Organizational Change and Performance of Ncba Bank in Mombasa County, Kenya
Murithi, Joy Rinya
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Kenya’s banking sector has contributed significantly to the growth and development of the economy. However, there has been a steady decline in banks' financial results as reflected in their profit margins. As a result, the goal of this research is to see how organizational change affects NCBA performance in Mombasa County, Kenya. In particular, the study aimed to determine the effect of structural, technological, strategic, and remedial changes on organizational performance. It is based on Lewin's Change Management Model, as well as Kotter's change management theory, the idea of reasoned action, and the technology adoption model. The research design that was employed was descriptive targeting 11 branches of NCBA bank in Mombasa County. The unit of observation included managers from the following departments: human resources, marketing, finance, operations, and information technology. Given the small size of the target population, a census of all the 11 branches of NCBA bank in Mombasa County was conducted. Questionnaire was used to collect primary data. Correlation analysis was used to determine the relationship between variables. Linear regression analysis was used to determine the effect of predictors on the outcome construct. Findings were recorded using frequency tables and graphs. Results indicated that structural changes and performance of NCBA bank were positively and significantly related (β=0.231, p=0.019). Further results showed that technological changes and the performance of NCBA bank were positively and significantly related (β=0.357, p=0.000). In addition, results displayed that strategic changes and performance of NCBA bank were positively and substantially related (β=0.373, p=0.000). Further results showed that remedial changes and performance of NCBA bank were positively and substantially related (β=0.364, p=0.000). The study concluded that job restructuring, job redesign, and decentralization of duties enhanced the operations of the bank. The study concluded that the adoption of new technologies as well as digitization of operations in the organization enhanced the organization's operations and further improved the organizational performance. The study concluded that adopting appropriate mechanisms for implementing change and creating appropriate policies and procedures for dealing with change improved NCBA bank performance. Therefore, the study suggests that banks implement structural adjustments to improve their performance. Further, the banks should decentralize employee duties to boost employee productivity. The study also suggests that banks should employ new technology to improve their efficiency. Additionally, banks ought to spend more money training staff members in technical abilities that will increase productivity. The study recommends that bank managers should adopt proper strategies for implementing change as well as make their employees aware of the changes. This will make it easier to adopt the change. This study makes an important contribution to policy, research, and practice.