CHANGE MANAGEMENT AND ITS EFFECT ON EMPLOYEE’S PERFORMANCE IN MANUFACTURING INDUSTRY (A CASE STUDY OF EMENITE PLC ENUGU AND ASABA ALUMINUM COMPANY ASABA)

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ABSTRACT

Change is an inevitable part of human beings, the institutions they establish as well as their environment which includes climate, economy and politics. However, most people are hardly ever ready for changes they know must occur in their everyday life. The researcher focus the study on the change management and its effect on employees performance. The study objectives are to determine the effect of change on the employees’ performance evaluation, the profitability index and attitude of workers during change. The researcher also carried out analysis of how employees resist change and its attendant effect or impact on the organization’s growth. How best to carry out successful change in the organization without necessarily encountering violence. Conceptual frame work of the related literature of the work was also reviewed with particular emphasis on findings and existing literature that mainly explain the theoretical framework of the research questions. The study investigated the effect of change on employee performance. Two firms, namely Delta Steel Company Maja and Emenite Plc Enugu, were drawn from the public and private sectors of the economy respectively. The study was conducted interview using cross sectional design. The population of the study was 1,700 employees from the two firms that were surveyed. A sample of 324 respondents was drawn from the population through proportionate stratifies sampling procedure. To ensure fair representation of the research populations from the various firms and each stratum of senior and junior staff categories in the sampling process, Taro Yamane’s sample size determination and Bowley’s proportional allocation statistics were employed. The sources of data were both primary and secondary. The primary data were collected through questionnaire and secondary data were sourced from journals, textbooks and internet materials. Questionnaire was the main instrument for data collection and was designed in two parts part A was for personal data while part B was focus on raising questions that bother on the research questions and objectives of the study. Content validity approach was used to ensure that the variables were adequately covered. The reliability of the instrument was done through test-retest method. The result gave a reliability index of 0.76, indicating a high degree of consistency. The data collected from the field were presented and analyzed with descriptive statistics to answer the four questions while the corresponding research hypotheses were tested at 0.05 level of alpha. Pearson Chi-square statistic was used to test all hypotheses. The study found that change has a positive effect on employees productivity, the organizations encounter challenges during change implementation, change is beneficial to both the employees and the employer and that organizations encounter challenges during change implementation, and that change has significant effect on the organizations growth rate. Based on the findings of the study, it was recommended that both employers of labour should be extra meticulous in implementing change; change when administered, the fundamental reactions which could be positive or negative should be tackled cautiously; organizations should embrace change to be effective, change parties should always open lines of communication and change should start from the bottom to the top.

TABLE OF CONTENTS

Title Page … … … … … … … … … … … i

Approval Page … … … … … … … … … .. ii

Certification … … … … … … … … … .. iii

Dedication … … … … … … … … … … .. iv

Acknowledgement … … … … … … … … … v

Abstract … … … … … … … … … … .. vi

Table of Contents … … … … … … … … … vii

List of Tables … … … … … … … … … .. Viii

CHAPTER ONE

Background of the Study … … … … … … … 1
Statement of the Problem … … … … … … … 8
Objectives of the Study … … … … … … … … 9
Research Hypothesis … … … … … … … … 10
Significance of the Study … … … … … … … … 10
Scope of the Study … … … … … … … … .. 11
Limitations of the Study … … … … … … … … 12
Scope of the Study … … … … … … … … … 13
Limitation of the Study … … … … … … … … 14

References … … … … … … … … … … 15

CHAPTER TWO: REVIEW OF RELATED LITERATURE

Introduction … … … … … … … … … 16
The concept of Change … … … … … … … 17
Phases in Change Processes … … … … … … 18
Challenges of Change Implementation … … … … 20
Reasons for the Change … … … … … … … 23
Organizational Change … … … … … … … 25
The effect of Change … … … … … … … 26
Stages in Change Process … … … … … … 28
Change Key Players … … … … … … … 30
Types of Organizational Change … … … … … 31
Changing Strategy … … … … … … … … 34
Changing Structure and Design … … … … … … 34
Changing Technology … … … … … … … 34
Changing People … … … … … … … … 34
Effect of Change on … … … … … … … 34

2.10.1 Ten Reasons why People Resist Change … … … … 36

Strategies for Overcoming Resistance … … … … 38

2.12 The Effect of Change on Organizational Growth … … … 43

References … … … … … … … … … 49

CHAPTER THREE: RESEARCH METHODOLOGY

Introduction… … … … … … … … … 51
Research Design… … … … … … … … 51
Sources of Data … … … … … … … … 51
Population Size… … … … … … … … 52
Sample Size Determination and Sampling Technique … … 54
Description of Research Instruments… … … … … 56
Method of Data Presentation … … … … … … 56
Theory of Chi Square … … … … … … … 56
Degrees of Freedom … … … … … … … 57
Confidence Level/level of Significance … … … … 57
Validity of the instrument … … … … … … … 57
Reliability of the Instrument … … … … … … 58 Decision Rule … … … … … … … … … 59

