factors affecting change management: a case study …
TRANSCRIPT
FACTORS AFFECTING CHANGE MANAGEMENT: A CASE STUDY OF
KENYA TRADE NETWORK AGENCY (KENTRADE)
BY
GATHONDU ANNE NYAGUTHII
UNITED STATES INTERNATIONAL UNIVERSITY-AFRICA
SPRING 2015
FACTORS AFFECTING CHANGE MANAGEMENT: A CASE STUDY OF
KENYA TRADE NETWORK AGENCY (KENTRADE)
BY
GATHONDU ANNE NYAGUTHII
A Project Submitted to the Chandaria School of Business in Partial Fulfillment of
the Requirement for the Degree of Master of Business Administration (MBA)
UNITED STATES INTERNATIONAL UNIVERSITY- AFRICA
SPRING 2015
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DECLARATION
I, the undersigned, declare that this is my original work and has not been submitted to any
other college, institution or university other than the United States International
University in Nairobi for academic credit.
Signed: Date:
Gathondu Anne Nyaguthii (ID: 624355)
This project has been presented for examination with my approval as the appointed
supervisor.
Signed: Date:
Dr. Maina Muchara
Signed: Date:
Dean, Chandaria School of Business
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COPYRIGHT
All rights reserved. No part of this project may be reproduced, stored in a retrieval
system or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise without permission from the author.
©Gathondu Anne, Nyaguthii 2015
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ABSTRACT
The purpose of the study was to examine factors that affect the change management
process by studying Kenya Trade Network Agency (KENTRADE). The study aimed at
determining whether change management leads to improved performance, the key
challenges towards achieving organization goals in the change management process and
determining the change management models leaders use to effect decision making in the
organization. The study employed a descriptive research method in gathering, analyzing,
interpreting, and presenting the information. The descriptive research design helped in
focusing at the strength of relationship between factors of change process and change
management process. The study adopted the use of questionnaires to obtain pertinent
information from respondents. The study focused on 64 employees of KENTRADE. Non-
probability sampling technique was used whereby a census approach was assumed. The
study adopted a descriptive and inferential statistics in data analysis and presentation.
Correlations, cross-tabulations, frequencies among other statistical measures were used.
The study found that training affects performance of change management process. When
employees are rewarded effectively and their effort recognized by the management, they
work together as a team to achieve the change management process. The study found that
performance appraisals clearly specify what is expected from an employee during the
change management process. The study also found that goal setting contributes to
improved performance in an organization that is undergoing change management process.
The study found that the organization experience unclear communication of the goals
between the management and the supporting staff. This causes the management to fail to
leverage the skills of the employees to the organization resources hence hampering
change management process. The study also found that lack of employee empowerment
hinders successful change management process. Due to this lack of empowerment, the
workforce is not committed to the goals and objectives of an organization hence play a
part in the unsuccessfulness of change management process.The study found that
appropriate change management model that fits the needs and wants of the organization is
very crucial in the process of change management. Bottom up approach was found by the
study to be the most preferred change management model the organization should adopt.
The study found that bottom up approach is preferred because it makes the workforce to
work together as a team. The study concludes that effective change management process
is facilitated by employee training, reward, recognition and performance appraisal. The
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study also concludes that unclear communication of organization goals is a challenge to
organization change management process. This makes the management to fail to leverage
the skills of the employees to the organization resources during the change process. The
study concludes that choosing the appropriate model that fits the organization goals and
objectives is imperative for an organization to enhance its performance. The research
recommends the organization to adopt different change management practices to enhance
organization performance. Organizations that are undergoing change management
process should constantly communicate the goals of the process to all employees and
other relevant stakeholders. The study recommends that appropriate change management
model needs to be adopted.
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ACKNOWLEDGEMENT
I would like to extend my sincere gratitude to Dr. Muchara for his continued
guidance in preparation of the research project; I am also grateful to my reviewer
Dr.Kiriri for his continuous support. I appreciate the unlimited support received from my
family, their continued support and encouragement has brought me this far.
I am indebted to the Kenya Trade Network Agency Staff for their invaluable time
to provide feedback that has aided me to conduct an analysis of the change management
process within the organization. I appreciate their cooperation during the trying periods of
research.
I thank the Almighty God for His Mercies and Endless Grace during the learning
period. It has been a challenging experience and I am extremely humbled for completing
this project.
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DEDICATION
To my great father and friend Charles Gathondu Gachahi and to my supportive
mother and friend Margaret Wanjiru Gathondu, I dedicate this work.
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ABBREVIATIONS AND ACRONYMS
CGC : Consumer Goods Corporation
GE : General Electrics
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TABLE OF CONTENTS
DECLARATION................................................................................................................ ii
COPYRIGHT .................................................................................................................... iii
ABSTRACT ....................................................................................................................... iv
ACKNOWLEDGEMENT ................................................................................................ vi
DEDICATION.................................................................................................................. vii
ABBREVIATIONS AND ACRONYMS ....................................................................... viii
TABLE OF CONTENTS ................................................................................................. ix
CHAPTER ONE ................................................................................................................ 1
1.0 INTRODUCTION ............................................................................................... 1
1.1 Problem Background ............................................................................................. 1
1.2 Problem Statement ................................................................................................ 4
1.3 Purpose of the Study ............................................................................................. 6
1.4 Research Questions ............................................................................................... 6
1.5 Importance of the Study ........................................................................................ 6
1.6 Scope of the Study................................................................................................. 7
1.7 Definition of Terms ............................................................................................... 7
1.8 Chapter Summary .................................................................................................. 8
CHAPTER TWO ............................................................................................................... 9
2.0 LITERATURE REVIEW ................................................................................... 9
2.1 Introduction ........................................................................................................... 9
2.2 Change Management and Performance................................................................. 9
2.3 Challenges to Change Management Process ....................................................... 14
2.4 Change Management Models used by Leaders ................................................... 19
2.5 Chapter Summary ................................................................................................ 25
CHAPTER THREE ......................................................................................................... 26
3.0 RESEARCH METHODOLOGY .................................................................... 26
3.1 Introduction ......................................................................................................... 26
3.2 Research Design .................................................................................................. 26
3.3 Population and Sampling Design ........................................................................ 27
3.4 Data Collection Method ....................................................................................... 28
3.5 Chapter Summary ................................................................................................ 30
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CHAPTER FOUR ............................................................................................................ 31
4.0 RESULTS AND FINDINGS ............................................................................ 31
4.1 Introduction ......................................................................................................... 31
4.2 Background Information ..................................................................................... 31
4.3 Organization Performance and Change Management ......................................... 40
4.4 Key Challenges in Change Management Process ............................................... 45
4.5 Change Management Models .............................................................................. 51
4.6 Chapter Summary ................................................................................................ 56
CHAPTER FIVE ............................................................................................................. 57
5.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS ............... 57
5.1 Introduction ......................................................................................................... 57
5.2 Summary ............................................................................................................. 57
5.3 Discussion ........................................................................................................... 58
5.4 Conclusions ......................................................................................................... 62
5.5 Recommendation ................................................................................................. 63
REFERENCES ................................................................................................................. 65
APPENDICES .................................................................................................................. 71
APPENDIX A: COVER LETTER ................................................................................. 71
APPENDIX B: DATA COLLECTION INSTRUMENTS-QUESTIONNAIRE ........ 72
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LIST OF TABLES
Table 3.1: Population ......................................................................................................... 27
Table 3.2: Sample Size from the Population ..................................................................... 28
Table 4.1: Response Rate ................................................................................................... 31
Table 4.2: Gender of Respondents ..................................................................................... 32
Table 4.3: Age of Respondents .......................................................................................... 32
Table 4.4: Specialization and Level of Education ............................................................. 33
Table 4.5: Change Management Process and Adoption Years .......................................... 33
Table 4.6: Change Process ................................................................................................. 34
Table 4.7: Change Management Factors ........................................................................... 35
Table 4.8: Change Management Process ........................................................................... 36
Table 4.9: Goal Setting Meetings ...................................................................................... 36
Table 4.10: Training Workshops ....................................................................................... 37
Table 4.11: Performance Appraisal Meeting ..................................................................... 38
Table 4.12: Clearly Outline Job Description ..................................................................... 39
Table 4.13: Innovation ....................................................................................................... 40
Table 4.14: Performance in Change Management Process ............................................... 41
Table 4.15: Correlation of Performance Appraisal ............................................................ 41
Table 4.16: Goal Setting .................................................................................................... 42
Table 4.17: Training........................................................................................................... 43
Table 4.18: Cross-Tabulation of Performance Appraisal .................................................. 44
Table 4.19: Reward and Recognition................................................................................. 44
Table 4.20: Acceptability of Change Management Process .............................................. 45
Table 4.21: Key Challenges in Change Management Process .......................................... 46
Table 4.22: Lack of Employee Empowerment .................................................................. 47
Table 4.23: Employee Empowerment................................................................................ 47
Table 4.24: Unclear Communication ................................................................................. 48
Table 4.25: Lack of Commitment ...................................................................................... 49
Table 4.26: Leverage the Skills of Employees .................................................................. 50
Table 4.27: Organizational Goals ...................................................................................... 50
Table 4.28: Change Management Approach ..................................................................... 51
Table 4.29: Top Management Administering Change Process ......................................... 52
Table 4.30: Preferred Model .............................................................................................. 53
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Table 4.31: Teamwork ....................................................................................................... 54
Table 4.32: Chances of Resistance ................................................................................... 54
Table 4.33: Addressing the Limitations ............................................................................. 55
Table 4.34: Relevant Decision Making Process ................................................................ 56
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CHAPTER ONE
1.0 INTRODUCTION
1.1 Problem Background
The management system used by a firm is a determining component of the firm’s
responsiveness to environmental changes because it determines the way a management
perceives environmental challenges, diagnoses their impact on the firm, decides what to
do and implements decisions (Ansoff & McDonnell, 1990). The business environment is
turbulent (Ansoff, 1988) where stability and predictability has been replaced by rapid
change and creativity. The discontinuous environment has been as a result of many
factors, namely; technology advancement, competition and unpredictable international
markets being the main reasons. In this regard, it is crucial for today’s managers to
develop a systematic approach for dealing with managing strategic change.
Change management incorporates appreciating the drivers of transformation both
in the internal and external environment and also observing the beliefs and attitudes of
people within the organization. Change within the organization may affect behaviour,
shared beliefs, the way work is done and the rules that shape mental models. Shared
mental models are a part of organizational culture (Hayes, 2007). The dynamic business
environment requires frequent changes in the way organizations operate structurally
(Turner, 1999). Great efforts should be put in the implementation of change; the future of
organizations fully depends on the success of change projects.
The process of strategy management is the core of any major change process in an
organization. It is characterized by strategic formulation and implementation of major
activities by assessing the internal and external environment in which the organization
exists. It basically steers an organization to where it is meant to be by outlining objectives,
developing policies and plans to achieve these goals. According to Branson (2010), the
strategic management model is dynamic and it includes a response loop to monitor
execution of activities to notify the next stage of planning. There are three underlying
principles of strategy, namely; market positioning, tradeoffs and alignment to strategy
(Porter, 1998). Strategy is also a system of finding, formulating and developing a doctrine
that will ensure long-term success if followed faithfully. There is a difference between
corporate and business strategy. Corporate strategy answers what business we should be in
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from a portfolio perspective while business strategy involves the competitive advantage a
business has over others in the industry (Kvint, 2012).
Strategic planning is a tool used by an organization to steer it to a certain direction.
However, planning itself cannot predict how the market will evolve. In order to determine
future direction of an organization, it is important to understand its current position
(Ansoff, 1990). Change is not an engineering problem. Change involves people and can
call up emotions, uncertainties and inconsistencies. Therefore, simply managing change is
insufficient. Lawler and Worley (2009) asserted that successful change requires leadership.
The old saying, you can lead a horse to water, but you can't make it drink provides good
advice, though slightly off the mark. It might be better stated, you can manage a horse to
water, but you must lead it to getting the water. Getting the horse to drink is a behavior
issue that demands leadership (Martin, 2002). Key point is that the reluctance of
individuals to embrace change is a normal unavoidable part of human nature. A boat does
not float on water without creating a wake, and serious change does not take place within
an organization without creating mixed emotions among those involved.
The president and CEO of General Electric (GE) Mr. Jack Welch asserted that
change has no constituent (Christensen, 2000). Most people in organizations have some
investments in status quo. There are some things they may not want to lose. These may be
simple things as the routine or sharing of a meal with friends at work. For these people
moving to another work group may be a real struggle. Leaving the familiar behind is
inherently unsettling and involves some risk. Because of this we all find change stressful.
When we realize we need to give up our familiar ways, then we have a second thought
(Martin, 2002).
Rapid environmental changes are causing fundamental transformations that are
having a dramatic impact on organization and presenting new opportunities and threats
for leadership. The need to manage change rather than merely reacting to it is crucial.
Most organizations are responding to these changes by downsizing and re-engineering
business processes. All these strategies involve change and therefore, have to be managed
in order for them to be effective, (McCarthy, 2010). The change process is the means to
transform an organization, a way to realize the new vision for an organization. It involves
going via several stages and executing different tasks, including performing an
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organizational audit, planning, formulating the change strategy, communicating,
persuading others and consolidating the change. It takes transformational leadership, at
the individual, group and organizational level, to accomplish all these activities
(Christensen, 2000).
Change is a result of the turbulent environment. It is common to feel insecure about
a transition process because we are uncertain about delivering it, whom to involve and the
outcome of the change process. Change is driven by technology, ongoing business
processes, new ideas and innovations. Kotter (1998) introduced the eight steps for leading
change. The first step in the change process is creation of urgency; to get things moving, it
is crucial to trigger motivation so that everyone is anticipating the change. This is done by
an honest dialogue outlining the benefits of change in the organization in relation to the
competitive environment; this will help to build faith and confidence. Scanning the
environment using the SWOT analysis is also vital. The threats will aid in coming up with
strategies to remain competitive in the future and opportunities will leave a space to be
exploited. McLagan (2008) suggested that the top management in any organization need to
administer change and spend effort in creating urgency because if they are quick to jump
to the next step, they may generate losses.
