Chapter I

Introduction
1.1: Introduction
Organizations today realize that if they have to survive and grow, they have to bring in
relevant changes within different change levers like technology, marketing, quality, cost,
strategy, structure, managing people and leadership. These changes have to be managed
effectively. It is seen that when change process is not managed properly people resist change
and organizations have to pay heavy price. It is important to examine how IT companies are
managing change initiatives in all these eight levers. For managers, the major issue in
organizations is to deal with reasons and factors that initiate organizational change, processes
characterizing change initiatives and the steps taken to manage these change initiatives with
in every change lever. Sparse literature is available in assessing the outcome of change in IT
companies of India. An in- depth study is needed to understand the manner in which change
initiatives are taken within all the change levers and how these changes were managed within
the organizations. It is also important to examine the organizational commitment of IT
employees in organizations (Raukko, 2009). In the present study an effort is made to
understand relationship between employees perceptions regarding how organizational
changes are managed within every change lever and organizational commitment. The study
will help the policy makers of organization to understand the management of change within
the change levers and to take effective change initiatives for bringing changes in the change
lever for better results and commitment. Objectives of this research are as the following:
To study the organization commitment of employees in the IT companies under
study. the employees perception to cultivate these negative behaviours or perceptions.
To explore the relationship between manner in which change initiatives were taken in the
change levers and the organization commitment in IT companies under study.
To study the contribution of the change levers in the IT companies under study
1.2: Objectives of the Study
The study pursued the following objectives:-
i) To determine the effects of employees attitudes as part of organization culture on
change management
ii) To establish the effects between Organization beliefs/ values as part of
organization culture on Change
iii) Management
iv) To find out the effects of oganization norms on Change Management
v) To investigate how support by top management of the organization culture affect
Change Management
1.3 Importance & Significance of the Study
This study is used to examine the impact of organization change toward employees
performance in the bank industry. The organization change can be in term of acquisition,
strategic alliance, merge and joint venture.

There are four stages of the change which are recognizing the problems, planning to change,
carrying out the change and maintaining the change (Erwin, 2009). Before carrying on any
changes in the organization, this is essentially to plan the changes first. Thus, the finding of
this study is important to provide a guideline for the local bankers to plan for any changes of
management with the purpose of enhancing the management style.

When organization changes occur, diverse employees will respond in their own way. The
employees usually will feel tension due to the increased of workload and they are possibility
to feel job insecurity. Thus, it will affect their performance and the organizations goal (Yu,
2009). This is important to conduct this research to help the local banker to gain a better
understanding on

Furthermore, this research is not essentially to be implementing in the bank industry, but it
can be applied in other industries as well. This is because the performance of the employees
is one of the most main issues in every organization. Hence, this is necessary for the
organization to examine the factors that caused the employees performance once the
organization change.

1.4 Scope of research

This study provides a review of organizational change towards employees performance

in banking industry. The objectives of this research are examined how the independent
variables are affecting by the dependent variable in banking industry.

This report attempts to present a snapshot of organizational change and what are the
effecting reasons towards the employees performance in banking industry. The scope of
this research is broad and attempts to address all issues involved in the employees
performance. Therefore, this research is just focusing on those most influential factors,
such as communication, employee development, leadership style, procedural justice and
tolerance to change towards employees performance in banking industries.

The locations for this survey will be conduct in globalsoft office and nearest college. The
development of the places brings business opportunities and improvement. There are
several reasons for choosing these few areas which will be explained in further chapters.
1.5: Hypothesis
The tested hypothesis included:-
H01: Employees attitudes as part of organization culture has no significant effect
on change management
H02: Organization beliefs/ values as part of organization culture has no significant
effect on Change Management
H03: Organization Norms has no significant effect on Change Management
H04: Support by top management of the organization Culture has no significant
effect on Change Management.

1.6 Limitation
There are, however, some disadvantages to the change management
methodology that has more to do with not properly following its processes. If resistance from
employees is not effectively dealt with through communication, it can derail any project.Not
understanding the culture of your company can allow the rumor mill leaders to circulate
incorrect or corrupting information about the change. Also, stakeholders and customers need
to be kept informed and brought in on the change. If not, they make also resist the change,
and clients may choose to go through another company. A bad change management plan can
also negatively affect an organization. Change management is just that managing change.
And, without a plan to deal with every step of the change (before, during and after), the
strategy could fail at any point in time, possibly bringing down the entire company.While
change can be risky, the benefits far outweigh the potential pitfalls. Change allows
organizations to progress and stay on top of their industry in an uncertain market.

1.7 Conclusion

As an overall of this chapter, the study contributes a preliminary understanding of how a

research is established to meet the research objectives and to figure out the problem from
the research background. Chapter 1 comprise the developed of research objectives as well
as research questions for this study. Hence, it can serve as a guideline to develop literature
review with the relevant theories. In next chapter, literature review provides a better
insight in development of hypotheses for the study.
 Chapter- II:
Company Profile
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 Chapter- III:
Review of Literature
3.1 Introduction:

The organization has undergone an immense, an intensive and a strenuous change process
through the course of the year which has created a climate of uncertainty amongst staff. The
changes are related to, but not limited to the need for the business to improve efficiencies on
site. Changes in the global market have resulted in various GSK sites across the globe being
impacted by site closures and staff cutbacks.

Every organization has a culture. The only question is, do you shape it or does it shape
you? Leading the culture of the organization is as important as leading the strategy and
structure. While sometimes overlooked as the "soft stuff," it directly impacts business results
and is one of the most important things top leaders have to do. At best, our culture can be a
competitive advantage, at worst it can be a significant drag on business results.

Above all, a mind shift on the part of GSK as a whole will be needed. Everybody knows we
have the opportunity, but the mentality has to change. The attitude of everyone in the GSK
value chain needs to change so that barriers are seen as opportunities.

