ORGANIZATIONAL CHANGE AND EMPLOYEE PERFORMANCE IN COMMERCIAL BANKS

There is poor employee performance among commercial banks in Bujumbura, Burundi. The poor performance has over the years affected the organizational performance of several commercial banks in Bujumbura. This study investigated the effect of organizational change on employee performance among selected commercial banks in Bujumbura, Burundi. The following objectives guided the study: (i) to determine the effect of structural change on employee performance in commercial banks in Bujumbura; (ii) to determine the effect of strategic change on employee performance in commercial banks in Bujumbura; and (iii) to determine the effect of technological change on employee performance in commercial banks in Bujumbura.

The research design was cross-sectional, the target population was 163 employees and the sample size was 116, however, only 104 successfully participated in the study. The main research instruments included questionnaires. The data was analysed using frequency and percentage tables, mean and standard deviations and regression analysis. The study revealed that structural change significantly affects employee performance by causing a variance of 56.8% (R2 = 0.568, P=0.000). Furthermore, it was established that strategic change significantly affects employee performance by causing a variance of 47.2% (R2 = 0.472, P.0.000). Lastly, the study revealed that technological change significantly affects employee performance by causing a variance of 51.4% (R2 = 0.514, p = 0.000).

The study concluded that organizational change has a significant effect on employee performance. The study gave the following recommendations: the management of commercial banks should periodically change the way business is done in a manner that timely responds to the ever dynamic customer demands. Furthermore, the management of commercial banks should practice appropriate strategic changes that enable them to offer services that meet the expectations of different groups of customers. In addition, management should regularly train their employees so that they are knowledgeable and remain competent in the event that a change has occurred. In the same vein, the management of commercial banks should embrace technological advancement in enhancing their business operations. This study therefore adds to the body of knowledge that structural change, strategic change and technological change all have significant effect on employee performance in the banking sector of Burundi. ?