The second step in the change process is formation of a coalition whereby support
is needed from key people in an organization. Key people in this regard are a team that
has influential powers for example status, job title or political importance. Once the team
has been formed, it creates urgency necessarily for change. The third step involves
creation of a vision for change (King and Wright, 2007); a clear vision serves three
important purposes; first, it simplifies many detailed decisions. Second, it motivates
people to take action in the right direction; third, it helps to coordinate the actions of
different people in a remarkably fast and efficient way. A clear and powerful vision will
do far more than an authoritarian decree or micromanagement can ever hope to
accomplish. The fourth step involves communicating the vision for buying. This is where
communication skills of the leader are employed (core skills and competences and
interpersonal skills). Gaining an understanding and commitment to a new direction is
never an easy task, especially in complex organizations. Under communication,
inconsistency is rampant and this creates stalled transformations (Kotter, 1998).
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The fifth step involves empowering people and removing barriers which are
mainly in form of structures, skills, systems and supervisors. The sixth step involves
generating short-term wins for the leaders. In the middle of a long-term change effort,
short-term wins are essential. Running a change effort without attention to short-term
performance is extremely risky. The coalition becomes a critical force in identifying
significant improvements that can happen between 6 and 18 months. Getting these wins
helps ensure the overall change initiative’s success. Research shows that companies that
experience significant short-term wins by fourteen and twenty-six months after the
change initiative begins are much more likely to complete the transformation (Lehtonen,
2005).
The seventh step is all about consolidating gains and producing more gains.
Resistance is always waiting in the wings to re-assert itself. Even if you are successful in
the early stages, you may just drive resistors underground where they wait for an
opportunity to emerge when you least expect it. They may celebrate with you and then
suggest taking a break to savor the victory. The final step involves anchoring new
approaches in the culture for sustained change. New practices must grow deep roots in
order to remain firmly planted in the culture. Culture is composed of norms of behavior
and shared values. These social forces are incredibly strong. Every individual that joins
an organization is indoctrinated into its culture, generally without even realizing it. Its
inertia is maintained by the collective group of employees over years (Lohman, 2005).
1.2 Problem Statement
When an organization is poorly aligned to its environment, change is expected.
The process of change is difficult and challenging and hence a positive attitude and
willingness is required to precipitate change. Encouraging broad based participation from
the stakeholders and promoting development of skills and competencies is the best
strategy to encourage change management (Wood et al., 2010). Change is characterised
by advancement, cultural diversity, economic trends and the environment; consequently,
the need to implement change strategies to an organisation will exert the necessary
internal and external pressures to the leaders and subordinates (Oakland & Tanner, 2007).
Therefore, it is crucial to recognise the need for change as well as implement change
strategies effectively; in a proactive response to internal and external environment.
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Internal changes can include organisational structure, process and HR requirements.
External changes involve government legislation, competitor movements and customer
demand (Wood et al., 2010).
Literature about leadership is full of competing theories and counter claims that
make any attempt at generating a single overarching theory difficult. It is against this
backdrop that this study employed several theories related to leadership including
contingency theory, integrative theory, and from the Management to the leadership theory
(Harris, 2003).
Kenya Trade Network Agency (KENTRADE) is a state corporation under the
Ministry of National Treasury with a mandate to facilitate trade across borders as well as
implement and manage The Single Window System. The Kenya Trade Network Agency
(KENTRADE) is changing its operations from the manual system to computerized
system whereby clearance is done online. The organization needs to adopt a change
management model that would be accepted by the general staff. To find the best change
management approach that would be welcomed by everyone is a problem to the
organization (UNECE, 2004).
There are a few empirical studies linking the use of Change Management to
improved performance. Kotter (1998), Lewin (1988), Chandler (1990), Buono (2008) and
McLagan (2009) attempted to address the Change Management implementation process
but failed to effectively highlight the key change management implementation challenges
hinged on the leadership capability to curve a niche for organizations and maintain their
competitive advantage as they execute the change process. Nevertheless, they all
concurred that change management carries with it immense benefits ranging from
adoption of new ideas and technology by men and women on the global stage to
enhanced efficiency in business organizations. The past literary and the theoretical
review on change management have explained different researchers’ opinions on change
management. None of the researchers clearly explained how public sector organizations
should effectively implement change management. This thus, left some gaps that
prompted the researcher to embark on a thorough study regarding change management
implementation in Kenya Trade Network Agency.
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1.3 Purpose of the Study
The purpose of this study was to examine factors affecting change management at
Kenya Trade Network Agency.
1.4 Research Questions
This study was guided by the following research questions:
1.4.1 Does change management lead to improved performance?
1.4.2 What are the key challenges towards achieving organization goals in the
change management process?
1.4.3 Which change management models do leaders use to effect decision-making
in organizations?
1.5 Importance of the Study
With the increased integration of many economies which makes the flow of
information very crucial, organizations find themselves under pressure to continually
improve. This study will be important to the following stakeholders;
1.5.1 Managers
The study will identify the main causes of resistance to change among the
workforce. This will enable the managers to clearly understand its workforce better and
form better strategies of applying change.
1.5.2 Workforce
The workforce will be in a better position to understand the change process and its
benefits so as to position the organization better in a competitive environment. This will
contribute to improved attitude.
1.5.3 Researchers
The study will also be of great significance for future scholars who would seek to
do further research of the change process of an organization in a turbulent environment.
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1.6 Scope of the Study
The study focused on the attitude and perception of the change process from the
management and staff of Kenya Trade Network Agency (KENTRADE). The
geographical scope of the study was Kenya Trade Network Agency headquarters in
Nairobi County. The data of the study were collected in the months between August and
September, 2014 using a census approach and the respondents were the staff of
KENTRADE.
1.7 Definition of Terms
1.7.1 Strategy
Strategy, according to Sharma (2007), is what an organization plans to do with its
scarce resources in order to attain and sustain a competitive position in the market that
will enable the fulfillment of the organization mission, vision and objectives.
1.7.2 Strategic Management
Lawler and Worley (2009) define strategic management as a process of scanning
the environment, identifying and prioritizing options, resource mobilization and
implementation, to pro- actively shape the environment and create sustainable
competitive advantage.
1.7.3 Change Management
Change management is a set of principles, techniques and prescriptions
applied to the human aspects of executing major change initiatives in organization
settings (McLagan, 2009).
1.7.4 Change
Change according to McFarlin and Sweeney (2011) is adaptation, adjustment,
innovation, modification, metamorphosis, rearrangement and refinement resulting in a
new look.
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1.7.5 Resistance to Change
This is a force that slows and stops movement. It is a natural and expected part of
change which moves from the least to most along a continuum (Sharma, 2007).
1.8 Chapter Summary
The chapter has highlighted the importance of strategic planning in an
organization as a tool to steer the organization forward. Some of the critical tools to
employ in strategic planning are vision, mission, values and strategies. The chapter also
outlines problem statement which explains the challenges of the change process. The
research questions in this study guided the research in explaining the management and
workforce adoption towards change. Chapter two reviews literature related to the study.
Chapter three tackles research methodology, Chapter four deals with research findings
and presentation whereas, the final chapter five, captures conclusion, summary and
recommendations.
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CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Introduction
The main objective of a literature review is to discover the various theories and
empirical studies conducted in relation to a particular subject matter and in this case, the
topic of concern is change management. It is guided by the research questions formulated
in chapter one: Does change management lead to improved performance? What are the
key challenges towards achieving organization goals in the change management process?
Which change management models do leaders use to effect decision making? These
research questions aim to examine the factors affecting change management.
2.2 Change Management and Performance
Performance in an organization is inclusive of all activities that are aligned to the
goals of the organization to foster efficiency and effectiveness. Performance management,
according to Andrews, Cameron, and Harris, (2008) basically focuses on the performance
of the whole organization, departments, teams and individuals. Performance management
is also defined as an alignment of resources to employee strategies (Burnes, 2004). Goals
are the backbone of any ongoing process. They must be clear and objective. To create an
alignment with the business strategy, it is crucial to communicate effectively. Change
starts with departmental heads; they set the strategy applicable in the department which
generally supports the general business strategy. It is crucial to make all departmental
goals available to all managers in other departments; this will reduce conflict and
encourage support from other department heads (Schein, 1996).
According to Carter (2008), the main guide and reference when setting goals is the
expectations and how the goal will be achieved. SMART (specific, measurable,
achievable, result oriented and time bound) is an effective framework for achieving
organization goals and objectives. The above criteria are easily visualized since the goals
are measurable. In the long run, goals should be result-oriented and relevant. To ensure the
fairness of goal setting in an organization, focus on objective is crucial. The SMART
Framework is a good platform to evaluate an individual performance in a project; if
deadlines are not met, it means the particular objective has not been achieved (Carter,
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2008). Goal setting is a crucial parameter used by most organizations to improve
performance especially in change management.
2.2.1 Information Management
To ensure all factors affecting performance are taken into consideration, it is
crucial to collect information from various sources so as to include objective data.
Environmental factors affecting performance are among other factors to be considered
while evaluating performance (Harris, 2007).
Performance is also pegged on performance appraisal. Past performance appraisal
can be used to gauge growth in a change process. A performance evaluation process is
used by top management to increase self-awareness. This is done by comparing an
employee self-assessment feedback alongside the completed assessment by selected peers
in the organization. This is a clear tool to gauge the relationship between performance and
change management (Carter, 2008).
Objectivity plays a major role in evaluating performance of most organizations
undergoing the change process. It outlines the job expectation as well as the evaluation
methods involved. To receive accurate feedback of an employee performance in a change
process, the evaluation process should be consistent to enhance fairness (Seidman and
McCauley, 2008). Performance appraisals feedback from employees should not be
accessed by other employees apart from themselves. In such scenarios, managers can
discuss employees in similar job group before they release the final report to the other
employees in the department. Calibration meetings in the change management process aid
in formulation of performance ranking, exchange information about the change
management across the organization as well as promote consistency (Porter, 1998).
Performance is supported by documentation which is consistent, inclusive of all
occurrences and feedback from follow-up activities. Documentation by the top
management aids to track an employee’s performance that needs improvement and
support decision-making. Documentation can be used as a tool to provide reward and
recognition. This is as a result of consistency in work performance and well-articulated
work output (Wood and Wood, 2011).
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Documentation is very valuable when evaluating inconsistent performance such as
individual performance. These inconsistencies can be used as a base for learning and
continuous improvement. To evaluate performance in a change process, documentation
should encompass achievements of an individual and performance management objective
(Hayes, 2007).
Performance management practices are being pegged on innovative technology
which involves new products and processes. Automated systems are efficient, consistent
and are used to increase performance in an organization. In the change management
process, performance is visible as access to data that easily supports accountability. An
automated system can also be used to rank both managers and their subordinates’
performances. Paperless processes as well as an automated performance visibility are
among the benefits of improving performance in a change process (Orgland, 2007).
2.2.2 Staff Training
Training is important to improve skills and add knowledge in articulating
particular tasks. Training is thus enforced to new supervisors who might be inadequate to
complete all the tasks under performance management. Management of a team is never
easy if all the skills related to the job description are not up-to-date (Prybutok, 2005).
Retooling management and its subordinates is necessary to improve performance
and this is done through understanding the workforce; their strong and weak areas, what
motivates them and what restricts their performance. Training also aids the managers to
understand different levels of input. Supervision to a process requires experience and
ability. Managers who are implementing the change process need to undergo training that
will aid them to adequately deliver and receive feedback from the subordinates and also
provide a performance evaluation platform that will aid in change management (Yen,
2005).
2.2.3 Performance Appraisal
A performance appraisal contains a summary of job expectations, important
contributions, evaluation techniques that are expected to fulfill job satisfaction of a
specific workgroup. It also comprises competencies and achievements of an employee
and a platform where employees can state their comments and inputs. Past performance
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appraisal should be used to benchmark current and future performance appraisal (Yang,
2001).
In the change management process, appraisal meetings are held to track
performance of individuals. Enough time is needed to prepare for the evaluation. The
evaluating manager according to Hardy (2007) is to communicate clearly the job
description, strength and accomplishment. The evaluation should relay some level of
seriousness and an open mind. Managers in this evaluation should also be prepared ahead
to listen to the employees’ sentiments so as to achieve the overall performance enhancing
goals (Bowen, 1999).
2.2.4 Rewards and Recognition
Most organizations are currently linking performance to reward and recognition.
To establish the correlation, a good performance management process which is fair
should be put in place. Documentation related to job output against expectations is
necessary to establish recognition of individual performance. A consistent reward and
recognition method across all departments in an organization is crucial as it creates a
sense of consistency and uniformity. Uniformity is best demonstrated when a particular
employee is rewarded the same way as a top performer in another department (Sadler,
2005).
Performance management is hinged on the theoretical foundations of reward-
based performance management, such as Abraham Maslow’s hierarchy of needs,
Alderfer’s existence growth theory, Vroom’s valence-expectancy-instrumentality theory
and lastly, Butler’s Personal construct theory (Butler, 2009). These theories majorly
elucidate the significance of equity in rewards, the different kinds of rewards, be they
monetary, non-financial and those ancillary monetary incentives, connection between the
job and remuneration, compensation schemes and techniques such as variable
remuneration that aid in planning a scientific reward system, job evaluation and sharing
of the benefits (Yen, 2005).
Butler (2009) Personal construct theory, backed by empirical proof, stipulates that
people develop theories of performance depending on their past experiences and
perceptions of what they think it takes to succeed in work. Borman (2010), states that the
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theories of performance emanating from inexperienced executives or managers, has the
propensity to be one dimensional and therefore yielding middling outcomes. As they
learn the ropes and grow as managers, their personal performance constructs are geared
towards a more sophisticated and multidimensional approaches that lead to greater
performance both individually and as organizations or corporate bodies (Krausert, 2009).
Based on his studies of many years regarding the link between remuneration and
fulfillment in job, Lawler, (2008) avers that job fulfillment of an employee is dependent
upon his/her awareness of having remuneration that is proportionate to their input and the
work done. The employees become disillusioned and disappointed leading to frustration
in the job if they have the conviction that they are poorly compensated with respect to
their contribution and input. Lawler says that it is binding on the business organization to
appraise the compensation system to be at par with the performance of their employees so
that the employees themselves feel it is equitable and as such, deliver in their jobs.
