i CHANGE MANAGEMENT AND ITS EFFECT ON EMPLOYEE’S PERFORMANCE IN MANUFACTURING INDUSTRY (A CASE STUDY OF EMENITE PLC ENUGU AND ASABA ALUMINUM COMPANY ASABA) BY OSSAI. AUGUSTINE .C PG/MBA/12/63786 A PROJECT PRESENTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION (MBA) IN THE DEPARTMENT OF MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION UNIVERSITY OF NIGERIA ENUGU CAMPUS SUPERVISOR: Dr. CHUKWUEMEKA NNADI AUGUST, 2015 ii APPROVAL PAGE This project has been approved for the department of Management, Faculty of Business Administration, University of Nigeria Enugu Campus by ....................................................... Dr. Chukwuemeka Nnadi (Supervisor) ……..…………… Date ………………………. Dr. O.C Ugbam (Head of Department) ………………….. Date iii CERTIFICATION I Ossai .Augustine .C. a Postgraduate Student of the Department of Management with Registration No: PG/MBA/12/63786 has satisfactorily completed the requirement of the course work and the research work for the award of Master Degree in Business Administration- Management. The work embodies in this project is original and has not been submitted in any part or full for any other degree of this or any other University. .............................................. OSSAI AUGUSTINE .C PG/MBA/12/63786 ……..…………… Date iv DEDICATION I dedicate this project to God Almighty and to men and women of goodwill, who continue to do good, inspite of man’s ingratitude. v ACKNOWLEDGEMENTS I wish to use this forum to express my sincere gratitude to those who stood by me in the course of this project work and in the entirety of my academic pursuit. My immense gratitude goes to my supervisor Nnadi, with whose fatherly love and guidance made this project a success. My sincere thanks and gratitude goes to my parents chief and Mrs S.C.O Ossai and to my siblings, Ngozi, Angela, Chukwunweike and Ishioma. I thank God for giving you all to me as a family you are the best. At this juncture, I must commend the effort and love of my friends and coursemate Nsan Godwin, Chinyer Stephen, Onyi Daniel, Nobert , Achudume Desmond, Ebinum Chuks and Onyugba Madu. vi ABSTRACT Change is an inevitable part of human beings, the institutions they establish as well as their environment which includes climate, economy and politics. However, most people are hardly ever ready for changes they know must occur in their everyday life. The researcher focus the study on the change management and its effect on employees performance. The study objectives are to determine the effect of change on the employees’ performance evaluation, the profitability index and attitude of workers during change. The researcher also carried out analysis of how employees resist change and its attendant effect or impact on the organization’s growth. How best to carry out successful change in the organization without necessarily encountering violence. Conceptual frame work of the related literature of the work was also reviewed with particular emphasis on findings and existing literature that mainly explain the theoretical framework of the research questions. The study investigated the effect of change on employee performance. Two firms, namely Delta Steel Company Maja and Emenite Plc Enugu, were drawn from the public and private sectors of the economy respectively. The study was conducted interview using cross sectional design. The population of the study was 1,700 employees from the two firms that were surveyed. A sample of 324 respondents was drawn from the population through proportionate stratifies sampling procedure. To ensure fair representation of the research populations from the various firms and each stratum of senior and junior staff categories in the sampling process, Taro Yamane’s sample size determination and Bowley’s proportional allocation statistics were employed. The sources of data were both primary and secondary. The primary data were collected through questionnaire and secondary data were sourced from journals, textbooks and internet materials. Questionnaire was the main instrument for data collection and was designed in two parts part A was for personal data while part B was focus on raising questions that bother on the research questions and objectives of the study. Content validity approach was used to ensure that the variables were adequately covered. The reliability of the instrument was done through test-retest method. The result gave a reliability index of 0.76, indicating a high degree of consistency. The data collected from the field were presented and analyzed with descriptive statistics to answer the four questions while the corresponding research hypotheses were tested at 0.05 level of alpha. Pearson Chi-square statistic was used to test all hypotheses. The study found that change has a positive effect on employees productivity, the organizations encounter challenges during vii change implementation, change is beneficial to both the employees and the employer and that organizations encounter challenges during change implementation, and that change has significant effect on the organizations growth rate. Based on the findings of the study, it was recommended that both employers of labour should be extra meticulous in implementing change; change when administered, the fundamental reactions which could be positive or negative should be tackled cautiously; organizations should embrace change to be effective, change parties should always open lines of communication and change should start from the bottom to the top. viii TABLE OF CONTENTS Title Page … … … … … … … … … … …i Approval Page … … … … … … … … … .. ii Certification … … … … … … … … … .. iii Dedication … … … … … … … … … … .. iv … … … … … … … … …v … … … … … … … … .. vi … … … … … … … … … vii … … … … … … … … .. Viii Acknowledgement Abstract … … Table of Contents List of Tables … CHAPTER ONE 1.1 Background of the Study … … … … … … … 1 1.2 Statement of the Problem … … … … … … … 8 1.3 Objectives of the Study … … … … … … … … 9 1.4 Research Hypothesis … … … … … … … … 10 1.5 Significance of the Study … … … … … … … … 10 1.6 Scope of the Study … … … … … … … … .. 11 1.7 Limitations of the Study … … … … … … … … 12 1.8 Scope of the Study … … … … … … … … … 13 1.9 Limitation of the Study … … … … … … … … 14 References … … … … … … … … 15 … … ix CHAPTER TWO: REVIEW OF RELATED LITERATURE 2.0 Introduction … … … … … … … … … 16 2.1 The concept of Change … … … … … … … 17 2.2 Phases in Change Processes … … … … … … 18 2.3 Challenges of Change Implementation … … … … 20 2.4 Reasons for the Change … … … … … … … 23 2.5 Organizational Change … … … … … … … 25 2.6 The effect of Change … … … … … … … 26 2.7 Stages in Change Process … … … … … … 28 2.8 Change Key Players … … … … … … 30 2.9 Types of Organizational Change … … … … … 31 … … … … … 34 2.9.2 Changing Structure and Design … … … … … … 34 2.9.3 Changing Technology … … … … … … … 34 2.9.4 Changing People … … … … … … … 34 … … … … … … 34 2.10.1 Ten Reasons why People Resist Change … … … … 36 2.11 Strategies for Overcoming Resistance … … … 38 2.12 The Effect of Change on Organizational Growth … … … 43 … 49 2.9.1 Changing Strategy … … … 2.10 Effect of Change on … References … … … … … … … … … … … x CHAPTER THREE: RESEARCH METHODOLOGY 3.1 Introduction… … … … … … … … … 51 3.2 Research Design… … … … … … … … 51 3.3 Sources of Data … … … … … … … … 51 3.4 Population Size… … … … … … … … 52 3.5 Sample Size Determination and Sampling Technique … … 54 3.6 Description of Research Instruments… … … … … 56 3.7 Method of Data Presentation … … … … … … 56 3.8 Theory of Chi Square … … … … … … … 56 3.9 Degrees of Freedom … … … … … … … 57 3.10 Confidence Level/level of Significance … … … … 57 3.11 Validity of the instrument … … … … … … … 57 3.12 Reliability of the Instrument … … … … … … 58 3.13 Decision Rule … … … … … … … … … 59 References … … … … … … … … 61 … CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 4.1 Introduction … … 4.2 4.3 … … … … … 62 Distribution and Return of Questionnaire … … … … 62 Presentation of Data … … … … 63 4.4 Data Presentation for Research Questions … … … … 72 … … … … … xi 4.5 Test of Hypotheses… … … … … … … … 75 4.6 Decision Rule … … … … … … … … 76 … … … … … … 81 … … … … …. … 83 … 4.7 Discussion of Findings … References … … … CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION 5.1 Introduction … 5.2 … … … … … … … .. 84 Summary of Findings … … … … … … … … 84 5.3 Conclusion… … … … … … … … … 85 5.4 Recommendations … … … … … … … … .. 88 Bibliography … … … … … … … … … 90 Appendix … … … … … … … … 93 … … … xii LIST OF TABLES Table 4.1: Distribution and Return of questionnaire… … … … 62 Table 4.2: Sex of the Respondents … … … … … … … 63 Table 4.3: Age of Respondents … … … … … … … … 64 Table 4.4: Martial Statues of Respondents … … … … … … 64 Table 4.5: Academic Qualification of Respondents … … … … 65 Table 4.6: Sector Respondents Work … … … … .. 66 … … Table 4.7: Does Change have significant effect on employees Productivity … … … … … … … … .. 66 Table 4.8: Employee Status … … … … … … … … 67 Table 4.9: How are you familiar with the term change management as it relates to you as an employee? … … … … … 68 Table 4.10: Respondents Organizational Climate … … … … … 68 Table 4.11: How do you perceive change in your organization? … … 69 Table 4.12: Are employees properly informed before change is implemented? … … … … … … .. 70 … … … 70 Table 4.13: What is often the reaction of employees, with regards to intending change? … … … Table 4.14: If employees resist change, what measure do your organizations employ to contain the situation? … 71 xiii Table 4.15: Change has significant Effect on Employee productivity: Change labeled with incentives, the outcome is more productive … … … … … … … …… 72 Table 4.16: Does your Organization encounter challenges in the process of change management? Therefore training and Retaining is a basic requirement in the process of change. … … … … … … … … … 73 Table 4.17: 19 change has no positive effect on organizational Growth 74 Table 4.18: Change Improved Employee skills and Core Competencies and change improve the firms return on investment … … … … … … … 74 Table 4.19: Cross tabulation Statistics on the Responses of Effect of change on productivity … … … … 75 Table 4.20: Chi-square test computed from the frequency table … .. 76 Table 4.21: Expected Frequency … … … … .. 77 Table 22: Chi square Test computed from frequency … … … … 78 Table 23: Expected Frequency … … … … .. 79 … … … … … … … … Table 4.24: Chi-Square table Computed from cross tabulation … ... 79 Table 4.25: Expected Frequency Table … … … Table 4.26: Chi-Square table computed from table 4 … … … .. 80 … … … 81 xiv CHANGE MANAGEMENT AND ITS EFFECT ON EMPLOYEE’S PERFORMANCE IN MANUFACTURING INDUSTRY (A CASE STUDY OF EMENITE PLC ENUGU AND ASABA ALUMINUM COMPANY ASABA) BY OSSAI. AUGUSTINE .C PG/MBA/12/63786 DEPARTMENT OF MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION UNIVERSITY OF NIGERIA ENUGU CAMPUS AUGUST, 2015 xv CHAPTER ONE 1.1 BACKGROUND OF THE STUDY It is an ultimate goal for every organization (be it profit oriented or non-profit oriented) to stand the test of time and be able to provide for its shareholders. Change is an integral part of what is needed to bring about this desired result, hence it has become imperative to embrace innovation, change in technologies, equipment and transformation as a driving force and aimed at uplifting organizations higher economically. This study focuses on the change management and its effects on employees performance in Nigeria manufacturing industry. be it private or public. It intended to probe such organizations with a view to determining the change management and its effect of on the employees performance evaluation of departments and individual workers, profitability index comparatively, working relationship amongst workers just to mention but a few. It is a general philosophy that change is a constant phenomenon that is bound to occur in every given environment and business setting. Though it has both positive and negative reactions and effects, it still proffers solution to some identified problems at the end of the day. Therefore change can be described as a means to plan, initiate, realize and control and finally xvi stabilize change processes in both corporate and personal levels. It also covers diverse problems like strategic direction or personal development programmes for staff among others (Oliver Reckiles 2001). It should also be carried out in a logical and systematic process that will leave no employee emotionally aggrieved. Often times, introduction of change cost a substantial amount in terms of managerial time and emotional upheaval.(kanigel,Robert.1997:45) Many organizations have not tried change or initiate changes to most of their activities either because the managers were afraid that they were simply incapable of successfully implementing the needed change or because of its effect on the management of the employees in the organization.