References … … … … … … … … … 61

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

Introduction … … … … … … … … … 62
Distribution and Return of Questionnaire … … … … 62
Presentation of Data … … … … … … … 63

4.4 Data Presentation for Research Questions … … … … 72

4.5 Test of Hypotheses… … … … … … … … 75

4.6 Decision Rule … … … … … … … … … 76

4.7 Discussion of Findings … … … … … … … 81

References … … … … … … … …. … 83

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION

AND RECOMMENDATION

Introduction … … … … … … … … … .. 84
Summary of Findings … … … … … … … … 84
Conclusion… … … … … … … … … … 85
Recommendations … … … … … … … … .. 88

Bibliography … … … … … … … … … 90

Appendix … … … … … … … … … 93

LIST OF TABLES

Table 4.1: Distribution and Return of questionnaire… … … … 62

Table 4.2: Sex of the Respondents … … … … … … … 63

Table 4.3: Age of Respondents … … … … … … … … 64

Table 4.4: Martial Statues of Respondents … … … … … … 64

Table 4.5: Academic Qualification of Respondents … … … … 65

Table 4.6: Sector Respondents Work … … … … … … .. 66

Table 4.7: Does Change have significant effect on employees

Productivity … … … … … … … … .. 66

Table 4.8: Employee Status … … … … … … … … 67

Table 4.9: How are you familiar with the term change management

as it relates to you as an employee? … … … … … 68

Table 4.10: Respondents Organizational Climate … … … … … 68

Table 4.11: How do you perceive change in your organization? … … 69

Table 4.12: Are employees properly informed before

change is implemented? … … … … … … .. 70

Table 4.13: What is often the reaction of employees, with

regards to intending change? … … … … … … 70

Table 4.14: If employees resist change, what measure

do your organizations employ to contain the situation? … 71

Table 4.15: Change has significant Effect on Employee

productivity: Change labeled with incentives, the outcome

is more productive … … … … … … … …… 72

Table 4.16: Does your Organization encounter challenges in the

process of change management? Therefore training

and Retaining is a basic requirement in the process of

change. … … … … … … … … … 73

Table 4.17: 19 change has no positive effect on organizational Growth 74

Table 4.18: Change Improved Employee skills and Core

Competencies and change improve the firms

return on investment … … … … … 74

Table 4.19: Cross tabulation Statistics on the Responses of Effect

of change on productivity … … … … … … … 75

Table 4.20: Chi-square test computed from the frequency table … .. 76

Table 4.21: Expected Frequency … … … … … … .. 77

Table 22: Chi square Test computed from frequency … … … … 78

Table 23: Expected Frequency … … … … … … … .. 79

Table 4.24: Chi-Square table Computed from cross tabulation … … 79

Table 4.25: Expected Frequency Table … … … … … .. 80

Table 4.26: Chi-Square table computed from table 4 … … … … 81

CHAPTER ONE

BACKGROUND OF THE STUDY

It is an ultimate goal for every organization (be it profit oriented or non-profit oriented) to stand the test of time and be able to provide for its shareholders.

Change is an integral part of what is needed to bring about this desired result, hence it has become imperative to embrace innovation, change in technologies, equipment and transformation as a driving force and aimed at uplifting organizations higher economically. This study focuses on the change management and its effects on employees performance in Nigeria manufacturing industry. be it private or public. It intended to probe such organizations with a view to determining the change management and its effect of on the employees performance evaluation of departments and individual workers, profitability index comparatively, working relationship amongst workers just to mention but a few. It is a general philosophy that change is a constant phenomenon that is bound to occur in every given environment and business setting. Though it has both positive and negative reactions and effects, it still proffers solution to some identified problems at the end of the day. Therefore change can be described as a means to plan, initiate, realize and control and finally stabilize change processes in both corporate and personal levels. It also covers diverse problems like strategic direction or personal development programmes for staff among others (Oliver Reckiles 2001).

It should also be carried out in a logical and systematic process that will leave no employee emotionally aggrieved. Often times, introduction of change cost a substantial amount in terms of managerial time and emotional upheaval.(kanigel,Robert.1997:45)

Many organizations have not tried change or initiate changes to most of their activities either because the managers were afraid that they were simply incapable of successfully implementing the needed change or because of its effect on the management of the employees in the organization.(Head, Simon 2005:22)

The most common reaction associated with change is resistance and this can be categorized as follows:

CHANGE MANAGEMENT AND ITS EFFECT ON EMPLOYEE’S PERFORMANCE IN MANUFACTURING INDUSTRY (A CASE STUDY OF EMENITE PLC ENUGU AND ASABA ALUMINUM COMPANY ASABA)

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