3.2 Defining the concept change

Change includes growth, innovation, redundancy, relocation and diversification.

The business faces change all the time, driven by internal or external influences.

For change to be effective, deploy the SMART methodology specific, measurable, agreed,
realistic and time limited. Keep it simple.

Whatever the area of change, you will need the co operation of your employees.

Resistance from employees is the biggest stumbling block to successful change.

A thorough, ongoing communication process is required where the reasons and benefits are
communicated to eliminate uncertainties and perceptions.

Humans are creatures of habit and are generally content with stability and certainty. We set
our own limitations with respect to growth and change. Resistance to change comes from
fear, usually fear of the unknown, or more accurately fear of the imagined.

It is a fundamental floor for the business to ignore this and not to assess the readiness for
change within the organization. Failure to effectively communicate and address the issues and
concerns of staff result in immediate resistance to the change process. The business will
suffer the consequences thereof.
Change in organizations is really the norm today. The world demands it and organizations
adapt to it as a level of improvement for global competition and increased productivity. We
need more accountability, openness to change, teamwork and to develop high performance
behaviours.

3.3 Creating a Culture of Change:

Culture is the personality of the organization and can be defined as the core beliefs,
traditions, shared feelings and values. The culture not only shapes managers and employees
behaviour, but also determines the manner in which people interpret and respond to any
given organizational situation. Values are important building blocks of culture and are deep-
seated and enduring. They motivate behaviour and emotional responses.

They underpin the very way people approach their work, make choices and decisions, and
deal with each other. The leadership of an organization is responsible for the creation and
management of its culture and should aim to achieve alignment between managers and
employees individual values and the organizational values.

Setting an organizational culture allows managers and employees to understand and respect
diversity and individual differences.

The ambitions and visions for the GST culture is to build a culture in which people value
development and the creation of an environment of empowerment and engagement at all
levels, whereby a positive team spirit of collaboration, innovation and continuous
improvement is fostered.

Culture shaping in the organization:

The relationship between culture and change:

Healthy State of Mind /

A Healthy Culture
Higher Mood State

Gratitude
Teamwork
Appreciation
Openness to Change
Curiosity
Personal Accountability
Insight Creativity
Mutual Respect
Optimism Hopefulness
Openness & Trust
Sense of Humor
Caring About Customers

Innovation
Organisations have definable cultures which influence success or failure of strategies and
new business initiatives.

Culture change is a leader led process

The shadow of the leader

Transformational change occurs at the heart and head level

Behaviours that need to change

The culture shaping methodology creates a healthy, high performance culture which aims to
produce sustainable business results and achieve commitment to change.

The GST Culture:

The positive aspects of our culture are that personal accountability and integrity are
high as individuals are clear on what has to be done.
Individuals have a can do attitude and a strong sense of urgency in carrying out
tasks.
The less positive aspects are that the commitment and contribution of employees are
not recognized.
There is less of an emphasis on involving and engaging people at all levels.
Innovation and continuous improvement are not yet embedded as a way of working.
Building a leadership culture is a reflection of the shadow of the leader.

Leadership has to involve other people. It has to involve motivating them to achieve their
vision. Now, to do that requires a special state of mind. If you are really going to achieve
something great, you have to be ready to be wrong, because leading, when it tends to be
useful, involves risks. You are not always right and cant worry about that. And looking good
is a time related issue. As we have shorter time to do things, looking good versus really
achieving vision may be contradictory.

Leaders that are aware of the power of culture realize that when new initiatives are being
introduced, the strength and style of their culture can actually support the change efforts or
work against them as a significant barrier. Hence the culture halts the forward progress of the
initiative. The same initiative in another culture gets implemented quite easily.

The power of culture shaping in the organization is to support new initiatives and changes.

Since culture can significantly determine the success of a given initiative, it is important for
those in leadership positions to understand the culture they have, its strength and style, and
its potential to either support or block an upcoming change initiative.
Effective leaders shape the culture of their organizations through their actions, attitudes and
the shadow they cast influences everyone around them.

Leaders must behave the way they wish their followers would behave.

The shadow they cast is very powerful within the business world and has a great influence on
those around them. The leader of a group casts a shadow that influences the group culture.
The shadow may be weak or powerful but it always exists.

A healthy culture also cultivates leaders that lead by example and not words.

So leaders have to lead by example and be aware of the impact they create.

3.4 Factors that cause change:

Whenever the business environment changes significantly, through for example; increased
competition, technological breakthroughs or an economic downturn, the organization will
have to respond accordingly in order to survive. Companies often respond to industry or
environmental changes with a new competitive strategy along with an appropriate
reorganization.

New strategies need to be developed and implemented to meet increased competition and
changes in the market. The challenge of change is to shift the culture into alignment with the
new strategy.

Whenever an organization faces changes in its business environment, survival and prosperity
depend on its ability to quickly change direction. Generally this involves a shift in strategy
followed by changes in organizational structure.

As new strategies are developed and new structures put into place, many employees resist the
new change and are reluctant to embrace it. These cultural habits and methods of working
and managing are often at odds with the new strategy and organizational structure. While the
goals have shifted, the old ways of working and doing business still exist. As a result, conflict
and tension arise, aggressive behaviour , frustration and lowered morale prevent the
organization moving toward its goals, which could lead to new strategies and initiatives being
ignored or sabotaged and will generally result in failure.

A need for innovation is clear, but the culture of the organization is resistant and reluctant.
Change in response to competition is imperative, but the culture within the organization
resists it. Although a strategy is developed to provide integrated solutions to the business, the
culture hinders the progress of it. In an organization that is out of alignment, more and more
effort is required to make things work as the organization struggles to meet the challenges of
today with the attitudes of yesterday.

Winning Teams Winning Cultures, Larry Senn, Jim Hart

Reorganization or restructure in any organization creates thoughts of doubt and uncertainty.

