CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The business world is becoming very competitive ever since there has been frequent
occurrence of change within and outside the business environment, due to environmental
complexity, globalization, competition, influence of technology and changing consumer needs,
the need for change has become a necessity. Most organizational managers today contend that
change has become a constant phenomenon which must be attended to and managed properly if
an organization is to survive as the effect of change outside will lead to a conceited change inside
and vice-versa, thus organizations need to keep up with rapid developments in the business
environment to survive. To adjust accordingly, organizations have become more technology
driven than ever before. This requires organizations to be open and willing to change and once
the organizations decide to undergo a radical change, considerable effort is required to manage it.
Ivan & Schole, (2015), suggests that those that fail to accept and embrace change will have a
limited future. In his words “change is the law of life and those who look only to the past or
present are certain to miss the future. Organizational change management involves guiding and
managing human emotions and reactions with the aim of cutting down the unavoidable drop in
productivity that is brought about by change. Barry (2014) assert that organizational change
leads to an adaptation to the environment and hence improvement in performance. In the current
corporate market, change is constant.

However, to achieve varied goals, managers need more than fragmentary ad-hoc change
programmes dealing only with present challenges. They need change management methods to
prepare for upcoming organizational competitive difficulties. Managers must gain knowledge on
how to build and manage a human group that is proficient of foreseeing the new, capable of
changing its vision into technology, products, processes and services, willing and able to agree
with the new. Attempts to execute change management have been many and extensive, but the
promises made in its name have remained unsatisfied. Influential forces in the environment such
as technology, competitors, and regulators amongst others are unceasingly influencing public
and private organizations to change permanently present structures, policies, and practices. A
major element of change is the application of policies. Implementation is therefore a key concern
in the management of change. The inability to get things done and have crucial ideas and
decisions implemented is widespread in organizations today.

While organizational change is a constant experience, knowledge and awareness about many
of the critical issues involved in the management of such change is often lacking in those
responsible for its progress. Clearly, if organizations are ever to experience a greater level of
success in their development efforts, managers and executives need to have a better framework
for thinking about change and an understanding of the key issues which accompany change.
Change has been linked to the organization's competitiveness and response to changes in the
environment. Osisioma (2014) argues that change is the single most important element of
successful business management today and as such, it is a fact of life that organization managers
should anticipate change in order to remain competitive in increasingly aggressive markets and
adopt a positive attitude to it since this is inevitable in the history of any organization. Ignoring
or trivializing a changing trend can be costly, thus managing change teaches managers how to be
ahead of rivals and it ensures the long-term survival of the organizations.

1.2 Statement of Problem

Going by the increasing volatility of the business environment, change management has
become inevitable. This is to address any or all of these issues – poor performance, adapting to
changes arising from the external environmental pressures, achieve or maintain a competitive
advantage (in terms of better price and high quality), explicit innovation. Fundamentally,
organizational change emanates from two major sources. The external source and internal
sources. The external sources could be as a result of improved technology, pressure from interest
groups from outside the organization such as government or competitors in the industry. The
internal source of change could be from individual such as shareholders, management,
employees. Irrespective of the source, wherever change is obvious, the management is always
faced with the question of how to respond to this change, how do we change the objectives and
strategies of the organization, is it the technology we change or human resource or organization
structure or the business environment. Based on the above question, management has been
striving on how the best change management practices can be put into practices for the
successful running of the organization.
 1.3 Research Questions

The following questions were highlighted to be the framework providing guidance for the
research work;

i. To what extent has transitional change management affects Employees effectiveness?

ii. To what degree has transitional change management affects Employees efficiency?
iii. To what extent has transformational change management affects employees
effectiveness?
iv. To what degree has transformational change management affects employees efficiency?

1.4 Research Objectives

The main objective of the study is to examine the effect of change management on employee’s
performance. This will be achieved through the following specific objectives are to;

i. establish the effect of transitional change management on Employees effectiveness.

ii. determine the effect of transitional change management on Employees efficiency.
iii. investigate if transformational change management has a positive effect on Employees
effectiveness.
iv. establish if transformational change management have any significant effect on employees
efficiency.

1.5 Research Hypotheses

The following has been formulated and tested in this research work in order to draw a logical
conclusion:
H01: Transitional change management has no significant effect on Employees effectiveness.

H02: Transitional change management has no significant effect on Employees efficiency.

