The Effects of Change Management Practices on Organizational Performance: The Case of Commercial Bank of Ethiopia, Addis Ababa

Abstract

The purpose of this study was to investigate the effect of change management practices on performance of an organization as well as the relationship between gender, employees’ motivation & organizational culture and their effect on the overall performance of an organization by focusing on Commercial Bank of Ethiopia, particularly in Addis Ababa. The study was conducted on 12 randomly selected branches of Commercial Bank of Ethiopia. The study was conducted on 265 employees including top level managers. To accomplish the goal of this study, a quantitative survey design was adapted and a path analysis model was used to investigate the direct and indirect effect of each predictor variable on the criterion variable. Since all variables were approximately normally distributed, to undergo the data analysis parametric tests were used. The finding revealed that gender has no relationship with any of the variables of the study except with organizational performance. Moreover, a strong positive correlation was obtained between change management practice, employees’ motivation and organizational culture. Though the effect size was small or typical, the result of the study shows the existence of positive correlation between change management practice and organizational performance (r = 0.296, p<0.05). On the other hand, the result of multiple regression analysis shows that the combined effect of augmented change management practices and gender to be 18.3% of the total variability of organizational performance. The result of path analysis shows that organizational culture has strongest direct effect on the performance of the organization than did any of the variables in the study. The effect of change management practice on organizational performance was more direct than indirect; the same is true for gender. Based on the findings of this study imperative recommendation for practice and future research was provided.