Sweeney and McFarlin, (2011) on the other hand, highlight the six factors that they
believe are the cause of disillusionment among employees and as a result impeding their
performance. They include: Incongruity between the expectations of what the employees
want and what they get in return; Previous prospects of getting more rewards; The
discrepancy between the juxtaposed result and what they receive; Low projections for the
future; A feeling of disengagement and not taking responsibility for dismal outcomes and;
that feeling of entitlement and right to more that are getting. This model is related to
Lawler’s that puts emphasis on the principle of equity, expounding on the significance of
the awareness of fairness in compensation by the employee.
Lawler and Worley (2006), say that on the kinds of rewards, there are non-
financial such as the security of the job, conducive conditions of work, provision of
puzzling tasks, and access to opportunities to partake in policy making boards as well as
getting the letter of appreciation, granting freedom of work and felicitation of best
performing employees. The other type include indirect financial reward such as leave
income, pension benefits, being allowed to join and be a member of a given club, having
health insurance as well as family get together that are catered for by the business
organizations (Kandula, 2006).
14
2.3 Challenges to Change Management Process
Cultural and technological changes are among the key challenges in a change
process. If a man can anticipate change, then he is in a better position to handle the
challenges during the transition process. For a manager to be successful in the change
process, diagnosis of the particular problem is crucial as it helps in structuring the smooth
transition of the change process (Oakland, 2000).
In the current business environment, there are various challenges associated with
the change process. These challenges are experienced at the various levels of the change
process. To cope with the turbulent business environment, we must redesign, reinvent and
keep up-to-date with the uncertain realities (Conner, 2000).
Empirical studies have identified the three key challenges associated with the
change process (Lawler and Worley 2006; McFarlin, 2011 and Sadler 2005). These are:
Leadership which involves running an organization from a controlling nature to a more
nurturing nature that motivates employees to over exceed their performance and focus
which involves making business decisions and aligning them with the organization goals
and finally creation of commitments to the future changes in the change process.
Each challenge experienced in the change process is unique but is somewhat
interrelated. Managing one challenge on its own will inefficiently effect change. For
change to be effective, all the three challenges have to be overcome (Hayes, 2007).
2.3.1 Leadership
The command and control structure in the traditional approach was effective to
change management during the traditional era because the main goals of change were
resources and capacity. The modern leadership style involves empowerment (Rico,
Sanchez-Manzanares, and Gibson, 2008). Chaharbaghi (1994) asserted that employees
need to feel valued and trusted so that they can immensely contribute in the organization.
In this context, the senior management in the change process is responsible for
leveraging the assets and performance of the firm. The leadership style used by managers
should be nurturing, innovative, leveraging the skills of the workforce to aid in achieving
the overall goal of the organization (McLagan, 2008). The current business environment
15
is innovative, full of fresh and creative ideas. If an employee is requested to participate in
a repetitive routine, there will be little significance as compared to an employee who is
engaged in contributing to the future of an organization (Schneider & Bowen, 1999). The
concept of wealth creation is easy to exercise from the top management in the change
management process. The irony in this concept is that the traditional leadership style that
involved control is the one that gets executives to the top notch positions that limit the
future success of on organization. The leadership style used in the change process can
affect achievement of the desired goal (Andrews et al., 2008).
2.3.2 Leverage of Skills
An organization’s productivity is pegged on its employees output. This means all
employees should maximize their effort to achieve the full potential of the organization.
The workforce is the most valuable asset in an organization. To effect good leadership, it
is crucial to leverage the skills of the employees, the current technology, infrastructure
and resources in the organization (Kotter, 1996). Studies by Kaplan (1992), have shown
that good leadership influences both workforce and business performance. Workforce
goals should be effectively communicated to aid in achievement of the overall strategy.
Approximately, only seven percent of employees in most organizations understand the
business goals and expectations in order to achieve the goal of an organization especially
in the change process.
The economic environment is turbulent; it is dynamic hence accelerating change.
The rapid changes suit the current needs and wants of customers which makes it difficult
to anticipate new and innovative opportunities. Today’s leaders concentrate their efforts
more on developing opportunities instead of identifying right opportunities (Sadler,
2005). The senior position of people in the organization should be based on their ability to
understand business, beliefs and expectations. Collaborative Model (or conversational
model), according to Hill (1990) is a theory for explaining how speaking and
understanding work in conversation, specifically how people in conversation coordinate
to determine definite references. According to Hill (1990), the collaborative model based
on planning depicts the fact that a common ground can be found by all managers through
solid illustrations to clients by catering for their needs, products and services and any
other relevant information related to affecting the client/organization. The collaborative
16
model lays a platform where managers can establish new relationships to compare the
competitive opportunities and have a common understanding. Teamwork breeds a
common understanding and interpretation of elements affecting the future business
strategies and individual performance. Evaluation is also open so as to identify the key
challenges that will lead to consistency and ultimately align the goals with strategic
opportunities (Lawler and Worley, 2009).
Some of the benefits associated with leveraging of skills include increased profit
margins which are associated with workforce that understands goals (Evans, 2004). Once
an employee has understood his/her contribution in an organization, efficient methods of
articulating the project are generated. A performance management system should be put
in place to increase productivity. It should comprise: SMART Goals, visibility at all the
levels in management, accountability between team-mates through relevant cascading of
goals between employees and communication of goals at every phase in the change
process (Buono and Kerber, 2008).
The other benefit is goal alignment which allows faster execution of strategy by
allowing efficient allocation of resources across the organization. To ensure there is no
duplication of efforts among team members in the change process, it is crucial to address
redundant business activities. Leadership in the organization is strengthened by allowing
managers to emphasis their focus on the staff that has the most promising skills (Harris,
2007).
Further, Orgland (2007) depicts the fact that high turnover rate in most
organizations is associated with dissatisfied employees. The overall result is associated
with low productivity coupled with increased absenteeism. Ownership to organization
goals is associated with goal alignment. It will enable an employee to participate fully and
hence able to link performance and reward.
Finally, according to Rico et al. (2008), making honest decision about the
direction a business should take is very difficult. The greater challenge is creation of a
commitment to run hand in hand with organizational goals and objectives. Recent studies
have debated on what makes great managers. One school of thought pegs its argument on
the fact that strategic insight from a manager tends to have an intellectual insight in
determining how an organization will be competitive. Other schools of thoughts peg their
17
opinion on consistency asserting that execution of tasks in a consistent manner is what
sets a manager apart. Other suggestions in this regard tend to think a great manager is
inspirational, who is able to nurture the workforce and unite them to achieve a common
goal (Moore, 1993).
All the viewpoints explained above are valid. However, they fail to explain how
managers execute strategy and leadership altogether. The underlying practice of
management is overlooked which distract us from acknowledging how managers
basically manage change in the change process. According to Morgan (1986),
commitment is a tool used by managers in the change process. However, managers can
easily lose sight of this skill because commitment is given priority to short-term projects
as compared to long-term projects. Managers who understand their commitment nature
can exercise their power in the change process. They can also exercise their previous
commitments in past projects to benefit the organization in the long run. Recognizing past
commitments that acted as a roadblock to organization change can be replaced by
rejuvenating commitments into the new organization (Albert, 2005).
Organizations have a future that is quite different from the current position of the
organization. Resistance has to be understood in order to precipitate change. If an
organization sees itself as a market leader in service delivery but in essence it is a startup
company offering mediocre products, pressure will force the organization to resolve to its
desired future. Since the tension at this level is tight, an organization puts in place the
desired strategy to encourage the future shift (Lohman, 2005).
Theory and practice are regarded as separate and distinct aspects of leadership and
management. Theory may be perceived as esoteric and remote from practice, yet the acid
test of theory is its relevance to practice, as theory is only valuable and vital if it serves to
explain practice and provide managers with guide to action. Theory therefore serves to
provide a rationale for decision making (Bush, 2003). Managerial activity is enhanced by
an explicit awareness of the theoretical framework supporting practice in business
establishments (King and Wright, 2007).
However, one point to note is that, there is no single all-encompassing theory of
leadership management. This in effect reflects the astonishing diversity of leadership
organizations ranging from small to multinational enterprises. Given the centrality of the
18
context, a universal theory to explain leadership behavior in all enterprises and business
establishments can be viewed as too ambitious. Above all this shows the multifaceted
nature of the theory in change and leadership management as aptly put by Harris (2003)
that the literature about leadership is full of competing theories and counter claims that
make any attempt at generating a single overarching theory difficult.
The contingency leadership theory attempts to explain the appropriate leadership
styles based on the leader, the subject and the situation. It stresses the significance of
situational factors such as the nature of work done, the external milieu and the attributes
of the subjects. It digs deep to unravel the extent to which managerial work is the same or
dissimilar across diverse types of organizations, levels of management and the cultures
therein. This is premised on the fact that cultures are different and some require autocratic
kind of leadership while others thrive under participative leadership and as such leaders
must learn to adjust and adapt to different situations and employ different techniques to
attain success (Finkelstein et. al. 2009).
Integrative leadership theory tries to combine the trait, behavioral and contingency
theories to explain valiant influencing leader-subject association. The theory identifies
behaviors and attributes that facilitate the leader’s effectiveness and explore why the same
behavior by the leader may have different effect on the subjects depending on the
circumstance. It explains why the subjects of some leaders are willing to work so hard
and make personal sacrifices to achieve group and organizational goals (Lussier &
Achua, 2013).
From the management to the leadership theory explains the difference there are
between the managers and leaders. It states that managers are concerned with doing
things right whereas leaders focus on doing the right thing. Managers are more driven to
have stability and the best way to get things done as leaders place greater emphasis on
invention and change initiatives (Finkelstein et. al. 2009). Successful managers use a truly
participative form of leadership as they share the responsibility of management with
employees or as leadership responsibilities are transitioned from managers to members.
Successful organizations need both management and leadership although it is commonly
accepted that managers deal with visions and people. Additionally, anyone can play the
leadership role because of their effectiveness to achieve the desired goals.
19
The implication of effective leadership management for the successful operation
of businesses and corporate organizations has been progressively accepted in the twenty-
first century. The drift towards self-management globally, has resulted to a greater
indebtedness to the impact of managerial proficiency for corporate leaders. One does not
have to search farther to uncover the sufficient proof that the paths and fortunes of
business establishments and institutions are oft traceable to the actions or otherwise the
inaction of their top executives (Finkelstein et. al. 2009).
Empirical studies by Hambrick and Chen (2007), indicate that the select clique at
the top of the corporate organization can intensely affect organizational results through
the decisions they make, whether big or minute. They outline the agendas by which their
institutions do the following activities, such as appointment, rallying and inspiring others
to make critical decisions. They are the ambassadors of their organizations through the
representative role they perfect, when they articulate the company’s policies, visions and
missions with external constituencies.
Bush (2003), aver that effective leadership and management are essential if
organizations and institutions are to attain the wide-ranging purposes set for them by their
numerous stakeholders and players in the industry. The concept of management has been
superseded by the language of leadership. Leaders and managers require greater
understanding skill and resilience to sustain the intensity of pressures that go with their
positions and even their institutions.
2.4 Change Management Models used by Leaders
Belbin (2009) classifies change into four main categories: transformation change
which cannot be controlled within the organization structure but handled outside the
existing paradigm; realignment change is associated with the way of doing business, it is
done all at once or in incremental manner style; evolution change is proactive and it is
implemented through different stages. It is carried out by managers who are anticipating
change in the organization; and revolution change, which occurs in simultaneous steps
within a short time span, it is most likely associated with force. According to Trott
(1998), any change causes destabilization of the status quo.
20
2.4.1 Change Management Models
There are various change models that can be implemented by an organization
during the turbulent environment. Research has shown strategic change has been divided
into three dimensions. Pettigrew and Whip (2001) used content as one dimension of
strategy; it entails analyzing the goals of an organization and answering the question of
what is being amended. Implementation is the other dimension of strategic change, this is
how the change process will be adopted in the organization and finally, the third
dimension is context of change, which seeks to conduct an analysis of the internal and
external environment before impacting change.
According to Porter (1996), there are three schools of thought associated with
determining the ideal change model to be applied in an organization. One school of
thought is inclined to thinking that change should be administered by the top management
team. The policy and procedures should be set in a way that they are cascaded
downwards. Pro-employee is the other dimension of the change school of thought. It was
driven by the rationale that the lower management interacts with the environment more
than the top management. The need for change should be initiated from outside so as it
can be addressed on the inside.
The third dimension of change is a combination between the first and second
school of thought. Striking a balance between the two dimensions involves involvement
from both the top management; stakeholders and the lower management. Both parties in
this change process owe the project and tend to reach change through a consensus; this
joint effort can be tedious in this changing environment (Belbin, 2009).
The overall change management model used within any organization should be
consistent, have clear objectives that are aligned to the environment so as to create a
competitive edge over other organizations. All models of change are different and not a
single approach can fit in all dynamics of an organization. It is thus crucial for an
organization to choose the appropriate model that will fit the needs and wants of the
organization. Organization resistance is often blamed for failed change process. This is
not the case because the main grounds for poor change management in an organization is
lack of clear objectives, poor communication, inadequate planning and inconsistent
decisions that top management in an organization do not follow through (Garratt, 2005).
21
Kotter and Cohen (2002), broadly fit the top-down model with leadership. The
chief executive is the one responsible to orchestrate change by creating a vision and
communicating it to the employees openly. The desired performance output is also,
outlined. The open feedback mechanism is encouraged so as to keep track of objectives
not met. This leadership concept takes into account the workforce because the main focus
is workforce and performance growth.
The top-down approach is the most effective change management process.
Morgan (1986) asserts that this is because when a change comes from the strategic apex
of an organization, it is implemented with direction and control and initiation of change is
easier. This approach has clear directions of where the organization is set to go, it is
associated with rapid change coined with speedy implementation process. The workforces
are aware of the nature of change and this is an edge in times of uncertainty.
Although the top-down approach is mostly driven by top executives, it is good to
take note that it is in collaboration with the lower management. According to Reilly and
Pfeiffer (2000), there is a downside for the top-down change since it is mostly associated
with rapid changes. There are higher chances of resistance and lack of commitment from
lower level management because they feel that the top management does not understand
the problem in question and how to approach it. A good example of a top down change is
best illustrated by Kotter and Cohen (2002) in the eight step process. After the eight steps
process, an organization is in a better position to accept change and foster efficient
implementation of a change process.
