Impact of Change Management on Organizational Performance of Selected Deposit Money Banks in South East, Nigeria

Abstract

This study investigates the impact of change management on organizational performance in the Nigerian banking sector. Specifically, this study sought to: (i) determine the extent to which technological innovation enhances profitability in the Nigerian banking sector, (ii) ascertain the extent to which resistance to change is a function of employee satisfaction (iii) determine the effect of teamwork on organizational growth in the banking sector, (iv) assess the relationship between effective communication and improved productivity in the banks under study and(v) ascertain the extent to which employees’ participation in decision making during change process improves organization’s market share. The study adopted the survey design. The population of the study was 9797 staff from ten (10) Deposit Money Banks in South-East Nigeria that were selected purposively from the top 50 banks in Africa that have branches in the major cities in South East Nigeria and whose customer base and market share have been consistent in growth in the last ten years. The sample size of 972 was obtained using Suresh and Chandrasekhar’s formula (at 5% error margin). Stratified sampling technique was used to select the respondents in each of the selected Deposit Money Banks. Data were collected using the questionnaire research instrument and interview guide. A pilot study was conducted using split-half method and tested with Spearman Brown, giving a coefficient of 0.89, indicating the reliability of the instrument. Validity of instrument was measured using face validity, and this was done by sending the prepared research instrument to management experts from both the industry and the academia. Data collected were analyzed using Regression Analysis and Z-test statistics, at 5% probability level of acceptance (that is p < 0.05). The study found that application of technological innovation, significantly enhanced profitability in Nigerian banks (p< 0.05,r = 0.960). Resistance to change to a large extent, was a function of employee satisfaction (p< 0.05,z = 3.657). Teamwork had positive effect on organizational growth in the banking industry (p < 0.05,Z = 6.378). There was significant positive relationship between effective communication and improved productivity in the banks under study (p < 0.05,r = 0.960). Employees’ participation in decision making during change process significantly improved organizations market share (p = < 0.05,r = 0.970). The study in conclusion revealed that effective change management on organizational performance is achieved when technological innovation are utilized, resistance to change mitigated, communication is well enhanced and employee participation in decision making constantly initiated. The study recommended that Nigerian banks should adopt technological innovations that enhance profitability; design programmes that will help mitigate employees’ resistance to change; ensure effective communication processes; and involve employees in decision making during change processes.