Factors Determining the Effectiveness of Organizational change in The Case of Zamzam Bank S.C

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Date

2025-09

Authors

Abdulfetah Abdurahman

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Publisher

Addis Ababa University

Abstract

This study explores factors determining the effectiveness of organizational change at ZamZam Bank S.C., the first fully licensed interest-free bank in Ethiopia. The purpose is to identify factors influencing employee resistance to change and propose strategies to enhance change adoption. The problem statement highlights that resistance from employees often hampers successful change implementation, driven by fear of the unknown and inadequate communication. The research employs a descriptive and explanatory design, focusing on independent variables such as awareness creation, reward systems, sanctions, training and development, communication, and capacity, with organizational change effectiveness as the dependent variable. Data was collected from 136 employees using structured questionnaires and analyzed using SPSS. Findings reveal that Awareness creation, training, communication, and capacity had a significant and positive impact on organizational change effectiveness, and among the independent variables, training had a high impact on beta, .679. Recommendations include enhancing awareness through comprehensive communication strategies, developing inclusive training programs, and fostering a culture of recognition and positive reinforcement. Establishing a structured feedback mechanism is crucial for improving employee engagement and trust.

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Keywords

Organizational Change, Resistance to Change, Awareness Creation, Reward Systems, Sanctions, Training and Development, Communication, Capacity, Change Effectiveness

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