According to Mintzerberg (2000), a bottom-up change is the opposite of top-
bottom. It is argued that this mode of change tends to answer all limitations of the top-
bottom approach as it involves all the employees in the change process. The bottom-up
approach is characterized by transformation leadership. Change grows from the roots and
organization should encourage the workforce to work together so that the change can
grow upwards.
Orgland (1997) points out the shortcoming of this approach; it does not have a
clear link to the corporate strategy and could take time to mature. This model of change is
also unpredictable because it is subject to debate by the employees before the actual
22
change can take place. The model has to be very participative for change to take root
because the top management has no control in this model (Harris, 2007).
An example of a bottoms-up change process is illustrated by the Consumer Goods
Corporation (CGC) which has six basic steps (Ribbens, 1996). The first step is
characterized by benchmarking, of both the internal and external environment so as to
define the actual change strategy. After benchmarking the next step is creation of a vision
that the organization will follow in achievement of its goal. Forums for solving problems
with the organization are also formed to address any issue that may slow the change
process. The other aspect is setting of high performance work teams to drive the change
process forward with the control feedback mechanism. Finally, there is the total system
change characterized by a radical change in doing business.
The other model of change is a combination of previous models to come up with a
balanced option. There are collective themes that are related with this model, there is the
presence of strong leadership, vision statement and a change team concerned with
implementation of the project. Commitment and perseverance is essential for conducting
the change process.
According to Kotter (1996), a combined approach of both the top-down strategy
and bottom-up strategy seeks to achieve the desired change process in an organization.
This is because a top down approach involves the CEO and top manager’s support while
a bottom-up strategy is collaborative and tends to involve everyone in the change process
hence ownership of the process. Revitalizing a business unit is more of a bottom up
approach strategy. Business unit must change to correspond to the changing vision of the
organization. However the leader propagating the change should give each business unit a
platform to come up with their own strategies’ to drive change within their units so as to
align the strategies with the overall vision of the organization. Once the change strategies
in each business unit have been established, a top-down approach is initiated.
In a bid to justify why Kotter’s model best fit the study, empirical researches have
indicated that the other two models have their drawbacks almost outweighing their
strengths. Lewin’s three stage theory of change management, otherwise known as
unfreeze, transition or change and refreeze best depicts the process of change that he
envisaged (Smith, 2001). In the first stage of the Unfreeze, people prepare themselves for
23
change. It involves understanding the need for change and overcoming the urge and effort
to resist change. Unfreezing and having the drive for change entails weighing up the
positives and negatives of the envisaged change before making any move, in what Lewin
calls force field analysis.
The second stage involves transition or change which is the inner movement
people make as they react to change. Since it is the most difficult part in the change
management, it requires adequate leadership and reassurance for the process to be
successful. The last stage is refreeze where after the change has been embraced and
successfully executed, the organizations become stable once more and the employees
refreeze as they operate under new guidelines (Mullins, 2011). Researches show that it is
widely used by most business organizations because it is easy to use. However, it takes
time to implement as it requires astuteness in leadership (Harris, 2003). Sharma, (2007)
defines McKinsey’s 7-S Model as a model of organizational effectiveness that postulates
that there are seven internal factors of an organization that need to be aligned and
reinforced in order for it to be successful. The model offers a holistic approach to change
in organizations as it fronts the seven factors that operate as collective agents of change.
These factors include shared values of the organization by the employees and the
leadership, the strategy employed by the leader, the laid down structure of organization to
facilitate the needed change, the systems within the organization that provide the enabling
environment and atmosphere for initiating change, the style of leadership in the
organization, the staff at the business and their willingness to change and lastly, the skills
required to effect change (Sharma, 2007).
These factors are accompanied with certain benefits such as providing guidance in
organizational change, unifying both rational and emotional components of change,
offering an effective method to diagnose and understand an organization as well as
ensuring that all parts are integral and addressed in a combined way. Nonetheless, the
model becomes hard to use and achieve change since when one part changes-and there is
high propensity to change- all the components change because all the factors are
intertwined. Another drawback of the model is that differences are ignored and this can
lead to disharmony which becomes a major stumbling block to achieving the desired
change. The model is intricate thus confusing and those corporate organizations which try
to apply this model in their change initiative, are known to have a higher chances of
24
failure (Belbin, 2009). The “Burke-Litwin model” was developed to examine
organizational change and performance. It provides a link between an assessment of the
wider institutional context and the nature and process of change within an organization.
The model states all factors involved in change are integrated such that a change in one
will affect all the other factors (Noordin, 2008).
Having looked at all concerned change management models, it is evident that
Kotter’s model is the best for KENTRADE as it requires increase in the urgency for
change that leads to creation of a team dedicated to change for easier transition in the
change process., builds a team dedicated to change, creates the vision and dream for
change (Cameron & Green, 2004).
2.4.2 Kenya Trade Network Agency (KENTRADE)
Trade processes in the country are ineffective, protracted and sluggish resulting to
negative effect on the economy as a result of high cost of conducting trade. This is a
major concern for the agencies concerned such as the government and the private sectors.
The ineffective business transactions have caused a dip in the global ranking of the
country in relation to conducting of business in the World Business Report. In addition to
the ineffective trade processes, there has been a negative impact at the major ports and
points of entry/exit in the country resulting to congestion at the Mombasa port, delays in
the clearance of cargos at the international airports such as the Jomo Kenyatta
International Airport, Moi International Airport among others as well as experiencing
long truck queues at the border points such as Malaba, Namanga, Busia, Isebania among
other entry points (KENTRADE, 2012).
It is against this backdrop that the government of Kenya established a state
corporation, Kenya Trade Network Agency to execute the Kenya National Electronic
Single Window System to provide solution to challenges KENTRADE was facing. Some
of the challenges are sprotracted, corrupt manual and uncoordinated trade processes and
challenges. The system’s execution calls for concerted efforts from all major stakeholders
and their understanding of the need to change management. This is where key agencies as
Kenya Revenue Authority, Kenya Ports Authority, Kenya Bureau of Standards, Kenya
Plant Health Inspectorate Services, Kenya National Highways Authority, Pharmacy and
Poisons Board, Transit Transport Coordination Authority of the Northern Corridor, the
25
Kenya Maritime Authority and private sector organizations as Federation of East Africa
Freight Forwarders Associations, Kenya Shippers Council and Kenya International
Freight Forwarders & Warehousing Association among others, come in handy.
Their main role is to aid KENTRADE to execute, operationalize and manage the
system and facilitate trade to take a commanding role in the coordination and facilitation
of trade in the country. This in effect will reduce trade transaction costs, delays
inefficiencies, improved governance, reduced manual documentation, reduced cost of
capital, reduced demurrage and improved space and capacity utilization. Secondly, it
endeavors to simplify trade information exchange, quicker processing of trade documents,
reduced errors with minimized data, improved efficiency and transparency by eliminating
manual processes, lowering of business costs among other benefits. Lastly, it endeavors
to promote better revenue collection, improved trader compliance, effective deployment
of resources and enforcement of the laid down laws and regulations as well as improved
international competitiveness of Kenya through the foreign direct investment and trade.
The Kenya Trade Network Agency (KENTRADE) is changing its operations from
the manual system to computerized system whereby clearance is done online. The
organization needs to adopt a change management model that would be accepted by the
general staff. Hence the organization needs to find the best change management approach.
2.5 Chapter Summary
This chapter reviewed literature related to the study on factors affecting change
management in Kenya Trade Networking Agency. The study has discussed the effects of
change management process on organizational performance, the challenges faced by
organizations undergoing change management process and the best change management
models to be employed in organizations to enhance performance. The next chapter is
about research methodology.
26
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Introduction
This chapter present research design, study locale, population of the study, sample
size, sampling technique, research instruments, pilot study, data analysis, ethical and
logistical consideration. The researcher used a descriptive research design as prognosis
below.
3.2 Research Design
Research design is defined as a detailed plan that explains how research is meant
to be undertaken (Sloman, 2010). The study used descriptive design. This design was
appropriate in observing the subjects of study in a completely natural and unchanged
environment. In this design, the study applied both qualitative and quantitative techniques
to collect data. In the qualitative technique, the respondents were given open ended items
where they were expected to express themselves and help explain human elements such
as personal experiences, attitudes and opinions. Quantitative technique used numerical
values like frequencies, means and modes to capture data on such factors as age of
respondents (Harshbarger & Reynolds, 2007).
Descriptive statistics are therefore, critical in drawing conclusions and describing
characteristics associated with the subject population from which the sample was drawn.
It discovers and measures cause and effect relationships among variables (Cooper and
Schindler, 2008).
Descriptive research design is used by researchers when they want to analyze a
specific behavior in the environment. Observations, case studies and surveys are the main
methods of descriptive research. Each category of descriptive research design is applied
to the relevant research question (Harris, 1994).
27
3.3 Population and Sampling Design
3.3.1 Population
Coopers and Schindler (2008) define population as a set of people, events or
variables that can be investigated to draw a conclusion. Establishing a population that will
cater for the specific needs of the researcher is very crucial in the research process.
Population can also be defined as a summation of variables from which inference can be
drawn. In this research, the population comprised all the employees of KENTRADE who
are made up of the top level managers, low level managers, team leaders, project leaders
and the employees. This was the breakdown of the targeted population at the area of study
as summarised below.
Table 3.1: Population
Population Category Population Size Population Percentage
Top level management 14 22
Middle level management 10 16
Employees 40 62
Totals 64 100
Source: Kentrade (2014)
3.3.2 Sampling Design
3.3.2.1 Sampling Frame
Frankfort-Nachmias and Nachmias (1996) define a sampling frame as a list that
comprises all the sampling units from which a sample can be drawn from a population of
members. Cooper and Schindeler (2008) also define a sampling frame as a population list
from which a sample can be drawn. These definitions are more or less the same. In this
study, the sampling frame was a list of 64 members of staff as it was obtained from the
human resources office. The respondents at KENTRADE are categorised into the top
management, lower management and finally, the employees who perform day-to-day
operations.
28
3.3.2.2 Sampling Technique
According to Collins and Hussey (2006), a sampling technique is a process of
selecting variables from the population that represent the population. A sample is a group
from the population that will be representative of the population (Coopers and Schindler,
2008). The sampling technique used in this study was a census approach. It is
characterized by administering questionnaires to the whole population in cases where the
population is small so as to get accurate feedback (Sarandakos, 2005). The benefit of
using the census approach is accuracy; you get to receive feedback from all the
employees (Sarandakos, 2005).
3.3.2.3 Sample Size
According to Frankfort-Nachmias and Nachmias (1996), a sample size is a group
of sampling units that does not include the entire set of sampling units from the
population. This gives a platform for all population in the organisation to be represented.
Thietart et al. (2001), also define sample size as a set of variables from which data are
collected. It enables a researcher to plan his research in good time and assessing the
financial implications before conducting the research.
The sample size in this study was the entire population of sixty-four (64). The
breakdown is as presented below.
Table 3.2: Sample Size from the Population
Category Sample size Percentage
Top level Managers 14 22
Middle Level Managers 10 16
Employees 40 62
Total 64 100
3.4 Data Collection Method
According to Mugenda and Mugenda (2003), data collection is defined as the
collection of information from a list of respondents in order to draw a conclusion.
Questionnaires and interviews were administered to the target population. The use of
questionnaires as a method of collecting primary data allows those employees who cannot
29
be available for an interview to give feedback about the subject matter through answering
the questionnaires. The questionnaire consisted of both the open and closed-ended
questions to let the respondents voice their opinions without fear of contradiction. It is
limiting to provide only closed-ended questions to the respondents because it does not
give room for provision of an alternative answers. Open-ended questions on the other
hand provide respondents with freedom to express themselves in an unbiased manner,
(Bryman & Bell, 2003).
The structure of the questionnaires was based on the research questions. It had two
sections. Section one was general information. Section two addressed issues regarding
change management and performance, challenges to change management process and
change management models used by leaders.
3.5 Research Procedure
Data collection is the gathering of information to give meaningful information to
the user. The research took a census approach where structured questionnaires were issued
to the whole population so as to collect primary data. To foster equal representation,
managers were requested to provide a list of employees working under them so that each
person was represented and coding to follow thereafter. The questionnaires used in the
study were pilot tested on employees in a different organization of the same nature. As a
consequence of the preliminary test, slight alterations in word selection and instructions
were made to the questionnaire. The questionnaires were administered to the respondents
in a drop-and-pick-later technique where they were implored upon and informed of their
obligation to respond to every query in the questionnaire. This was accomplished by
making the research assistants going through the questionnaires and making a follow-up
with the respondents to make them answer every question. To foster increased response
rate, a cover letter promising confidentiality of the data collected for the sole purpose of
academic, was issued alongside the questionnaires.
3.6 Data Analysis Method
To ensure easy analysis, the questionnaires were coded according to each variable
of the study to ensure the margin of error was minimized to assure accuracy during
analysis. Data was cleaned and entered into a data analyzing software. This study used the
30
quantitative method of data analysis to analyze the data collected. The study employed
descriptive and inferential statistics as statistical measures. The results were presented
using tables to give a clear picture of the research findings at a glance
3.4 Chapter Summary
This chapter describes the research methodology used by the researcher to collect
and analyze data. A census research design was used and focused on Kenya Trade
Network Agency. This was done by identifying the population, the sample frame to be
used, the sample size, data collection instruments used and finally the data analysis
procedure. In the next chapter, data findings are analyzed and presented in tables of
frequency distributions, percentages and correlation coefficient.
31
CHAPTER FOUR
4.0 RESULTS AND FINDINGS
4.1 Introduction
This chapter presents the analyzed results and findings of the study on the
research questions concerning the data collected from the respondents. The first section
covers background information, which presents response rate and demographic
presentation of the respondents. The second section deals with effects of change
management on organizational performance. The third section is on the challenges
organizations face as they undergo change management process and the final section is on
the best change management models used by organizations.