The possibilities of redundancy and retrenchment are increased drastically and the fears of
being in a jobless situation are rife amongst employees. If change is not communicated
clearly to all, customers, suppliers and employees who are affected, resentment will grow if
people are excluded.

Cost is a huge factor which drives change and offers the biggest potential benefits. The cost
of not changing can result in the loss of sales and customers and eventually laying off
employees. As the business aims to boost and increase profit and sales, there is a greater need
to improve efficiencies. Improvement initiatives result in new ways of working.

In order for the business to operate more efficiently, the Lean and Six Sigma approach and
methodologies have become more prominent. Operational Excellence (OE) has become
globally recognized and is used as an improvement initiative to increase outputs and
efficiencies. Operational Excellence is also a cost saving initiative for the business, but can be
viewed as a technique to replace employees, with positions becoming redundant with the
leaner way of operating in the business.

Change is one of the most pressing challenges the world faces and GSK wants to be part of
the solution and has launched the OE programme across the site to support global changes.
Operational Excellence helps to cut costs and improve efficiencies which allows it to remain
competitive and the leader in the industry.

Through the implementation of the lean methodologies, the overall performance of its
manufacturing processes are optimized to meet the increasing customer demand. Lean and
Six Sigma are complementary principles, and if applied correctly bring about long - term cost
saving initiatives in the business. Its competitiveness is enhanced through the successful use
of Operational excellence principles. Operational Excellence is a process driven, strategic
business approach to improving manufacturing operations which allows the business to
respond to the ever changing demands of the industry and the global market. Six Sigma in
place and in use provides a better product or service, faster and at a lower cost than the
competition.

Continuous innovation is a critical success factor for the business to grow. Change is the price
of survival. Continuous renewal of organizations is a prerequisite for the business to survive.

3.5 The change process:

Planning for change: A Diagrammatic representation

 3.6
Organizational Change
Change is inevitable for any vibrant and successful organization. The terms change
is used to refer to a system of discrete episodic changes that happen in one or more
organizational domains like people, structure, and technology (Romanelli & Tushman, 1994).
Organizational change is defined as the adoption of a new idea or behavior by an
organization (Daft, 2005). It can also be defined as the process of continually
renewing the organizations direction, structure and capabilities to serve the ever -
changing needs of internal and external customers (Mora & Brightman, 2001). These types
of changes occurring in the organization have a tendency to be formal, planned, and
goal directed in nature. The change in organizations is triggered by internal and external
factors of all shapes, forms and sizes (Balogun & Hope Hailey, 2004; Burnes, 1996 ; Carnall,
2003). The external pressures triggering the change include government laws and
regulations, production and process, market place, labor markets technology, political
and social events and also the internationalization of business (Pfeffer, 1994). The
internal factors which are present and generate change from within the organization
include internal business policies, employment policies, administrative processes and people
problems (Lunenburg, 2010). Organizations of today have to focus on actively
managing the processes and outcomes associated with the change (Pettigrew,
Woodman, & Cameron, 2001). Chapman (2002) stated in his study that there is a
framework for planning change processes which are transformational in nature. This
framework is structured around three core issues in
organizational change management - the nature of organizations and what constitute
an improvement to them, appropriate strategies for levering change and change agent
roles. Yetton & Craig (1994) opined that individual mastery, organizational learning
and management of risk are critical components of strategic change in which IT
becomes an integral part of firms core business processes. According to Smith (2002) in
organizations, the rate of failure varies by the type of change, which stays relatively high with
a large scale change.
People generally resist change in an organization when they feel real or perceived
loss of power, prestige, pay or company benefits. These resistances to change, which may be
logical or illogical, become the major obstacle to successful organizational change
(Schlesinger, 1979). Employees also resist change when they do not understand the
intended purpose of change and how change will affect them in future. Previous
negative relationship with the champion or change agent also enhances resistance to
change. Resistance is faced in situations when people feel that they would not be able
to meet the demand of the new product or technology (Apscar, 1985) during the
change process. Another reason for resistance to change is when people affected by
innovation, may assess the situation differently from an idea champion or new venture
group. These reasons for resistance to change will be legitimate in the eyes of
employees who shall be affected by change in the organizations. Managers of these
organizations should not ignore resistance to change but should diagnose the reasons
and design strategies to gain acceptance by users (Deschamps,
1985).
3.7 Organizational Change Levers
According to Nilakant & Ramnarayan (2003), there are various organizational characteristics
or features important for a change process to happen in an organization defined as
Organizational Change Levers (Porras & Hoffer, 1996). The change levers answer the most
important aspect of organizational i.e. What to Change?. Structure, strategy and
HRM practices are known as the contextual areas or the context for change (Burnes, 2004;
Rieley & Clarkson, 2001). In order to bring change in an organization, the managers
should pay attention on four primary/content areas - Technology, Marketing, Quality
and Cost. Any changes in these four content areas will be accomplished by change in the
contextual areas of change. The change encountered in these contextual areas leads to long-
term and permanent change in the organization. The Leadership change lever is the
foundation on which change is built (Trice & Beyer, 1991). It is also known as the primary
driver of change. These together constitute the eight levers crucial for a change process
- Technology, Marketing, Quality, Cost, Strategy, Structure, Managing People and
Leadership. The levers are interrelated dimensions of organizational change.