(Head, Simon 2005:22) The most common reaction associated with change is resistance and this can be categorized as follows: a. Active Resistance: Active resistance to change may be as a result of ignorance on the part of those affected or misconception of the rationale or problem of poor communication, this invariably leads to frustration aggression and resignation. b. Passive Resistance: A mild level of resistance to change. xvii c. Indifference- Some employees would not be bothered whether there is change process or not. d. Deliberate Sabotage- in which case the employee concerned is aware of the change process but deliberately obstructs the path of progress. e. Acceptance/cooperation- here those affected identify with the change process and try to do all that is within their capabilities to ensure the success and effective implementation of the change process. [Pandlebury 1998] Obviously, resistance to change is not just synonymous with the employees alone, even manager’s resist change for several reasons. Some of these reasons include the following: a. Political Factor: Nigerian Managers resists change because this tends to reduce their power and status. b. Inertia: our managers have a preference for the status-quo instead of radical change. c. Anxiety for the Future: People are generally afraid of losing their jobs or their money or their friends, having to do less pleasant work, and not being able to cope with new job. xviii d. Way of introduction: Irrespective of the nature and benefits of a change, people tend to be non-supportive if the change is not properly introduced; they tend to show publicly their disgust and dislike for the change. e. Variance of goals: Management vis-a-vis staff is responsible for a large proportion of resistance to change in many organizations, while management’s interest centres, around policy issues like sales expansion, cost deduction, high turnout, industrial peace, the staff is interested in fat salaries and allowances, job security, bonus, scholarships grants and recognition. The change process can only be achieved or successfully implemented if the two sets of goals are harmonized. (Connor, 2003,:151). In the economic area we also see unprecedented instability in world currencies, massive defaults and (euphemistically called) rescheduling of major national debts of third world countries. The International monetary fund (IMF) no longer seems able to stabilize events and even the major currencies no longer seem to follow the well-established rules.( (Montgomery, David 1989 :1865) Sequel to all these, is the enormous pace of technological inventions and innovations. This is creating major opportunities which were obviously xix inconceivable, but at the same time it is creating massive employment and forcing major realignment of job skills and talent. 2 Roger Plant (2012: 115) in his work title “Managing Change and making it tick” observed that there is a wide range of typical causes of resistance. These are rarely simply cause and effect situations, and resistances is usually a complex mix of historic, factual and emotional issues, which are not always easy to disentangle. He listed the following as some of those most frequent sources of resistance to change and unwillingness to engage in new behaviour. - Fear of the unknown - Lack of information - Misinformation - Historical factors - Threats to core skills and competence - Threat to power base - Threats to status - No perceived benefits - Low trust organizational climate - Poor relationships - Fear of failure - Fear of looking stupid - Reluctance to experiment - Custom bound - Reluctance to let go xx - Strong peer group norms Kotler [1996] describe a helpful model for understanding and managing change. Each stage acknowledges a key principle identified as relating to people response and approach to change in which people see, feel and then change. And the Kotler”s eight step change model can be summarized as - Increase Urgency: Inspire people to move, make objectives that are real and relevant. - Build the Guiding Team: Get the right people in place with the right emotions, commitment and the right mix of skills and levels. - Get the Right Vision: Get the team to establish a simple vision strategy, focus on emotional and creative aspects necessary to drive service and efficiency. - Communicate for Buy-in: Involve as many people as possible, communicate the essentials, simple appeal and respond to people’s needs. - Empower Action; Remove obstacles, enable feedback constructively lots of support from leaders, reward and recognize progress achievements. xxi - Create Short Term Wins: Set aims that are easy to achieve in bit sizes. Get manageable number of initiatives, finish current stages before starting new ones. - Don’t Letup: Foster and encourage determination and persistence, in an ongoing change, encourage progress reporting, highlight achieved and future milestones. - Make Change Stick: reinforce the value of successful change via recruitment, promotion of new change leaders and apply change into culture of the organization. Basically, this study is aimed at change management and identifying the major effects on employee performance in an organization. This change could be in form of a new policy direction, or a shakeup in the top management of the organization. In Nigeria, introduction of change either political or business related has tremendous effect on the employees of various organizations.(Epstein, marc, 1996: 579). Change management is an important process, because it can deliver vast benefits (by improving the system and thereby satisfying “customer needs”), but also enormous problems (by ruining the system and/or mixing up the change administration). Furthermore, at least for the Information Technology domain, more funds and work are put into system xxii maintenance (which involves change management) than to the initial creation of a system. The research work intends to take a critical look at the effects of change on employee of EMENITE PLC, ENUGU STATE. The field of manufacturing is nowadays also confronted with many changes due to increasing and worldwide competition, technological advances and demanding customers. Therefore, (efficient and effective) change management is also of great importance in this area. The research will also take a critical look at the effect of change on employee management in Asaba Aluminum Company Asaba Delta State. 1.2 STATEMENT OF THE PROBLEM Change is an inevitable phenomenon in the business world. There have been various forms of innovations with respect to policies and procedures of work activities, products with competitive edge over other products and services in the same industry, and the global growth in technology and information super high way. This in no doubt has impacted upon the activities of public and private enterprises whether profit oriented or non-profit driven organizations in Nigeria and beyond. Nevertheless, a good number of firms have not swiftly adapted to change or monitor the business environment and make proactive measures to remain afloat in their respective industries. This situation has culminated xxiii in the loss of relevance of firms in their industries. As a firm begins to experience downturn, it will eventually impact negatively on the overall productivity and efficiency of the firm. This could lead to loss of customers and the firm not being able to meet operating cost. Organizations in this situation are compelled to downsize (lay off workers). Employees in such organizations are faced with the unfortunate reality of losing their jobs and the attendant social cost of joblessness. Why employees resist change and its change on organizational development, and how to carry out successful change in organization without necessary encountering violence will be concern of this study. 1.3 VARIABLE OF CHANGE MANAGEMENT AND EMPLOYEES’ PERFORMANCE Factors influencing employees’ Performance s The change variable which change in increasing employee performances in the manufacturing sector were technological changes, economic change privatization, change in competencies and skill requires, change in organizational goals and values as rated by managers while for employees. The change variable which creates decline in the performance of employees were downsizing and delayering as stated by both managers and employees. xxiv Managerial change, change in employees attitude and change in employees expectation were the change variable which created no change in the performance 1.4 OBJECTIVES OF THE STUDY. The main objective of the study is to evaluate the effect of change management on employees performance in the organization. However, the specific objectives are as follows: 1. To ascertain the challenges encountered by organizations in the process of change management. 2. To determine the benefit of change management to both employees and employers. 3. To ascertain the effect of change management on organizational growth. 4. To evaluate the effect of change management on employee productivity. 1.5 RESEARCH QUESTIONS 1. What challenges do organizations encounter in the process of change management? 2. What are the benefits of change management to the employees and the employers? xxv 3. To what extent is the effect of change management on organizational growth? 4. Does change management have effect on the employees’ productivity? 1.6 RESEARCH HYPOTHESES In this study, four hypotheses are formulated in line with objectives of the study and the research questions. Hypothesis One Ho: Change has significant effect on organizational growth. There are significant challenges encountered by organization in the process of change management HI: change does not have significant effect on organizational growth. Hypothesis Two HO: Organizations do not have enormous challenges in the process of change management. Change management has significant benefit to employees and employers HI: Organizations have enormous challenges in the process of change management. xxvi Hypothesis Three HO: Benefits of change does not accrue to both employees and employers. HI: Modern production technique has significant change on organizational growth. Hypothesis Four HO: Change does not have significant effect on employee’s productivity policy change has significant effect in employees’ performance HI: Change does have significant effect on employee’s productivity. 1.7 SIGNIFICANCE OF THE STUDY The significance of the study cannot be overemphasized and it can be viewed from the various perspectives below; 1. Entrepreneurs The research work will help entrepreneurs and policy makers of industries and governmental agencies to understand the huge implications of not been change advocates. It will point out the available strategies in the introduction of change that will keep the organization chaos free and remain productive. xxvii 2. Management of Manufacturing Industries: The manufacturing industry will mostly benefit from the various reasons behind the need for successful change administration. 3. Future Researchers The study is also significant on the ground that it will benefit students, academia and future researchers because it will clarify and analyze the theoretical framework of change, resistance to change by employees and the most positive ways of managing change vis-à-vis employees and improved organizational productivity. Therefore the research work will be a contribution to the existing body of knowledge. 1.8 SCOPE OF THE STUDY The scope of this research work is strictly to study the effect of change on employee management in an organization. It is agreed that change do normally occur in an organization and its attendant effect on employee management is glaring. The techniques they employ in introducing change and in controlling and managing employees reaction is what this project intends to research on, and where possible proffer solutions and suggest recommendations to these organizations. xxviii 1.9 LIMITATIONS OF THE STUDY The ‘subject no doubt a very wide area, so much research works have been carried out on it, yet it is still green, green in the sense that most organizations have not certainly come to terms with the need for effecting change as at ‘when due in the organization and how to properly manage the employees in the face of a change been introduced. 1.8.1 Time: Time is a major constraint to the researcher conducting an elaborate and detailed study. 