The effect of resistance to organizational change on job performance of employees as mediated by job satisfaction: the case of commercial bank of Ethiopia
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Date
2020-11
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A.A.U
Abstract
Resistance to organizational change is among the main factors that impede successful execution of change initiatives. Investigating the effect of resistance to change on employees’ performance and the role of mediating factors is essential for managerial actions. The aim of this study was to investigate the mediation role of job satisfaction on the effect of resistance to change on employees’ job performance among employees of the commercial bank of Ethiopia. The study applied a cross-sectional study design with both descriptive and explanatory approaches. Data were collected using structured questionnaire adapted from previous studies. Analyses were done using STATA 14 software. Descriptive analyses, t-test, ANOVA and multivariable linear regression, structural equation modeling and path analyses were used. A total of 398 employees of the Commercial bank of Ethiopia were selected from twenty four branches in Addis Ababa out of 398 employees 251 (63.1 %) were male while 147 (36.9 %) were female The results of the multivariable linear regression analyses revealed that, job satisfaction affected the level of employees’ job performance by a factor of 0.254, at p-value=0.000; when resistance to organizational change was not included in the model. On the contrary, resistance to organizational change had total effects of -0.543 and -0.388 on employees’ job satisfaction and performance, respectively; each with P-value of 0.000. Finally, the results of the mediation analyses showed that, when job satisfaction was included in the model as a mediating variable; resistance to organizational change had a direct effect of -0.300 on employees’ performance at a p-value of 0.000. At the same time, employees’ job satisfaction had a direct effect of 0.161 on employees’ performance at p-value of 0.000. Given that, resistance to organizational change had an indirect effect of about -0.088 on employees’ performance, which is mediated by job satisfaction (p-value=0.000). The study concluded that, job satisfaction had a mediation role on the negative effect of resistance to change on employees’ performance. Thus, whenever change initiatives are triggered in the bank, it is vital to think of ways to assess and alleviate level of resistance; and undertake actions to increase job satisfaction so as to achieve better employees’ performance.
Description
A thesis submitted to the School of Graduate Studies of Addis Ababa University in partial fulfillment of the requirements for the Degree of Masters of Science in Management (Total Quality Management and Organizational Excellence)
Keywords
Commercial Bank of Ethiopia, Employees’ performance, Resistance, Satisfaction