Abstract:
Purpose – This study examines the link of effective change implementation (CIE) with select human resource
(HR) practices and employees’ resistance to change (RTC) amidst ongoing mergers in Indian public sector
banks (PSBs). It also intends to highlight the role of RTC as a mediator in this mechanism.
Design/methodology/approach – The authors used a structured questionnaire administered through a
survey of employees of select PSBs that have undergone mergers. The hypothesized relationships were tested
on 220 responses with structural equation modelling.
Findings – Training and communication of change as HR practices were found to have significant effects in
implementing change. RTC fully mediated the relationship of training and CIE, and partially mediated the
association of communication and CIE. Communication had a stronger influence on RTC than training. This
finding upholds the importance of communication but also implies that training can reinforce effective
communication of change and may not affect the implementation if not directed towards handling resistance.
Practical implications – The significance of communication as a finding supports the theory of planned
behaviour. The authors’ results also align with the social exchange theory and can be extended to the job
demands-resources model. PSBs may plan for phase-wise training initiatives starting from the announcement
till the end of a merger. PSBs also need to effectively communicate all relevant HR issues to employees, thus
being transparent and fair. Both online and offline modes of communication can be explored. Overall, the senior
management has to imbibe the handholding of employees in the short term and a sense of empathy in the
longer term.
Originality/value – Research on HR in Indian banking mergers seems to take a back seat vis- a-vis strategic
issues and financial performance. There also is a limited empirical examination of the role of HR practices in
effective change implementation. This paper addresses both these issues by proposing a conceptual model and empirically validating it amidst the merger of PSBs. The authors also highlight how training and
communication are effective in handling resistance to change.