and
efficiency gains or operating economies may be derived in horizontal or vertical mergers.
Financial synergy refers to the possibility that the cost of capital may be lowered by combining
one or more companies (Gaughan, 2011).
2.4. Mergers and Acquisition
Even though mergers and acquisition used synonymously in literature and often uttered in the
same breath each represents different stages of corporate taking over process.
2.4.1 Merger
Merger is defined as combination of two or more companies into a single company where one
survives and the other lose their corporate existence. The survivor acquires the assets as well as
liabilities of the merged company or companies. Generally, the company which survives is the
buyer who retains its identity and the seller company is extinguished. Merger is also defined as
amalgamation (Mergers and Acquisition, 2012). If the two firms are often of about the same size,
this sort of amalgamation is called “merger of equals”. Both companies’ stocks are surrendered

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and new company stock is issued in place under this merging type. For example both Daimler-
Benz and Chrysler ceased to exist when the two firms are merged, and a new company,
DaimerChrysler, was created. In 1999 merger got Glaxo Wellcome and SmithKline Beecham,
both firms ceased to exist when they merged, and a new company, GlaxoSmithKline, was
created (Stevens, 2000).
2.4.2 Acquisition
Acquisition in general sense is acquiring the ownership in the property. In the context of business
combinations, an acquisition is the purchase by one company of a controlling interest in the share
capital of another existing company. An acquisition may be affected by (a) agreement with the
persons holding majority interest in the company management like members of the board or
major shareholders (b) purchase of shares in open market; (c) to make takeover offer to the
general body of shareholders; (d) purchase of new shares by private treaty; (e) acquisition of
share capital (Mergers and Acquisition, 2012).
There are many types of mergers and acquisitions that redefine the business world with new
strategic alliances to improve firms’ corporate goals (Gehi, n.d.).
• Horizontal merger – This kind of merger exists between two companies who
compete in the same industry segment. The two companies combine their
operations and gains strength in terms of improved performance, increased capital
and enhanced profits. Further this amalgamation substantially reduces the number
of competitors in the segment and gives higher over competition.
• Vertical merger – Vertical merger is a kind in which two or more companies in
the same industry but in different fields combine together in business. In this
form, the companies in merger decide to combine all the operation and production
under one company.
• Conglomerate merger – Conglomerate merger is a kind of venture in which two
or more companies belonging to different industrial sectors combine their
operations. This is sort of unification of businesses from different verticals under
one flagship enterprise or firm.

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• Co-Generic merger – Con-generic merger is a kind in which two or more
companies formed association related to the production process, business markets,
or basic required technology.
Another literature suggests that if the relationship between two merging firms is less co-
operative following four types of merger can occur, i.e. rescue, collaborative, contested and raid
(Pritchett 1985 cited in Napier 1989). With regards to the same topic another classification on
mergers and acquisition are planned divestitures, friendly acquisitions, and hostile takeovers
(Schweiger and Ivanchvih 1987, cited in Napier 1989). Depending on the motives and the
characteristics of merger, merger type can be identified. Briefly extension mergers are cases
where the acquiring firm essentially leaves the acquired firm alone, changing little of none of its
management or operation. Collaborative mergers occur when two firms join to generate gains to
both or to one, through blending operations, assets, culture or through an exchange of technology
or expertise. There are two types of collaborative mergers: synergy and exchange. Synergy
mergers exist when two firms blend or compromise on major operation and managerial
functions. Exchange mergers involve an exchange or transfer of knowledge, technology or other
talent from one firm to the other. Redesign mergers imply adaptation of policies and practices of
one firm by the other (Napier 1989).
The pace for merger activities raised to unprecedented level during last two decades, in the U.S.
in 2011, the value of mergers and acquisitions topped by 15% compared to 2010 (Thomson
Financial, 2012).

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Figure 2.1Announced mergers and acquisitions: Worldwide, 1985-2011
Source Thomson Financial, Institute of Mergers, Acquisitions and Alliances (IMAA) analysis
Figure 2.2 Announced mergers and acquisitions: Telecommunication Industry, 1985 -2011
Source Thomson Financial, Institute of Mergers, Acquisitions and Alliances (IMAA) analysis
-
10,000
20,000
30,000
40,000
50,000
60,000
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
No of Transactions
-
500
1,000
1,500
2,000
2,500
3,000
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
No of Transactions

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Even through each year since 1983 mergers and acquisitions has yielded over 30,000, with
nearly 50,000 in 2007 alone, many have failed. Indeed there is evidence that 30 percent of
mergers and acquisition end in divestiture and up to 50 percent are regarded as generally
unsuccessful (Business week, 1988 cited in Napier 1989)
Value creation mergers and acquisition is often associated with the introduction of changes that
involves the partial or the complete redesign of the organizational practices, policies and
structures. As a result, this transition regularly has negative impact on employee well being,
work team performance and organizational effectiveness. Primary purpose of merging and
acquiring is usually to improve overall performance by achieving synergy. Therefore financial
and legal aspects are well planned whereas minimal planning and consideration is given to
human resource aspects. While some failure can be explained by financial and market factors;
others can be explained due to negligence of human resource issues and activities. People issues
are largely dismissed when negotiating M&A at the expense of financial aspects and this has
been identified as an important factor in merger failure (Holbeche, 1998 cited in Panchal and
Cartwright, 2001). Therefore it is important to address human resource related factors and there
possible outcome which causes employees’ job stress.
2.5. Job Stress
Work related stress is considered to be the product of an imbalance between environmental
demands and individual capabilities. In literature “stress” is used to describe either the external
stimulus from the environment or the response of the individual or sometimes both meaning
simultaneously (Lazarus and Folkman, 1984 cited in Jackson and Rothmann 2006). According to
the transactional model stress depends on an individual’s cognitive appraisal of events and
circumstances and the ability to cope up with the situation (Lazarus and Folkman, 1984 cited in
Jackson and Rothmann 2006). As per the model developed to measure occupational stress,
(Cartwright and Cooper 2002 cited in Jackson and Rothmann 2006) seven occupational stressors
are distinguished, namely work relationships, work-life imbalance, work overload, job
insecurity, control, resource and communication and pay and benefits.
Mergers and acquisitions have been conceptualized as stressful life events; in terms of the social
readjustment (Holmes and Rahe, 1967 cited in Pachal and Cartwright 2001) and mental stress
due to post merger activities (Siu et al 1997 cited in Panchal and Cartwright 2001). Some

