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ORGANIZATIONAL CHANGE AND EMPLOYEE COMMITMENT OF MANUFACTURING COMPANIES

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ABSTRACT

The study set out to assess the effect of organizational change and employees` commitment. Data for the study was elicited from a sample of 300 employee of Beta Glass PLC in Delta State. Data collection was done with the aid of a structured questionnaire with items measured in Linkert type scale. Data analysis was done using descriptive and inferential tools. Hypothesis tested was conducted using a single regression model. Survey research design was adopted, and the statistical tool used comprises of correlation and regression analysis. The findings show that there is significant positive relationship between Change readiness and employee’s commitment, we fund that there is significant positive relationship between employee’s commitment and Personal Valence, stressing that Commitment and good Personal Valence are related. Perception of change communication shows a significant positive relationship with employee’s commitment. More so, Perception of training for change shows a significant positive relationship with employee commitment. We therefore recommend that managers and organizational leaders should ensure that there should be improvement of employees Personal Valence, more so Perception of change communication of employees should be a continuous exercise. The study therefore concluded that today’s competitive world every organization is facing new challenges regarding qualitative service and creating committed workforce and no organization can perform at peak levels unless each employee is committed to the organizations objectives.

CHAPTER ONE

INRODUCTION

1.1    Background of the study

As globalization continues to challenge the appropriateness of current organizational strategies, processes and structures; organizations are required to constantly grapple with the costs and benefits associated with change. The kinds of changes implemented could be minor, major, or transformative. Organizations and their management are constantly faced with a changing environment, which calls for change in parts of the organization or the organization as a whole. If organizations are to change in a radical manner, then the management of change (both radical and incremental) will be one of the key factors that distinguished the successful organizations.

Business organizations operate in a dynamic environment which implies change. Change is inevitable in any organization and any organization that fails to recognize the inevitability of change is doomed to failure. Organizations in Nigeria need to adapt to their changing environment if they must survive. In this changing environment, it is only a manager that is constantly adapting the direction and the operation of his enterprise to changes in parts like technology, social, political and economic environment or change in the organization as a whole.

Organization in Nigeria are fast changing considering the global trend,  managers in the manufacturing sector must learn and enact new techniques for management, delivery of product and services, technology, customer outreach and even sales or else they and their organization may be left behind as the manufacturing industry spring out in new directions. According to Schwartz (2003), managers should prepare to redefine their entire industry as competition increases and customer demands change. Companies need to make use of new sophisticated technology so as top meet the changing need of the environment. Technology is constantly changing in the Nigerian environment and managers must be alert to new opportunities it creates (Dove 2001).

Without doubt, there is a high level of competition among companies in manufacturing industry and this lead to a very important question of how often and how changes managers in this industry have introduced in order to cope with this increased rate of competition. But how successful do they manage these changes recognizing the likely problems that might be encountered in the process of introducing organizational change, the resistance that is bound to develop from the employees and also achieve the purpose of introducing the change.

The management of any organization must increasingly think in terms of proactive planned change to cope with the changes revolving around technology, social, political, economic and even the competitive environment (Trahant, Burke and Koonze 2005). Everybody who has been involved in planning and implementing change, whether in the context of managers, consultants, appraisal scheme, method of work, or range of services, should be familiar with the problems accompanying change efforts. Efforts by management should aim at bringing about a change to the status quo often meets with skepticism and resistance from those who will be affected by the change. There is always a risk associated with the change management, but its success depends on the strategy adopted by management in the introduction and implementation of the change and also how successful such elements such as: communication, change in control systems, incentives, organization structure, employee commitment, change readiness, personal valence, perceptions of change communication and perception of training for change.

The implementation of change must be properly planned for it to be successful. According to Adebanjo (2006), for change to be successfully  implemented, specific managers should be assigned the duty of identifying problems and to be in charge of implementation of the recommendations.

The forces that generate changes in any organization include: competition, regulation, financial innovation, technology, political among others (Austin, 2003). In recent times, competition has increased among manufacturing firms. Structural adjustments in manufacturing products and the new forms of competitions and competitions are each shift in their competitive environment. Manufacturing organization must either adjust to new realities which may impact success or risk business failure.

1.2    Statement of the problem

Managers in the manufacturing sector face a lot of difficulties in the process of introduction and implementing organizational change. Many change programmes fail due to (and among other reasons) the wrong diagnosis of the problems at the initial stage, Dove (2001). Some end-up on the drawing board while others are simply poorly implemented. Many manufacturing companies in Nigeria fail in strategies implementation. All too often at the end of planned change strategy, the plans, nicely documented in multiple three ring binders, take a wrong turn and end up on a manager`s bookshelf.

Achieving radical organizational change is not easy, change managers rely on the commitment of employees when implementing organizational change, but organizational commitment may decrease in response to the change. This has given rise to the need and interest in studying how manufacturing companies manage change. This will require an identification of the rate at which these companies introduced change, what motivated the introduction of such changes, how such changes were implemented, the difficulties encountered in the process of introducing and implementing change, the success andemployees commitment. Changes appears threatening to many people, which makes it difficult to gain their support and employee commitment to implementing changes. Consequently, the ability to manage change effectively is a high sought-after skill in managers. Companies need people who can contribute positively to their inevitable change efforts.

But sometimes, the most constructive change takes place because of opportunities, (Bateman andZeithaml,2005), Recognition of a performance gap often provides the impetus for change, as companies strive to improve their   performance to expected levels. This sort of gap is also where many managers find opportunities. Today`s businesses are bombarded by incredibly high rates of change from a frustratingly large number of sources. Inside pressures come from top managers and lower level employees who push for change. Outside pressures come from changes in the legal, competitive, technological, and economic environments. Organizational change occurs when a company makes a transition from its current state to some desired future state.

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