Page 1 of 10
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 08
July 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 196
Change Management in the Period of Economic Recession: A
Case of Nigeria Business Sectors
E.A. Dangana Ph.D1 & Iliya Bawa2
1Department of Business Administration and Management Kogi State University,
Ayingba – Nigeria
Email: a.dangana@yahoo.com
2Department of Marketing the Federal Polytechnic Nasarawa – Nigeria
Email: iliyabawa84@gmail.com
ABSTRACT
Business environment across the globe
has become increasingly volatile and
constantly changing in the last few
decades. The economic recession being
witnessed by Nigeria in recent times
stems from the turmoil in global
commodity market in 2014 which
brought their full weight to bear on the
Nigeria economy in 2015. As a result of
these crises, business sectors which serve
as the engine that drive the growth of
Nigeria economy have failed. The study
examined the effect of economic
recession on Nigeria business sectors.
The study adapt a qualitative content
analysis, this method allowed the
researchers to manipulate documents
and develops themes relevant to
economic recession and change
management. It was recommended that
managers of business sectors should
demonstrate strong leadership role
throughout the organization by
spreading leadership and decision- making responsibilities in order to
inspire and motivate employees to play
an active role in implementing change.
Keywords: Change management,
economic recession, business sectors,
employees, goods, services.
INTRODUCTION
In Nigeria, since the sudden crash of
crude oil price which is the main source
of revenue for the government, the
country has continued to witnessed
several economic challenges namely;
inflation, paucity of funds, job losses,
forex scarcity, high cost of living among
others.
Igwe (2005) observed that recession
refers to a backward march, or reversal,
of the economy over a relatively long
term, believed by some economists to be
part of a regular cyclical phenomenon of
decline which must inevitably follow
some periods of sustained growth or
“ over-heating” . There is no scientific
basis for the cyclical theory of recession,
for such a theory must equally embrace a
recession in other spheres of existence,
Page 2 of 10
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 08
July 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 197
including the individual, family, group,
as well as national and international.
Recessions are an unavoidable crisis of
any imperfect or unjust economic
systems, such as the variants of
capitalism, including unequal
competitions, rivalries and mutual
struggles, often develop a negative
character, one of whose many
consequences can be a recession.
Many argue that the present government
economic policy, which has remained a
subject of inconsistency and controversy
has not fast-tracked the revival of the
ailing economy. Hence, production as
measure by Gross Domestic Product
(GDP), employment, investment
spending, capacity utilization, household
incomes and business profits all fall
during recessions. On the effects of
recession on the state of a nation’ s
economy, Biafore (2009) notes that
while compounding the problem of the
economy, “ recessions lead to lower
interest rates on savings because the
federal reserve board cuts the federal
funds rate to boost the economy. Worse
yet, layoffs are common during
recession” . This aspect of course
explains the massive retirement of
workers recently experienced in financial
sectors and other business sectors in
Nigeria. Business across the globe has
become increasingly volatile and
constantly changing in the last few
decades. Fundamentally, organizational
change emanates from two major
sources: the external sources and internal
sources. The external sources could be as
a result of improved technology, pressure
from interest groups, from outside the
organization such as government,
economy or competitors in the industry.
The internal source of change could be
from individual such as shareholders,
management, employees. Irrespective of
the source, wherever change is obvious,
the management is always faced with
the question of how to respond to this
change?
Statement of the Problem
The economic recession being witnessed
by Nigeria in recent times stems from the
turmoil in global commodity markets in
2014 which brought their full weight to
bear on the Nigeria economy in 2015.
Oil prices fell 66.8% from $114/barrel
recorded in June 2014 to $38.0 by
December 2015. Prices fell even further
in the global economy created a trifecta
of headwinds that the nation has to
contend with (NBS, 2017). As a result of
these crisis, business sectors which serve
as the engine that drive the growth of
Nigeria economy have failed. This
failure contributed to high exchange rate,
sharp changes in the prices of inputs
used in producing goods and services,
loss of jobs, massively staff layoff, salary
cut, loss of business and low income.
Page 3 of 10
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 08
July 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 198
Objective of the Study
The objective of the study are;
i. To examine the effect of
economic recession on Nigeria
business sectors.
ii. To proffer suggestion on how
business sectors can manage
changes during the period of
economic recession.
Research Methodology
The study adopt a qualitative content
analysis. The method emanates from
documentary research, which allows the
researchers the use of documents (past
and present) in order to reflect on
contemporary issues. This methodology
allowed the researchers to manipulate the
documents and develop themes and sub- themes for the purpose of analysis and
interpretation on addressing change
management in the period of economic
recession, therefore, available documents
that are relevant to change management
and economic recession were reviewed
(Journals Newspapers, Periodicals,
records) from which conclusion and
recommendation were made.
LITERATURE REVIEW
Economic Recession
Biafore (2009) refers to economic
recession as a “ slowing in economic
growth” . The period in view showcases
an economy where jobs are lost in their
numbers, money chase few goods and
currencies are largely devalued, among
other harsh economic indices. While
Meriam – Webster (2008) noted that
recession in business cycle is a
contraction which slowdown economic
activity in the country. It is a significant
decline in economic activity across all
the sectors in the economy, lasting more
than a few months, usually visible in real
GDP, real income, employment,
industrial production and wholesale- retail sale. It is a period of time when a
nation’ s GDP per capital declines for at
least two consecutive quarters in a
quarter – to – quarter comparison
(National Bureau of Economic Research,
2016).
Empirical Study on Nigeria Business
Sectors
Several studies carried out related to
economic recession are:
Oladipo and Fadayo (2012), did a study
on Global Recession, oil sector and
economic growth in Nigeria. In the
analysis, ordinary least square (OLS)
method was used to reveal that there was
a negative relationship between GDP and
oil produced (domestic consumption and
export) which is significant at 5% level
of significance i.e. (P<0.05). The result
also showed that there exists decline in
the oil sector du to the global recession
despite all measures given by
government to curb its effects. It
