Change Management Practices and Challenges in United Insurance Company in Addis Ababa

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Addis Ababa University


Change has become part of anyone’s lives as well as corporate existence. Most organizations faced with urgency of change in their daily operations. However, their views on change differs. This study was conducted on United Insurance Private Limited Company (UNIC Ethiopia) whose operating offices based in Addis Ababa. Employees of the main office and branches in Addis Ababa were the unit analysis for this research. The objectives of the study were to assess the organizational change management practices and most prevalent challenge to leadership at UNIC Ethiopia during which organizational change is a must. A sample survey method is employed in aim of collecting the data from target group employees. The target sample of the study was 21 employees. Among the target population, all the questionnaires were returned. Structured questionnaires were employed to collect demographic and other relevant data from the company’s senior officials and other team members. After collecting the relevant data from each respondent, the data was made analyzed using the simple statistical analysis methods (frequency and percentage), and descriptive analysis method of mean and standard deviation. Survey methods had been used where the data were subjected to be a descriptive statistics using SPSS software. The study revealed that the company’s attitude in demonstrating the importance of change initially helped it to successfully adopt in the organization. From the findings, it was revealed that UNIC Ethiopia establishes a team that includes representatives from all departments affected by change, involving both management and lower-level employees. According to the study, members of the team, created to lead change within the organization, are enthusiastic and committed to making the change. Finally, the study found that resistance to change, wrongful decision, lack of resources and coordination, lack of leadership and innovative capability were the most challenging factors which severely affected a change in the company. The study recommends the need to demonstrating the importance of change regularly to impart employees who are at the lower-level position, and establishing a committee or team that often studies the company’s organizational system to evaluate against other competing firms within and outside of the industry. An assessment of compliance with company’s policy and strategies and emphasis to be given to command of chain to create a smooth communication linkage were also what has been recommended by the study



Change, Change Management, Change Management Practice and Challenges