Effect of Organisational Change on Employee Performance in the Nigerian Deposit Money Banks

Abstract

The position of banking sector in any nation’s economy cannot be overemphasized this is because it drives other sectors. Managing employee performance in the face of dynamic changing organizational environment remains critical issue in today’s banking sector where the strength of the sector lies in the contribution and commitment of employees. Previous studies on organizational change as it affect employees’ performance remained inconclusive. Therefore, this study examined the effect of organizational change on employees’ performance in Deposit Money Banks in Lagos State, Nigeria.The study employed a survey research design and a multi-stage sampling technique to select a sample of 623 employees from a total population of 24182 employees in 22 Deposit Money Banks in Lagos, Nigeria. Consequently a structured questionnaire was administered on the respondents while 520 were duly completed and returned representing 83.5% response rate. Both descriptive and inferential statistics were used to analyzed collected data. Ordered Logistic Regression was used to determine the effects of Organisational change on employee’s performance in Deposit Money Banks in the studied area at 95% confidence level.The study showed average and standard deviation values for organizational change (-0.0034, 1.880 and employee’s job performance (2.498, 1.317), indicating the rate at which these variables deviated from their individual mean values. The results further revealed that organizational change (β= –0.628,z_c= –9.33, p=0.067  had negative effect on employee performance.The study concluded that organizational change significantly affects employee’s performance in Deposit Money Banks in Lagos State, Nigeria. It was recommended that the stakeholders in the Nigerian banking industry should communicate changes in advance and also involve employees in the execution of those changes. Organisations should ensure that employees are treated in a just and procedurally manner so as to guarantee employee that the psychological contract between employer and employee remains intact

Keywords: Organisational, Change, Banks, Employee, Performance, Deposit, Money

DOI: 10.7176/RHSS/11-20-08

Publication date:October 31^st 2021