4.2 Background Information
4.2.1 Response Rate
To show how many respondents participated in the study, Table 4.1 (response
rate) was used. From the table, out of a population of 64 members of staff, 36 responded
registering a 56 percent response rate. The result implies that a significant number of the
sample participated in the study.
Table 4.1: Response Rate
Sample Frequency Percentage
Responded 36 56%
Did not respond 28 44%
Total Sample 64 100%
4.2.2 Gender of Respondents
Table 4.2 displays the gender of the respondents who participated in the study.
From the table, it is well shown that 44.4% of the respondents were female and 55.6%
were male. The indication from the table is that there were more male employees in
KENTRADE than female employees.
32
Table 4.2: Gender of Respondents
Frequency Percentage
Female 16 44.4
Male 20 55.6
Total 36 100.0
4.2.3 Age of Respondents
To demonstrate the age of respondents, Table 4.3 was used. From the table, it is
revealed that 22.2% of respondents were 21 to 30 years, 27.8% were between 31 to 40
years, 36.1% were between 41 to 50 years, and 13.9% were 51 years and above. The
study shows that at KENTRADE, majority of employees were between 41 to 50 years of
trade.
Table 4.3: Age of Respondents
Frequency Percentage
21 to 30 Years 8 22.2
31 to 40 Years 10 27.8
41 to 50 years 13 36.1
51 years and above 5 13.9
Total 36 100.0
4.2.4 Level of Education
Table 4.4 demonstrates the level of education of employees at KENTRADE.
From the table, it is well demonstrated that 22.2% of employees had doctorate education,
44.4% had masters education and 33.3% had undergraduate education. The table implies
that the majority of employees at KENTRADE had masters education.
Table 4.4: Level of Education
Frequency Percentage
Doctorate 8 22.2
Graduate 16 44.4
Undergraduate 12 33.3
Total 36 100.0
33
4.2.5 Specialization and Level of Education
Table 4.5 shows the cross-tabulation between specialization and level of
education. From the table, 50% of doctorate respondents had business degrees, 12.5% had
science degrees and 37.5 had arts degrees. On the other hand, 18.8% of post graduate
respondents had degrees in business, 43.8% had degrees in science and 37.5% had
degrees in arts. Also the table shows that 33.3% of undergraduate respondents had
degrees in business, 41.7% had degrees in science and 25% had degrees in arts.
Generally, more of the respondents hold degrees in science (36.1%) followed by arts
(33.3%) and lastly business (30.6%).
Table 4.4: Specialization and Level of Education
Specialization Total
Arts Sciences Business
Lev
el o
f
educa
tion
Doctorate 3 1 4 8
37.5% 12.5% 50.0% 100.0%
Graduate 6 7 3 16
37.5% 43.8% 18.8% 100.0%
Undergraduate 3 5 4 12
25.0% 41.7% 33.3% 100.0%
Total 12 13 11 36
33.3% 36.1% 30.6% 100.0%
4.2.6 Change Management Process and Adoption Years
Table 4.5 shows the relationship between change management process and the
adoption years. From the study, all respondents (100%) assert that change management
process had been adopted for 1 to 5 years. The study implies that the change management
process in the organization is below five years old.
Table 4.5: Change Management Process and Adoption Years
If yes, what are the adoption
years? Total
1 to 5 years
Is there a change
management process in the
organization?
Yes 36 36
100.0% 100.0%
Total 36 36
100.0% 100.0%
34
4.2.7 Change Process
The study in Table 4.6 reveals who initiates the change process in an organization.
From the table, 22.2% of the respondents believe that the change process is initiated by
the CEO, 27.8% believe that the change process is initiated by the top management, and
27.8% of the respondents believe that the process is initiated by middle level
management. The table also shows that 13.9% of respondents believe that the change
process in an organization is initiated by subordinates while 8.3% of respondents believe
that the change process is initiated by the consultants.
From the study, more of the respondents believe that the change process in an
organization is initiated by top management and middle level management.
Table 4.6: Change Process
Who initiates the change process?
Frequency Percentage
CEO 8 22.2
Top Management 10 27.8
Middle level management 10 27.8
Subordinates 5 13.9
Consultants 3 8.3
Total 36 100.0
4.2.8 Change Management Factors
Table 4.7 displays the cross-tabulation between level of education and factors
affecting change management process. The findings of the study reveals that 12.5% of
doctorate respondents believe that change management process is affected by
documentation, 12.5% believe that change management is affected by appraisal, 50%
believe that change management is affected by technology and 25% of respondents
believe that change management is affected by training.
On the other side, 12.5% of post-graduate respondents believe that documentation
affect change management, 6.3% believe that appraisal affect change management and
25% believe that information recognition affect change management. Also 31.3% and
25% of post-graduate respondents confirm that change management is affected by
technology and training respectively.
35
Lastly, the study reveals that 8.3% of respondents agree that change management
is affected by documentation, 8.3% agree that appraisal affects change management and
33.3% agree that change management is affected by information recognition. The study
also shows that 33.3% and 16.7% of respondents with undergraduate education believe
that technology and training respectively affect change management process.
On a general view point, more respondents (36.1%) believe that technology is the
main factor that enhance change management process while a few respondents (8.3%)
believe that change management process is least enhanced by appraisal.
Table 4.7: Change Management Factors
What factors affect the change management process?
Total
Docu
men
tati
on
Appra
isal
Info
rmat
ion
Rec
ognit
ion
Tec
hnolo
gy
Tra
inin
g
Lev
el o
f
educa
tion
Doctorate 1 1 0 4 2 8
12.5% 12.5% 0.0% 50.0% 25.0% 100.0%
Graduate 2 1 4 5 4 16
12.5% 6.3% 25.0% 31.3% 25.0% 100.0%
Undergraduate 1 1 4 4 2 12
8.3% 8.3% 33.3% 33.3% 16.7% 100.0%
Total 4 3 8 13 8 36
11.1% 8.3% 22.2% 36.1% 22.2% 100.0%
4.2.9 Change Management Process
Table 4.8 shows the features that characterize the change management process.
The study used coefficient of variation as a statistical method to rank the significance of
the factors that enhance change management process starting from high significant to low
significance.
From the table it is clearly shown that change management process is enhanced by
clearly outlined job description (CV 0.238), training workshops (CV 0.351), performance
appraisal meeting (CV 0.388), goal setting meetings (CV 0.390) and innovation (CV
0.414)
36
From the table, it is implied that clearly outlined job description and training
workshop significantly enhance change management process in KENTRADE. The table
also shows that goal setting meetings and innovation enhance change management
process at a low rate.
Table 4.8: Change Management Process
N Mean Std. Deviation Coefficient of Variation
Clearly outlined job
description 36 3.750 1.052 0.281
Training workshops 36 2.917 1.025 0.351
Performance appraisal meeting 36 3.611 1.400 0.388
Goal setting meetings 36 2.139 0.833 0.390
Innovation 36 2.972 1.230 0.414
4.2.10 Goal Setting Meetings
The study in Table 4.9 reveals the relationship between gender and goal setting
meetings. From the table, 68.8% of female respondents disagreed that goal setting
meetings enhance change management process, 6.3% agreed to the statement while 25%
were neutral to the statement.
Contrary, 80% of male respondents disagreed that goal setting enhances change
management process, 10% agreed to the statement and 10% were neutral to the statement.
Generally, 75% of respondents disagreed that goal setting meetings enhance
change management process, 16.7% were neutral to the statement and 8.3% agreed to the
statement. The implication of this study is that goal setting meetings do not facilitate
change management process at a higher rate.
Table 4.9: Goal Setting Meetings
Goal setting meetings
Total Strongly Disagree Disagree Neutral Agree
Gen
der
Female 1 10 4 1 16
6.3% 62.5% 25.0% 6.3% 100.0%
Male 6 10 2 2 20
30.0% 50.0% 10.0% 10.0% 100.0%
Total 7 20 6 3 36
19.4% 55.6% 16.7% 8.3% 100.0%
37
4.2.11 Training Workshop
Table 4.10 displays the cross-tabulation between training workshop and age of
respondents. From the table, it is clearly indicated that 50% of respondents with 21 to 30
years disagreed that training workshops facilitate organizational change management
process while 50% of the same respondents were neutral about the statement.
On the other side, 20% of respondents with 31 to 40 years disagreed that training
workshop enhance change management process, 30% were neutral and 50% agreed to the
statement. The study also showed that 23.1% of the respondents with 41 to 50 years
disagreed to the statement that training workshops enhance change management process,
46% were neutral and 30.8% agreed to the statement. Lastly the table shows that 20% of
respondents with 51 years and above disagreed to the latter statement while 80% were
neutral to the statement.
Table 4.10: Training Workshops
Training workshops
Total
Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
Age
21 to 30
Years 1 3 4 0 0 8
12.5% 37.5% 50.0% 0.0% 0.0% 100.0%
31 to 40
Years 1 1 3 5 0 10
10.0% 10.0% 30.0% 50.0% 0.0% 100.0%
41 to 50
years 1 2 6 2 2 13
7.7% 15.4% 46.2% 15.4% 15.4% 100.0%
51 years
and
above
1 0 4 0 0 5
20.0% 0.0% 80.0% 0.0% 0.0% 100.0%
Total 4 6 17 7 2 36
11.1% 16.7% 47.2% 19.4% 5.6% 100.0%
4.2.12 Performance Appraisal Meeting
Table 4.11 displays the relationship between performance appraisal meeting and
level of education. From the table, 12.5% of doctorate respondents disagreed that
performance appraisal meeting enhance organizational change management while 87.5%
agreed that performance appraisal meetings enhance change management process.
38
The study also reveals that 18.8% of respondents with post-graduate education
disagreed that performance appraisal meetings facilitate change management process,
6.3% were neutral to the statement and 75.1% agreed to the statement.
For undergraduate respondents, 41.6% of respondents disagreed that performance
appraisal meeting enhance change management, 8.4% were neutral and 50% agreed that
performance appraisal meetings enhance organizational change management process.
On a general view, 25% of respondents disagreed that performance appraisal
meeting enhance change management process, 5.6% were neutral to the statement and
69.5% of respondents agreed that performance appraisal meetings facilitate change
management process. The study implies that performance appraisal meetings facilitate
change management process.
Table 4.11: Performance Appraisal Meeting
Performance appraisal meeting Total Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
Lev
el o
f
educa
tion
Doctorate 0 1 0 4 3 8
0.0% 12.5% 0.0% 50.0% 37.5% 100.0%
Graduate 1 2 1 7 5 16
6.3% 12.5% 6.3% 43.8% 31.3% 100.0%
Undergraduate 4 1 1 3 3 12
33.3% 8.3% 8.3% 25.0% 25.0% 100.0%
Total 5 4 2 14 11 36
13.9% 11.1% 5.6% 38.9% 30.6% 100.0%
4.2.13 Clearly Outline Job Description
To demonstrate how clearly outlined job description enhances organizational
change management, Table 4.12 was extracted. From the table, 8.3% of respondents who
specialized in arts disagreed that clearly outlined job description enhances change
management process, 25% were neutral and 66.7% agreed to the statement.
On the other side, 7.7% of respondents who specialized in science disagreed that
clearly outlined job description facilitates change management process, 23.1% were
neutral to the statement and 69.3% agreed to the statement. The table also shows that
27.3% of respondents with business specialization disagreed that clearly outlined job
39
description enhances change management process, 9.1% were neutral to the statement
and 63.7% of the respondents agreed to the statement.
Generally, 13.9% of respondents disagreed that clearly outlined job description
enhances change management process, 19.4% were neutral about the statement and
66.7% agreed to the statement. The study hence implies that clearly outlined job
description enhances organizational change management.
Table 4.12: Clearly Outline Job Description
Clearly outlined job description Total Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
Spec
iali
zati
on
Arts 1 0 3 5 3 12
8.3% 0.0% 25.0% 41.7% 25.0% 100.0%
Sciences 0 1 3 5 4 13
0.0% 7.7% 23.1% 38.5% 30.8% 100.0%
Business 0 3 1 5 2 11
0.0% 27.3% 9.1% 45.5% 18.2% 100.0%
Total 1 4 7 15 9 36
2.8% 11.1% 19.4% 41.7% 25.0% 100.0%
4.2.14 Innovation
Table 4.13 shows the level at which respondents of different level of education
agree or disagree to the statement that innovation enhances change management process
in the organization. From the study, 37.5% of respondents with doctorate education
disagreed that innovation facilitate change management process, 37.3% were neutral and
25% of the respondents agreed to the statement.
The study also shows that 18.8% of respondents with post-graduate education
disagreed that innovation enhance change management process, 62.5% were neutral to
the statement and 18.8% of the respondents agreed to the statement. For respondents with
undergraduate education, 33.3% of the respondents did not believe that innovation
enhances change management process, 25% were neutral and 41.7% of respondents
agreed to the statement.
40
Generally, 27.8% of respondents did not agree that innovation enhance change
management, 44.4% were neutral and 27.8% of the respondents agreed to the statement.
The study implies that innovation do not enhance change management process.
Table 4.13: Innovation
Innovation
Total Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
Lev
el o
f
educa
tion
Doctorate 2 1 3 1 1 8
25.0% 12.5% 37.5% 12.5% 12.5% 100.0%
Graduate 1 2 10 1 2 16
6.3% 12.5% 62.5% 6.3% 12.5% 100.0%
Undergraduate 3 1 3 3 2 12
25.0% 8.3% 25.0% 25.0% 16.7% 100.0%
Total 6 4 16 5 5 36
16.7% 11.1% 44.4% 13.9% 13.9% 100.0%
4.3 Organization Performance and Change Management
The study had an aim of assessing the influence of performance on change
management. The study sought information from training, reward, recognition,
performance appraisal goal setting among others. The study employed coefficient of
variation (CV) as a standard measure that was used to rank the significance of the study
starting with the highest significant factors to the lowest significant factors. The lower the
value of coefficient of variation the higher the significance and the higher the value of
CV, the lower the significance.
Table 4.14 shows that training affects performance in the change management
process (CV 0.30). The study also demonstrates that reward and recognition is good
employee compensation in the change management process (CV 0. 39). In a change
management process, performance appraisals clearly specify what is expected from an
employee. Goal setting is also a factor that contributes towards improving performance
during change management process (CV 0.41).
