Abstract:
Change management is vital for an organization's survival, particularly for the banking
industry in the continually changing world. However, studies indicate that 70 to 80% of
change initiatives fail to achieve the desired outcome. This failure highlights the importance
of examining the factors that affect effective change management. This study examines the
factors affecting effective change management in the Commercial Bank of Ethiopia Dire
Dawa district. A descriptive and explanatory research design with a quantitative research
approach was employed. The study's target population was 518, employees from which 226
samples were selected. The study used multistage sampling techniques to select the sample
respondents. Data was collected through a structured questionnaire with a five-point Likert
scale. The validity and reliability of the instrument were assessed using a pilot study. The
collected data were analyzed using descriptive and inferential statistics via SPSS version 27.
The Pearson correlation result revealed a strong positive relationship between independent
variables such as employee involvement, leadership, organizational culture,
communication, and effective change management. Results from multiple regression suggest
that 71.4% of the variation in effective change management can be explained by independent
variables included in the model. Furthermore, the multiple regression results concluded that
all independent variables positively and significantly affect effective change management
with leadership as the most influential factor in the model (β = 0.378, P<0.05). This was
followed by employee involvement (β = 0.267, P<0.05), organizational culture (β = 0.244,
P<0.05), and finally, communication is the lowest influential factor with the (β = 0.150,
P<0.05) when compared to other independent variables under study. Based on the findings
the study recommends that the bank should foster an environment encouraging employee
involvement, promote committed and visionary leadership, and develop a supportive,
adaptable, innovative organizational culture. Also, maintaining an effective communication
system during transition is essential to managing change effectively. Finally, the study
concludes, that the findings contribute to the body of knowledge and also offer valuable
insight for employees and manager