13
research has examined differences between acquiring and acquired employees, which suggests
acquired employees confronted with more stress because they face longer and negative change
due to loss of autonomy and status (Hambrick and Cannella, 1993 cited in Panchal and
Cartwright 2001). Further literature reveals that acquired employees are in dissatisfaction with
the merger if the acquired organization has competed directly with the acquirer (Covin et al
1996, cited in Panchal and Cartwright 2001). When a merger occurs, there can be organizational
restructuring which may lead to higher workload, changes in responsibilities and duties, increase
in role ambiguity, role overload and role conflict. These stresses would be expected to influence
work life outcomes such as work to non-work conflict.
Sources of stresses and experience on stress situation is analyzed using employees from Business
Process Outsourcing firm in India and it has been identified that job satisfaction, feedback,
working conditions, work family balance and workload are factors lead to occupational stress.
Primary data were collected through a questionnaire which has three point scales (not at all true,
somewhat true, and completely true) to measure the stress level of employees. The answers were
recorded and categorized low job stress, medium job stress and high job stress. As per the results
obtained from the research job feedback, workload and promotion opportunities create high level
of stress for majority of the call centre employees. Other factors like working conditions, job
security, workplace politics, job satisfaction and changes taking place in the workplace are a
source of medium stress for the respondents (Latha and Panchantham 2010).
A study on occupational stress is carried out and stress measurement tool, Pressure Management
Indicator (PMI) is developed using 120-item self report questionnaire which measures job
satisfaction, organizational satisfaction, organizational security, organizational commitment,
anxiety-depression, resilience, worry, physical symptoms and exhaustion (Williams and Cooper
1998). There were few examples in the literature of studies of occupational stress that involves
everyone in an organization. This research experience has shown that benefits arise when
everyone in an organization takes part in a stress audit. Also it is proven that stress many people
in the industry still see stress as a while-collar or executive phenomenon and stress experienced
by blue-collar and other lower level employees tends to be ignored. Therefore all relate factors
were taken into consideration as mentioned below in order to model Pressure Measurement
Indicator and hence to capture the relationship between organizational factors and employee
level of stress.

14
Table 2.2Pressure Measurement Indicator Scale items
Subscale
Job Satisfaction
Organizational Satisfaction
Organizational Security
Organizational Commitment
State of Mind
Resilience
Confidence Level
Physical Symptoms
Energy Levels
Workload
Relationships
Recognitions
Organization Climate
Personal Responsibility
Managerial Role
Home-Work Balance
Daily Hassles
Personal Influence
Social Support
Source: Williams and Cooper 1998
The result of the study indicates that PMI is an effective tool that enables individuals and
organizations to receive comprehensive, integrated and understandable assessment of
occupational stress.
Several literature journals have indicated that once the stress is identified individuals have to
cope with it in different ways. Two broad types of coping have been mentioned namely, direct
action and palliative (seeking social support) (Piero et al, 2006 cited in Pattie 2006). Further in
the same literature it is reviewed that direct action coping is a superior strategy and one in which
women are deficient. They believed that because of the women and men are socialized in

15
different roles, the effectiveness of each coping method depends on the gender of the employee.
Further, the direct action coping method is more effective for men while the palliative governing
method is more effective for women.
2.6. Job Stress vs Mergers and Acquisition
Considering all the facts, which were discussed about Mergers and Acquisition and employees’
job stress, now it is worth to understand the impact of mergers and acquisition on employees’ job
stress through the literature.
Research papers indicate that directly or indirectly people issues are the main reason for takeover
failures and communication is central to the people issues. Further studies show that
management of the human side of the merger is the real key to maximizing the value of the deal.
Organizational culture is one of the key items which influence employees’ performance as well
as often cited for merger failure. Therefore the relationship between the merger, corporate
culture, employee performance and job stress indicate the result of the merger transaction. In the
merger and acquisition context, incompatibility of the culture leads to fail the transaction as a
result of reluctance to change. As per the literature seventy five percent of the merger and
acquisitions were failed due to the clash of the corporate culture (Faiez Kirtsen, 2001 cited in
Makhlouk and Shevchuk 2008). Responsible parties preoccupied by the shareholders value,
market business and financial synergies and often underestimate the cultural integration
challenges and the impact of varying employees’ external environment. As culture consists of
combination of artifacts, values and beliefs and underlying assumptions and behaviors that
organizational members share, it is highly recommended to consider the effect to the culture due
to the merger. Mergers of different culture lead to reduce employee performance and increase
job stress as it is evident that certain types of culture facilitate the change process while other
types of culture are not. Therefore before the merger it is worthwhile to identify what type of
culture that the organization posses.
Communication can help the employees to manage the merger syndrome because it informs
them the changes in their environment, thus reduces uncertainty and ambiguity. Following the
same line of research, another empirical study reviewed the relationship between the
management communication on the merger and the employees’ attitudes, intensions to leave or
be absent and decline in performance. A survey questionnaire to identify the perception about the
adequacy and accuracy of management’s communication about the merger was administrated by

16
216 employees three months after the completion of the merger. It was found that employees
evaluated the communication program positively and effectively as the result indicate that
positive reactions to the communication program engendered higher perception of control,
organizational commitment, job satisfaction and lower intention to quit and be absent.
Conversely, management has historically been opposed to advanced announcement before
mergers and acquisitions because they fear productivity losses due to work slowdown,
intentional sabotage or employees seeking employment elsewhere before the organization is
ready to terminate them (Harrison, 1984 cited in Moran and Panasian, 2005).
In a successful merger on two UK building societies find that there were no noticeable impacts
on job satisfaction and organizational commitment but the stress level increases for both groups
(Cartwright and Cooper 1993 cited in Moran and Panasian, 2005).
Another research paper discussed micro level issues such as lowered morale, job dissatisfaction,
unproductive behavior, occupational stress, increased turnover and absenteeism as being
responsible for one-third to one-half of all merger failure (Moran and Panasian, 2005). Main
source of stress in the merger or acquisition process is the uncertainty surrounding organizational
and personnel changes. It is well accepted that communication is the key tool within any change
process and failure to communicate leaves employees uncertain about the future and leading for
more anxiety. Often based on fears rather than reality, rumors can significantly exacerbate
employee anxiety, tension and stress.
A study done empirically to measure if mergers and acquisitions activities do lead to uncertainty
and to assess the dysfunctional outcome associated with it. The study is a longitudinal field
experiment aimed at providing a clear picture of the effects of mergers and acquisitions on
individual employees. Their data is collected at four points in time, before the impending merger
was announced; following the announcement of the merger but before the implementation of the
merger; three days after the implementation of the changes; and four months later. Specifically,
the hypothesis they test was, if the announcement of the merger resulted in increased uncertainty,
stress, absenteeism and turnover of the employees, and a decrease in their job satisfaction,
commitment, intentions to stay with the organization, self-rated performance, and perceptions of
the organization’s trustworthiness, honesty and caring. The collection of data has been done
through a self administrated questionnaire at the four different points in time. Data on
absenteeism and turnover was obtained from company records. The results, using subsequent
tests (ANOVA) indicate significant increases in global stress, perceived uncertainty, and

