Change management and employee performance in commercial banks Trans Nzoia county, Kenya
Mukhebi, Hellen Nafula
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Increasing market pressures and market regulations have forced commercial banks to implement drastic organizational changes in order to remain competitive. However, while organizational change is a constant experience, the process of managing change involves a lot of challenges which if not well dealt with could hinder the attainment of desired goals. The purpose of this study therefore was to investigate the effects of change management on employee performance in commercial banks in Trans Nzoia County, Kenya. The specific objectives of this study were to; determine the effect of downsizing on employee performance, examine the effect of change in technology on performance of employees, determine the effect of structural change on performance of employees and determine the effect of organization culture on performance of employees in commercial banks in Trans Nzoia County. The study was guided by Uncertainty Management Theory, Lewin’s Change Management and McKinsey 7-S Change Management Models. Literature was reviewed as per the study objectives. The study adopted a descriptive survey research design. Target population of the study consisted of 470 employees drawn from 14 commercial banks in Trans Nzoia County. A sample size of 216 of employee was arrived at and stratified simple random sampling used to categorize managers, supervisors/administrators and clerical /tellers. Data was collected using the questionnaires. Validity and reliability of the study instrument were ascertained and results showed that the instrument was valid and reliable. Cronbach alpha coefficient was determined and yielded an alpha value of 0.770 which was considered reliable. Quantitative data was analyzed using descriptive and inferential statistics. The results indicated that downsizing (β=0.489; p=0.), technological change (β=0.654, p=0.), structural change (β=0.673.; p=0.), organizing culture (β=0.435, p=0.), had statistically significant effect on employees performance in commercial banks. Therefore, the study concluded that change management had significant effect on the employee performance in commercial banks in Trans Nzoia County. The study recommended that management of commercial banks undertaking organizational change should focus on participatory leadership and communication strategies to enhance employees’ readiness for change. Further, commercial banks management should strive to be a learning organization and promoting changing attitudes that support organizational change management. The findings of this study would be beneficial to the employees of commercial banks as they would be sensitized about the culture and structure of their organization, downsizing and technological change adopted by their organization. The findings of this study would also be invaluable to future researchers who would wish to explore further how change management impacts on employee performance in organizations.
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