Olson (1992) studied structure as an organizational change lever and focused his main study
on successful, small rapidly growing firms and on people who manage or help these
small firms. The reasons for structural change were the rapid growth that often extend
existing organizational structure and threaten its very existence. Also, an in-depth
understanding of organizational change levers - structure, strategy, marketing and
managing people is important to encourage an effective change process (Burnes,1996) .The
study by Wan (2005) highlights the technology-change lever as the most important and
frequently adopted channel in the industry. Michalak (2010) in his theoretical study,
comments that internationalization and globalization result in accelerating technological
changes leading to scarcity of resources and circumstances of global financial crisis. All
of these help to shape the business environment, increase competitive rivalry among
companies and trigger desire for change. Waldersee & Eagelson (2002) worked on
Managing People as an organizational change lever and concluded that implementing
change has always been a long and problematic process. Rastogi and Rastogi (2011) in
their study emphasized that Human Resource has an
important role in change management. Leadership is also an important change lever
where the top leadership support is essential during the change process (Trice &
Beyer, 1991;
Taylor-Bianco & Schermerhorn, 2006). With the help of leadership support (teams,
departments etc), change initiatives can be successfully implemented through out the
organization (Kotter & Heskett, 1992). The following hypotheses have been formulated
H1- All the levers are contributing equally in the IT organizations under study
H1a: Technology change lever is contributing the most in the eight organizational
change levers in IT organizations understudy.
H1b: Marketing change lever is contributing the most in the eight organizational
change levers in IT organizations understudy.
H1c: Quality change lever is contributing the most in the eight organizational change levers
in IT organizations understudy.
H1d: Cost change lever is contributing the most in the eight organizational change levers in
IT organizations understudy.
H1e: Strategy change lever is contributing the most in the eight organizational change levers
in IT organizations understudy.
H1f: Structure change lever is contributing the most in the eight organizational change levers
in IT organizations understudy.
H1g: Managing People change lever is contributing the most in the eight
organizational change levers in IT organizations understudy.
H1h: Leadership change lever is contributing the most in the eight organizational
change levers in IT organizations understudy.

3.8 Organizational Commitment

Organizational commitment is the employees psychological attachment to the organization.
It can be defined as an employees feeling about his job, organizational identification
and degree to which he experiences a sense of oneness within his organization.
(OReilly & Chatman, 1986). Organizational Commitment is a psychological state
which binds the individual to the organization (Meyer & Allen, 1990). Noble &
Mokwa (1999) defined organizational commitment as the extent to which a person
identifies himself and works toward organization-related goals and values. Shirbagi
(2007) concluded that there is a significant and positive relationship between three
components of organization commitment - affective, normative and continuance and three
out of four frames of leadership- structural, political and symbolic.
Organizational commitment has two different connotations. The first explains the
efforts involved in the nature of commitment, which helps define the relationship
between an individual and various objects. The second nature of commitment attempts
to make a distinction among the objects to which an individual becomes committed
(Meyer & Allen, 1997).
The three-component model of commitment by Meyer and Allens (1990) states that there are
three "mind sets" which can characterize an employees commitment towards his
organization. The Affective Commitment is defined as the employees positive
emotional attachment to the organization. An employee who is affectively committed
strongly identifies himself/herself with the goals of the organization and desires to
remain as part of the organization. This employee commits to the organization because
he/she "wants to". Continuance Commitment is defined as the individual
commitment to the organization because he/she perceives high incurring costs of losing
organizational membership including economic costs (such as pension accruals) and social
costs (friendship ties with co-workers).
The employee remains a member of the organization because he/she "has to".
Normative Commitment is the individuals commitment to be with an organization
because he feels obligated towards the organization he is working for (Aaron, 1999).
The commitment of employees towards the organization is influenced by factors like
rewards, relationship with superiors and co-workers, conflicts, efficiency and so on.
There are a number of organizational factors, i.e. wages and salary, nature of work, working
environment conditions, job satisfaction, job content and opportunities for rewards and
promotion that determine employee commitment (Bashir & Ramay, 2008). Employee
commitment can be increased by organising and managing these organizational factors.
The commitment to change among the employees is very important in an organization
because it enforces him/her to a course of action deemed necessary for the successful
implementation of a change initiative. This commitment to change helps the employee
to support and make use of change effectively (Herscovitch & Meyer, 2002).
A lot of research has been done on the employees commitment for their respective
organizations; but as the employee-employer relationship evolves, researchers have begun to
consider that employees can be committed to other things such as change efforts, leaders, or
organizational units (Meyer & Herscovitch, 2001). The organizational change initatives
undertaken also affect the commitment of employees in times of change like mergers
and acquistions etc (Fedor, Caldwell, & Herold, 2006; Vakola & Nikolaou, 2005; Chen, Hou,
& Fan, 2009; Nijhof, Jong, & Beukhof, 1998). The organizational change leads to a
decrement of employee commitment which is caused due to factors like job insecurity, low
morale, trust and increased stress. The acceptance of organizational change increases
with organizational commitment and acts as a determinant or mediator in the change
process (Iverson, 1996).
Therefore, the employees should be allowed to participate early in change program to
increase organization commitment (Mowday, 1996). The managers should lay emphasis
on applying adequate human resource management practices in order to manage
organizational commitment (Dordevic, 2004; Wright M. & Kehoe R.,2007)
3.9 Relations between Organizational Change and Organizational Commitment
Stuart, (1996) and Lamsa & Savolainem (2000) in their research emphasized that
organizational change can have negative consequences on the employees such as low morale,
stress, loss of direction, anxiety, lack of loyalty and commitment. The employees with higher
commitment have positive outcome like increase in job satisfaction level, motivation
and regularity in work (Benette & Durkin, 2000). If the employees lack commitment it will
lead
to increase in absenteeism and affecting labor turnover. The committed employees will hence
ease stress during organizational change process and will understand and cope with change so
as to make it successful (Robbin & Langton, 2001). The committed employees further help in
the improvement of quality and client centeredness, improvement of organizational
communication and a larger willingness to accept change (Wim J. & Gijs, 1998).The
managers in the organizations should create relationship, commitment, trust and satisfaction
among employees to make change initiatives successful (Parish, Wallander, & Bush, 2008).
The leadership behavior present in an organization is also significantly associated with
the commitment of employees (Lee, 2005). The previous studies suggest that the way
change initiatives are managed and perceived during change impacts the commitment of
employees involved in it (Caldwell, Herold, & Fedor, 2004; C & C., 2000; Judge,
Thoresen, Pucik & Welbourne, 1999; Vakola & Nikalaou, 2005).
The following hypotheses are formulated on the basis of previous studies
H2: There is an association between change initiatives within all the change levers
and Organizational commitment.
H2a: There is an association between change initiatives within all the change levers
and Affective Organizational commitment.
H2b: There is an association between change initiatives within all the change levers
and Normative Organizational commitment.
H2c: There is an association between change initiatives within all the change levers
and Continuance Organizational commitment.
Theoretical Framework
The change levers constitute technology, marketing, quality, cost, strategy, structure,
managing people and leadership. The employees perception as per the level of
managerial hierarchy was studied with regard to pressures leading to change initiatives,
reasons for resistance and steps taken to remove resistance towards change initiatives taken
with-in the eight change levers with-in IT organizations under study and its
association with organizational commitment.

