CHANGE MANAGEMENT AS A STRATEGY FOR ORGANIZATIONAL GROWTH IN MANUFACTURING SECTOR OF ENUGU STATE

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ABSTRACT

This study focused on change management as a strategy for organizational growth in the Manufacturing sector in Enugu State. This study sought to evaluate the effects of change in manufacturing sector,  identify the forces for  change in manufacturing sector, determine the effect of managing change in manufacturing sector, determine the extent to which resistance to change affects organizational growth in the manufacturing sector  and find out the role of communication in managing change. To accomplish the aim of the study, five hypotheses were formulated to direct the major activities of the research. The study adopted survey research design. A stratified sampling method was used in selecting the manufacturing sector in Enugu State. The organizations selected were Sharon Paints and Chemical Company (Nig) Ltd, Nigeria Bottling Company PLC (NBC) and Seven-Up Bottling Company PLC. A sample of 314 respondents was determined from the population of 1,450 drawn from the management and non-management staff of the selected organizations using Taro Yamane’s sample size determination method. The sources of data for the study were primary and secondary. The questionnaire was structured in five-point Likert scale. Content validity approach was used to ensure that the variables measured were all covered. The instrument was checked for reliability using test-re-test method. The result gave reliability co-efficient of 0.99. The hypotheses were tested using Chi-Square and Z-test. Findings indicate that change improved performance and facilitate organizational effectiveness in  manufacturing sector in Enugu State, technological advancement, culture and competition are forces for change in the manufacturing sector in Enugu State, managing change reduced resistance to change in manufacturing sector in Enugu State, furthermore, resistance to change to a high extent affects organizational growth in manufacturing sector in Enugu State and also,communication has a significant role in managing change in Enugu State. In the recommendation, (1) install effective communication strategy which would bridge any gap in the understanding of change benefits and its implementation strategy. (2)Management of organization should endeavor to involve employees in the change management and decision making. (3) Effective education, training and skill upgrading scheme for the organization. (4) Provide personal counseling to staff members (if required) to alleviate any fears related to change. (5) Monitoring of the implementation, fine-tuning and reinforcement to retain the change once it has been made.

TABLE OF CONTENTS

Title Page                                                                                                                                i

Approval page                                                                                                     ii

Certification                                                                                                                            iii

Dedication                                                                                                                              iv

Acknowledgments                                                                                                                  v

Abstract                                                                                                                                  vi

Table of Contents                                                                                            vii

List of Tables                                                                                                            xi

List of Figures                                                                xiv                                                                                                                  

CHAPTER ONE: INTRODUCTION

1.1       Background of the Study                                                                     1

1.2       Statement of the Problem                                                                2

1.3       Objectives of the Study                                                                     3

1.4       Research Questions                                                                            4

1.5       Research Hypotheses                                                                         4

1.6       Significance of the Study                                                                      5

1.7       Scope of the Study                                                                            5

1.8       Limitations of the Study                                                               6

1.9       Definition of Key Terms                                                              6

References

CHAPTER TWO: REVIEW OF THE RELATED LITERETURE                

  •       Concept of Change                                                                               8

2.2       Concept of Organizational Growth                                                        9

2.2.1    Ways in Which Organizations Achieve Growth                              10

  • Problems Encountered with Organizational Growth                              12
  • Forces that Exert Pressures for Change On Organizations             13

2.3.1    Forces for Change                                                                                 14

2.3.2    Strategies for Successful Change                                                             15

2.3.3    The Change Process                                                                             16

2.4       Managing Change                                                                                  17

2.5       Resistance to Organizational Change                                                  20

2.5.1    Organizational Change, Fear and Uncertainty                                 21

2.6       Change and Management Theory                                              21

2.6.1    The Nature of Organizational Change                                                 22

2.7       The Role of Communication in Organizational Change                      23

2.7.1    Effective Communication in Organizational Change            23

2.8       Change Management                                                                       26

2.8.1    Change Management Models and Approaches                            27

2.9       Effective Leadership and Organizational Change                  33

2.9.1    Steps for Change                                                                                                        33

            References

CHAPTER THREE: RESEARCH METHODOLOGY             

3.0       Introduction                                                                                         37

3.1       Research Design                                                                              37

3.2       Sources of Data                                                                            37

3.3       Population of the Study                                                                          37

3.4       Sample Size Determination                                                                      38

3.5       Description of the Research Instrument                                            41

3.6       Data Analysis Techniques                                                                  41

3.7       Validity of Study Instrument                                                            41

3.8       Reliability of Study Instrument                                                                 42

CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION

4.1       Data Analysis and Presentation                                                      44

4.2       Testing of Hypotheses                                                                                     60

4.3       Discussion of Findings                                                                  66

CHAPTER FIVE: SUMMARY OF MAJOR FINDINGS, CONCLUSION, RECOMMENDATIONS AND CONTRIBUTION TO KNOWLEDGE

5.1       Summary of Major Findings                                                                      79

5.2       Conclusion                                                                                                79

5.3       Recommendations                                                                              80

5.4       Contribution to Knowledge                                                  81

5.5       Suggested Area for Future Research                                                        82

Bibliography                                                                                                               83