1.8.2 Financial: Financial limitations is another major setback which restricted the researcher to studying only a few selected private organizations. xxix REFERENCES Akpala A. (1990): Management: An Introduction and the Perspective Enugu: Precision Printers and Publishers. Bennis, W.G., Bennge, K.D. and Chin R. (1969): The Planning Change: New York: Holt, Rinehart and Winston Denhardt, R. & Denhardt, J. (Eds.). (2006). Public Administration: An Action Orientation. Belmont, CA: Thomas Wadsworth. Harvard Business School. (2005). The Essentials of Managing Change and Transition. Boston: Harvard Business School Press. Kotter, J.P (1996): Leading Change, Boston: Harvard Business School Press. Management Dictionary, sourced from the internet: www.ssrn.com McCann, J. (2004): Organizational Effectiveness: Changing concepts for changing environments: Human Resource Planning Hackenbrackt Publishers an international encyclopedia Orlikowski, W. and Hofman, D. (1996): An Improvisational Model of Change Management. New York: Viking ISBN 0-670-86402-1 Pendlebury, J. (1998). The Ten Keys to Successful Change Management: New York: John Wiley & Sons. Reorganization: The Effect of Change on the Employees 7 Connor, P. Lake, L., Stackman R. (2003). Managing Organizational Change. Westport, CT: Praeger Publishers. Warrilow, S. (2010): Starting the Change Process: Journal of Change Management Whittington R. (1996): Strategy as Practice: Long Range Planning vol. 29(5). Journal of change management www.wikipedia.com (March 2011). xxx CHAPTER TWO REVIEW OF RELATED LITERATURE 2.0 INTRODUCTION If you ask employees what they think about change, you will normally find that most people have negative attitudes and perceptions towards change. They have fears of losing their job, their status or their social security, or they are afraid of a higher workload. In many cases, first effects of change on employees, leaders, and on performance levels are negative.[Oliver Rickles 2001] These effects include fears, stress, frustration and denial of change. Most employees tend to react with resistance to change rather than seeing change as a chance to initiate improvements. They are afraid of losing something, because they have incomplete information on how the change processes will affect their personal situation in terms of tasks, workload, or responsibilities. If chance processes lead to redundancies, those who “survived job cuts” still have a negative attitude towards change. One reason may be that they now face additional tasks and responsibilities. Some people may feel guilty for still having their job while others became unemployed. xxxi such emotional reactions may cause additional stress in the changing organization. Managers need to keep in mind those negative side-effects of change initiatives in order to achieve the expected positive results. The success of change projects depends on the organization’s ability to make all their employees participate in the change process in one way or the other. 2.1 THE CONCEPT OF CHANGE Change management means to plan, initiate, realize, control, and finally stabilize change processes on both, corporate and personal level. Change may cover such diverse problems as for example strategic direction or personal development programs for staff. Change is the continuous adoption of corporate strategies and structures to changing external conditions. Today, change is not the exception but a steady ongoing process. On contrast ‘business as usual will become the exception from phases of turbulence. Change management comprises both, revolutionary one-off projects and evolutionary transformations. Hence, there are two types of changes: 1. Organizational Development: This is the more gradual and Evolutionary approach to change. It bases on the assumption that it xxxii is possible to align corporate objectives with the objectives. In practice, however, this will 2. individual employees rarely be possible. Reengineering: This is known as corporate transformation or business transformation. It is the more radical form of change management, since it challenges all elements of processes or structures that have evolved over time. 2.2 PHASES IN CHANGE PROCESSES In order to successfully manage change processes, it is necessary to analyze the phases of this process. Managers need to know in which phase they have to expect what types of situations and problems. Most successful organizations are those that are able to adjust themselves to new conditions quickly. This requires planned learning processes that lead to improved organizational effectiveness. Ideally, employees are able to reflect their own behavior in relation to the organizational context (e.g. processes, products, resources, customers). People usually decide to make a Change when things are not going the way they would like. From the perspective of a Manager, the need for change usually occurs when there is a problem related to: i. Productivity ii. Satisfaction, and iii. Development in the system xxxiii It may be that output has fallen below expected levels that an Atmosphere of discouragement and rancor has emerged, that clients are dissatisfied with slow service, that people in the system are not earning and developing needed skills and abilities or some combination of these. It is very important to note, that an organization like any living organism, it can decay or deteriorate over time without constant maintenance. In the same vein, Hinley, describes two of Lehman’s laws of software evolution the law of continuing change (i.e. systems that are used must change or automatically come less useful) and the law of increasing complexity (i.e. through changes the structure of a system becomes ever more complex and are resources are needed to simplify it). The employers ability to anticipate the need for change as opposed to reacting after the fact or diagnose the nature of the change that is required rather than respond with the first thing that comes to mind or to make an intelligent choice of action steps, rather than find the fastest way to escape the problem, can be the ultimate basis of an employer’s success. They need to be proactive in their thinking and actions. As stated by Nnadi [2010] proactive people focus their efforts in the circle of influence. They work on things they can do something about. xxxiv Cohan Fink and Gadon Willets in their book titled “Effective Behaviour in Organizations” observed that “People do not necessarily resist change”. The issue is what people perceive to be impact of change. People resist change when they perceive the consequences as negative. While individuals will differ in how ready they are to anticipate negative consequences, and even though their reasons may appear illogical or even wrong to an outsider, people are not automatically resistant to change. People resist Change for a reason, and a manager’s task is to try to identify those reasons and where people, to plan the changes so as to reduce or eliminate the negative effects and to correct misconceptions. 2.3 CHALLENGES OF CHANGE IMPLEMENTATION Roger Plant (1987) suggested that resistance to change can be overcome or at best reduced through the use of one or more of the following methods: Set clear objectives- setting objectives for the company is the prerogative of the executives of the organizations but there should be an involvement of the operatives as well as those who are going to be affected. Sell the disadvantages of the status-quo, which is yet to be changed to the people to recognize that they have a problem. Introduce the change xxxv gradually, that is, act as much notice as possible to ensure that lag gives enough room for reparation. Involve people, that is, ask for their opinion about how they want the change process implemented. Sell the advantages of the new method, this show that changing will lead to increased satisfaction. Provide full information about the nature of the change and its effect. Let people air their views: that is, be a good listener and show sympathy for their fears. Find the opinion leaders of the groups and concentrate your persuasion efforts on them, and finally. Sell yourself as well as the desired change. This form of approach to organizational change will no doubt be acceptable by those affected by the change process, because it involves the participation of every employee of the organization. Watson (1966) in his work on resistance which can be adapted to twelve conditions under which change can be successfully implemented. 1. If the administrators of the organization feel the change project is their own. 2. If the change has the wholehearted support of the top administrators. 3. When the participants in the change see it as reducing rather than increasing their present burdens. 4. When the change accords with the value and ideas of the participants. xxxvi 5. When the change project is interesting to the employees. 6. When the employee’s autonomy and security are not threatened. 7. When the employees collaborate in the diagnosis affords 8. When the change project was adopted by consensus group decision making. 9. When the proponents for change sympathizes with the opponents of the change project. 10. When feedback is used 11. When employees experience acceptance, support, trust and confidence in their relations with one another. Business operates in a dynamic environment which implies change. Change in one part of an organization will inevitably affect people and process in another part. It is either reactive that is, in response to external circumstances or proactive that is, the organization just decided to change. Environmental change could be described as one that modifies the strategy of the enterprise, others etc. the structure, necessitate the development of a different character of relationship among the principal components of the organizations and dictates a change in management angle. xxxvii 2.4 REASONS FOR THE CHANGE In recent times, organizations both public and private have witnessed a spate of major environmental changes brought about by: i. Austerity measure ii. Structural Adjustment Programmes. iii. Economic Reforms in the form of consolidation These reforms have precipitated major organizational changes forcing most organizations to: a. Shift organizational goals and objectives b. Embark on rationalization of staff strength c. Shutdown of factories d. Phasing out or merging of departments e. Modification of production processes and widespread organization involving deployment f. The privatization and commercialization of certain organization inclusive. g. Mergers between companies. According to Professor Loney (2007), change within an organization often come about to make some type of improvement. Though intended to bring about positive effects, these changes often provoke a variety of xxxviii emotions and feelings in those who are both directly and indirectly involved. This paper discusses the sources of change and effects of management change, in the form of reorganization on those involved in the process. Much of the focus was the employees who are affected by the change and what can be done to ease the process. Organizational change within a company or agency can come about for different reasons. Changes can be made to improve productivity or because of new management. Changes can be initiated by both external forces, factors outside of an agency, or by internal forces, initiated by an agency itself (Pendlebury, 1998). Changes can also follow events such as mergers, the launch of a new product, a new leader, a new technology or following an economic upturn or downturn (Harvard 2005). Management views reorganization as a chance to increase efficiency within the division and also ease the staff burden on managers. Also, the change would help address the manager to staff reaction. Organization: Organization is a system that delivers certain goods and services. It can be seen as an entity and a process of coordinating individual efforts to accomplish a common objective. An organization is also a group of people bound together to provide unity of action for the achievement of a predetermined objective. xxxix 2.5 ORGANIZATIONAL CHANGE This is the process of altering, varying or modifying an organization in response to internal or external factors with a view to improving organizational output or achieving organizational aims or objectives. A manager that succeeds is one that is constantly adapting the direction and the operation of his enterprise to change in technological, social, political and economic environment in which it operates. Any organization that fails to recognize the inevitability of change is doomed to failure. Some organizations change mainly in response to external circumstances (reactive change) while others change principally because they have decided to (proactive change). Some organization are conservative in outlook, seeking new little in the way of change, others are entrepreneurial in outlook, ever seeking opportunities and new challenges. Some organizations are so constructed (even constricted) that change that is, adoption is a slow and difficult process. Others are designed with an in-built flexibility enabling adoption to take place regularly and with relative ease. xl 2.6 THE EFFECT OF CHANGE Recognition of the need for change stems from internal and external factors. However, certain pertinent questions have to be answered and they include: 1. What do we wish to change towards? 