The study implies that training is a significant factor that enhances performance
than goal setting.
41
Table 4.14: Performance in Change Management Process
N Mean Std.
Deviation Coefficient of variation
Training affects performance in the
change management process 36 3.69 1.12 0.30
Reward and recognition is a good
employee compensation in the change
management process
36 2.81 1.09 0.39
Performance appraisals clearly
specifies what is expected from an
employee in a change process
36 2.19 0.86 0.39
Goal setting contributes to improved
performance in the change
management process
36 2.72 1.11 0.41
4.3.1 Correlation of Performance Appraisal and other Factors
The study in Table 4.15 demonstrates the correlations between performance
appraisal and other factors that enhance performance. From the study, it is well
demonstrated that performance appraisal clearly specifies what is expected from an
employee in a change management process. The table shows that training correlates with
performance at (r= 0.355*, p<0.05, N= 36). After an employee is trained how to perform,
the study shows that the employee is rewarded and recognized in the organization hence
reward and recognition correlates with performance appraisal at (r= 0.356*, p<0.05,
N=36). The act of rewarding and recognizing employees make the change management
process acceptable by the entire workforce in the organization (r= 0.467**, p<0.01,
N=36).
Table 4.15: Correlation of Performance Appraisal
Performance appraisals clearly specifies what is expected
from an employee in a change management process
Pearson Correlation Sig. (2-tailed) N
Training affect performance in the
change management process .355* .034 36
Reward and recognition is a good
employee compensation in the
change management process
.356* .033 36
Change management process is
acceptable by the entire
workforce in the organization
.467** .004 36
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
42
4.3.2 Goal Setting
Table 4.16 displays the relationship between gender and goal setting. From the
table, 37.5% of female respondents disagree that goal setting contribute to improved
performance in the change management process, 50% were neutral to the statement while
12.5% of the respondents agreed believed that goal setting contribute to improved
performance in the change management process.
Contrary, 45% of the respondents did not believe that goal setting contribute to
improved performance in the change management process, 30% were neutral and255
agreed to the statement.
Generally, 41.7% of respondents disagreed that goal setting contribute to
improved performance in the change management process, 38.9% were neutral and
19.4% agreed to the statement. The implication of the study is that goal setting does not
contribute to improved performance in the change management process.
Table 4.16: Goal Setting
Does goal setting contribute to improved performance
in the change management process? Total
Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
Gen
der
Female 2 4 8 0 2 16
12.5% 25.0% 50.0% 0.0% 12.5% 100.0%
Male 3 6 6 4 1 20
15.0% 30.0% 30.0% 20.0% 5.0% 100.0%
Total 5 10 14 4 3 36
13.9% 27.8% 38.9% 11.1% 8.3% 100.0%
4.3.3 Training
To demonstrate how training affects performance in the change management
process, Table 4.17 was employed. From the table, 37.5% of respondents with 21 to 30
years disagreed that training affects performance in the change management process,
37.5% were neutral and 25% agreed to the statement.
43
The study also showed that 10% of respondents did not believe that training affect
performance in the change management process, 20% were neutral and 70% believed in
the statement. For the respondents with 41 to 50 years, 7.7% disagreed that training affect
performance during change management process, 7.7% were neutral and 84.7% agreed to
the statement. Lastly, 40% of respondents with 51 and above years were neutral about
how training affects performance while 60% agreed that training affect performance
during change management process.
Table 4.17: Training
Does training affect performance in the change
management process? Total
Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
Age
21 to 30
Years 1 2 3 1 1 8
12.5% 25.0% 37.5% 12.5% 12.5% 100.0%
31 to 40
Years 0 1 2 5 2 10
0.0% 10.0% 20.0% 50.0% 20.0% 100.0%
41 to 50
years 1 0 1 6 5 13
7.7% 0.0% 7.7% 46.2% 38.5% 100.0%
51 years and
above 0 0 2 2 1 5
0.0% 0.0% 40.0% 40.0% 20.0% 100.0%
Total 2 3 8 14 9 36
5.6% 8.3% 22.2% 38.9% 25.0% 100.0%
4.3.4 Cross-Tabulation of Education and Performance Appraisal
Table 4.18 shows the cross-tabulation between level of education and
performance appraisal. The study shows that 50% of doctorate respondents disagreed that
performance appraisals clearly specify what is expected from an employee in a change
process, 12.5% were neutral and 37.5% agreed to the statement. On the other hand, 81.3%
of the post graduate respondents did not believe that performance appraisal clearly
specifies what is expected from an employee in a change management process while
18.8% were neutral. The study also shows that 66.7% of undergraduate respondents
disagreed that performance appraisal clearly specifies what is expected from an employee
in a change process while 33.3% were neutral.
The study therefore implies that performance appraisal does not clearly specify
what is expected from an employee in a change process.
44
Table 4.18: Cross-Tabulation of Performance Appraisal
Do performance appraisals clearly specifies
what is expected from an employee in a
change process Total
Strongly
Disagree Disagree Neutral Agree
Lev
el o
f
educa
tion
Doctorate 3 1 1 3 8
37.5% 12.5% 12.5% 37.5% 100.0%
Graduate 4 9 3 0 16
25.0% 56.3% 18.8% 0.0% 100.0%
Undergraduate 0 8 4 0 12
0.0% 66.7% 33.3% 0.0% 100.0%
Total 7 18 8 3 36
19.4% 50.0% 22.2% 8.3% 100.0%
4.3.5 Reward and Recognition
Table 4.19 demonstrates the relationship between specialization and reward and
recognition. From the table, 33.3% of respondents specialized in arts thought that reward
and recognition is not good employee compensation in the change management process,
25% were not sure and 41.6% believed in the statement.
Table 4.19: Reward and Recognition
Do you think reward and recognition is a good
employee compensation in the change management
process Total
Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
Spec
iali
zati
on
Arts 3 1 3 4 1 12
25.0% 8.3% 25.0% 33.3% 8.3% 100.0%
Sciences 3 3 4 3 0 13
23.1% 23.1% 30.8% 23.1% 0.0% 100.0%
Business 0 2 7 2 0 11
0.0% 18.2% 63.6% 18.2% 0.0% 100.0%
Total 6 6 14 9 1 36
16.7% 16.7% 38.9% 25.0% 2.8% 100.0%
The study in table 4.19 also shows that 46.2% of respondents specialized in
sciences disagreed that reward and recognition is good employee compensation in the
change management process, 30.8% were neutral and 23.1% agreed to the statement. For
those who specialized in business, the study shows that 18.2 believed that reward and
45
recognition is good employee compensation in the change management process, 63.6%
were neutral and 18.2% agreed to the statement.
4.3.6 Acceptability of Change Management
Table 4.20 shows the relationship between respondents’ level of education and the
acceptability of change management process. The study shows that 37.5% of respondents
with doctorate education disagreed that change management process is acceptable by the
entire workforce in the organization, 12.5% were neutral and 50% agreed that their entire
workforce have accepted change management process.
On the other hand, 25% of the respondents with post graduate education disagreed
that their entire workforce has accepted the change management process, 12.5% were
neutral and 62.5% agreed to the statement. The study also shows that 50% of respondents
with undergraduate education disagreed that change management process is acceptable by
the entire workforce while 50% agreed to the statement.
Table 4.20: Acceptability of Change Management Process
Is change management process acceptable by the
entire workforce in the organization? Total
Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
Lev
el o
f
educa
tion
Doctorate 1 2 1 3 1 8
12.5% 25.0% 12.5% 37.5% 12.5% 100.0%
Graduate 4 0 2 4 6 16
25.0% 0.0% 12.5% 25.0% 37.5% 100.0%
Undergraduate 3 3 0 3 3 12
25.0% 25.0% 0.0% 25.0% 25.0% 100.0%
Total 8 5 3 10 10 36
22.2% 13.9% 8.3% 27.8% 27.8% 100.0%
On a general view, change management process is well accepted by the majority
of the workforce in KENTRADE.
4.4 Key Challenges in Change Management Process
The second objective of the study was to determine the key challenges in change
management process. The study sought information from communications, employee
skills, organizational resources, empowerment, and commitment. The study utilized
46
coefficient of variation as a statistical measure that was used to gauge the significance of
the challenges in change management process. The output is ranked from the highest
significance down to the lowest significance.
From Table 4.21, it is clear that lack of sufficient communication of
organization’s goals during the management change process is a key challenge to the
organization (CV 0.262). The study also shows that failure to leverage the skills of the
employees to the organization resources in the change process is a problem to the
organization (CV 0.309).
Lack of employee empowerment and commitment from the workforce when an
organization is undergoing change management process, to some extent plays a negative
impact on the success of the change management process. This is denoted by the
coefficient of variation values of (CV 0.355 and 0.419).
Table 4.21: Key Challenges in Change Management Process
N Mean Std.
Deviation
Coefficient
of
variation
Unclear communication of organization goals
during the change management process 36 3.92 1.025 0.262
Failure to leverage the skills of the employees
to the organization resources in the change
process
36 3.64 1.125 0.309
Lack of employee empowerment during the
change management process 36 3.72 1.323 0.355
Lack of commitment from the workforce when
an organization is undergoing change
management process
36 3.25 1.360 0.419
The study implies that unclear communication of organization’s goals and failure
to leverage skills of employees to the organization resources are the key factors that
hinder the success of organization change process.
4.4.1 Lack of Employee Empowerment during the Change Management Process
Table 4.22 demonstrates the relationship between initiator of the change process,
unclear communication and lack of employee empowerment. The tables shows that lack
of employee empowerment correlates with initiator of the change process at (r= 0.355*,
47
p<0.05, N=36). The study also reveals that lack of employee empowerment correlates
with unclear communication of organizational goals at (r=0.404*, p<0.05, N=36).
The implication of the study is that initiators of the change process believe that
lack of employee empowerment hinders the change process hence causing unclear
communication of organizational goals.
Table 4.22: Lack of Employee Empowerment
Lack of employee empowerment during
the change management process
Pearson
Correlation
Sig. (2-
tailed) N
Initiator of the change process -.355* .034 36
Unclear communication of organization goals
during the change management process .404* .015 36
*. Correlation is significant at the 0.05 level (2-tailed).
4.4.2 Gender and Employee Empowerment
To check how lack of employee empowerment hinders the change process, Table
4.23 was extracted. From the table, 15.1% of the female respondents disagreed that lack
of employee empowerment hinders change process, 18.8% were neutral and 56.3% of the
respondents agreed that lack of employee empowerment is a problem to change process.
On the other side, 15% of the respondents do not believe that lack of employee
empowerment is a problem to the change process, 20% were neutral and 65% of the
respondents confirmed that lack of empowerment is a key challenge to the change
process.
Table 4.23: Employee Empowerment
Lack of employee empowerment during the change
management process Total
Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
Gen
der
Female 3 1 3 3 6 16
18.8% 6.3% 18.8% 18.8% 37.5% 100.0%
Male 0 3 4 5 8 20
0.0% 15.0% 20.0% 25.0% 40.0% 100.0%
Total 3 4 7 8 14 36
8.3% 11.1% 19.4% 22.2% 38.9% 100.0%
48
The study implies that lack of employee empowerment is a challenge during the
change management process.
4.4.3 Unclear Communication
Table 4.24 shows the cross-tabulation between level of education and unclear
communication of organization goals. The table shows that 75% of respondents with
doctorate education confirmed that unclear communication of organization goals is a
stumbling block of successful change management process while 25% were neutral to the
statement. The table also demonstrates that 81.2% of post-graduate respondents agreed
that unclear communication of organization goals causes a problem during change
process while 18.8% disagreed to the statement. Lastly, the table reveals that 16.7% of
respondents with undergraduate education disagreed to the statement, 25% were neutral
and 58.3% agreed to the statement.
Table 4.24: Unclear Communication
Unclear communication of organization goals
during the change management process Total
Disagree Neutral Agree Strongly
Agree
Lev
el o
f
educa
tion
Doctorate 0 2 4 2 8
0.0% 25.0% 50.0% 25.0% 100.0%
Graduate 3 0 7 6 16
18.8% 0.0% 43.8% 37.5% 100.0%
Undergraduate 2 3 3 4 12
16.7% 25.0% 25.0% 33.3% 100.0%
Total 5 5 14 12 36
13.9% 13.9% 38.9% 33.3% 100.0%
On a general view, unclear communication of organization goals causes the failure
of change management process.
4.4.4 Commitment
The study in Table 4.25 shows how lack of commitment from the workforce is a
challenge to an organization that is undergoing the change management process. The
table displays that 25% of respondents with 21 to 30 years disagreed that lack of
commitment from the workforce is a challenge to change process, 12.5% were neutral
and 62.5% of the respondents agreed to the statement.
49
Table 4.25: Lack of Commitment
Lack of commitment from the workforce when an
organization is undergoing change management
process Total
Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
Age 21 to 30
Years 0 2 1 3 2 8
0.0% 25.0% 12.5% 37.5% 25.0% 100.0%
31 to 40
Years 3 1 2 3 1 10
30.0% 10.0% 20.0% 30.0% 10.0% 100.0%
41 to 50
years 1 4 1 3 4 13
7.7% 30.8% 7.7% 23.1% 30.8% 100.0%
51 years
and
above
0 2 1 1 1 5
0.0% 40.0% 20.0% 20.0% 20.0% 100.0%
Total 4 9 5 10 8 36
11.1% 25.0% 13.9% 27.8% 22.2% 100.0%
Contrary, Table 4.25 shows that 40% of respondents with 31 to 40 years disregard
the statement that lack of commitment from the workforce is a challenge to the change
process, 20% were neutral and 40% of the respondents agreed to the statement. The table
also shows that 38.5% of respondents disagreed that lack of commitment from the
workforce is a challenge to change process, 7.7% were neutral and 53.9% confirmed the
challenge. For the respondents with 51 years and above, 40% disagreed to the latter
statement, 20% were neutral and 40% agreed to the statement.
4.4.5 Leverage the Skills of Employees
Table 4.26 demonstrates the cross-tabulation between specialization and leverage
of employee skills. From the table, 8.3% of respondents specialized in arts disagreed that
failure to leverage the skills of the employees to the organization resources is not a
challenge to the change process, 33.35% were neutral and 58.35% believed that failure to
leverage the skills of the employees to the organization resources is a hindrance to
effective change process.