3.10 Structuration Theory of Organization Culture

This theory was proposed by Giddens (1984) as discussed by Indeje and Zheng (2010). This
theory emphasise that organization culture is a process that involves mutual interaction
between the structural features of the organization and human actors. Human behaviors in
an organization heavily depend on existing social structures embeded in an institutions
culture which is being altered by the change process. This theory stresses that employees are
concerned with norms, beliefs, dialectical production and reproduction structures and
meanings attached by employee from such structures. This theory emphasises on the
need to reconceptualise organizational culture as it provides the medium of human activities
and output of such actions.

3.11 Discourse Based Theory of Change Management

There are several theories that have been proposed to explain change management in
an organization. These theories include phases of change, discourse and three step theories.
Phases of Change Theory stressses on role

and responsibility of the change agents than the change itself. Three step theory as argued by
Kurt Lewim (1958) on the other hand views behavior as a ynamic balance between opposite
forces.

According to Ford (2008), Discourse Based Theory change within an organization operates
at different levels.

These levels include intrapsychic, meso, macro, and meta. The intrapsychic level consists of
internalised stories and myths, pattern of communication and language used in an
organization. Meso level loooks at interpersonal attributes of employees in a firm, Mumby,
(2004). Macro level rotates around powerful thinkers or leaders within an organization
whereas Meta level recognises the broader societal level, Kamugisha Samwel (2013).

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special needs.

The mission of the institute is to provide and promote practical skills to person with special
needs so as to meets challenge of a dynamic society through training. The institutes values
include but not limited to Courtesy i.e. we endeavor to serve all our clients with
maximum courtesy and respect at all time; Integrity i.e. we are committed to work in
an open and honest manner in all our undertaking. Accountability i.e. we Are committed to
work in an accountable and transparent manner in all our undertaking; Human dignity i.e. we
are committed to show respect to all people in order to promote human dignity at all levels;
Team work i.e. we are strongly believe in working as a team for the success of institution and
Efficiency i.e. we strive to achieve efficiency in all levels.

The institutes primary customers are the Students, Parents/Guardians, members of staff and
Farmers/Employers where their students are attached. Secondary customers include but
not limited to Suppliers, contractors, Government agencies, development partners/ donors,
sponsors, civil societies, members of professional bodies, citizens/members of the
community, contractors, learning institutions and corporate bodies.

3.12 Types of Organization Culture and their Effects on Leadership and Change
Management

Several scholars have proposed several approaches to classify organization culture.

According to Muthoni (2013), organization culture can be viewed in terms of
adaptability, beuaracratic, mission and entrepreneurial. The researcher argues that
adaptability culture is flexible in approach to the change process in meeting the demands of
the external environment. Beauracratic culture is centered around the rituals performed
by leaders in the organization that leads to sustainable transformation process, Bruce
(2007). Mission culture stresses that the presence of visionary leaders in an
organization plays a pivotal role in the change process as they provide direction and
stamina to the change process, Hughes (2005). Entrepreneurial culture is centered
around a personality that controls the pace of work and motivation in an organization,
Salama (2011).

According to Fakhar et al (2012) organization culture can be viewed in four main

dimensions. These include counter, sub and strong culture. Ker and Slocum (2005)
stress that counter culture directly contradicts the conventional norms and shared beliefs
within an institution. According to Lok, subculture results from the geographical space
between different departments within an institution that affects employee commitment to
work. Weak cultures are viewed as loosely knit cultures that are normally imposed by
autocratic leaders whilst strong cultures occur when most employees share certain
beliefs and commonalities. The most widely accepted classification of culture was done by
Schein (2009) who categorized culture in layers.

The external layer was called material layer, middle layer was known as system layer and the
internal layer was referred to as the spiritual layer.

3.13 Conceptual Framework

Based on the discussed background of the study, problem of the statement and
literature review the study adopted the conceptual framework below:-
Fig. 1: Conceptual Framework Linking Organization Culture and Change Management
 Chapter-IV:
Research Methodology
4.1: Research Design
This study used descriptive survey research design. Descriptive survey design was
used because it allows for systematic collection and analysis of data in order to test
hypothesis Mugenda and Mugenda (2003). Descriptive surveys are normally intended to
describe the characteristics of particular individuals or a group and report things as they
are and to provide numerical data of some parts of the population, Orodho, (2008) and
Cooper and Schindler (2006).

4.2: Location of Study

The study was located at the Globalsoft Traning Center The Centre has 17 Teachers
employed by Teachers Service Commission and 23 Auxiliary Staff Employed by the
Board of Management.

4.2:1: Study Population

The study targeted key respondents that included the teaching staff, auxiliary staff, Board of
governors members, customers, development partners and stakeholders. The teaching
and non teaching staff of the institute were included because their collective behavior
while discharging their duties defines the organization culture. They are also the agents of
change in the organization. Boards of Management were included because they constitute the
top management that must support the envisaged change process and organizational
culture. Customers, development partners and other stakeholders were included because they
are the recipient of the transformation or the change process in the organization that may alter
the quality and efficiency of delivery of services at the institute.

