The role of leadership in driving employee engagement through organizational change: A case study of access bank and their acquisition over atlas mara bank Zambia limited

Resumo

In times of change, such as mergers and acquisitions, employee engagement is one critical factor for organizational success; uncertainty and resistance can drag down morale and productivity levels. The study sought to assess the role of leadership in driving employee engagement in a merger and acquisition deal with reference to Access Bank Zambia Limited's acquisition of Atlas Mara Bank Zambia Limited. The study adopted an explanatory sequential mixed-methods design to achieve three aims: identifying leadership strategies used, assessing their impact on employee engagement, and examining the role of communication in influencing engagement. The study was guided by transformational leadership theory and employee engagement theory to assess the role of leadership in driving employee engagement through organizational change during Access Bank’s acquisition of Atlas Mara Bank. The study’s target population was 240, from which a sample of 150 respondents was calculated using Slovin’s formula. The information was gathered via structured questionnaires and semi-structured interviews, and 145 respondents (employees and leaders of each bank) between the two banks returned the questionnaires, representing a response rate of 96.6%. For quantitative data, descriptive statistics and regression analysis were performed, and thematic analysis was used for qualitative data. Results showed that Access Bank employed directive, participative, and contingency leadership approaches during the acquisition phase. By looking at the predictive significance of leadership strategy, it was established that it does not have a significant statistical impact on employee engagement, but rather effective communication and organizational support played major roles in achieving engagement. Transparent communication, involving people in the decision-making process, and continuous support substantially boosted morale, trust, and resilience. In essence, the study shows that understanding the company situation and how to communicate it is a leadership must-have, as well as helping employees cope after acquisitions. The study recommends enhancing communication strategies, fostering participatory leadership, and establishing more robust transition support systems. This study adds to the literature on leadership during organizational change and employee engagement in two ways based on the Zambian banking sector. According to the study findings, some of the recommendations were that Access Bank should enhance communication strategies and strengthen feedback mechanisms to foster a more engaged workforce during organizational changes. Additionally, the organization should provide comprehensive support, develop leadership capabilities, cultivate an inclusive culture, and implement a data-driven approach to effectively manage the acquisition process.