For the respondents specialized in science, 23.1% of the respondent disagreed that
failure to leverage the skills of the employees to the organization resources is a problem
to the change process, 23.1% were neutral and 53.9% agreed to the statement. The study
also shows that 18.2% of respondents who specialized in business disagreed that failure to
50
leverage skills of employee hinders the change process and 81.8% believed that failure to
leverage the skills was a challenge to change process.
Table 4.26: Leverage the Skills of Employees
Failure to leverage the skills of the employees to the
organization resources in the change process? Total
Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
Spec
iali
zati
on
Arts 0 1 4 3 4 12
0.0% 8.3% 33.3% 25.0% 33.3% 100.0%
Sciences 1 2 3 5 2 13
7.7% 15.4% 23.1% 38.5% 15.4% 100.0%
Business 1 1 0 7 2 11
9.1% 9.1% 0.0% 63.6% 18.2% 100.0%
Total 2 4 7 15 8 36
5.6% 11.1% 19.4% 41.7% 22.2% 100.0%
The study implies that when management fails to leverage the skills of the
employees to the organization resources, the change process becomes a problem.
4.4.6 Achieve Organizational Goals
Table 4.27 shows whether management has achieved organizational goals. From
the study, 25% of respondents with doctorate education believe that management has
achieved organization goals while 75% do not believe so. The study also shows that 75%
of respondents with post graduate education agreed that management has achieved
organization goals while 25% disagreed.
Table 4.27: Organizational Goals
Has management achieved
organization goals? Total
Yes No
Level of
education
Doctorate 2 6 8
25.0% 75.0% 100.0%
Graduate 12 4 16
75.0% 25.0% 100.0%
Undergraduate 5 7 12
41.7% 58.3% 100.0%
Total 19 17 36
52.8% 47.2% 100.0%
51
For respondents with undergraduate education, 41.7% agreed that management has
achieved organization goals while 58.3% disagreed.
4.5 Change Management Models
The study had to identify change management models the organization is using.
The study sought information from model, bottom up approach, top bottom approach,
workforce, resistance, lack of commitment and top management. The study employed the
use of coefficient of variation (CV) as a standard measure that was used to rank the
significance of the factors. The factors were arranged from the highest significance to the
lowest significance.
From Table 4.28, it is imperative for an organization to choose the appropriate
model that fits its needs and wants (CV, 0.19). The study also found it very significant for
an organization to use bottom up approach as the change management model (CV, 0.22).
The bottom up approach was found to be the best than the top bottom approach which had
a CV value of 0.33. The study found that for an organization to achieve the best in its
change process, the workforce should work together as a team (CV, 0.42).
The study, therefore, implies that the best change management model to be used
in public sector should be bottom up approach.
Table 4.28: Change Management Approach
N Mean Std.
Deviation
Coefficient of
variation
It is crucial for an organization to choose
the appropriate model that will fit its
needs and wants
36 4.17 0.81 0.19
The bottom up approach is the best change
management model to be employed 36 4.00 0.86 0.22
The top bottom approach is the best
change management model to be used 36 3.58 1.18 0.33
The workforce should work together to
achieve the organization needs in the
change process
36 3.42 1.30 0.38
Top management should administer the
change process 36 3.44 1.46 0.42
52
4.5.1 Should Top Management Administer Change Process?
Table 4.29 shows the relationship between age of respondents and top
management administering the change process. The table displays that 25% of
respondents with 21 to 30 years disagreed that top management should administer the
change process, 25% were neutral and 50% agreed to the statement.
On the other hand, the study found that 30% of respondents with 31 to 40 years do
not believe that top management should administer the change process while 70%
believed in the statement. The study also shows that 23.1% of respondents with 41 to 50
years say that top management should not administer the change process, 23.1% were
neutral and 53.8% agreed that top management should administer the change process. For
the respondents with 51 years and above, 60% of them disagreed to the latter statement
while 40% agreed to the statement.
Table 4.29: Top Management Administering Change Process
Should top management administer the change process?
Total Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
Age
21 to 30
Years 0 2 2 0 4 8
0.0% 25.0% 25.0% 0.0% 50.0% 100.0%
31 to 40
Years 3 0 0 3 4 10
30.0% 0.0% 0.0% 30.0% 40.0% 100.0%
41 to 50
years 0 3 3 3 4 13
0.0% 23.1% 23.1% 23.1% 30.8% 100.0%
51 years
and above 2 1 0 2 0 5
40.0% 20.0% 0.0% 40.0% 0.0% 100.0%
Total 5 6 5 8 12 36
13.9% 16.7% 13.9% 22.2% 33.3% 100.0%
4.5.2 Preferred Change Management Model
Table 4.30 shows how appropriate model is crucial in achieving organization
change process. From the table, 12.5% of respondents with doctorate education disagreed
that the appropriate model is imperative for an organization that is undergoing change
process, 12.5% were neutral and 75% agreed to the statement.
53
Contrary, 81.2% of respondents with post graduate education agreed that it is
crucial for an organization to choose the appropriate model that will fit the needs and
wants of the organization while 18.8% were neutral. This also is shown in the
undergraduate category whereby 83.3% of respondents agreed to the latter statement and
16.7% were neutral.
Generally the study concludes that appropriate model that fits the needs and wants
of an organization is imperative to an organization undergoing change process.
Table 4.30: Preferred Model
Is it crucial for an organization to choose the
preferred model that will fit the needs and
wants of the organization? Total
Disagree Neutral Agree Strongly
Agree
Level of
education
Doctorate 1 1 4 2 8
12.5% 12.5% 50.0% 25.0% 100.0%
Graduate 0 3 5 8 16
0.0% 18.8% 31.3% 50.0% 100.0%
Undergraduate 0 2 6 4 12
0.0% 16.7% 50.0% 33.3% 100.0%
Total 1 6 15 14 36
2.8% 16.7% 41.7% 38.9% 100.0%
4.5.3 Teamwork
To determine whether the workforce should work together for the change to grow
upwards, Table 4.31 was utilized. From the table, 25% of the respondents who
specialized in arts don’t believe that the workforce should work together for the change to
grow, 33.3% were neutral and 41.7% agreed to the statement. On the other side, 7.7% of
the respondents with specialization in science agreed that workforce should work together
for the change to grow, 30.8% were neutral and 61.6% agreed to the statement. The study
also shows that 18.2% of respondents with specialization in business don’t believe that
workforce working together enhances change process, 27.3% were neutral and 54.6%
believe in the statement.
54
Table 4.31: Teamwork
Should the workforce work together so that the change can
grow upwards? Total
Strongly
Disagree Disagree
Neutra
l Agree
Strongly
Agree
Spec
iali
zati
on
Arts 1 2 4 2 3 12
8.3% 16.7% 33.3% 16.7% 25.0% 100.0%
Sciences 0 1 4 3 5 13
0.0% 7.7% 30.8% 23.1% 38.5% 100.0%
Business 1 1 3 4 2 11
9.1% 9.1% 27.3% 36.4% 18.2% 100.0%
Total 2 4 11 9 10 36
5.6% 11.1% 30.6% 25.0% 27.8% 100.0%
4.5.4 Chances of Resistance and Lack of commitment
The study in Table 4.32 finds out whether there are chances of resistance and lack
of commitment in the bottom up approach. From the table, 37.5% of respondents with
doctorate education disagreed that there are higher chances of resistance and lack of
commitment in the bottom up approach, 25% were neutral and 37.5 agreed to the
statement.
The study also shows that 25.1% of respondents with post graduate education
don’t believe that there are higher chances of resistance and lack of commitment in the
bottom up approach, 12.5% were neutral and 62.6% believed in the statement.
Table 4.32: Chances of Resistance
Are there higher chances of resistance and lack of
commitment in the bottom up approach? Total
Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
Lev
el o
f
educa
tion
Doctorate 1 2 2 2 1 8
12.5% 25.0% 25.0% 25.0% 12.5% 100.0%
Graduate 1 3 2 5 5 16
6.3% 18.8% 12.5% 31.3% 31.3% 100.0%
Undergraduate 1 2 3 3 3 12
8.3% 16.7% 25.0% 25.0% 25.0% 100.0%
Total 3 7 7 10 9 36
8.3% 19.4% 19.4% 27.8% 25.0% 100.0%
55
For respondents with undergraduate education, 25% of them disagreed that bottom up
approach experience resistance and lack of commitment, 25% were neutral and 50%
agreed to the statement.
4.5.5 Limitations of Top Bottom Approach
To understand whether bottom up approach addresses all the limitations of the top
bottom approach as it involves all the employees in the change process, Table 4.33 was
used. From the table, 75% of the female respondents agreed that bottom up approach
addresses all limitations of the top bottom approach while 25% were neutral about the
statement. Contrary, 5% of the male respondents did not believe that bottom up approach
addresses all limitations of the top bottom approach, 30% were neutral and 65% believed
in the statement.
Table 4.33: Addressing the Limitations
Does the bottom up approach answer all
limitations of the top bottom approach as it
involves all the employees in the change process? Total
Disagree Neutral Agree Strongly
Agree
Gender
Female 0 4 6 6 16
0.0% 25.0% 37.5% 37.5% 100.0%
Male 1 6 7 6 20
5.0% 30.0% 35.0% 30.0% 100.0%
Total 1 10 13 12 36
2.8% 27.8% 36.1% 33.3% 100.0%
4.5.6 Relevant Decision Making Process
To determine the most relevant decision making process in the change process,
Table 4.34 was used. From the table, 41.7%, 25%, and 33.3% of respondents with art
specialization believe that top down approach, bottom up approach and combination of
both respectively is the most relevant decision making process while implementing
organization goals. On the other side, 15.4% of respondents specialized in sciences
believe that top down approach is the most relevant decision making process, 53.8%
believe that the bottom up approach is the most preferred approach while 30.8% believe
that combination of top down and bottom up approach is the best for decision making
process.
56
For the respondents with business specialization, 36.4%, 45.5% and 18.2%
believed that top down approach, bottom up approach and combination of both
respectively is the best decision making process.
Table 4.34: Relevant Decision Making Process
What is the most relevant decision making process in the
change process while implementing organization goals? Total
Top down
approach
Bottom up
approach
Combination of
both
Spec
iali
zati
on
Arts 5 3 4 12
41.7% 25.0% 33.3% 100.0%
Sciences 2 7 4 13
15.4% 53.8% 30.8% 100.0%
Business 4 5 2 11
36.4% 45.5% 18.2% 100.0%
Total 11 15 10 36
30.6% 41.7% 27.8% 100.0%
Regression Analysisa. Dependent Variable: Change management
4.5 Chapter Summary
Chapter four has provided the results and findings with respect to the data given
out by the respondents who work with KENTRADE. The chapter provided analysis on
the background information, change management process and performance, challenges
facing change management process and best change management models. The next
chapter provides the summary, of discussions, conclusions and recommendations.
57
CHAPTER FIVE
5.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
This chapter presents the discussion, conclusions and recommendations of the
study. In part 5.2, the summary of the study is presented. The discussion and conclusion
of the study is in part 5.3 and 5.4 respectively. Part 5.5 demonstrates the
recommendations.
5.2 Summary
The purpose of the study was to examine factors that affect the change
management process by studying Kenya Trade Network Agency (KENTRADE). The
study aimed at determining whether change management leads to improved performance,
the key challenges towards achieving organization goals in the change management
process and determining the change management models leaders use to effect decision
making in the organization.
The study employed a descriptive research method in gathering, analyzing,
interpreting, and presenting the information. The descriptive research design helped in
focusing at the strength of relationship between factors of change process and change
management process. The study adopted the use of questionnaires to obtain pertinent
information from respondents. The study focused on 64 employees of KENTRADE. Non-
probability sampling technique was used whereby a census approach was assumed. The
study adopted a descriptive and inferential statistics in data analysis and presentation.
Correlations, cross-tabulations, frequencies, regressions among other statistical measures
were used.
The study found that training affects performance of change management process.
When employees are rewarded effectively and their effort recognized by the management,
they work together as a team to achieve the change management process. The study found
that performance appraisals clearly specify what is expected from an employee during the
change management process. The study also found that goal setting contributes to
improved performance in an organization that is undergoing change management process.
58
The study found that the organization experience unclear communication of the
goals between the management and the supporting staff. This causes the management to
fail to leverage the skills of the employees to the organization resources hence hampering
change management process. The study also found that lack of employee empowerment
hinders successful change management process. Due to this lack of empowerment, the
workforce is not committed to the goals and objectives of an organization hence play a
part in the unsuccessfulness of change management process.
The study found that appropriate change management model that fits the needs
and wants of the organization is very crucial in the process of change management.
Bottom up approach was found by the study to be the most preferred change management
model the organization should adopt. The study found that bottom up approach is
preferred because it makes the workforce to work together as a team.
5.3 Discussion
5.3.1 Change Management Process and Performance
The study analyzed the factors in change management process and found
numerous key factors that enhance change management in the organization. The study
confirmed that employee training enhance performance in the change management
process. Prybutok, (2007) supports the findings of this study by asserting that training is
crucial in improving the skills and knowledge of staff that will enhance their performance
at the organization. Yen, (2005) adds weight to this argument by asserting that retooling
management and its subordinates is necessary to improve performance. Effective training
starts by understanding the workforce, their strengths and weaknesses, and what
motivates them and restricts their performance.
The study found that reward and recognition is a good employee compensation
strategy in the change management process. The study reveals that for an organization to
achieve its goals and objectives, the employees should be well rewarded and their efforts
be recognized. Sadler, (2005), confirms that a consistent reward and recognition method
across all departments in an organization is crucial as it creates a sense of consistency and
uniformity. Uniformity, according to the author, is when a particular employee is
rewarded the same way as a top performer in another department. Sadler asserts that most
organizations have documented their job output against the expectations and found that
59
when employees’ efforts are recognized, their performance in the organization is
enhanced.
The study showed that performance appraisals clearly specify what is expected
from an employee in a change management process. In the study done by Carter (2008), it
was found that past performance appraisal can be used to gauge growth in a change
process. A performance evaluation process, according to Carter, is used by top
management to increase self-awareness. This is done by comparing an employee self-
assessment feedback alongside assessment completed by selected peers in the
organization. This is a clear tool to gauge the relationship between performance and
change management. Even though Porter (1998) agreed that performance appraisal is vital
for an organization, he found that performance appraisal feedback from employees should
not be accessed by other employees apart from themselves.