Appendix                                                                                                                    86

LIST OF TABLES

TABLE                                                                                                   PAGES

4.3.1    Responses to change improve performance and facilitate organizational Effectiveness                                                                        46

4.3.2    Responses to change enhance individual development and improve

organizational performance                                                            47

4.3.3    Responses to change create fear, uncertainty and resistance in employee                 47

4.3.4    Responses to change makes organization to be extremely flexible to

 adapt to changes and meet demands of their customers                                           48

4.3.5    Responses to change enhance employees skills and increase productivities              48

4.3.6    Responses to technology changes is a force for change                                             49

4.3.7   Responses to when projects or programmes are evaluated, a need

to change is identified                                                                                              49

4.3.8    Responses to changing interest rates and increase in competition brought about forces for change                                                           50

4.3.9    Responses to political, cultural diversity and societal values are some

 pressures for change                                                                                   50

4.3.10  Responses to the interests and needs of the people in your environment/community lead to change                                            51

4.3.11  Responses to managing change make organization to survive and grow                   51

4.3.12  Responses to managing change empowered employees to

accept and embrace changes                                                                                       52

4 .3.13 Responses to managing change help employee to overcome resistance to change in organization                                                             52

4.3.14  Responses to managing change help employee to deal with anxiety that is a natural respond to change                                                    53

4.3.15  Responses to managing change is a means employers use to move their organizations forward                                                        53

4.3.16  Responses to resisting to change to a high extent affect organization

growth in the manufacturing sector                                    54       

4.3.17 Responses to resistance to change create context for both the change initiative and the responses to it in organization                               54

4.3.18  Responses to resistance to change result in loss of royalty, loss of motivation, increase mistakes increase absenteeism in organization   55

4.3.19  Responses to resistance to change to a high extent result in excessive waste in organization                                           55

4.3.20  Responses to resistance to change to a low extent affect organizational growth       56

4.3.21  Responses to effective communication bridge any gap in understanding change benefits and its implementation strategies                                                                  57

4.3.22  Responses to communication is the context within which change occurs                  57

4.3.23  Responses to communication provide adequate information to employees on the need for change in order to gain their support                                                           58

4.3.24   Responses to communication has a significant role in managing change                  58

4.3.25  Responses to effective communicate is one of the key drivers of employee commitment to change                                                                                                59

                                                            LIST OF FIGURES

FIGURES                                                                                                                 PAGES

2.8.2                            Action Research Process                             31

2.8.3                            Detailed Action Research Model                                       32

5.1                               Change Management Model                                             81

                                                            CHAPTER ONE

                                                            INTRODUCTION

BACKGROUND OF THE STUDY

Modern organizations operate in a global competitive and an ever-changing environment. They lose their effectiveness and competitiveness if they follow the traditional way of management. These organizations are expected to apply new solutions to the whole management system. The methods of management (Lean Management, Outsourcing, Spin Off, Agile Management, Just in time…) are to make the organizations more flexible, so as to quickly and painlessly adapt to the new market requirements and expectations which result in organizational growth (Grzybowska, 2005: 976)

Thus new trends in changes management appear. Only yesterday, change was perceived as a risk. At the moment change is regarded as an opportunity. Only yesterday a good idea for company operation could be given by a specialist. Now, a good idea may come from various sources. Eventually, change itself is subject to changes. Few organizations may perceive change as an example of disruption of otherwise peaceful world. Too many things are changing too fast for the managers of any organization to afford to be calm (Robbins, 1997: 719).           

Changes exist in both the external and internal environments. To be successful in dynamic environments, organizations must be willing to expend considerable amounts of energy in examining fundamental questions to the organization. In the last half century, there has been great interest in the process of planned change and the role of individuals in creating change. This is described in three phases: unfreezing, the stage during which a person becomes ready to learn or acquire a new behavior, perhaps by recognizing the ineffectiveness of a current behavior or by learning about the benefits that would accrue if the new behavior were implemented, changing itself, which will involve a trial period during which the person familiarizes him or herself with the new behavior and refreezing which occurs as the new behavior becomes habitual or ingrained with the individual. Change is an even greater reality in contemporary life; it is occurring at an accelerated pace, and there is almost no likelihood of slowing the pace of change. No longer is it possible to focus on “business as usual.” As organizational environments exert pressure for change, organizations must adjust if they are to survive and prosper. Most firms desire growth in order to prosper, not just to survive. The challenge for today’s managers is to learn to manage change effectively for organizational growth. (Westover, 2010: 885)

Workers at all levels of an organization, be they top levels, junior levels, or operatives, recognize that change is inevitable.  However, the successful implementation of organizational change in response to changes in an organization can be one of the greatest challenges top-level leaders face.  Regardless of how far-seeing and meticulously planned organizational change may be, it will not be effectively implemented unless it is communicated to an organization’s staff in such a way that resistance is overcome, fears are assuaged, confusion is minimized, and buy-in by all affected individuals is secured (Gordon, 2006: 224). 

STATEMENT OF THE PROBLEM

CHANGE MANAGEMENT AS A STRATEGY FOR ORGANIZATIONAL GROWTH IN MANUFACTURING SECTOR OF ENUGU STATE