4.2.2: Sample size and Sampling Techniques

Simple random sampling was used to select 16 teaching, 22 non teaching, 6 board of
management members, 80 customers, 4 development partners and 60 other stakeholder
giving a total sample size of 188 participants. Please note that development partners in this
research were donors while other stakeholders included parents of trainees, Ministry of
Education Officers, staff from other government agencies and County Government, members
of the community and opinion leaders. Simple Random sampling was used because it ensures
inclusion, in the sample, of subgroup, which otherwise would have been omitted by other
sampling techniques especially the marginalized population

4.4: Data Collection Instruments

The study employed interview schedule and structured questionnaire to collect data.
Interview schedule was used because it allows data to be collected even from those who are
not literate. It is also reliable, gives in depth information, systematic, comprehensive and
data collected is quantifiable. It allows the researcher to obtain information that cannot
be directly observed and gain control over the line of questioning, Kothari (2008).
The questionnaire was adopted because it allows the researcher to collect data even from
participants who are far away and data collected is easy to analyze. According to
Mugenda and Mugenda (2003), questionnaires is cost effective, free from the bias of the
researcher, give respondents adequate time to give well thought out answers and the distant
respondents can be reached by posting the questionnaires.
The questionnaire and the structured interview contained a five point Likert Scale with
statements on organizational culture and change management where the respondents were
requested to rate the level of their agreement or disagreement.

4.6. Validity and Reliability

Validity is the accuracy and meanings of inferences which are based on the research results.
The validity of the instrument means the degree to which the instruments are used to measure
what they are intended to measure, Orodho (2008). Validity therefore deals with the content
of the test and the purpose it was designed for. Validity was ascertained by developing the
questions based on the respective objectives. Further validity was verified through
piloting. Meeting the criteria of validity is seen as a key test of any piece of research. It is
meant to ensure that the findings to be produced would be an accurate prediction,
theorization or explanation of the phenomenon studied. There are several types of validity
procedure which helps in assessing the intention of the tests. These include content, construct,
and criterion-related validity.
Content-related validity refers to the relevance of the instrument or measurement
strategy to the construct being measured, Mugenda and Mugenda, (2003). This was
achieved by researcher developing a complete domain of non financial incentives and
performance indicators concepts. Criterion validity is determined by the relationship
between a measure and performance on an outside criterion or measure. Concurrent
criterion validity refers to the relationship between measures taken at the same time.
Predictive criterion validity refers to the relationship between measures that are taken at
different times. This was assessed during piloting of the tools. While construct vanity was
assessed by use of different tools to collect similar data
from the sample and by computing the results.
Agreement on the meaning of the constructs requires review of literature and consultation
with specific area experts. According to Kothari (2008) experts should help determine
validity of research instruments before they are used. The experts here include
researchers in the department. Validity was determined from the agreement between the
two experts. The expert assessment procedure was repeated until a validity index of
between 0.7- 0.85 is attained. The research instruments must be valid if the research is to be
authentic.
Reliability is a measure of the degree to which a research instrument yields consistent
results or data after repeated trials Mugenda and Mugenda (2003). In this study reliability
was ensured through a test-retest where the researcher administered a questionnaire to a
sample of 18 respondents selected and the results were computed with a cronbach alpha
value of 0.710 attained.
 Chapter-V:
Data Analysis &
Interpretation
In this chapter, the results of 200 sets questionnaires were being analyzed. The objective of
this chapter is to analyzed and interprets the data collected in the research. Those data that
obtained from respondents which comes from various Organization employees will be
analyzed with the aid of Statistical Package of the Social Sciences (SPSS) and all the results
will be evaluated based on the analysis of the hypothesis and presented accordingly. This
chapter will presents the quantitative research findings of the research investigating the
impact of communication, leadership, procedural justice, employee development and
tolerance to change towards the employees performance. Under this chapter, it will be
divided to several parts in analyzing the results obtained. It includes the analysis of
demographic analysis, reliability test, Pearson Correlation Coefficient and Multiple
Regressions. The demographic analysis include gender, age, education level, ethnic, working
experience and monthly income were discuss under this chapter. The reliability test will be
used to examine the relevancy of statements in each variable towards the surveys. For the
Pearson Correlation Coefficient, it is used to examine the relationship between the five
independent variables with employees performance. Nevertheless, multiple regression
analysis is being used to investigate the effect of two or more independent variables on single
interval skill dependent variables. Other than that, tables, pie chart and bar charts were used
to present the result with purpose of provide clearer information to the readers.

5.1 Descriptive Analysis

5.1.1 Respondent Demographic Profile

5.1.1.1 Gender

Statistics

N Valid 200
Missing 0
Mean 1.50
Median 1.50
Mode 1a
Std. Deviation .501
Variance .251
Range 1
Minimum 1
Maximum 2
Percent 25 1.00
iles
50 1.50
75 2.00

Table 5.1 Gender

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 100 50.0 50.0 50.0

Female 100 50.0 50.0 100.0
Total 200 100.0 100.0
 Developed for the research

Figure 5.1 Gender

Developed for the research

Table 4.1 indicates the percentage and the number of respondents according to the
gender involved in this survey. From the survey, it shows that the gender is
comprised of respectively 50% (100 respondents) for both male and female
respondents that have involved in this survey.
5.1.1.2 Age

Statistics

N Valid 200
Missing 0
Mean 2.96
Median 3.00
Mode 3
Std. Deviation .955
Variance .913
Range 3
Minimum 2
Maximum 5
Percentiles 25 2.00
50 3.00
75 3.00

Table 5.2 Age

Cumulative
Frequency Percent Valid Percent Percent

Valid 21-30 years old 72 36.0 36.0 36.0

31-40 years old 87 43.5 43.5 79.5
41-50 years old 18 9.0 9.0 88.5
51 years old and
23 11.5 11.5 100.0
above
Total 200 100.0 100.0

Figure 5.2 Age

Based on the table above, the age range gains the highest percentage is between 31-40
years old which is 43.5% of respondents. In contrast, the age range between 41-50 years
old gains the lowest percentage which is only 9.0 %. From the data shown that for the age
range between 21-30 years old get the second highest which is 36% of the respondents
and it follow by the age range of 51 years old and above which is 11.5%.