17
absenteeism; significant declines in job satisfaction, commitment and perceptions of the
company’s trustworthiness, honesty and caring; and no significant changes in self-reported
performance. They also find a significant decline in intentions to remain with the organization.
(Schweiger and Denisi 1991 cited in Moran and Panasian 2005)
In organizations individuals carry out roles assigned to them in order to create an efficient
organizational system. Role strain or role pressure can arise when there is a conflict in the
demands of roles, when as individual does not agree with his or her assessment or by accepting
roles that are beyond an individual’s capacity. According to the above definition when role
expectations are conflicting, ambiguous or overloading, which may arise from characteristics of
the individual or the work environment, the individual experiences a role stress. Role ambiguity
refers to a situation where there is a lack of necessary information for an organizational position,
resulting in role dissatisfaction, anxiety, fear and hostility and lower performance (Kahn et al.,
1964 cited in Andressi and Grotto 2011). Role conflict refers to the existence of behavioral
expectations that are inconsistent. Finally role overload refers to work expectations that exceed
ones’ capacity (Caplan, 1971 cited in Andreassi and Grotto 2011). Role conflict, role ambiguity
and role overload have being associated with decreased well-being, work dissatisfaction,
decreased job performance, increased turnover as well as job satisfaction. With regards to
mergers and acquisitions, position consolidations, layoff, reorganizations, change in personnel
often increase the workload of employees as layoff survivors typically end up absorbing extra
responsibilities. Also former job responsibilities are altered following a merger; there is often
high level of uncertainties for employees in terms of what is expected of them which creates role
ambiguity. Employees who experienced role ambiguity, role overload or role conflict due to a
downsizing or anticipated downsizing in the future were found to have elevated level of
perceived inequity, psychological strain, cynicism and absence (Kalimo, et al, 2003, cited in
Andreassi and Grotto 2011).
2.7. Chapter Summary
According to the literature survey results it can be identified that there are various types of
mergers and acquisitions are happening all around the world. Depending on the motive mergers
and acquisitions can be categorized into different segments. Merger is the process of
combination of two business entities in order to form new business entity where as an acquisition
is the process of purchasing a business entity by another with the intention of controlling its

18
assets. Regardless of the transaction type, merger or acquisition creates negative impact on
employees including employee behavior, job description, company policies and procedures,
organizational climate.

19
3 METHODOLOGY
3.1 Introduction
Based on the review of the literature in Chapter2, this chapter describes the development of the
conceptual framework and the operationalization which guides the rest of the study and presents
the methodology used in the current study, specifically in relation to the research design and the
data collection. Additionally the rationale for interpreting and summarizing the research results
will be discussed in this chapter.
3.2 Conceptual Model
The conceptual framework is the foundation on which the entire research is based on. It is
logically developed and described the relationship of the constructors.
Following figure elaborates the conceptual framework of the research.
Figure 3.1Conceptual Framework

20
The conceptual framework has been designed to study the relationship between employees’ job
stress and the factors which arisen due to the company acquisition. Independent variables are
identified and categorized according to the nature of occurrence as an outcome of the acquisition.
Change in individual behavior can be seen with the company acquisition; where employees start
to response positively or negatively. Target organization’s policies and procedures are impacted
due to the change caused by the acquisition. Researcher tries to identify job related employee
problems as well as organization related problems such as information availability,
organizational culture in order to categorize independent variables. Conceptual design builds the
relationship between these individual factors and employees’ job stress while research findings
prove the significance of this relationship.
3.3 Hypothesis of the Study
Hypothesis can be defined as logically conjectured relationship between two or more variable
expresses in form of a testable statement (Sekaran, 2008). Four hypotheses were derived from
the conceptual framework to be tested as follows;
Hypothesis 1
There is significance relationship between individual behavioral related problems occurred due
to company acquisition and employees’ job stress.
Hypothesis 2
There is significance relationship between policies and procedures related employee problems
occurred due the company acquisition and employees’ job stress.
Hypothesis 3
There is significance relationship between job related employee problems occurred due to
company acquisition and employees’ job stress.
Hypothesis 4
There is significance relationship between changes in the organization related employee
problems occurred due the acquisition and employees’ job stress.

21
Table 3.1Operationalization table
Obje
ctive
Variables Indicators Sub indicators Source (from literature or author developed)
Level of
measurement
Question number
Pre-
merger
During
the
merger
Post-
merger
Invest
igate
factor
s
occur
due to
comp
any
acqui
sition
Individual
behavior
Absenteeism Author developed 5 point likert 1.1 2.1 3.1
Late attendance Author developed 5 point likert 1.2 2.2 3.2
Job insecurity Intention to leave Appelbaum et al, 2000 5 point likert 1.3 2.3 3.3, 3.4
Feeling of becoming the
second citizen
Gulati and Teoe, 2009
5 point likert 1.4 2.4 3.5
Anger Anderson, 1999 5 point likert 1.5 2..5 3.6
Anxiety Astrachan, 1990 5 point likert 1.6 2.6 3.7
Sickness The psychology of Mergers(Anon., 2009)
Mirvis and Mark, 2001 cited in Maria and Maarit
Buono and Bowditch, 1990 cited in Maria and
Maarit, Schweiger and Weber, 1989 cited in
Maria and Maarit, Ivancevich et al. 1987 cited in
Maria and Maarit, Schuler and Jackson 2001
cited in Maria and Maarit, Cartwright & Cooper
1993 cited in Maria and Maarit, Horwitz et al.
2002 cited in Maria and Maarit
Fall in productivity &
performance
Dissatisfied & discouraged 5 point likert 1.9 2.9 3.10

