A study of the implications of organizational change : case of outsourcing by the Nairobi branches of the Kenya Commercial Bank Ltd.
This study investigated the implications of organizational change when an organization decides to outsource. This is because outsourcing is a business strategy or decision that involves organizational change. The objectives if the study were threefold. The first was to outline the services being outsourced by the Kenya Commercial Bank Ltd. branches in Nairobi and to find out the reasons behind the decision to outsource. The second was to determine the implications of the outsourcing change on the company's vision, mission, identity, organizational culture and employee relationships and motivation. The third objective was to suggest recommendations for dealing with a change program with special reference to outsourcing. The study involved personal interviews with top management at the Kenya Commercial Bank Ltd headquarters. The Strategy and Change Director, and the Human Resources Director were interviewed. Sixty-one questionnaires were administered to staff in five selected branches in a drop and pick basis so as to get their view on the outsourcing change process. Sixty questionnaires were filled and returned. The results were analyzed using Statistical Package for Social Scientists (SPSS) data analysis program; and compared with the management's view. The Kenya Commercial Bank Ltd. decided to outsource services like security, transport, catering and reception so as to enable the bank concentrate on its core activities and to mange and control costs. The findings also showed that at the onset, employees were affected by the changes brought about by the decision to outsource and the bank experienced problems of low morale, resistance suspicion and therefore having negative organizational implications on the company's vision, mission, culture, employee relationships and motivation. The implementation was successful in the long run. Before any change program can be implemented, good planning is necessary. This involves taking into account all aspects of the change; and most importantly, preparing employees for the change so as to reduce suspicion and resistance. Enhancing open communication channels that improve management - employee relations also helps employees feel involved and perceive organizational change positively. Counseling, team building activities and seminars can also be used to educate the employees on the change aspects and minimize anxiety.