5.1.1.4 Education Level

Statistics
Education
N Valid 200
Missing 0
Mean 3.18
Median 4.00
Mode 4
Std. Deviation 1.149
Variance 1.321
Range 5
Minimum 1
Maximum 6
Percentiles 25 2.00
50 4.00

75 4.00
Table 5.4 Education

Cumulative
Frequency Percent Valid Percent Percent

Valid SPM 22 11.0 11.0 11.0

STPM 38 19.0 19.0 30.0
Bachelor of
34 17.0 17.0 47.0
degree
Master 97 48.5 48.5 95.5
PHD 7 3.5 3.5 99.0
Others 2 1.0 1.0 100.0
Total 200 100.0 100.0

Figure 5.4 Education Level

 Through the data shown as above, for educational level, the highest percentage of
respondents comes under master level which is 48.5%. In comparison, the lowest
percentage comes from the others educational level which it comprise of only
1.0% of the respondents. The STPM educational level gains the second highest
respond from the respondents which are 19.0%; follow by bachelor of degree with
17.0%, SPM with 11% and PHD with only 3.5%.

5.1.1.5 Working Duration

Statistics

N Valid 200
Missing 0
Mean 3.53
Median 3.00
Mode 2
Std. Deviation 1.456
Variance 2.120
Range 4
Minimum 2
Maximum 6
Percentiles 25 2.00
50 3.00
75 4.75

Table 5.5 Working Duration

Cumulative
Frequency Percent Valid Percent Percent

Valid 1-5 years 72 36.0 36.0 36.0

6-10 years 32 16.0 16.0 52.0
11-15 years 46 23.0 23.0 75.0
16-20 years 18 9.0 9.0 84.0
 above 20 years 32 16.0 16.0 100.0
Total 200 100.0 100.0

Figure 5.5 Working Duration

The table shows that the figure year of working duration of the respondents.
Through the data that been collected, it shows that 36% or 72 respondents have
work more than 1-5 years. It has been follow by the respondents that work for 11-
15 years which 46% or 23 respondents. Next, there are 16% or 32 respondents
that experienced working duration for both 6-10 years and above 20 years.
Nevertheless, there is the least working duration experienced by the respondents
which is 9% or 18 respondents.

5.2: FINDINGS AND DISCUSSION

The researcher first subjected data to descriptive staisitcal analysis which measured the
variabilty in the data.
This was followed by correlation statistics and finally regression using SPSS version 16.

5.3: Descriptive Statistics Results

The findings were as follows:-
In table 2, most respondents (30.3%, N= 57) strongly agree that employee attitudes as
part of organization culture affects change management. 74% of the participants
somehow agree that organization beliefs/ values as part of organization culture affects
change management and 101 (53.7%) somehow agree that organization norms affect change
management in an organization.
This data was subjected further to normality test and the results were as follows:-

In table 3, the statement: Organization Support by the top management affect change
management has the highest mean and a positive Kurtosis indicating that most respondents
agreed that organization norms affect change management and therefore should not be
ignored.

In table 4, majority of the respondents strongly agree (29.8%, N= 56) that the organization
leeaders provide facts to employees on the change process even as 54% of the
participants somehow agree that the organzation has clear vision and goals that guide
the change process. This means that change management when carefully integrated
with the frameworks of the organization and receives support by the management in
an institution may be smoothly implemented.

5.4: Correlation Statistics

The mean of the change management which was the dependent variable was used to
calculate Pearson
Correlation and the findings were as follows:-

In table 5, a positive correlation (r=.275) exists between employees beliefs/ values and
change management. Employees attitudes had a negative correlation (r-=.008) while the
support by top mamnagement accounts for 43.6% of the relationship. This means that
when the top management supports both the culture prevailing in an organization and the
change process, the organization is bound to reap the acruing benefits and serve customers
better at minimum cost.

4.3: Hypothesis Testing

After testing the relationship between the variables the researcher subjected data to
regression with a view to test the hypothesis and the results were as follows:-

In table 6, the first null hypothesis that stated that: Employees attitudes as part of organization
culture has no significant effect on change management was rejected since p>0.05.
Thismeans that employees attitudes has insignificant (p=.451) effects on change
management. However, the second hypothese which stated that: Organization beliefs/
values as part of organization culture has no significant effect on Change Management was
supported since the p=0.000 (p<0.05). This indicates that statistically significant
relationship exist between beliefs/values and the change management. The third
hypothese was rejected since p>0.05 while the last hypothesis was supported. This
implies that Organization Norms has no significant effect on Change Management
while Support by Top Management has significant (p=0.000) effect on Change Management
in an organization.
 Chapter-V:
Findings,
Suggestions & Conclusions
Employees attitudes as part of organization culture has no significant effect on change
management was rejected since p>0.05. This means that employees attitudes has
insignificant (p=.451) effects on change management. However, the second hypothese
which stated that:

Organization beliefs/ values as part of organization culture has no significant effect on

Change Management was supported since the p=0.000 (p<0.05). This indicates that
statistically significant relationship exist between beliefs/values and the change
management. The third hypothese was rejected since p>0.05 while the last hypothesis
was supported. This implies that Organization Norms has no significant effect on
Change Management while Support by Top Management has significant (p=0.000) effect on
Change Management in an organization.

