Change Management Practices and Performance of Commercial Banks in Nyeri County, Kenya.
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Date
2020-03
Authors
Kahunyo, Margaret Nyakio
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Over the past half-decade, a lot of changes have been experienced in the banking
sector. This ranges from regulatory reforms, technological shifts especially on mobile
and internet banking, intensified financial innovations, internalization and heightened
competition from other players. Although some banks may have recorded good
performance in the period under assessment, most of the commercial banks have
recorded dwindling performance. This study was interested in determining the effect
of change management practices on performance of commercial banks in Nyeri
County, Kenya. Specifically, the study aimed to establish the effect of stakeholder
involvement, leadership, organisational learning, and communication on performance
of commercial banks in Nyeri County, Kenya. The study was guided by McKinsey 7-
S Change Model, Kotter's Eight Step Model, Resource Dependence Theory, and Kurt
Lewin’s Model. A descriptive survey research design was utilised. The target
population was sixty respondents comprising branch managers, accountants, credit
managers, and marketing managers of 15commercialbanks in Nyeri County, Kenya.
The study used a census approach. Primary data was collected through questionnaires
while secondary data was extracted from the financial and management reports and
corporate handbooks. Cronbach’s Alpha Reliability test was used to test the
instruments for reliability while expert opinion assessed the validity status of the
instrument. The questionnaires were administered through the drop and pick method.
During data analysis, data was coded and entered into Statistical Package for Social
Science (SPSS) where descriptive statistics was analysed through means and standard
deviation. Further inferential data analysis of multiple regressions was used to
establish the relationship between the variables. Results were presented in the form of
tables, charts, and graphs, upon discussions of findings. The study thus concludes
that stakeholder involvement was statistically significant predictor of organizational
performance, leadership has a strong and positive relationship with organization
performance, organisation learning had a positive relationship with organization
performance. Moreover, communication had a positive and significant relationship
with organization performance. The study recommends to bank management to
improve knowledge retention including enhanced knowledge capture, development of
mentorship programs, and up scaling of the level of employee training and
development. In addition, the study recommends that the bank leaders should be keen
in promoting team roles to ensure smooth transition and diffusion of change. The
study also recommends adoption of more communication channels.
Description
A Research Project Submitted to The School of Business in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Business Administration (Strategic Management) of Kenyatta University, March, 2020
Keywords
Management Practice, Performance, Commercial Banks, Nyeri County, Kenya