2. Why must we introduce change? 3. If we fail to initiate change now what will be the repercussions? The figure below illustrates how organizational change can influence and be influenced by several important features or organizational life-the organizational mission and strategy, culture, people etc. Figure 2.1: External Process Mission/Goals/Strategy Decision/communicati Business process on channels Organization Structure Current product/services Organizational change People Technology Knowledge Job/roles culture Skills xli External Factors includes 1. Change in demand for the organization’s products or services (e.g. as a result of changing consumption preference, action by competitors, government etc.) 2. Threatening tactics of competitors (e.g. by aggressively cutting prices or producing an advantageous enhancement to a product or service) 3. Arrival of a new corner with a competing product or service. 4. Takeover of the business by a more powerful enterprise. 5. Merger of the business with another. 6. Failure of a key supplier to meet the organizational requirements. 7. Change in the term of trade (e.g. currency exchange rates, tariffs etc). 8. Inability to attract sufficient numbers of skilled employees. 9. Development of new technologies now available for application. 10. Political change (e.g. new labour law, change in company law, taxation etc). Internal Factors 1. Planned change in strategy as a result of revised visions or goals (themselves largely influenced by external consideration). xlii 2. Efforts to introduce cultural change (e.g. in management style, collaborative working etc). 3. Need to improve productive efficiency/make better use of resources. 4 Need to improve the quality of products or services. 5. Need to respond to the development of potential new products/ services devised by R&D or marketing departments. 6. Need to improve standard (system for dealing with suppliers). 7. Need to deploy people (the human resources) where they are most effective. Most successful organizations are those that are able to adjust themselves to new conditions quickly. This requires planned learning processes that lead to improved organizational effectiveness. Ideally, employees are able to reflect their own behavior in relation to the organizational context (e.g. processes, products, resources, customers). 2.7 STAGES IN CHANGE PROCESS The seven phases of change can be described as follows: 1. Shock and Surprise: Confrontation with unexpected situations. This can happen ‘by accident’ (e.g losses in particular business units) or planned events (e.g. workshops for personal development and team performance improvement). These situations make people realize that xliii their own patterns of doing things are not suitable for new conditions any more. Thus, their perceived own competence decreases. 2. Denial and Refusal: People activate values as support for their conviction that change is not necessary. Hence, they believe there is no need for change; their perceived competency increases again. 3. Rational Understanding: People realize the need for change. According to this insight, their perceived competence decreases again. People focus on finding short term solutions, thus they only cure symptoms. There is no willingness to change own patterns of behavior. 4. Emotional Acceptance: This phase is also called ‘crisis’ is the most important one. Only if management succeeds to create willingness for changing values, beliefs, and behaviors, the organization will be able to exploit their real potentials. in the worst case, however, change processes will be stopped or slowed down here. 5. Exercising and Learning: The new acceptance of change creates a new willingness for learning. People start to try new behaviours and processes. They will experience success and failure during this phase. It is the change manager’s task to create some early-wins (e.g. by starting with easier projects). This will lead an increase in peoples perceived own competence. xliv 6. Realization: People gather more information by learning and exercising. This knowledge has a feedback-effect. People understand which behavior is effective in which situation. This, in turn, opens up their minds for new experiences. These extended patterns of behaviour increase organizational flexibility. Perceived competency has reached a higher level than prior to change. 7. Integration: People totally integrate their newly acquired patterns of thinking and acting. The new behaviours become routine. Only if change managers understand these phases of change, and only if they accordingly, they will be able to successfully manage change processes without destroying people’s motivation and commitment. 2.8 CHANGE KEY PLAYERS Change often involves a number of different key players. Connor (2003) identifies three groups of people involved in the processes: change agents, change recipients, and change allies (p. 139). Change agents are the players who wish to make a change within the organization (Connor, 2003). Sometimes change initiated by management can be a sign that they are unhappy with the status quo. Change recipients are those who “are expected to change when We Organization changes’ (Connor, 2003, p. 149). Mid-level managers and xlv staff will be the players who are directly affected by the reorganization. Change recipients will often go through four stages during the change, which include shock, defensive retreat, acknowledgement, and finally acceptance and adaptation (Harvard, 2005). Getting through each of these stages requires understanding and communication between management and the employees. As previously mentioned, changes would affect the whole Division, however some sections would be more effected than others. Lastly, the change allies are the players who help to “sustain and move along the change initiatives” (Connor, 2003, p. 139). Human resources specialist has been asked to help the Division through the process by eliciting opinions from managers and staff, and helping to recommend and decide a change will be both efficient, yet maintain morale among and buy in from employees. The specialist conducted interviews with staff and managers from within the Region to get more information on the status quo. Staff and managers from other Regions were also interviewed to get an idea of how other Regions are organized. 2.9 TYPES OF ORGANIZATIONAL CHANGE There are four types of organizational change according to consultant Nadler and Professor Tushman. “They are: xlvi i. Anticipatory Changes: Are any systematically planned changes intended to take advantage of expected situations. ii. Reactive Changes: Are those necessitated by unexpected environmental events or pressure. iii. Incremental Changes: Involves subsystem adjustments needed to keep the organization on its chosen path and, iv Strategic Changes: Alter the overall shape or direction of an organization like adding a night shift to meet unexpectedly high demand for a company’s product. There are four resulting types of organizational change in the Nadler- Tushman model. They are tuning, adoption, reorientation, and re-creation. Tuning is the most common, least intense and least risky type of change. Other names for it include preventive maintenance and continuous improvement. The key to effective tuning is to actively anticipate and avoid problems rather than passively waiting for things to go wrong before taking action. An example is Du Pond which recently tuned its marketing efforts by developing and Adopt a customer programme which encourages blue collar workers to visit a customer once a month, learn his need, and be his representative on the factory floor xlvii Adoption involves incremental changes in reaction to external problems, events or pressure. An example is Ford who had great success with its aerodynamic styling, General motors and Chrysler followed suit. In turn, Ford and GM broadened their product line to compete with Chrysler’s trend setting Mini Vans. Reorientation is anticipatory and strategic in scope. Nadler and Tushman call reorientation “Frame bending” because the organization is significantly redirected without making a complete break with the organization past. For example, Kodak is investing in the next generation of picture-taking technology, electronic photography. Even though electronic photography would make Kodak’s conventional products obsolete in about ten years, the firm’s strategy still centers on photography hence, Kodak is reorienting or frame bending. Recreation change is usually triggered by competitive pressures. It is the most intense and risky type of organizational change. Nadler and Tushman say it amounts to ‘trame breaking”. An example is a company US x formerly US steel, reflecting its primary emphasis on making steel. After years of targets and restructuring, the steel firm ended up being primarily an oil company xlviii 2.9.1 Changing Strategy A change in organizational strategy is a planned attempt to alter the organization’s alignment with its environment. 2.9.2 Changing Structure and Design Organizational change might also be focused on any of the basic components of organizations’ structure or on the organizations’ overall design. 2.9.3 Changing Technology Technology is the conversion process used by an organization to transform inputs. Because of the rapid rate of all technological innovation in the society, technological and operational changes are becoming increasingly important to many organizations. 2.9.4`Changing People Another area of organization change has to do with human resources. An organization might decide to change the abilities or skills of is workforce. This change might be prompted by changes in technology or by a general desire to upgrade the quality of the work force. 2.10 EFFECT OF CHANGE ON EMPLOYEES PERFORMANCE Reactions to change are oftentimes mixed but because people are creatures of habits, they resist any proposal that necessitates a change in xlix processes. The manager needs to know why people often resist change and what can be done about their resistance. Change can provoke a variety of emotions in employees, especially those who are directly involved. It is important for the change agents to acknowledge these feelings. These emotions can include fear of failure, self-doubt, loss and anxiety. Employees can also be resistant to change. Resistance to change is “any attempt to maintain the status quo when there is pressure to change” (Connor, 2003, p. 151). Causes of resistance can include a lack of awareness, lack of familiarity with the solution, rejection of the change, and lack of interest (Pendiebury, 1998). Additionally, some employees are more open than change than others (Danhardt, 2006) Based on the options presented, organizational changes ranged from minor ones, such as renaming the Brownflelds Team to Browntields Section, to large changes, such as creating a merged branch. As one can imagine, the larger the change, the more or emotions come about. Rumors can also play an important role during organizational change. Research conducted by Bordia (2006) found that “rumors are verbal symbols and expressions of employee concerns” (p.601.). Rumors come about before formal announcements and center on predicting changes or “alleging dire consequences”. They often arise because of stressful l circumstances which intern, create anxiety and uncertainty: There are different reasons why people react change. 2.10.1 Ten Reasons Why People Resist Change. 