Stratеgic Changе Managеmеnt Practicеs and Thе Pеrformancе of Tiеr 1 and Tiеr 2 Commеrcial Banks in Kenya

Abstract

The study sought to examine the practices of the strategic change management and how they influence the performance of both Tier 1 and Tier 2 commercial banks in Kenya. The inquiry employed a descriptive study design, particularly the survey method. This research work focused in all six Tier 1 banks and the fourteen Tier 2 Commercial banks according the CBK (2016) categorization. Census approach was used since most of these banks have their headquarters in Nairobi. Questionnaires were used since the study seeks to obtain in-depth quantitative data. The study concluded that employees in these banks undergo training which affects banks’ performance by improving the creativity of the employees as well as the capacity of the employees to take up task that require high level of responsibility. The overall output of the employee also improves. Communication has an impact on the performance of the bank these banks. In order to effectively implement the change, employees are supposed to be communicated to effectively. Employees are supposed to be given a chance to express their views and ideas on how the change should take place. The performance of the bank is improved by the participative type of leadership and the bank management is very supportive to the employees. Large commitment from top leadership is needed to effect the change. Top level leaders in the company guide the organizational behavior and greatly contribute towards the process of checking and assessing management change. The research proposes that the management ought to ensure effective communication in order to effectively implement the change. The employee ought to effectively participate in the decision making process. Commercial banks should understand the importance of people involvement, especially at the planning level, as this is the core result of process owning by the same people at the point of implementation. Both Tier 1 and Tier 2 Commercial banks should come up with policies that will ensure that employee involvement is promoted during change management process and effective communication is established to enhance performance. There should be well established policies to enhance top management support as large commitment from top leadership is required for the change to be successful. These policies will maintain and enhance commercial banks’ performance.