IMPACT OF ORGANIZATIONAL CULTURE DIFFRENECE ON EMPLOYEE JOB PERFORMANCE DURING MERGER THE CASE OF ETHIOPIAN PETROLEUM SUPPLY ENTERPRISE

Abstract

The key strategies companies use to create synergy is merger. In that situation people will be the game makers or breakers. The basic purpose of merger is to increase profitability by improving performance, but a performance is about people-one person at a time and collectively, so employees are a strategic partner in merger. If people are basic in merger the determinant human aspect variable is culture difference and level of integration. Currently the Ethiopian government has implemented merger in some strategic public enterprises. However, in the merger process it is not clear how the human aspects mergers are considered which primarily determine the realization of the synergy expected from merger. The main objective of the study is to examine the relationship between cultural difference, level of integration and employee performance in merger with respect to their effects and forward possible solution to mitigate the problem. Data for the study was collected from 138 EPSE employees, using survey questionnaire. The data of the study were statistically analyzed both descriptive and inferential statistics were applied. The result indicates that culture difference in people orientation and level of integration has significant negative impact on employee performance in merger. Whereas the remaining dimensions i.e. outcome and innovation orientation has significant positive impact. Based on the finding leaders of the new organization must involve and create a chance to participate employees through the whole process so they can rebuild their confidence and trust in a winning team and although in any sector when decision to acquire has been made, the integration policy has to be developed.