1. Belief that the change initiative is a temporary fad 2. Belief that fellow employees or managers are incompetent 3. Loss of authority or control 4. Loss of status or social standing 5 Lack of faith in their ability to learn new skills 6. Feeling of change overload (too much too soon) 7. Lack of trust in or dislike of managers 8. Loss of job security 9. Loss of family or personal time Other reasons includes Uncertainty: This may be the biggest cause of employee’s resistance to change. In the face of impending change, employees are likely to become anxious and nervous. They may worry about their inability to meet the new job demands. They may think their job security is threatened or they may simply dislike ambiguity. Threatened Self-Interest: Many impending changes threaten the selfinterest of some managers within the organization. A change might li potentially diminish their power or influence within the company, so they fight it. A few years ago, managers at Sears developed a plan calling for a change of sears’s store that would be smaller, located in smaller centre’s carry clothes and other “soft goods” but not hardware, furniture of automatic products. Executives of the sears raised such strong objections that the entire idea was wrong. Management Perception: People resist change because they perceive circumstances in different way from one another. A manager may make a decision and end a plan for change on the basis of her own assessment of situation. Others in the organization may resist the change because they don’t agree with the manager’s assessment or perceive the situation. Texas Air had major problems with Eastern Airline for over time because of different perceptions. Management of Eastern Airline disagree that labour costs were too high and so labour leaders should go into contract concessions but labour perceived the problem to result of mismanagement and so refused to give in. Feelings of loss some people resist change because of feelings of loss. Many people involve altering work arrangements in ways that disrupt existing social networks. Because social relationships are important, lii most people resist any change that might adversely affect those relationships. Others intangibles that are threatened by change include power, status, security, familiarity with existing procedure and selfconfidence For example, Steven Jobs recruited John Sculley to bring professional management to Apple. He later found out that he did not like Sculley’s changes and longed for the way things were before. His own status and self-confidence were being threatened. Jobs subsequently tried to oust Sculley, lost a bitter power struggle with the board of directors and then left him self. 2.11 STRATEGIES FOR OVERCOMING RESISTANCE The following strategies can be used to overcome resistance to Change: Participation Participation is generally considered the most effective technique for overcoming resistance to change. Employees who participate in planning and implementing a change is better able to understand the reasons for the change. Uncertainty is reduced and self-interest and social relationships may be less threatened. Having had an opportunity to express their ideas and to assume the perspectives at others, employees are more likely to accept the change gracefully. The liii value of participation was shown in a classic study by Coach and French who monitored the introduction of a change in production methods among four groups in a Virginal Pajama factory. Out of the four groups, two groups were allowed to participate fully in planning and implementing the change. The results were significant improvements in productivity and a high level of morale and cooperation. Educational and Communication Educating employees about the need for and the expected results of an impending change should reduce their resistance. If open channels of communication are established and maintained during the change process, uncertainty can be minimized. Caterpillar used these methods during many of its changes. Facilitation Introducing a change gradually can work wonders. Making only necessary changes, announcing those changes well in advance, and allowing time for people to adjust to new ways of doing things can help reduce resistance to change. Force Field Analysis Although force-fields analysis may sound like something out of star trek movie, it can help overcome resistance to change. In almost any liv change situation, there are forces acting for and against change. To facilitate the change, the manager should start by listing each set of forces and then try tip the balance so that the forces facilitating the change outweigh those hindering the change. It is especially important to try to remove or at least minimize some of the force acting against the change. Nomadic Re-education This is to change people’s attitudes and pattern of behaviour to new pattern. This process helps to “unfreeze” old patterns of behaviour of the new pattern. This process helps to “unfreeze” old patterns of behaviour in readiness for the acceptance of the new pattern to be introduced“refreezing” Application of Power This is use of authority and power to obtain compliance in the face of stiff opposition from one, or a group of people in the organization. An employee that is determined to make it fail could be relived of his job. The use of power to reduce opposition is used as a resort when it is discovered that no amount of reasoning or involvement would make them to accept the change. lv Emphatic Consideration Listen to their questions and complaints with sympathy. Timing must be right. Changes should be useful. Give positive reinforcement; encouragement and conjunction will release anxiety. There are a lot of benefits to be gained. Management will accomplish a desired change if they recognize human limitation and training to deal with them. The Role of Top Management To change an entire corporation, the change process described above must be applied over and over again in many plants, branches, departments and divisions. Without explicit efforts by top management to promote conditions for change in individual units, only a few plants or divisions will attempt a change, and those that do will remain isolated. Create a Market for Change The most effective approach is to set demanding standards for all operations and then Hold managers accountable to them. As long as managers understand that high standards are not arbitrary, but are dictated by competitive forces, standards can generate enormous pressure for better performances, a key ingredient in mobilizing for change. Managers should not over-manage when seeking to improve lvi performance; rather they should alter the fundamental way they organize. Use Successfully Revitalized Units as Organizational Models for the Entire Company Another important strategy is to focus the company’s attention on plants and divisions that have already begun experimenting with management innovations. Such innovative units need support. They need the best managers to lead them, and they need adequate resources. Furthermore, since resources are always limited and the cost of failure is high, it is crucial to identify those units with the highest chance of success. Organizational models can serve as catalysts for change only if others are aware of their existence and are encouraged to learn from them. Develop Career Paths that Encourage Leadership Development Without strong leaders, units cannot make the necessary organizational changes. Corporate renewal depends as much on developing effective change leaders as it does no developing effective organizations. The only way to develop the kind of leaders a change organization needs is to make leadership an important criterion for promotion, and then manage people’s careers to develop it. Management by Objectives (MBO) typically refers to a formal procedure in which each “manager pair” i.e a manager at any level and his lvii immediate superior, periodically reach mutual agreement on specific and measurable goals or objectives which the subordinate manager is expected to attain in the upcoming period. Management by Objectives (MBO) is a management program with the specific objectives of the organization’s long range plans. Organization need a participation mind set for managing change; one that emphasize process over specific content, recognizes organizational change as a unit- by- unit learning process rather than series of programs, and acknowledge the payoffs that result from persistence over a long period of time as opposed to quick fixes. This mind, set is believed to be the only approach that will bring about successful renewal. Approaches to Change There are three approaches to implement change. They are organization development (OD), Action Research (AR) and Business process Re-engineering approach (BPR)) as discussed below. 2.12 THE EFFECT OF CHANGE ON ORGANIZATIONAL GROWTH In a process of fundamental change to an organization’s culture, people simply call it planned change program and it tries to achieve the following seven objectives. lviii i. It deepens the sense of organizational purpose and vision and aligns individuals with that purpose. ii. It strengthens interpersonal trust, communication, co-operation and support. iii. It encourages a problem-solving rather that a problem-avoiding approach to organizational problems. iv. It develops a satisfactory work experience capable of building enthusiasm. v. It supplements formal authority with authority based on personal knowledge and skill. vi. It increases personal responsibility for planning and implementing. vii. Lastly, it encourages persona) willingness to change. Organization development thinking encourages organizational development and gives managers a vehicle for systematically introducing change by applying a broad selection of management techniques and this leads to greater group and organizational effectiveness. Action Research Approach Another principal way in which organizations can bring about planned change is called “Action Research”. This is a collaborative approach to change in which people work in groups (either their own work- teams, or lix cross functional groups) in order to analyze a problem situation and suggest ways in which it might be tackled. Action groups usually follow a five-stage sequence. Problem Diagnosis (ask the question- what are the issues or road blocks etc?) Data gathering and analysis (Where is the problem, how big is it?) Group feedbacks (Purpose solutions) Action (Solutions and tested and implemented) Evolution of achievements The two principal attraction of action research are: 1. That it is problem-oriented rather than solution – oriented and 2. That it actively involves employees in issues of importance to their work and thus gains their cooperation in bringing about change. Business Process-Re-engineering The third approach to change is the “business Process Reengineering” (BPR). This is the strategic approach to original change lx the entire ‘business architecture” of the organization is red and greater emphasis is placed on appraisal. Re-engineering is the fundamental rethinking and radical redesigning of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality secure speed. Because processes is concerned with tasks and structure and is described as “a collection of activities that takes one or more Kinds of inputs and creates an output that is value to the customer. The re-engineering process tends to lead to changes in the way work is undertaken and in the structural forms and employee’s behaviour”. The use of information technology helps the organization conduct its present operations more efficiently and also opens up other uses of information technology to enable new goals to be achieved and new systems to be discovered. BPR encourages lateral work processes i.e forcing people to think outside their normal frame of reference. It enables the re-engineering process to fulfill its primary goals of introducing radical change through the introduction of personal computers, mobile phone, fax machines etc. Summarily, the benefits of BPR largely derive from thinking, organizing and acting horizontally, that is in terms of cross functional processes. Radical improvements of results from challenging assumptions, lxi breaking down barriers, innovative use of technology, introducing new ways of working, change relationship and re-drawing traditional boundaries are all fundamental aspects of change. What is sought could be a longer term increase in capability and competitiveness. Redesigning work may result to jobs for others. Organizations enjoying BPR may enjoy reduced costs of production and improved relations with their customers. SUMMARY OF LITERATURE REVIEW Research studies, findings and practical experiences have shown that “change” is a valuable ingredient to repositioning an organization better against internal and external environmental transformation. Inspite of the fear and anxiety associated with change in the areas of loss of authority. i. Loss of authority ii. Threatening job security iii. Alteration of the status quo to top executives disadvantage iv. Inability to cope with newly introduced change and v. Obviously the fear of taking up challenging responsibilities It will remain pardonable to carry out change when occasion calls for it. In implementing change anyway, it should be should “objectively” and not “subjectively”. Objectively, when productivity is seen to be failing below expected levels or when there is need for the introduction of new lxii technology (automation) or when employee’s morale is at its lowest level and/or when there is the need to diversify. Subjective in this sense is that, change is introduced to witch hunt imaginary enemies or for employers to top executive to satisfy their self-fulfilling interest or simply as an avenue to destroy or ruin down the organization. Before change is implemented, proper sensitization should be carried out within the organization to educate the employees on the advantages of effecting change and the disadvantage of not carrying out change (both to the individual employees and the organization at large). In order to overcome the possibilities of resistance in the face of change, the employee’s fear and anxieties should be disabused. Every employees from the top most to the lowest should be involved in the implementation of change in order to reduce or eliminate resistance to the change process. lxiii REFERENCES Cohen Fink Gaden Villidts — Effective “Behaviour in Organizations, (Smith Edition” 1995) (page 389-431). Cothari R. C. (2008) Research Methodology: Methods and Techniques, New Delhi, New Age International (p) Limited. Derreck and Sanders: “Management Dictionary”. Douglas A. Elues “Management in Nigeria” (Nigerian Institute of Management) vol. 16 No 1. G.A. Cole: “Management Theory of Practice” (5th Edition). Griffin “Third Edition Management” How to initiate, cope with and benefit form change at work Incent Nolan January 1980 (page 8-14) McCann, J. (2004): Organizational Effectiveness: Changing concepts for changing environments: Human Resource Planning Hackenbrackt Publishers. Nzelibe and Ilogu (1996) Fundamentals of Research Methods, Enugu, Optimal International Ltd. Olufunke Akerele Adebayo Akerele, “Nigerian Management Review” vol. II No. 1-19 December 1999- May 2000 (page- 794-8D7) Orlikowski, W. and Hofman, D. (1996): An Improvisational Model of Change Management. Pendlebury, J. (1998). The Ten Keys to Successful Change Management: New Yor: John Wiley & Sons. Rasabeth Moss Kanter, Barry A Stein, Todd D Jick. (1992), ‘The Challenge of Organizational Change”. Maxwell MacMflhian. HD 58.8 .C43 lxiv Reorganization: The Effect of Change on the Employees 7 Connor, P. Lake, L., Stackman R. (2003). Managing Organizational Change. Westport, CT: Praeger Publishers. Roasbeth Moss Kanter, Simon and Schuster “The Change Masters” (inc 1983) HD45 Roberth Kreitner: “Fifth Edition Management” Houghton Miffhn Company HD31 K74 (M3) LDD/LD. Roger Plant lxv CHAPTER THREE RESEARCH METHODOLOGY 3.1 INTRODUCTION This chapter will discuss the following research procedures; research design, sources of data, population of the study, sample size determination and sampling technique, descriptive of research instruments, method of data analysis, validity of research instruments, and reliability of research instrument. 3.2 RESEARCH DESIGN A cross-sectional design will be employed. A cross- sectional design is the investigation involving a sample of elements selected from the population of interest that are measured at a single point in time. [Churchill, 2001:128}. In this design, a cross-section of the entire population will be sampled for the study. This will involve a systematic collection, presentation and analysis of data from individual respondents from the two companies. 3.3 SOURCES OF DATA The researcher has attempted to use two major sources of information from a section of the labour force, to give this project a perfect fitness. The two sources are as follows - lxvi Primary Source: This source includes the use of structural questionnaires, personal interviews and experiences, due solely to the fact that they offer substantive and first-hand information. Observations which could have been part of the sources of gathering information could not be used due to time constraint. Secondary Source: This source includes previous researches undertaken by different authors (from journals, textbooks, projects and internet) on the subject matter under consideration. This structured questionnaires (attached as the appendix), was divided into two parts Part A and Part B. part A comprises of the personal-data of the respondents. Part B comprises of the relevant questions as they affect the subject matter under investigation. 3.4 POPULATION OF THE STUDY Emenite Plc Enugu Alternatives Categories Of Staff Percentages % Senior 120 30 Junior 280 70 Total 400 100 Source OF Data: Field Survey 2014 lxvii Asaba Aluminum Company Alternatives Categories Of Staff Percentages % Senior 574 47.8 Junior 626 52.2 Total 1,200 100 Source OF Data: Field Survey 2014 The characteristics of the population of this research work consist of top management staff, senior and junior staff mainly drawn from EMENITE PLC,ENUGU STATE, AND ASABA ALUMINION COMPANY ASABA. However, a certain category of the work was exonerated from the population size, they includes: cleaners, securities, drivers, messengers and gardeners, because of their inability to fully comprehend what the topic is technically all about. The population study consisted of four hundred (400) staffers with ages ranging from 18 years and above in Emenite plc Enugu and a thousand two hundred (1200) staffers in Asaba Aluminum company EMENITE has hundred and twenty (120) senior staff and two hundred and eighty (280) junior staff While Asaba Aluminum Company has five hundred and seventy four senior staff (574) and six hundred and twenty six (626) junior staff. lxviii 3.5 SAMPLE SIZE DETERMINATION AND SAMPLING TECHNIQUES For the purposes of this study, the actual population is 1700, staff proportionate stratified random sampling technique will be applied on the premise that the population is heterogeneous. Yamana Taro (1967: 886) propounded a formular for sample size determination. Thus n = N 1 + Ne2 Where: N = The Population size n = The sample size e = The level of significance (0.05) I = The theoretical constant In the case n = Unknown N = 1700, e = 0.05 thus applying the formula n = 1700 1700 1 + (1700) (0.05)2 n = 1700 1 + 4.25 = 1 + 1700 0.0025 1700 5.25 = 323.8 = 324 lxix The Bowley’s proportional formula is given as nh = nNh N Where nh = Number of units allocated to each firm/staff category Nh = Number of employees in each firm/staff stratum in the population n = Total sample size N = The total population size under study for check of n accuracy i nh = n n = 342, N = 1700, Nh1 = 500, Nh2 = 1200 Substituting the various values into the formular Emenite nh = 324 x 500 = 95.29 = 9 1700 Summary of proportionate stratified sample to be drawn for the study Firms Stratification Total Emenite Aluminum 23 73 96 Asaba Aluminum 110 119 229 Total Sample Size 133 192 325 lxx 3.6 DESCRIPTION OF RESEARCH INSTRUMENTS The data collection instrument will be questionnaires and interviews. The questionnaires consists of section A and B. Section A is to elicit personal data from the data of the two firms while section B contains questions that focus on the objectives of the study. 3.7 METHOD OF DATA PRESENTATION The data obtained from the primary sources are analyzed through the construction and computation of simple percentages and frequency tables to ascertain the authenticity of respondents’ different views to each question. At the inferential level of analysis, Pearson Chi-square (X2) statistics was employed to test the four hypotheses. 3.8 Theory of Chi square x2 The chi square distribution is used in the common Chi-square tests for goodness of fit of an observed distribution to a theoretical one, the independence of two criteria of classification of qualitative data and in confidence interval estimated for a population standard deviation of a normal distribution from a sample standard deviation. lxxi 3.9 DEGREES OF FREEDOM (df) The numbers of scores free to vary in a distribution. Degrees of freedom (d.f) is given by (n-1) or n+n-2) as the case may be. 3.10 CONFIDENCE LEVEL/LEVEL OF SIGNIFICANCE To establish whether an outcome is statistical significant, the researcher must set up a confidence level. A confidence level means the probability level in which the null hypothesis can be rejected with confidence and the research hypothesis accepted with confidence. As the standard practice in social and administrative sciences, a confidence level of 5% is set in this research study. This means that the researchers are willing to accept statistical significance occurring by chance 5 times out of 100. In the research therefore, the 95% confidence level was applied and tested as 5% level of significance. For the stated hypotheses, the maximum acceptable risk of making a type one error (ie rejecting the null hypothesis (ho) when it should have been otherwise is 5%. 3.11 VALIDITY OF THE INSTRUMENT Validity is the most critical criteria that indicates the degree to which an instrument measures what its supposed to measure. A proper lxxii structuring of the questionnaire and a conduct of pre-test of every question contained in the questionnaire was carried out to ensure that they are valid. 3.12 RELIABILITY OF THE INSTRUMENT Reliability of a measure concerns its ability to produce similar results when repeated measurements are made under identical condition (Borden et al, 20087: 126). To ensure reliability of the instrument, test-retest method of reliability was applied. However, the reliability test was done through the use of pilot study. The test retest was carried out using (9) nine copies of questionnaires prepared and administered to staff respondent of the selected organizations. After some days, the instrument was administered for the second time. Using Pearson product moment correlation coefficient as the statistical tool, the result gave reliability index of 0.76 indicating a high degree of consistence pearson product moment correlation coefficient. = n xy - ( x) ( y) n x2 -( x)2 [n y2 – ( y)2] lxxiii First Pretest Second Pretest Senior Junior Senior Junior Aggregate staff staff staff AV AV AV AV Response response response Response x x x Y Y Y 3 3 6 3 4 5 6 11 5 5 staff Xy X2 Y2 7 42 36 49 10 110 121 100 17 152 157 149 Response 17 n = 22 x = 17 y = 17 xy = 152 x2 = 157y2 = 149 r = 22(119) – (17)(17) 22(157 – (17)2 [22(149) – (17)2 2618 – 289 (3454 – 289) (3278 – 289) 2329 2329 (3165) (2989) = 2329 94601845 = 0.7572 = 0.76 3095.74 3.13 DECISION RULE In testing hypotheses, we compare the calculated value of the test statistic with critical or table value of the test statistics. The critical or table lxxiv value serves as a benchmark for rejecting or not rejecting the null hypothesis. The decision rule applied in this research work therefore is to reject the null hypothesis fig the calculated value at 5% significance level with respective degrees of freedom is greater than the table value, otherwise do not reject it. lxxv REFERENCES Aaker A. D; Kumar V. and Day S. S (1998) Marketing Research, New York:John Wiley and Sons, Inc. Borden and Abbort (2008) Research Design and Methods: A Process Approach, New York, McGraw Hill. Churchfl G. A (2D01) Basic Marketing Research, Australia: South Weston Thormpson Learning. Cothari R. 0. (2008) Research Methodology: Methods and Techniques, New Delhi: New Age International (p) Limited. Nzelibe and Ilogu (1996) Fundamentals of Research Methods, Enugu, Optimal International Ltd. Ugwuoma, G. E. [2005J Data Analysis and Interpretation A computer Based Approach]. Yamane T. (1967) Statistics: An introductory Analysis, New York: Harper and Row. lxxvi CHAPTER FOUR DATA PRESENTATION AND ANALYSIS 4.1 INTRODUCTION This chapter is aimed at presenting and analyzing succinctly all the data collected from respondents. A copy of the questionnaire administered to respondents (private), is attached herewith in appendix 1. For the purposes of clarity, a simple percentage approach was used to analyze the responses of the respondents. 4.2 DISTRIBUTION AND RETURN OF QUESTIONNAIRE Table 4.1 Total number of questionnaires administered to respondents Total number of questionnaires returned Total number of questionnaires correctly filled Total number of questionnaires discarded Percentage questionnaires correctly filled 324 290 260 30 80.25 Class of Respondents Alternatives Frequencies Percentages Males 224 69.1 Females 100 30.86 Total 324 100 Source OF Data: Field Survey 2014 A total of three hundred and twenty four (324) copies of the questionnaire were prepared and distributed to the respondents from the lxxvii two selected organizations. Out of the above number, a total of two hundred and ninety were completed and returned. However about thirty (30) were rejected by the researcher. Therefore, the researcher based his analysis on the total number of 260 copies of questionnaire duly completed and returned. The table below shows the questionnaire distribution and collection schedule. 