22
Policies &
procedures
Change in pay & benefit
Appelbaum et al, 2000
5 point likert
1.10 2.10 3.11
Performance management
system
Perception of
fairness
Gulati and Teoe, 2009 5 point likert 1.11 2.11 3.12
Information security policy
Mirvis and Mark, 2001 cited in Maria and Maarit
Buono and Bowditch, 1990 cited in Maria and
Maarit, Schweiger and Weber, 1989 cited in
Maria and Maarit, Ivancevich et al. 1987 cited in
Maria and Maarit, Schuler and Jackson 2001
cited in Maria and Maarit, Cartwright & Cooper
1993 cited in Maria and Maarit, Horwitz et al.
2002 cited in Maria and Maarit
5 point likert 1.12 2.12 3.13
Job
Role ambiguity – (Lack of
necessary information
for an organizational
position)
Andressi and Grotto, 2011
5 point likert 1.13 2.13 3.14
Role conflict – (Existence
of behavioral expectations
that are inconsistent)
5 point likert 1.14 2.14 3.15
Role overload –( Work
expectations that exceed
ones’ capacity)
Increased work
hours
5 point likert 1.15 2.15 3.16
Organizatio
n
Corporate Cultural
Culture difference Rashid, Sambasivan and Rahman, 2004 5 point likert 1.16 2.16 3.17
Power distance Makhlouk and Shevchuk, 2008 5 point likert 1.17 2.17 3.18

23
Feeling of “them”
& “us”
Frankema, 2001 5 point likert 1.18 2.18 3.19
Shared goals Frankema, 2001 5 point likert 1.19 2.19 3.20
Organizational changes Level mapping Rashid, Sambasivan and Rahman, 2004 5 point likert 1.20 2.20 3.21
Information availability
Out of the
information loop
Hoerr, 2009
5 point likert 1.21
2.21,
2.22
3.22
Understand the
business case
behind the merger
Author developed
5 point likert 1.22
2.23,
2.24,
2.25
3.23
Not part of the
process
Hoerr, 2009
5 point likert 1.23
2.26,
2.27
3.24
Investigate level of occupational stress
Nervous
Out of the control
Work related
difficulties
Unable to cope up
with the things
Author developed
5 point likert
5 point likert
5 point likert
5 point likert
1.24
1.25
1.26
1.27
2.28
2.29
2.30
2.31
3.25
3.26
3.27
3.28

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3.4 Sample of the Study
3.4.1 Target Population
This research was done to study the relationship between employees’ level of job stress and
company acquisition. The impact towards employee related problems were identified in terms of
individual, organizational, job related and policy related factors. The study is done based on a
case study of an acquisition in Sri Lankan telecommunication firm. Therefore all the employees
who had been working in both organizations were impacted and can be taken for the study.
Acquiring company consists of 1600 employees and acquired company consisted of 750
employees. After the acquisition acquired company employees were reduced up-to 400 with the
lay off. Population can be considered as the employees who had experienced the merger activity.
Therefore total of 2000 responses, the total employee base of newly formed organization, needed
to be gathered for this study as it comprises of target population. Number of staff working in new
organization can be identified based on their specialized area. Researcher was able to find the
statistic of the employee base through Human Resources Department which is mentioned below.
Number of staff calculated after considering all the staff under permanent carder.
Table 3.2Population of the study
Department No of staff
Information Technology 230
Network Operation 280
Human Resource 45
Finance 290
Sales and Marketing 445
Field Operation team 340
Customer Operation 370
Total 2000
All the figures in about table were rounded to the nearest ten. Above table elaborated the number
of employees who are working in new organization and one staff member was considered as one
element of the target population.

25
3.4.2 Sampling Method
In literature it is mentioned that job stress of acquired organization employees is higher than that
of acquiring organization due to the fear of uncertainty. When selecting the sample it is
important to include higher percentage from acquired employees and lower percentage of
acquiring employees. Sample elements were selected using stratified random sampling based on
their specialized area. All the elements in the target population were categorized into identified
groups with the number of elements as mentioned below;
Table 3.3 Number of employees in specialized area
Department Acquired Acquiring
Information Technology 30 200
Network Operation 80 200
Human Resource 10 35
Finance 40 250
Sales & Marketing 45 400
Field Operation 25 315
Customer Operation 170 200
Total 400 1600
3.4.2.1 Sample size
The sample size was determined by following below mentioned rules of thumb (Sekaran, 2008).
• Sample size larger than 30 and less than 500 are appropriate for most of the research
studies.
• When samples are to be broken into sub samples, a minimum sample size of 30 for each
category is necessary.
• In multivariate research, the sample size should be several times (preferably 10 times or
more) as large as the number of variables in the study.
• For simple experimental research with tight experiment controls, successful research is
possible with samples as small as 10 to 20 in size.

26
Sample size of this study was considered as 322 elements which were taken out of 2000 target
population according to the sample calculation table (Sekaran, 2008). Seven clustered were
identified out of the sample selected, and then cluster samples were selected using stratified
random sampling.
Table 3.4Number of subjects for the sample
Department Acquired Acquiring
Information Technology 30 10
Network Operation 30 11
Human Resource 10 10
Finance 26 15
Sales & Marketing 30 10
Field Operation 20 5
Customer Operation 95 20
Total 241 81
Table elaborates the number of subjects needed for each group and those figures represent
parameters of target population since it maintains the features of target population.
3.5 Methods of Data Collection
3.5.1 Survey Research Approach
A quantitative & qualitative research methodology was adapted to collect predetermined data to
test the hypothesis. In order to quantify employee related problems which occurred due to the
acquisition, a questionnaire was circulated among employees in acquiring and acquired
organization. A structured questionnaire mainly consists 5 point – Likert scale (strongly-
disagree, disagree, neither disagree nor agree, agree, strongly-agree) was used to measure the
dimensions. Not only this but also interview sessions were conducted in order to obtain
sensitivity information as and when necessary. In depth interviews were conducted with
corporate manages as well as with some employees who were victims of the acquisition.

27
3.5.2 Data Collection
In order to obtain quantifiable results for the research objectives following information was
collected.
• Identification of the merger – In order to obtain a proper understanding about the
acquisition, information was gathered using interviews and secondary data. Nature of the
acquisition, consequences, cost involvement and merger period were discussed during
this data collection stage. The interviews were setup with the relevant parties according to
the interest of them at a convenient location for them and on a convenient date and time.
• Employee related problems occur due to the acquisition – Identification of employee
related problems which were occurred due to the acquisition was identified. These factors
were measured based on four categories through the questionnaire which was distributed
among the sample.
• Employees’ job stress – In order to quantify employee job stress proper identification
method and measurable criteria was discovered. Then these factors were measured
through the questionnaire.
• Methods used to cope with job stress – Identification of methods used by individuals in
order to cope up with the situation was identified though interviews and participant
observations.
Both qualitative and quantitative methods were employed to gather the data from the sample out
of target population. Quantitative data was used to measure the variables and verify the
hypothesis, stated in the conceptual framework. In most of the cases, numbers are not the
answers for the problem statement in the selected environment. Data such as beliefs and
experience were gathered through qualitative studies. In order to find the results for the first
objective interviews and secondary data collection method was used with regards to the
acquisition.
3.5.3 Research Questionnaire
Research questionnaire was designed to identify employee behavior before the acquisition,
during the acquisition and after the acquisition. Therefore questionnaire was broken down into
three main segments in which same question is asked in order to identify employee reaction with
the acquisition. At the start of the questionnaire an introduction on the study has been provided

28
so that respondent can get some understanding regarding the research. As this study based on the
acquisition, it has been highlighted that respondent should answer based on their experience
before the acquisition, during the acquisition and after the acquisition period.
The questionnaire starts with the survey data collection questions before the demographic and
general factors on the respondents. This was done intentionally to capture actual survey data
feedback, because there is a general belief that when demographic data was collected as the
initial stage of the questionnaire, then respondent will tend to provide somewhat imperfect and
manipulative responses. The organization and flow of the questions was in a manner which is
simple and easy for respondents rather than structured according to domain of the conceptual
model.
Sample consists of employees of acquiring and acquired organization who are having the
experience on the merger. Research questionnaire was distributed using hand delivery method in
order to avoid the tracking responses. Following table elaborate number of distributed and
received questionnaires.
Table 3.5Sample statistics
Department Acquired Company Acquiring Company
Sample Responded Sample Responded
Information Technology 30 30 10 9
Network Operation 30 26 11 7
Human Resource 10 10 10 7
Finance 26 24 15 14
Sales & Marketing 30 28 10 7
Field Operation 20 19 5 4
Customer Operation 95 87 20 16
Total 241 224 81 64
Table 3.6Respondent’s statistics
Total distributed Respondent Invalid Valid
322 288 5 283

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3.5.4 Interviews
During the study interviews were conducted as qualitative method for gathering information
from the sample out of the population. Respondents for interviews were selected representing
both from acquired company, acquired company and consultants who involved in the merger.
Senior management, middle management and executives were selected for interviews in order
gain the information. When studying about the merger senior managers and external consultants
were interviewed and some interviews were recorded with the prior approval of the interviewee.
3.6 Methods of Data Analysis
3.6.1 Data Analysis
All raw data set that was obtained from the questionnaires were fed into the Statistical Package
for Social Science (SPSS 15.0) software and analyzed statistically. First phase of data analysis
was based on Exploiter Data Analysis which is just representing the gathered information. The
demographic factors would include those constructs like respondent’s age, gender, designation
category, higher education level and general information factors would include the organization
where respondent being engaged before the acquisition, i.e. acquiring organization or acquired
organization.
Then second phase of data analysis was based on mean and standard deviation which were taken
for each factor individually based on the different period of the acquisition, i.e. pre- acquisition,
during the acquisition and post- acquisition. Again the mean and standard deviation was
calculated for employee job stress. Factor analysis was done for stress and based on the result
new stress was discovered. Then in order to find out the relationship between the employees’
related problems and the job stress correlation and regression was calculated with regards to
during the acquisition era. For this calculation, new stress was used as the dependant variable.
3.6.2 Validity and Reliability
Data was tested for the reliability using Cronbach’s alpha method and co-efficient of Cronbach’s
alpha is closer to one shows high degree of reliability. Generally reliabilities less than 0.6 are
considered poor while those are in the range of 0.7 are acceptable.
Results of reliability analysis for all interval scale variables including four independent factors
and one dependant factor are mentioned below.

30
3.7 Chapter Summary
This chapter includes research methodology that has been generated by ht researcher in order to
identify employees’ level of job stress with regards to company acquisition. Conceptual design
was explained at the beginning of the chapter and then hypothesis were developed in order to
measure the relationship. Using the conceptual framework independent and dependent variables
were highlighted and identification of the measurements to those variables done based on the
literature. Operationalization table explained in this chapter can be used as the outcome of the
above explanation. Data collection methods then were briefed under sub topic of this study.

31
4 DATA ANALYSIS AND DISCUSSION
4.1 Introduction
This chapter consists of a discussion on the data collection for the study and detail analysis of the
collected data from the sample taken out of target population. Acquisition transaction details
were discussed at the beginning of the chapter in order to identify the nature of the acquisition.
Then results were analyzed after the reliability run and factor analysis. Then mean, median and
variance is identified of independent and dependent variables separately. Finally hypothesis was
tested using correlation and regression analysis.
4.2 Data Analysis
4.2.1 Nature of the Acquisition
Identifying the nature of the acquisition is important before move into further details as each
merger or acquisition produces unique set of results which cannot be compared. Under this
objective target is to identify the type of the acquisition, impacted number of employees, cost of
the transaction, period of the transaction, merged organization structure.
Performance
Acquired company commandeered a premium position in Sri Lanka’s fixed telecommunication
sector and was ranked in second in 2005 in terms of revenue and market share in fixed line
telecommunication business. It commenced the operation in 1996 with an all-digital network that
connected thousands of residential and enterprise customers including prepaid and postpaid.
Company was equipped with 100 percent wireless network which provided numerous solutions
for over one million subscriber base in 2011. Before the acquisition company was able to provide
the employment to 850 employees, out of that majority was from engineering sector. It possessed
an annual turnover of five billion rupees for year 2009 according to the published Financial
Statements Telecommunication Journal (Annual Report, 2011)

32
Figure 4.1Target Organizational Structure before the acquisition
Acquiring company, a fully owned subsidiary of Sri Lanka’s premier mobile provider, fourth
entrant to Sri Lanka’s fixed telecommunication sector in 2006. Company is having a rapidly
growing position in the sector based on its portfolio of fixed telecommunication, broadband and
optical fiber transmission infrastructure services. Since becoming a member of its parent group
in 2006, the company has invested Rs. 11.8 billion in the expansion of its fixed
telecommunications and broadband infrastructure with a particular focus on the development of
its optical fiber network which is being rolled out on a nationwide basis. Total number of
employee base was 1600 at the time of the acquisition which comprises majority from
engineering sector. Company always adds the momentum to business with the latest technology,
innovative thinking and an unprecedented service commitment into customized
telecommunication solutions that meets the most sophisticated demands of corporate and
residential customers in Sri Lanka. Being the leader in technology, market share, customer value
creation and servicing acquiring company envisioned to be a leading facilitator in the social
transformation of Sri Lanka into knowledge based information society. It is evident that
acquiring company continued to lead Sri Lanka’s telecommunication sector driving robust
outcomes and concluded the financial year 2010 having recorded a consolidated profit after tax
of Rs. 5.05 Bn. It is evident that acquiring organization was upgraded from ‘AA(lka)’ to
‘AAA(lka)’ and the modified from ‘Negative’ to ‘Stable’ by Fitch Ratings (Annual report 2010).

33
Figure 4.2Acquired organizational structure before the merger
The Deal
The transaction, leading ultimately to the acquisition of these two entities secures the distinction
of being the single largest consolidation initiative within Sri Lanka’s Telecommunications sector.
Value of the transaction was USD 34.9 Mn. Followed by the acquisition, acquired organization
offered a voluntary retirement scheme (VRS) to its all staff as part of a strategy to re-organize
the company as a separate business entity.
Type of the Acquisition
The acquisition was made within the same business entity in order to achieve economies of scale
and expand existing business operation. Both companies were a leader in fixed line telephone
operation, whereas acquiring company was equipped with resources and operated a wide
portfolio of international telecommunication service. The acquisition was executed by the
acquiring company in order to acquire and manage human and material assets, network and
subscriber base of target organization. As per the definition this transaction can be identified as
an acquisition. In order to acquire the strength of the target company and its market share
acquiring company moved for the acquisition. It is evident that acquiring company has the
dominant power of this transaction and within the newly formed organization. After the
amalgamation target company’s name was seized to exist.
The amalgamation of related processes, operational procedures, customer experience were
planned and executed by an external consulting firm during the period of the merger. The
transaction was taken place on 15th
December 2011 and employees of both companies were
officially informed via internal communication media. After the communication of the
acquisition, integration of platforms, departments, employee relocation, re-sizing and remodeling

34
activities were carried out by the external consultants. Transition planning consisted of
compulsory lay – off of acquired organization employees with some compensation which was
determined by the management of the acquired company. During the acquisition period
employees of both organizations were informed the transition plan and asked to act accordingly
in order to create the acquisition a success. As the final step of the amalgamation, relocating was
completed for the remaining acquired company employees. The period taken for the integration
of the merger activities was around four months, which ends 30th
of April 2012.
Merger Organization Structure
Figure 4.3 Merged Organization
Note: Area represents the number of employees from each organization
Above mentioned is the organizational structure of the merged organization. Highlighted in ash
color is representing the portion of the remaining employees of acquired organization.
Remaining employees of acquired organization were relocated such a way that they have
reassigned to a different department as per their specialization area. But majority of the
employees of acquired company were relocated under Enterprise sector which was formed after
the acquisition, in which the acquired company had a unique identification of. The reason behind
CEO
CTO
Engineering Dept
CFO Finance
Dept
COO HR &
Operations
CIO Information
Technology
CMO Sales &
Marketing Dept
CEntO
Enterprise Dept

35
this deal is to acquire target firm’s enterprise customer base is evitable as acquired firm was keen
on that enterprise portfolio.
It was mentioned in merged organization Financial Statement that there is no impact on Profit
and Loss Account except for the acquisition related cost. In the Balance Sheet merged
organization goodwill arising from the acquisition amounted to Rs 4961mn and classified under
intangible assets.
Employee Concerns
As the acquisition made sound financial and strategic sense, neither company has recognized the
importance of assessing the human implications. The consolidation of business was difficult as
both firms already had knowledge of and expertise in their business operation and therefore the
necessity of significant downsizing was arisen. Before the acquisition target firm could be
identified as a company which was enriched with best corporate culture and was honored by the
“Asia’s Dream Employer Award – Best Large Organization to Work For” at Asia Leadership
Awards in 2011. Acquiring organization can be characterized as customer driven and target
oriented organization.
Employee reactions followed the general pattern of the acquisition syndrome mentioned as
below. Initially they felt anxiety about the future and they wanted to know more details about the
acquisition. While moving on with the acquisition employees wondered about the culture,
traditions, policies and procedures, values and norms of the acquiring organization. Further they
fed up with the uncertainty of being acquired by a competitor. They questioned whether their
qualification is reflected or performance is valid in merged organization. Employee turnover
possibilities and loss of productivity was seen throughout the acquisition period.

36
4.2.2 Characteristics of the Sample
The respondents consist of 25 percent from acquiring organization and 75 percent from acquired
organization.
Figure 4.4Sample representation: Acquired & Acquring organization
Sample representation
Acquired firmAcquiring firm
Percent
80.0%
60.0%
40.0%
20.0%
0.0%

37
Following categorization done based on the gender of the respondents, in which majority were
male employees considering both organization.
Figure 4.5 Sample representation: Gender
FemaleMale
Percent
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%

38
Employee age was categorized into different segment to identify respondents’ age group. Out of
this analysis it was able to find out that majority of the respondents were from age between 31
and 35.
Figure 4.6Sample representation – Age group
HigherThan36Between31&35Between26&30Between21&25LessThan20
40.0%
30.0%
20.0%
10.0%
0.0%

39
It is evident that in the analysis, majority of the respondents are having 1 to 3 years of experience
on telecommunication sector.
Figure 4.7Sample representation: Years of experience
HigherThan10Between5&10Between3&5Between1&3LessThan1
40.0%
30.0%
20.0%
10.0%
0.0%

40
As per the below figure it can be mentioned that majority of the respondents are equipped with
degree or equivalent qualification.
Figure 4.8 Sample representation: Qualification
PostGraduateDegree or
equivalent/prefessional
qualification
AdvancedLevelOrdinaryLevel
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%

41
4.2.3 Statistical Analysis
Reliability Analysis
Before going for the detail analysis of the collected data, it is necessary to check the validity of
the questions in the questionnaire. Therefore Cronbach’s alpha was run on the basis of the factors
identified by the researcher.
Table 4.1Internal consistency measure: Cronbach’s alpha for individual behavior, policies and
procedure, job related and organizational factors
Reliability Analysis for
independent variables
Pre- acquisition During the acquisition Post- acquisition
Cronbach's Alpha 0.783 0.797 0.706
No of items 23 27 24
The alpha coefficient for 23 items measure during pre-merger stage is 0.783, suggesting that the
items have relatively acceptable internal consistency. Similar to pre- acquisition, during the
acquisition stage alpha coefficient is 0.797 whereas post- acquisition stage alpha coefficient is
0.706, which indicates items can be accepted for further analysis.
procedure, job related and organizational factors (separate factors)
independent variables
Pre acquisition During acquisition Post acquisition
Individual behavior 0.601 0.422 0.691
Policies & procedures 0.231 0.358 0.567
Job related 0.544 0.356 0.205
Organization related 0.493 0.751 0.427
Employee Job stress 0.706 0.702 0.711