Regression Equation

Y = + 1 X1 + 2 X2+ 3 X3 + 4 X4+

Where:- = a constant or intercept;

= slope or change in change management;

X1= Attitudes

X2= Beliefs/ Values

X3= Norms

X5= Support by Top Management

= the noise or error

Y= Change Management

Y = 0- 0.015X1 + 0.102X2+ 0.0026X3 + 0.144X4+

From the equation, employee attitudes reduce change management by -.015 for every
unit increase while beliefs/ values increases change management by 0.102. For every
unit increase in change management organization norms increases by 0.026 while support
by top management by 0.144.

The tolerance values were close to 1 thus indicating no multicollinearity, Baguley, (2012) and
Durbin Watson value of 1.494 indicates absence of serial correlation in the model,
Chatterjee et al (2013). R Square value of 0.294 and R adjusted value of 0.279
further indicates that organization culture accounts to 27.9% of change management in
an organization.
These findings are similar to the findings of Olu Ojo (2009) who found out that
corpoarate culture affects performance by 57.7% and Indeje and Zheng (2010) who
found out that corporate culture affects productivity by 48.7%.

Suggestion

4.4: Recommendations

The study recommends made the following recommendations:-

The institutes top management should ensure that employee attitude and pattern of
work promotes change management. This will enhances the corporate culture that sustains
econmic development and prosperity of the organization.

The institutes top management should ensure that employees belief and values are
enshrined in the organization culture. These beliefs and values as spelt out in the
institutes service charter should be publicly supported by both top and middle level
managers of the organization. This in turn will promote change management.

There is need to further research in this area since literature the causal relationship using
other research designs is missing. Other scholars should strive to investigate this topic
using qualititative research method geared towards answering pertinent research questions.

As a conclusion, this research project had been done on investigation of employees

performance in banking industry after organizational change. However, this study
explored on the relationship of employees performance in banking industry and several
factors such communication, leadership, procedural justice, employees development and
tolerance to change.

In fact, there are more factors that impacts of organizational change towards employees
performance in banking industry. Therefore, a deeply study and investigation can be
carried out for the research study when all the related factors are identified and explore
more understanding in employees performance.

The strongest influence factor that impacts of organizational change towards employees
performance in banking industry is tolerance to change. Based on this research, tolerance
to change is important as it allows employees to seek for the changes of time, space and
understanding to find the best way to achieve the production of organization. There is
ability to look into other human being perspective and the ability to control their
behaviour with the rights and dignity.

The second influential factor is procedural justice. The fair treatment will provide high
motivational to employee on their work performance and improve employees reactions
towards the organizational change. Besides, employees development is the third
influential factor as it is also influence the employees performance in banking industry.
Employees development can look forward to establish reassurance, trust in
administration and improve employability. Through the positive outcome, this investment
raises employability for the employees themselves.
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Quaternaries
Dear Respondent,

Greetings for the day,

The present survey is purely for research purpose. Respondents frank and free

answers shall go a long way in making this study more objective. All information given by

you will be kept confidential and will be used for research. Your cooperation will be highly

appreciated. Please give your assessment of these changes in Ballarpur Industries Limited

and tick the appropriate answer in terms of Excellent, Above Average, Average, Below

Average, and Unsatisfactory.

Name: ___________________________________

Address: _________________________________

Age: ________________________________

Designation: _______________________________

Department: _______________________________

Experience: _______________________________

Q.1 Satisfaction level of employees regarding change in the health and medical facilities.

Excellent Above average

 Average Below average

unsatisfied

Q2. Satisfaction level of employees regarding change in safety measures.

Excellent Above average

Average Below average

unsatisfied

Q.3 The employees are satisfied with change in the welfare facilities.

Excellent Above average

Average Below average

unsatisfied

Q.4 Employees are satisfied with the change in working environment at their work place
Excellent Above average

Average Below average

unsatisfied
Q.5 Effective resources are provided to the employees.

Excellent Above average

Average Below average

unsatisfied

Q.6 Employees are satisfied with methods of performing the task.

Excellent Above average

Average Below average

unsatisfied

Q.7 Employees are satisfied with change in the organizational structure.

Excellent Above average

Average Below average

unsatisfied

Q.8 Due to change in the decision making process employees are satisfied.
Excellent Above average

Average Below average

unsatisfied
Q.9 The change plans being properly communicated to the employees.

Yes No

Q.10 The employees are participating in implementing the change.

Excellent Above average

Average Below average

unsatisfied

Q.11 Proper training is provided to the employees for implementing the change.
Excellent Above average

Average Below average

unsatisfied

Q.12 Employees think that there is improvement in their performance.

Excellent Above average

Average Below average

unsatisfied
Q.13 While implementing the change employees provide support to the employers.
Excellent Above average

Average Below average

unsatisfied

Q.14 There is improvement in the skills of employees due to organizational change.

Excellent Above average

Average Below average

unsatisfied

Q.15 Employees are participating and learning through training provided by the organization.
Excellent Above average

Average Below average

Unsatisfied

Q.16 The performance of employees are improving due to change in organizational plans and

policies.

Excellent Above average

Average Below average

Unsatisfied
Q.17 Productivity of employees is improving after implementing change.

Excellent Above average

Average Below average

unsatisfied

Q.18 Due to organizational change there is improvement in the profitability.

Excellent Above average

Average Below average

unsatisfied

Q.19 There is reduction in the cost of production.

Excellent Above average

Average Below average

unsatisfied

Q.20 There is reduction in the wastage of material in the organization.

Excellent Above average

Average Below average

unsatisfied
Q.21 The industrial relationship between employer and employee become more cordial.

Excellent Above average

Average Below average

unsatisfied

Q.22 Management is positively participating in the change process and boosting the morale of
the employees.
Excellent

Average

unsatisfied