4.3 PRESENTATION OF DATA SECTION A Question: Sex of the respondents Table 4.2 Alternatives Frequencies Percentages Males 195 75 Females 65 25 Total 260 100 Source OF Data: Field Survey 2014 From the table above, it shows that 75 percent of the respondents (that is, 195) who responded to these questionnaires were males, while 25 percent (that is 65) were females. lxxviii Question: Age of Respondents Table 4.3 Alternatives Frequencies Percentages 18-25 15 5.8 26-30 35 13.5 31-35 140 53.8 36 and above 70 26.9 Total 260 100 Source OF Data: Field Survey 2014 The table above that 5.8 percent of the respondents were between the age of 18-25 years, 13.5 percent were between the ages of 26-30 years, while 53.8 percent were between the agrees of 31-35 years and 26.9 percent were between the ages of 36 years and above. Question: Martial statues of Respondents Table 4.4 Alternatives Frequencies Percentages Singles 58 22.3 Married 170 65.4 Divorced 25 9.6 Widows 12 4.6 Total 260 100 Source OF Data: Field Survey 2014 lxxix The table above depicts that 22.3 percent of the respondents (that is 58) were singles, 65.4 percent (that is 1700 were married, 9.6 percent (that is 25), were divorced and 4.6 percent (that is 12) were widows. Questions: Academic Qualification of Respondents Table 4.5 Alternatives Frequencies Percentages Secondary 30 11.5 Diploma/NCE level 61 23.5 Degree/HND level 101 38.8 Master and above 68 26.2 Total 260 100 Source OF Data: Field Survey 2014 The table explicitly shows that 11.5 percent of the respondents possessed secondary school qualifications, 23.5 percent possessed Diploma/NCE qualifications, 38.8 percent possessed Degree/HND qualifications while only 26.2 percent of them possessed Masters degrees and above qualifications. lxxx Question: Sector Respondents Work with Table 4.6 Alternatives Frequencies Percentages Private sector 95 36.5 Private sector 165 63.5 Total 260 100 Source OF Data: Field Survey 2014 It can be seen from the table above, that 36.5 percent of the respondents are employed with the private A sectors while 63.5 percent are employed with the private B sectors. Question: Does Change have Significant effect on employee’s productivity? Table 4.7 Alternatives Frequencies Percentages Yes 220 84.6 No 25 9.6 None of the above 15 5.8 - 0 All the above Total 260 Source: Field Survey 2014 100 lxxxi The table shows that 84.6 percent of the respondents agree that change has enormous effect on the employee’s productivity, while 9.6 percent of the respondents are of the view that change has no effect on their productivity. But 5.8 percent sees it otherwise: they neither agree nor accept that change has any effect on employee productivity. Question: Employee Status Table 4.8 Alternatives Frequencies Percentages Management staff 30 11.6 Senior staff 62 23.8 Junior staff 168 64.6 Total 260 100 Source: Field Survey 2014 The table above indicates that 11.6 percent of the respondents were in the management level, 23.8 percent were in the senior level, while 64.6 percent were in the junior levels. lxxxii Question: How are you familiar with the term change management as it relates to you as an employee? Table 4.9 Alternatives Frequencies Percentages Yes 190 73.1 Somehow 60 23.1 No 10 3.8 Total 260 100 Source: Field Survey 2014 Interestingly, the table above gives a clear picture that an insignificant number (3.8) of the respondents is not familiar with the term change management and as it relates to them, (23.1) percent of the respondents are not very familiar with the concept, while (73.1) percent of the respondents are very conversant with it. Question: Respondents Organizational Climate Table 4.10 Alternatives Frequencies Percentages Hostile 27 10.4 Normal 128 49.2 Tranquil 105 40.4 Total 260 100 Source: Field Survey 2014 lxxxiii The above tables portent that 10.4 percent of the respondents work under a hostile organizational climate, 49.2 percent are of the views that they work under a normal organizational climate, while 40.4 percent said they enjoys a tranquil organizational Climate Question: How do you perceive change in your Organization? Table 4.11 Alternatives Frequencies Percentages Rationale 143 55 Irrational 117 45 0 0 260 100 No opinion Total Source: Field Survey 2014. The above –table portrays that 55 percent of the percentages perceives that change is rational for the corporate existence of the organizations, while 45 percents of the respondents’ perception of change in their organizations is irrational. They see it as avenue for top executives to witch-hunt their perceived enemies. Zero percent have no opinion. lxxxiv Question: Are employees properly informed before change is implemented? Table 4.12 Alternatives Frequencies Yes 107 Percentages 41.2 No 153 58.8 Total 260 100 Source: Field Survey 2014. From the above tabulation, it can be deduce that 41.2 percent of the respondents are of the views that employees are communicated with intending change well in advance before implementation, while 58.8 percent of the respondents maintaining that change is not properly communicated well in advance to employees, before change is effected. Question; WHAT is often the reaction of employees, with regards to intending change? Table 4.13 Alternatives Frequencies Percentages Calm 108 41.4 Volatile 152 58.6 Total 260 100 Source: Field Survey 2014. lxxxv From the table shown above, 41.4 percent of the respondents embrace change with calmness, while 58.6 percent greet change with violence. Question; If employees resist change, what measure do your organizations employ to contain the situation? Table 4.14 Alternatives Frequencies Percentages Suspend implantation 65 25 Insist to implement it by threatening 195 75.0 0 0.0 260 100 sack action Close down the organization Total Source: Field Survey 2014. From this above table, it is shown that 25 percent of the respondents are of the views that, employees suspend implementation of change, where employees resist the planned change. 75 percent maintains that, employers still proceed to implementing change in spite of resistance from employees, with a threat to sacking any employees that resist it while no body supported close down of the organization as a result of resistance. lxxxvi 4.4 Data presentation for Research Questions Question: Change has significant Effect on Employee Productivity ;change labeled with incentives, the outcome is more productive Table 4.15 Question 15 Response Question 16 Frequency Percent Yes 220 84.6 2.30 88.46 No 25 9.6 30 11.54 None of the above 15 5.8 - - - - - - 260 100 260 100 All of the above Total Frequency Percent Source: Field Survey 2014. From the analysis of the respondents as indicated in the table above, change has significance effect on the employees productivity. Because 84.6 percent of the respondents agreed with the question by answering yes while 9.6 percent says No and another 5.8 percent answered none of the above. In question, respondents equally agreed that when change is labeled or attached with particular incentives, people tend to be more co-operative which in turn increases productivity. As about 88.46 percent of the respondents agreed by answering yes while only 11.54 percent answered No to the question. lxxxvii Question: Does your Organization encounter challenges in the Process of change Management? Therefore Training and Retraining is a basic requirement in the process of change. Table 4.16 Question 15 Response Frequency Question 16 Percent Frequency Percent Yes 235 90.38 222 85.39 No 18 6.92 20 7.69 None of the 7 2.70 18 6.92 260 100 260 100 above Total Source: Field Survey 2014. From the table above, the figure in question-depicts that organizations encounter challenges during change periods as about 90.38 percent of the respondents agreed with the question. While 6.92 percent says No and 2.70 percents did not respond to the question. Also in question as indicated in the table above 85.39 percent of respondents greed by answering yes to the fact that training and constant re-training is a fundamental requirement whenever change is introduced. Only 7.69 percent thinks otherwise as they answered No and 6.92 of the respondent gave no response. lxxxviii Question: 19 Change has no positive effect on organizational growth. Table 4.17 Alternatives Frequency Percent Yes 135 51.92 No 125 48.08 Total 260 100 Source: Field Survey 2014. The analysis above indicates a close to call, as only about 2 percent differentiate the two alternatives. 51.92 percent of the respondents agreed with the question while about 48.08 percent thinks otherwise. Question 20 and 21: Change Improved employee skills and Core competencies and change improve the firms return on investment. Table 4.18 Question 20 Question 21 Response Frequency Percent Frequency Percent Yes 168 65 97 30.3 No 78 30 150 57.7 None of the above 13 5 31 12 Total 260 100 260 100 Source: Field Survey 2014. From the analysis of the table above 65 percent of the respondents agreed that change actually improve their skills and competencies while 30 percent says No and a small proportion 13 people (about 5 percent) did not respond. lxxxix In question 21, 30 percent of the respondents mostly those in the private sector feels change improve on the firms return on investment while. 57.7 percent drawn mostly from the public sector thinks otherwise as they answered No. about 12 percent did not respond. 4.4 TEST OF HYPOTHESES One to four few hypotheses postulated in chapter one were tested with various test statistics by computer through the application of statistical package for social sciences (SPSS 15: 0 Version) of Microsoft environment with Pearson Chi-square statistics. HYPOTHESIS ONE H0: Changing does not have significant on employees productivity. H1: Change has significant effect on employee’s productivity. Pearson chi-square test as a non-parameter statistics deals with categorical variables of observed and expected frequencies. Therefore item-from table was used for the Chi-square analysis. Table 4.19: Cross tabulation Statistics on the Responses of Effect of change on Productivity Expected Frequency Table QUESTION YES No NONE OF THE ABOVE ALL OF THE TOTAL ABOVE 15 225 27.5 7.5 - 260 16 225 27.5 7.5 - 260 xc Table 4.20: Chi-square test Computed from the Frequency Table F0 Fe F0-fe (f0-fe)2 (fo-fe)2 fe 220 225 -5 25 0.111 230 225 5 25 0.111 25 27.5 -2.5 6.5 0.227 30 27.5 2.5 6.5 0.227 15 7.5 -7.5 56.25 7.5 0 7.5 7.5 56.25 7.5 0 0 0 0 0 =15.676 As demonstrated by the output of the computed chi-square values from the cross tabulation statistics table. The Pearson chi-square statistics value of 15.676 is greater than the chi-square table value of 7.81 with 2 degrees of freedom (d-f) at 0.05 alpha level. 4.6 DECISION RULE The decision rule is to accept the null hypothesis if the Chi-square computed is less than table value (critical value0 otherwise, the null hypothesis is rejected. xci DECISION Since the Chi-square computed x2c = 15.676 is greater than the Chisquare tabulated x2t = 7.81, reject null hypothesis. Therefore, we conclude that change has a significant positive effect on employees productivity. HYPOTHESIS TWO H0: Organizations does have enormous challenges in the process of change management H1: Organizations do not have enormous challenges in the process of change management. Pearson Chi-square test as a non-parametric statistics deals with categorical variables of observed and expected frequencies. Thus questionnaire item 17 and 18 as cross tabulated in table 4.17 Expected Frequency Table 4.21 QUESTION YES NO NO RESPONSE TOTAL 17 228.5 19 12.5 260 18 228.5 19 12.5 260 xcii HYPOTHESIS TESTING Tabl4.22: Chi-Square Test Computed from Frequency F0 Fe F0-fe (f0-fe)2 (fo-fe)2 fe 235 228.5 6.5 42.25 0.185 222 228.5 -6.5 42.25 0.185 18 19 -1 1 0.185 20 19 1 1 0.053 7 12.5 -5.5 30.25 2.420 18 12.5 5.5 30.25 2.420 =5.316 From the analysis of the computation as shown in the table 4. above the Pearson Chi-square computed value of 5.316 is less than the Chisquare critical value (x2t = 5.99) with 2 degrees of freedom (df) at 0.05 level of alpha. DECISION RULE The decision rule is to accept the null hypothesis if the Chi-square computed is less than table value (critical value) otherwise, the null hypothesis is rejected. xciii DECISION Since the Chi-square computed x2c = 5.316 less than the Chi-square tabulated x2t = 5.99, accept null hypothesis. Therefore, we conclude that organizations encountered various challenges when ever change is introduced. HYPOTHESIS THREE H0: Benefits of change does not accrue to both employees and employers. Hi: Benefits of change are accruing to both employers and employers. Expected Frequency Table 4.23 Question Yes No No Response Total 20 124 114 22 260 21 124 114 22 260 248 228 44 520 Chi-Square table computed from cross tabulation table 4.23 Table 4.24 F0 169 79 78 150 13 31 Fe F0-fe 124 124 114 114 22 22 45 -45 -36 36 -9 9 (f0-fe)2 2025 2025 1296 1296 81 81 (fo-fe)2 fe 16.33 16.33 11.37 11.37 3.68 3.68 =67.76 xciv As demonstrated by the output of the table above after computation, the Pearson Chi-square computed value of x2c = 67.76 is greater than the table value of x2t = 5.99 with 2 degrees of freedom (d.f) at 0.05 alpha level. DECISION RULE The decision rule is to accept the null hypothesis is the Chi-square computed is less than table value (critical value) otherwise, the null hypothesis is rejected. DECISION Since the Chi-square computed x2c = 67.76 is greater than the table or critical value of x2t = 5.99, reject null hypothesis. Therefore, we conclude that change is beneficial to both the employees and the employers. HYPOTHESIS FOUR H0: Change has significant effect on organization growth HI: Change does not have significant effect on organizational growth. Expected Frequency Table 4.25 QUESTION YES 19 130 NO TOTAL 130 260 xcv Chi- Square table computed from table 4. Table 4.26 Fo Fe Fo-fe (f0-fe)2 (fo-fe)2 fe 135 130 5 4.5 20.25 125 130 5 4.5 20.25 =40.50 Yates correction is necessary because n = 2 X2c = ∑ (f0- fe)- ½)2 = 40.50 130 = 0.312 As demonstrated above, Yates correction was applied because n = 2 which will give the computed Chi-square value as x22 = 0.312. it is significantly less than the tabulated or critical value of the Chi-square x2t = 3.84 with 1 degree of freedom (d.f) at 0.05 alpha level. 