42
Table 4.3Internal consistency measure: Cronbach’s alpha for employees’ job stress
dependent variables
Pre- acquisition During the acquisition Post- acquisition
Cronbach's Alpha 0.706 0.702 0.711
No of items 4 4 4
Cronbach’s Alpha for employee job stress based on three stages, before the acquisition, during
the acquisition & after the acquisition were respectively, 0.706, 0.702 and 0.711. Therefore it
indicates that the data for these variables are acceptable to valid and reliable (Sekaran, 2008).
Factor Analysis
In order to ensure that the questions asked relate to the construct that the researcher has
identified, it is important to run factor analysis using SPSS. One component extracting method
and Verimax rotation was used in order to identify the factors which are exactly loading in to the
given variable. Appendix C indicates descriptive information of factor analysis performed for
this data set based on pre-acquisition, during the acquisition and post-acquisition.
Based on the loading factor questions have been identified which are load onto the same factor.
Table 4.4Factor re-creation based on the loading factor
Factor Pre merger During the merger Post merger
Individual 1,2,3,4,5,6,7,9 3, 5,6, 7,8,9 1,2,3,4,5,6,7,8
Policies &
procedures
11,12 10,11,12 11,12
Job 13, 14, 15 13,14,15 15,16
Organization 16,17,18,19,20,21,22,23 16,17,18,19,20,21,22,23,24,25,26,27 17,19,20,21,22,23,24
Job stress 24,25,26,27 28,29,30,31 25,26,27,28
Also below mentioned questions can be rejected as those are not loaded onto the same factor.

43
Table 4.5Factor re-creation based on the loading factor
Factor Pre merger During the merger Post merger
Individual 8 1,2,4 9,10
Policies & procedures 10 13
Job 14
Organization 18
Job stress
4.2.4 Identification of Employee Related Problems
Measure of mean and central tendency provide a way to have a feel for the collected data set.
Descriptive statistics such as mean and standard deviation were obtained for independent and
dependent variables individually as mentioned in the below table.
Table 4.6Descriptive statistic analysis
Factor Pre acquisition During the acquisition Post acquisition
Mean Std.
deviation
Mean Std.
deviation
Mean Std.
deviation
Individual behavior 3.7906 0.4045 3.5106 0.4643 3.7208 0.5250
Policies and procedures 3.5759 0.7222 3.4590 0.6253 3.9558 0.5825
Job 3.7020 0.6254 3.5736 0.5844 4.1590 0.5950
Organization 3.6930 0.4075 3.7108 0.4249 3.7501 0.4138
Employee Job Stress 2.1979 0.5713 3.4611 0.5185 3.6493 0.6213
Values obtained for descriptive statistics for all independent and dependent variables are shown
in the above table. It should be indicated that five variables were measured on five point likert
scale and all the measures falling under interval scale and total number of subjects in the selected
sample was 283.
It can be seen that the mean on individual behavior rather high (3.7906) compared to mean on
policies and procedures (3.5759) factor before the acquisition stage. Mean on employee job
related problems (3.7020) has higher value compared to organizational problems, which is
having 3.6930. Similar to pre- acquisition, mean value interpretation can be done for during the
acquisition stage. Highest mean value recorded from organizational problems which are occurred

44
due to the acquisition, which can be stated as 3.7108. Job related problems has the highest mean
value during the post acquisition stage (4.1590) followed policies and procedural problems. The
mean value for employee job stress has the lowest in pre- acquisition stage, then comparatively
higher in during the acquisition stage and highest in post- acquisition stage.
Table 4.7Descriptive statistics for individual behavior, policies and procedural changes, job
concerns and organizational concerns occur during the merger stage
Indicator Measure Mean Std. Deviation
Absenteeism Q1 3.6206 0.83602
Late attendance Q2 3.3816 0.77822
Job insecurity Q3 3.4733 0.77471
Feeling become second citizen Q4 3.4452 1.39643
Anger Q5 3.6107 0.85628
Anxiety Q6 3.8078 0.76444
Sickness Q7 3.5704 0.85947
Fall in productivity and performance Q8 3.4184 0.81057
Dissatisfied & discouraged Q9 3.4457 0.86589
Change in pay & benefit Q10 3.5107 0.83809
Performance management system Q11 3.5797 0.83393
Information security policy Q12 3.4748 0.90590
Role ambiguity Q13 3.5300 0.91577
Role conflict Q14 3.4875 0.78877
Role overload Q15 3.7544 0.85786
Culture difference Q16 3.7750 0.83564
Power distance Q17 3.7518 0.83223
Feeling of “them” & “us” Q18 3.6571 0.87802
Shared goals Q19 3.8453 0.80241
Level mapping Q20 3.7189 0.79460
Out of the information loop Q21, Q22 3.8110 0.68062
Understand the business case behind the merger Q23, Q24, Q25 3.8021 0.61766
Not part of the process Q26, Q27 3.4700 0.67107

45
As per the result obtained for mean and standard deviation measured against independent
variables during the merger period it can be concluded the majority of employee problems are
occurred due to shared goal concept. Question was asked to measure the sharing ability between
work groups of acquiring and acquired organization which resulted with 3.8453 mean and
0.80241 of standard deviation. Anxiety is measured during the merger which is having 3.8078 of
mean considering five point likert scales. Problems occur as the employee feel that he is out of
the information loop is having 3.8110 mean. Due to the lack of proper understanding of the
business case behind the merger leads to another employee related problem which consists
3.8021 of mean on five point scale. Problems occur due to the cultural difference and role
overload is having 3.7750 and 3.7544 mean respectively which are caused to generate employee
related problems during the merger stage. Power distance measured in terms of employee
employer relationship, which is having a mean of 3.7518 stands as another problem generating
factor during the merger. When formalizing the new organization employees of acquired
organization should be relocated according to their previous category and experience level. The
question was asked about the infringement of the relocation logic and as per the answers it is
indicated that 3.7189 of mean out of five point scale. The next item in the measurable scale is the
difference between acquiring and acquired organization employees. The feeling of “them” and
“us” stands as problem generating factor with the mean of 3.6571. Absenteeism and anger are
another problem generating factors which caused employee related problems due to the merger.
Transparency of performance management system caused employee related problems with the
scale measurement of 3.5797. Sickness, role ambiguity, change in pay and benefit and role
conflict next in line with the mean value of 3.5704, 3.5300, 3.5107 and 3.4875 are another route
causes for employee related problems.

