Managing the people dimension of change at the Nairobi securities exchange, Kenya

Abstract

environment. The study objectives were to establish how the people dimension of change has been managed at the Nairobi Securities Exchange, to establish challenges faced in managing people dimension of change at the Nairobi Securities Exchange, to determine how challenges in managing people dimension of change at Nairobi Securities Exchange are managed. This study was a case study. Primary data was collected by the use of interview guide. The interview guide was developed along the objectives of the study and thus ensured that the right information was collected. Content analysis was used to analyze the data. The NSE had introduced strategic changes by involving the people as change agents as well as using new technology and systems such as the use of M-PESA technology and online systems that allow investors to trade securities via the internet. Clients were able to get information such as portfolio valuation, margin reports, contract notes, and stockholding reports especially the Kenyans abroad who were able to use the system and also participate in share trading in the country. The study established that the people were fully involved in all stages of change right from planning to implementation. The introduction of strategic change at NSE was characterized by employee resistance which was attributed to the fear for the unknown, the feeling on inadequate technological skills associated with the changes and fear of organizational changes. The challenge of employee resistance was managed by ensuring prompt and detailed communication to equip the people on what is expected of them and equipping them with the necessary information. The management at NSE was fully involved in the change process and they took an active role. The employees were trained in various aspects of strategic change at NSE as a measure to mitigate the change adoption challenges. The study recommends that the people dimension of change should be used as a strategy to bring change because of its inherent characteristic of inclusiveness of all the stakeholders that leads to reduced resistance. The other recommendation is that the organization introducing strategic changes should prepare all the people on the impending changes, sell the idea to them until they are in agreement, introduce the change gradually rather than rapidly and ensure there is adequate and effective communication among and between various parties. The challenges facing the strategic change process like the fear of the unknown and tendency to maintain the status quo can only be eliminated by adequate training and capacity building as well as sensitization. To mitigate the challenges of managing the people dimension of change in organizations, can be avoided if the management engages in a skills audit to identify the skills gap and offer the relevant skills. The suggestions to address the limitations of the study included an Investigation of the other dimensions of change in other corporations, study the change strategies used in other state corporations in Kenya and to determine the role of stakeholder participation in effective change management in public institutions.