4.7 Discussion of Findings So far, this research has been able to carry out an empirical analysis on change management and its effect on employee’s performance in manufacturing industry to make the analysis measurable change management was captured by three variables. Namely psychological demand, decision latitude, and support at work. On the other hand, employee performance was proxied with psychological demand, flexibility and sense of identity. The variables were estimated with Chi-square. The result of the analysis shows that policy change has significant effect in xcvi employee’s performance. This entails that the performance of employees cannot be separated from the policy change. Hence, change management has a positive and negative effect on employees. xcvii REFERENCES Aaker A. D. Kumar V. and Day S.G. (1998) Marketing Research New York. John Weley and Sons, Inc Borden and Abbort (2008) Research Design and Methods: A process Apptoach, New York, McGraw Hill Churchil G. A (2001) Basic Marketing Research, Australia, South-Weston Thormpson Learning Cothari R. C. (2008) Research Methodology: Methods and Techniques, New Delhi, New Age International (P) Limited. Nzelibe and Ilogu (1996) Fundamentals of Research Methods, Enugu, Optimal International Ltd. Ugwuoma, G.E. (2005) Data Analysis and Interpretation (A computer Based Approach). Cheston Ltd Uwani. Enugu Yamane T. (1967) Statistics; An introductory Analysis, New York Harper and Row xcviii CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION 51 INTRODUCTION This chapter provides summary of findings, conclusion and recommendations based on the findings of the study. It also highlighted contributions to knowledge and suggestions for further study. 5.2 SUMMARY OF FINDINGS The summary of major findings is presented according to the four objectives of the study. From the analysis of research questions and hypotheses, the study found that(1) Change Management process introduces significant challenges in organization test of hypothesis are approved of this outcome as x2c = 15.676 > x2t = 7.81 (2) At the conclusion of the computation to test the hypothesis, the null was rejected and the alternative was accepted. This means there are benefits of change accruing to both the employers and employees. (3) From the findings after the computation of the statistical analysis it is clear(y shown that change has a significant effect on employee’s productivity. xcix c (4) It shows that the two organizations under-consideration does not encounter enormous challenges in the process of change management. 5.3 CONCLUSION After due consideration of some of the findings enumerated above; the researcher has come to the following conclusions: (1) The rejection of the null hypothesis which indicates that “there are benefits of change accruing to both employers and employees” Signifies that change is a permanent phenomenon in business circle. And for organizations to achieve effectiveness and improved performance which will be beneficial to both the employees and employers, it must embrace change. Change improves the employees’ job skills and core competencies which can deliver vast benefits to the employers by improving the system and satisfying customers’ needs. ci (2). The acceptance of the alternative hypothesis that change has significant effect on employee productivity concludes that change affects employee’s performance evaluation in all ramifications. Mostly, positive change leads to higher productivity which results to higher profitability index to the organization (3) The organizations under review does not encounter enormous challenges in the process of change management which signifies that, they are designed with an in-built flexibility, enabling adoption to take place regularly with relative ease. (4) The acceptance of the null hypothesis that change has significant effect on positive is an integral desired result and innovations, change in transformation as a organizations economically. Conclusively, employers should desist from carrying out change in organization for the purpose of weeding their perceived imaginary antagonists. The survival of the organization should be paramount, when initiating change. The management of change is a challenge to every organization for management, it is particularly important to develop positive attitudes towards change to support this by means of appropriate learning and action. However, change can create the feelings of loss of control and cii helplessness in the face of organizational decline. It is seen as an enemy and implies loss when people are not prepared for it, where they have nothing in reserve, when their current capital fund of assets and skills are rendered obsolete. It is imperative to note that imitative changes may not be bad per se. In highly competitive industries or in periods of fundamental changes, imitative change may be necessary. In an industry with recognized leader, changes imitated by one or more leaders may trigger off similar changes in the other organizations in the industry. Organization may be advised to be on the lookout for changes by the close competitors so that they too can take steps to make necessary changes in order to remain relevant and competitive. It is encouraged that respondents agree that management and staff should participate in the decision for planning and implementation of change. By their positions in the organizations as could be referred from their ages and length of services, since nearly ninety per cent of them have spent not too many years, their views may amount to no more than desires. It could indicate what they could do well at their own levels and they hope that they could carry those views on their way to the top of the organization. ciii 5.4 RECOMMENDATIONS Below are some of the recommendations on the findings of this study, on the change management and its effects on employee performance in an organization. 1. Change when administered in an organization brings about fundamental reactions which could be positive or negative. 2. For the organization to achieve its effectiveness, it should embrace change in the form of new inventions, adapt some appropriate strategies, control or be proactive to its environment and maintain improved technologies, maintain good number of positive workforce and resilient managers who are always proactive and well-motivated. 3. To address and easily inhabit resistance, all parties involve should maintain open lines of communication in other to create the flow of information and channel all parties in the right directions so as to achieve the desired objectives. 4. Foster consensus for the New Vision, competence to enact it, and cohesion to move it along. Once an organization has defined new roles and responsibilities, people need to develop the competencies to make the new set-up work. The existence of the teams with their new goals and accountabilities will force learning. The changes in roles, civ responsibilities, and relationships foster new skills and attitudes. Changed patterns of coordination will also increase employee participation, collaboration and information sharing. Management must also provide the right support by training for skills and replacing managers who cannot function in the new organization- after they have had a chance to prove themselves. 5. Spread revitalization to all departments without pushing it from the top. Each department should be allowed to “reinvent the wheel” this, to find its own way to the new organization by taking the general concepts of coordination and team work and applying them to this particular situation. cv BIBLIOGRAPHY Aaker A. D; Kumar V. and Day S. G. (1998) Marketing Research, New York, John Weley and Sons, Inc. Bedford Ariimiah Fubara Nigerian Business Review” vol. 2 No. 1 Jan. March, 1986 (page 30-33). Biodim Jolaoso “Management in Nigeria” (Nigerian Institute of Management) September to October 1991 vol. 27 No.5 (page 7-18) Borden and Abbort (2008) Research Design and Methods: A Process Approach, New York, McGraw Hill. C.C. Nwachukwu: ‘Management Theory of Practice” Churchil G. A (2001) Basic Marketing Research, Australia, South Weston Thormpson Learning. Cohen Fink Gaden Villidts — Effective “Behaviour in Organizations, (Smith Edition” 1995) (page 389-431). Cothari R. C. (2008) Research Methodology: Methods and Techniques, New Delhi, New Age International (p) Limited. Derreck and Sanders: “Management Dictionary”. Douglas A. Elues “Management in Nigeria” (Nigerian Institute of Management) vol. 16 No 1. G.A. Cole: “Management Theory of Practice” (5th Edition). Griffin “Third Edition Management” How to initiate, cope with and benefit form change at work Incent Nolan January 1980 (page 8-14) Nzelibe and Ilogu (1996) Fundamentals of Research Methods, Enugu, Optimal International Ltd. cvi Olufunke Akerele Adebayo Akerele, “Nigerian Management Review” vol. II No. 1-19 December 1999- May 2000 (page- 794-8D7) Rasabeth Moss Kanter, Barry A Stein, Todd D Jick. (1992), ‘The Challenge of Organizational Change”. Maxwell MacMflhian. HD 58.8 .C43 Roasbeth Moss Kanter, Simon and Schuster “The Change Masters” (inc 1983) HD45 Roberth Kreitner: “Fifth Edition Management” Houghton Miffhn Company HD31 K74 (M3) LDD/LD. Roger Plant Stella F. Sarr “Management in Nigeria” (Nigerian Institute of Management) October-December 1992. Ugwuoma, C . E. [2005] Data Analysis and Interpretation Vol. 19 No. 1981 Women in Management 3rd Edition vol. 28 No 4 (page 19-21) Yamane T. (1967) Statistics: An introductory Analysis, New York, Harper and Row. JOURNAL (A computer Based Approach]. Cheston Ltd Uwani. ENUGU. “Encyclopedia of Management” “Harvard Business Review” (1992) “International Studies of Management and Organization” Vol. 8 Nos: 1-4 (1978 - 1979) Page 3-37. cvii “Management Change and making it stick”, (1987) “Management in Nigeria” (January 1980). “Management in Nigeria” (July/September 1992). “Management in Nigeria” Jan-Dec. 1977. “Open o Change cviii APPENDIX Department of Management Faculty of Business Administration University of Nigeria, Enugu Campus August, 2014. Dear Sir, Madam, This questionnaire is designed to source for information in respect of the research topic (The Effect of Change on employee management in an organization). This exercise is simply based on academic ground, aimed at finding ways to effectively managing employees in the process of change in the various sectors of the economy. You are guaranteed high level of confidentiality, so kindly complete the attached questionnaires with all sincerity. Accept my thanks in advance for your kind cooperation. Sincerely yours, Ossai Augustine.c cix PART A PERSONAL DATA Please indicate your choice from among the available alternatives by ticking () your most appropriate answers. 1. Name of your organization …………………….. 2. sex (a) 3. Age (a) 4. Male [ ] (b) Female [ ] 18-25 [ ] (b) 26-30 [ ] (c) 31-35 [ ] (d) 36 and above [ ] Marital Status (a) Single [ ] (b) Married [ ] (c) Divorced [ ] (d) widow [ ] 5. Academic Qualification (a) Secondary [ ] (b) Trade Test [ ] (c) Diploma NCE [ ] Masters and Above [ ] 6. Sector Employed With (a) Private Sector [ ] (b) Public Sector [ ] 7. Employee Status in the organization (a) Junior Staff [ ] (b) Senior [ ] (c) Top Management [ ] 8. Number of years you have worked (a) Below 10 years [ ] (b) 11-20 years [ ] (c) 21-30 years [ ] (d) Above 31 years [ ] (d) cx PART B NONE PERSONAL DATA 9. Your perception of your organizational climate (a) Hostile [ ] (b) Normal [ ] (c) Tranquil [ ] 10. Change is inevitable or unavoidable for the survival of the organization (a) True [ ] (b) False [ ] 11. How do you perceived change in your organization (a) Rational [ ] (b) Irrational [ ] (c) No opinion [ ] 12. Are employees properly informed before change is implemented? (a) Yes [ ] (b) No [ ] 13. Does change have significant effect on employee’s productivity? (a) Yes [ ] (b) No [ ] 14. How are you family with the term change management as it relates to you as an employee? a.Yes [ ] b. Somehow [ ] 15. How do you perceive change in your organization? Rationale [ ] 16. No [ ] Irrational [ ] No opinion [ ] If employees resist change, what measure do your organization employ to contain the situation? a. Suspend implementation [ ] b. Insist to implement it by threatening sack action [ ] cxi c. Close down the organization [ ] 17. Change has no positive effect on organization’s growth (a) Yes [ ] (b) No [ ] 18. Change improve employee’s skills and core competencies (a) Yes [ ] (b) No [ ] (c) No Response [ ] 19. Change improves the firms return on investment (a) Yes [ ] (b) No [ ] (c) No response [ ] cxii cxiii
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