46
4.2.5 Relationship between Employee Related Problems and Employees’
Job Stress
Pearson Correlation matrix is used to identify the relationships between the variable. Below
mentioned is the simulation done for pre acquisition stage.
Table 4.8Pearson Correlation matrix for data: Pre acquisition
Correlations
Job Stress
Ind.
Behavior Policies Job Organization
Job Stress Pearson Correlation 1
Sig. (2-tailed)
Ind Behavior Pearson Correlation .167(**) 1
Sig. (2-tailed) .005
Policies Pearson Correlation .024 .360(**) 1
Sig. (2-tailed) .693 .000
Job Pearson Correlation .032 .384(**) .164(**) 1
Sig. (2-tailed) .596 .000 .006
Organization Pearson Correlation .088 .367(**) .238(**) .316(**) 1
Sig. (2-tailed) .142 .000 .000 .000
** Correlation is significant at the 0.01 level (2-tailed).
As per the above table significance relationship exists between all the dimensions except job
stress with relates to policies and procedures, job related concerns and organizational concerns.
Out of these employee job stress and individual related problems, job concerns and policies and
procedural impact and organizational changes and policies and procedural impact is having weak
positive relationship (correlation coefficient is less than 0.3) compared to other dimensions. The
relationship between policies and procedural impact and individual behavior is having
moderately positive relationship with correlation coefficient is 0.360. Similarly job related
concerns and organizational changes are having moderately positive relationship with individual
behavior. Organizational changes and job related concerns moderately relate to each other with
0.316 value of correlation coefficient.

47
Table 4.9Pearson Correlation matrix for data – during the acquisition
Correlations
Job Stress
Ind
Behavior Policies Job Organization
Sig. (2-tailed)
Ind Bahavior Pearson Correlation .212(**) 1
Policies Pearson Correlation .189(**) .231(**) 1
Sig. (2-tailed) .001 .000
Job Pearson Correlation .140(*) .273(**) .284(**) 1
Sig. (2-tailed) .018 .000 .000
Organization Pearson Correlation .370(**) .401(**) .347(**) .486(**) 1
Sig. (2-tailed) .000 .000 .000 .000
* Correlation is significant at the 0.05 level (2-tailed).
As per the above mentioned correlation analysis it can be indicated that all variables are inter
related significantly with p value less than 0.05. Employee job stress is having weak positive
relationship with policies and procedural changes as well as job related concerns. Employee job
stress is shown weak positive relationship with individual behavioral changes which occurred
due to the acquisition with correlation coefficient is equal to 0.212. Also there are weak
relationship between individual behavioral changes and policies and procedural impact,
individual behavioral changes and job related concerns as well as job related concerns and
policies and procedural impact. The rest of the dimensions are shown moderately positive
relationship between each other as shown in the table.

48
Table 4.10Pearson Correlation matrix for data –Post acquisition
Correlation
Job Stress Ind Behavior Policies Job Organization
Sig. (2-tailed)
Ind Behavior Pearson Correlation .005 1
Policies Pearson Correlation .038 -.028 1
Sig. (2-tailed) .526 .637
Job Pearson Correlation .137(*) .017 .123(*) 1
Sig. (2-tailed) .021 .776 .039
Organization Pearson Correlation -.070 .381(**) -.025 .027 1
Sig. (2-tailed) .240 .000 .676 .649
* Correlation is significant at the 0.05 level (2-tailed).
Three relationships can be identified from the above table which are having significant
relationship with p value less than 0.05. The relationship between employee job stress and job
related concerns and policies and procedural impact and job related concerns is weakly positive
with correlation coefficient is less than 0.1. Moderately positive relationship exists between
individual behavior and organizational changes which caused by the merger.

49
4.2.6 Employee Related Problems and Job Stress – Before the Acquisition
Regression analysis between employees’ related problems and employees’ job stress was
measured for pre-merger stage as mentioned below.
Individual Behavior
Individual behavior related employee problems and employees’ job stress was considered in the
first analysis.
Table 4.11Regression analysis (Individual behavior vs employee job stress): Pre acquisition
Model Summary
Model R
R
Square
Adjusted R
Square
Std. Error of the
Estimate
1 .167(a) .028 .025 .56425
a Predictors: (Constant), Individual Behavior
ANOVA(b)
Model
Sum of
Squares df Mean Square F Sig.
1 Regression 2.580 1 2.580 8.102 .005(a)
Residual 89.464 281 .318
Total 92.044 282
a Predictors: (Constant), Individual Behavior
b Dependent Variable: Pre Stress
Coefficients(a)
Model
Unstandardized
Coefficients
Standardized
Coefficients t Sig.
B Std. Error Beta B Std. Error
1 (Constant) 1.302 .317 4.112 .000
Individual
Behavior
.236 .083 .167 2.846 .005
a Dependent Variable: Pre Stress
As per the above calculation it can be mentioned that percentage of variance in dependent
variable; employee job stress explained by the independent variable; individual behavior related
problems is 16.7 percent which is quite acceptable. Similar to the correlation analysis done in
order to identify the relationship between individual behavior and employee job stress; R value
indicate 0.167 with significantly higher but positively weak relationship with each other.

50
Policies and Procedures
Regression analysis between policies and procedures related employee problems and employees’
level of job stress is mentioned below.
Table 4.12Regression analysis (Policies and procedures vs employee job stress): Pre acquisition
Model Summary
Model R
R
Square
Adjusted R
Square
Std. Error of the
Estimate
1 .024(a) .001 -.003 .57217
a Predictors: (Constant),Policies & procedures
ANOVA(b)
Model
Sum of
Squares Df
Mean
Square F Sig.
1 Regression .051 1 .051 .157 .693(a)
Residual 91.992 281 .327
Total 92.044 282
a Predictors: (Constant), Policies & procedures
b Dependent Variable: Job Stress
Coefficients(a)
Model
Unstandardized
Coefficients
Standardized
Coefficients t Sig.
1 (Constant) 2.131 .172 12.384 .000
Policies &
procedures
.019 .047 .024 .396 .693
a Dependent Variable: Job Stress
As per the above analysis it can be identified that this relationship is not significance, which means there
is no relationship between employees’ related problems and employees’ job stress.

51
Job Related
The relationship between job related employee problems and employees’ level of job stress was
identified before the merger period.
Table 4.13 Regression analysis (Job related & employee job stress): Pre acquisition
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .032(a) .001 -.003 .57204
a Predictors: (Constant),Job related
ANOVA(b)
Model
Sum of
Squares df Mean Square F Sig.
1 Regression .092 1 .092 .282 .596(a)
Residual 91.952 281 .327
Total 92.044 282
a Predictors: (Constant), Job related
b Dependent Variable: Job Stress
Coefficients(a)
Model
Unstandardized
Coefficients
Standardized
Coefficients t Sig.
1 (Constant) 2.091 .204 10.226 .000
Job
related
.029 .054 .032 .531 .596
a Dependent Variable: Job Stress
As per the findings there is no any significance relationship between job related employee
problems and employees’ level of job stress.

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