Reference no: EM131668824

The Board of a mid-cap development bank based in Kathmandu has signed an agreement for acquisition by an average performing national level commercial bank recently. The development bank has been performing as the best development bank within the sector in terms of financial indicators since last 5 years. The culture of the organization was very open, friendly, bit informal and it was performing with a mid-sized loan and deposit portfolio. With the news breaking in the newspaper, though the grapevine of the rumor was going on around in the organization since a month ago, employees of the organization, especially mid-level to operation level management started getting worried and it was reflecting in the way they worked. They expressed their dis-satisfaction over the decision with the top management and Board Chairman.

Given this scenario, answer the following questions: (you are free to assume situations rationally) 

a) What must have been the reason of dis-satisfaction of employees regarding this decision? 

b) Why the reasons employees are resist change in the organization? 

c) If you were CEO / Chairman of this development bank, what would have been your approach of managing this change?

d) What are the things you’ll ensure in further agreement with the commercial bank in order to avoid possible problems post acquisition? (List out such potential problems post acquisition first)