THE EFFECT OF ORGANIZATIONAL CHANGE ON EMPLOYEES’PERFORMANCE: THE CASE OF DASHEN BANK S.C, ETHIOPIA

Abstract

The purpose of this research was to investigate the effects of organizational change on Employees performance in the case of Dashen Bank S.C. In the Implementing of these internal practices the bank faced a problem of formal communication before organizational change conducted; slightly unfair organizational structure; and limitation in participating employee in decision making. Data was gathered from Head Office at Addis Ababa city. The research used quantitative research approach using descriptive and explanatory research method and the researcher had used sample size determination table and non-probability purposive sampling method was employed to select the sample from each stratum to make the sample more representative of the population. Descriptive (frequency, mean) and inferential statistics (correlation and regression analysis) were used to analyze the empirical data. Primary data were collected using five Point Likert-Scale questionnaires 144 responses were properly filled and returned. SPSS was used to analyze empirical data collected through the close ended questionnaire. The correlation result indicated that there was positive relationship between all of independent variables and the dependent variable except organizational structure which have negative relationship and accept all the hypotheses. This implies that any increase or decrease on the independent variable will bring corresponding change on employees’ performance. And it’s found that the independent variables have a 69.5% influence on the dependent variable. Hence, the Dashen Bank S.C should periodically have to review its practice on organizational change in order to improve the limitation happened on the independent variables (organizational structure, organizational culture, technological change and organizational leadership) and to identify its effectiveness on employees’ performance.