From the study, it is well demonstrated that goal setting contributes to improved
performance in the change management process. Carter, (2008) supports the findings of
the study by asserting that it is imperative for an organization that wants to achieve it
mission to set its goals. Carter found that effective goals should be result-oriented and
relevant. To achieve the latter, it is imperative to ensure fairness of goal setting in an
organization that focuses on objectivity. Harris, (2007) established that goal setting is an
important parameter mostly used by organizations to enhance performance especially
during change management process.
From the study, it was established that change management process is acceptable
by the entire workforce in the organization. Kaplan, (1992) found that good leadership
positively influences the workforce to like their own duties. This according to Kaplan
makes the workforce to accept the change management process hence by doing so,
performance is enhanced. Evans (2004) adds that increased organization performance is
associated with employees clearly understanding the organization goals and objectives.
5.3.2 Key Challenges in Change Management Process
The study analyzed and identified the key challenges in attaining successful
change management process. The study found a multiple of challenges hindering the
success of an organization in change management process. These challenges range from
60
unclear communication, failure to leverage skills, lack of employee empowerment to lack
of commitment from the workforce.
The study found that unclear communication of organization goals is a challenge
to the organization. Dieke (2000) found that communication is very important in
conveying the message about the vision of an organization. Kotter (1998) on the other
side found that gaining an understanding and commitment to a new direction is never an
easy task, especially in complex organizations.
According to Kotter (1998), communication and inconsistency is rampant and this
creates stalled transformation. Garratt, (2005) on the other hand believes that the main
ground for poor change management in an organization is lack of clear objectives, poor
communication, inadequate planning and inconsistent decisions that top management in
the organization do not follow through.
Failure to leverage the skills of the employees to the organization resources is a
challenge in the change management process. Kaplan (1992) supports the findings of the
study by stating that an organization’s productivity is pegged on its employee output. He
found that employee performance is influenced by good leadership. Kotter, (1998)
confirms that to effect good leadership, it is imperative to leverage the skills of the
employees to the current technology, infrastructure and resources in the organization.
From the study, lack of employee empowerment may hinder the success of
effective change management process. Chaharbaghi, (1994) confirms employee
empowerment is a critical element that an organization needs to put into consideration as
it undergoes change management process. He found that contemporary organizations
need modern leadership styles that encourage empowerment. Chaharbaghi found that
employees need to feel valued and trusted so that they can immensely contribute in the
organization. Schneider and Bowen, (1999) adds that the current business environment is
innovative, full of fresh and creative ideas. If an employee is requested to participate in a
repetitive routine, there will be little or less significance as compared to an employee who
is engaged in contributing to the future of an organization.
The study reveals that lack of commitment from the workforce makes the change
management process unsuccessful. Moore, (1993) assert that making honest decision
61
about the direction a business should take is very difficult. He found that the greater
challenge is creation of a commitment to run hand in hand with organizational goals and
objectives. According to Morgan (1986), commitment is a tool used by managers in the
change process; however, managers can easily lose sight of this skill because
commitment is given priority to short-term projects as compared to long-term projects..
5.3.3 Change Management Models
The study aimed at determining the change management models that the
organization used. The study confirms that it is crucial for an organization to choose the
appropriate model that fits the needs and wants of an organization during the change
management approach. Garratt (2005) affirms that the overall change management model
used within any organization should be consistent, have clear objectives that are aligned
to the environment so as to create a competitive edge over other organizations.
The bottom up approach is the preferred change management model by the
respondents. Kotter, (1996) in his study found that bottom up strategy seeks to achieve
the desired change management process in an organization. According to Kotter,
revitalizing an organisation is more of a bottom up approach strategy. The operation of
the organization should change to correspond to the changing vision of the organization.
However the leader propagating the change should give the organization a platform to
come up with its own strategies’ to drive change within the organization so as to align the
strategies with the overall vision of the organization. Mintzerberg (2000) argued that
bottom up model of change tends to answer all limitations of the top-bottom approach as
it involves all the employees in the change process. It is believed to be a collaborative
approach which breeds ownership to the employees in the change process.
The study found that the top-down approach is less preferred by staff. According
to Reilly and Pfeiffer (2000), there is a downside for the top-down change since it is
mostly associated with rapid changes. There are higher chances of resistance and lack of
commitment from lower level management because they feel that the top management
does not understand the problem in question and how to approach it.
From the study, it was confirmed that for an organization to achieve the best
change management process, it should ensure that the workforce is working as a team to
62
achieve the organization objectives and goals. Schneider and Bowen, (1999) found that
the best leadership style should enhance teamwork within the organization workforce.
They found that the leadership style used by managers should be nurturing, innovative,
leveraging the talents of the workforce to aid in achieving the overall goal of the
organization.
The study found that top management should be the ones administering the
change process. This is supported by Kotter (1996) who suggested that the top
management in any organization need to administer change and spend effort in creating
urgency.
5.4 Conclusions
5.4.1 Change Management Process and Performance
The study concludes that effective change management process is facilitated by
employee training. According to the study, when employees are trained, they gain
additional important skills and knowledge that enhance their job performance capabilities.
The study concludes that reward and recognition is a good employee compensation for an
organization undergoing change management process. Performance appraisals should
clearly specify what is expected from an employee in a change management process. This
makes an organization to set goals that employees are expected to meet during the change
management process. The study, therefore, concludes that goal setting contributes to
improved performance in the change management process.
5.4.2 Key Challenges in Change Management Process
The study concludes that unclear communication of organization goals is a
challenge to organization change management process. This makes the management to
fail to leverage the skills of the employees to the organization resources during the change
process. This challenge makes an organization not to successfully achieve its objectives
as the scarce resources are not effectively utilized. The study also concludes that lack of
employee empowerment poses a challenge to an organization that is undergoing change
management process. The study found that lack of employee empowerment contributes to
employees lacking commitment to an organization. It is thus concluded by the study that
63
lack of commitment from the workforce causes a major drawback to an organization that
is undergoing change management process.
5.4.3 Change Management Models
The study concludes that choosing an appropriate model that fits the goals and
objective of an organization is very crucial in change management process. The study
found that bottom up approach is the most preferred change management approach to be
used in the organization. The study also found top bottom approach is the least preferred
model in the organization. An organization can also use a combination of top down and
bottom up strategy to reach its goals. The study concluded that for an organization to
achieve its change management process, the workforce should work as a team in all
manners.
5.5 Recommendation
5.5.1 Recommendation for Improvement
5.5.1.1 Change Management Process and Performance
The study recommends the organization to adopt different change management
practices to enhance organization performance. Employee training enhances performance.
Employees are trained on new skills that add value to the performance of the
organization. Reward and recognition is the second practice that the organization should
focus on to enhance performance. The study recommends that reward and recognition is
good employee compensation in the change management process. The third practice that
enhances performance in the organization is performance appraisal. Performance
appraisals, according to the study, should clearly specify what is expected from an
employee in a change management process. Last but not least, goal setting enhances
performance in the organization. The study recommends out that goal setting contributes
to improved performance in the change management process.
5.5.1.2 Key Challenges in Change Management Process
Organizations experience a variety of challenges when undergoing change
management process. The first significant challenge the organization faced is unclear
communication of organization goals during change management process. The study
64
recommends that the organization to constantly communicate the goals of the process to
all employees and other relevant stakeholders. The second significant challenge
organization face is failure to leverage the skills of the employees to the organization
resources in the change management process. The study, therefore, recommends the
management to leverage the skills of workers to the organization scarce resources during
change management process. The third challenge faced by the organization is lack of
employee empowerment during the change management process. The study recommends
the management to empower employees so that they may come out with different unique
ways to enhance performance. According to the study, the last significant challenge is
lack of commitment from the workforce when and organization is undergoing change
management process. Commitment in the organization can be enhance by clear
communication, assigning tasks to the correct skills and empowering the workforce.
5.5.1.3 Change Management Models
Choosing the appropriate model that fits the organization goals and objectives is
imperative for an organization that needs to enhance its performance. The study
recommends that the appropriate change management model needs to be adopted. The
study recommends the use of bottom up approach for change management as preferred by
the respondents in the organization. This approach is the best for an organization that is
undergoing change management process as it originates from the support staff to the
management hence there is much commitment. Once the change in the organization is
established, the study recommends the organization to adopt the top down approach to
maintain the change process. The study recommends the workforce to work together
during the change management process to achieve the organization goals
5.5.2 Recommendation for Further Research
The study aimed at examining factors affecting change management at Kenya
Trade Network Agency (KENTRADE). The study was only carried on one organization
in Kenya. Further researches should examine the factors that affect change management
in other private and public organizations in Kenya. Future scholars are encouraged by this
study to determine the reasons for change management in different organizations.
65
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71
APPENDICES
APPENDIX A: COVER LETTER
Gathondu Anne Nyaguthii,
United States International University,
P.O. BOX 14634, 00800,
Nairobi.
Kenya.
11/7/2014
Dear Respondent,
I am a graduate student at United States International University, carrying out a research
on the change management process. This is in partial fulfilment of the requirement of the
Master of Business Administration (Strategic Management) degree programme at the
United States International University (Africa).
This is a random selection for participation in the study. It will take an approximation of
less than ten (10) minutes to respond to a questionnaire. Please try and be objective as
possible. Your contribution is vital in accomplishment of this study and your participation
is highly appreciated. The information provided in this exercise is confidential and will
mainly be used for academic purposes.
Your name will not appear anywhere in this research. Kindly spare time and fill in the
questionnaire attached.
Thank you.
Yours faithfully,
Gathondu Anne
72
APPENDIX B: DATA COLLECTION INSTRUMENTS-QUESTIONNAIRE
SURVEY ON CHANGE MANAGEMENT PROCESS: A CASE STUDY OF
KENYA TRADE NETWORK AGENCY (KENTRADE)
Note.
Please NOTE the information obtained from this survey is confidential and will be used
solely for academic purpose.
SECTION I: GENERAL INFORMATION
Kindly answer all the questions by ticking in the boxes provided after each question.
1. Gender
2. Age (years)
- 30 - 40 – 50
3. Level of education
Graduate Undergraduate
4. Specialization
Business
Others (please state) _________________________________
5. a) Is there a change management process in the organization?
Yes No
b) If yes, what are the adoption years?
- 5 years 6 - 10 years More than 10 years
6. Who initiates the change process?
Top Management Middle Level Management
73
Subordinate
7. What factors affect the change management process?
a) Based on your view, which among the following factors influence performance
management in organization?
Documentation Appraisal Information Recognition
Technology Training
8. On a scale of 1-5, kindly rate the features that characterize the change
management process. Where 1 is strongly disagreeing and 5 strongly agree.
Change management process
S
tron
gly
Dis
agre
e
Dis
agre
e
Neu
tral
Agre
e
Str
on
gly
Agre
e
Goal setting meetings (1) (2) (3) (4) (5)
Training workshops (1) (2) (3) (4) (5)
Performance appraisal meeting (1) (2) (3) (4) (5)
Clearly outlined job description (1) (2) (3) (4) (5)
Innovation (1) (2) (3) (4) (5)
74
SECTION II: SUCCESSFUL CHANGE IN AN ORGANISATION
9. This Sub-Section Addresses Questions regarding Change management and
performance.
On a rating scale of 1-5 kindly tick the corresponding view on how performance
influences the adoption of the change process in an organisation. Where 1 is strongly
disagreeing and 5 strongly agree.
Change management and performance.
Str
on
gly
Dis
agre
e
Dis
agre
e
Neu
tral
Agre
e
Str
on
gly
Agre
e
a) Does goal setting contribute to improved
performance in the change management
process?
(1) (2) (3) (4) (5)
b) Does training affect performance in the
change management process? (1) (2) (3) (4) (5)
c) Do performance appraisals clearly
specifies what is expected from an
employee in a change process
(1) (2) (3) (4) (5)
d) Do you think reward and recognition is a
good employee compensation in the
change management process
(1) (2) (3) (4) (5)
e) Is change management process acceptable
by the entire workforce in the
organization?
(1) (2) (3) (4) (5)
Do you think change management is necessary?
Yes No
If yes, please explain
75
10. This sub-section addresses questions regarding challenges to change
management process.
On a rating scale of 1-5 kindly tick the corresponding view on how the management
copes with challenges of achieving organisation goals in change process. Where 1 is
strongly disagreeing and 5 strongly agree.
Change management goals
Str
on
gly
Dis
agre
e
Dis
agre
e
Neu
tral
Agre
e
Str
on
gly
Agre
e
a) Does empowerment help to overcome challenges
in the change process? (1) (2) (3) (4) (5)
b) Are organization goals clearly communicated
during the change management process? (1) (2) (3) (4) (5)
c) Does commitment from the workforce aid in
achieving organization goals? (1) (2) (3) (4) (5)
d) Is it important to leverage the skills of the
employees to the organization resources in the
change process?
(1) (2) (3) (4) (5)
Has management achieved organisation goals?
Yes No
If yes, please explain
76
11. This sub-section addresses questions regarding change management models used
by leaders.
On a rating scale of 1-5 kindly tick the corresponding view on how the management
copes with leadership in the change process. Where 1 is strongly disagreeing and 5
strongly agree.
Change Management Models
Str
on
gly
Dis
agre
e
Dis
agre
e
Neu
tral
Agre
e
Str
on
gly
Agre
e
a) Should top management administer the
change process? (1) (2) (3) (4) (5)
b) Is it crucial for an organization to choose the
appropriate model that will fit the needs and
wants of the organization?
(1) (2) (3) (4) (5)
c) Should the workforce work together so that
the change can grow upwards? (1) (2) (3) (4) (5)
d) Are there higher chances of resistance and
lack of commitment in the bottom up
approach?
(1) (2) (3) (4) (5)
e) Does the bottom up approach answer all
limitations of the top bottom approach as it
involves all the employees in the change
process?
(1) (2) (3) (4) (5)
What is the most relevant decision making process in the change process while
implementing organisation goals?
approach
approach
both
Thanks for your response