H03:Transformational change management has no significant effect and on Employees

effectiveness.

H04: There is no significant impact of transformational change management on employees

efficiency.
1.6 Significance of the Study

The findings of this study will be significant and be of great benefit and interest as business
managers can benefit from the findings of this study by adopting proper measures of change
management to ensure efficiency and effectiveness of employees towards the performance of the
organization. The study will also enable managers and directors of companies to appreciate the
importance of change management. The researchers and academicians have a chance of sharing
new ideas obtained from the study. They can use the knowledge gained to advance in their fields
of interest. Academicians and scholars will benefit from the study in that it will provide a useful
basis upon which further studies on change management on employees performance. The study
will also add to the ever expanding literature. Researchers will also benefit from this study, since
the study will inform on some of the best ways of adopting the best management tools and
ensuring efficient utilization of resources. This can lead to improved performance of employees
towards the company
.
1.7 Scope of the Study

The study is carried out to focus on the effect change management on employee’s
performance. This study will be focusing on Kwara State Internal Revenue to analyze the effect
of change management in order to enhance performance of its employees. The organization is
selected because of easy access to data and also by seeking to know their view on the subject
matter and how it affects employee’s efficiency, effectiveness and customer satisfaction.

1.8 Outline of the Study

This research work consists five chapters. Hence, the chapters are charted below in order of
standard
Chapter one: This is the first part of the research work and it provides a Background knowledge
to the study, followed by the Statements of the research problem the aim and Objectives of the
research, Research questions, the Hypotheses of the Research questions, followed by the
Significance of the study, Scope of the study, Outline of chapters contain in the study,
Operationalization of variables and Definition of terms.
Chapter two: shall present the conceptual review, theoretical review, Empirical review and Gap
in literature concerning the impact of sales promotion on Employees Performance.
Chapter three: discusses the research methodology, research design, population of study,
sample size determination, sample techniques/procedure, research sample frame, collection of
data, research instrument, validity of research instrument, reliability of research instrument and
ethical consideration.
Chapter four: This chapter discusses the data presentation and analysis of the research work
which includes the empirical result and interpretation of result, test of questionnaires, test of
hypothesis and discussion of results which shall be made available in chapter four.
Chapter five: This is the final chapter of this research work and it shall reflect the summary of
the work, discusses the findings in the study, give conclusions, it shall outline the researcher’s
recommendations based on the findings of the study and suggests for further study.

1.9 Operationalization
It is the process of having two construct, there is need to examine the relationship between the
dependent and independent variable. Thus, it is taken that employees performance of these
outlets depends on level of change management. Thus,
Y= f(X)
Where X is an independent construct and Y is a dependent construct
Change Management X= x1, x2, x3, x4… xn
Employees Performance Y= y1, y2, y3,y4… yn

Independent Construct Dependent Construct

Change Management Employee’s Performance

1. Transitional Change Management 1.Effectiveness

2. Transformational Change Management 2. Efficiency
3. Incremental Change Management 3. Loyalty
4. Development Change Management 4. Increase Performance

Change Management Employees Performance

1. Transitional Change Management 1.Effectiveness

 2. Transformational Change Management 2. Efficiency

1.10 Definition of Terms

Organization: The structure or network of relationship among individual by which the

(definition in accordance to oxford dictionary 8th edition)

Structure is created, maintained and used. (Oxford dictionary 8th edition)

Change; -The Oxford Dictionary defines change as an act or process through which something
becomes different. Organisational change is the movement of an organisation away from its
present state and toward some future state to increase effectiveness (George and Jones, 2009).
Transitional change management; -a voucher entitling the holder to a discount off a particular
product (oxford dictionary 8th edition)

Change Management: Change management refers to the adoption of an idea, procedure,

process or behaviour that is new to an organization.

Transformational Change: Transformational change is described as an effort that results in a

fundamental and radical shift that rejects existing paradigms.

Transitional Change: Transitional change advances the current state through insignificant,
gradual change in people, procedures, structures or technology.

Developmental Change: Developmental change stems from an overall philosophy of growth

and development that forms a culture of building competitive advantage through continuous
dynamic yet manageable change.

Employees Performance: Employees Performance comprises the actual output or results of an

organization as measured against its intended outputs (or goals and objectives).

Performance; -any recognized accomplishment, functioning and operational (oxford dictionary

8th edition).

Employee Effectiveness:
Employee Efficiency: