Page 1 of 13
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 01
January 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 23
Relationship between Employee Readiness for Organizational
Change and Employee Performance
Anthony Andrew
Senior Lecturer, Department of Management, Faculty of Commerce and Management, Eastern
University, Sri Lanka
andrewsa1965@yahoo.com.au
Abstract
Managing organizations effectively is a
main challenge in the change management
domain because of massive human
involvement. Thus, managers are eager to
know how to encourage and effectively
prepare employees for change situation.
The aim of this study was to examine the
relationship between employee readiness
for organizational change and employee
performance. The objectives were to
investigate employee readiness for
organizational change and identify the
impact of employee performance in the
Divisional Secretariat in Kaluwanchikudy,
Batticaloa District where various change
reforms has been introduced recently. This
empirical study proceeded by a systematic
review of literature that led to the
development of a conceptual model. The
data was collected from a sample of 100
employees by using a survey
questionnaire. Data was analyzed using
descriptive statistics. Results showed that
independent variables (employee readiness
for organizational change) were positively
and significantly correlated to the
dependent variable (employee
performance).This study provide empirical
evidence for employee performance
predictor variables for organizational
change, and may contribute to the
literature on employee performance,
particularly for Sri Lanka, and may assist
the management, change agents and
practitioners of human resources
management and development, and
organizational behaviour in assessing,
designing and evaluating new or existing
programmes for organizational change.
Keywords: Organizational Change,
Employee Readiness, Employee
Performance.
1. Introduction
In today’s increasingly dynamic
technological and communications
networked environment, organizations are
continually confronting challenges such as
competition, development, general
instability, mergers and reengineering of
work processes. These forces challenge
organizations to re-evaluate their
Page 2 of 13
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 01
January 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 24
strategies, structure, policies, operations,
processes, and culture. In this situation,
organizational change (OC) is
unavoidable. Of great importance is the
fact that humans have different individual
life experiences, motivational levels,
socio-demographic characteristics,
knowledge, attitudes, support systems,
values, and behavioral patterns which
might involve painful learning and
relearning and can create feelings of
uneasiness and tension among employees.
Thus, researchers and practitioners need to
know as much as possible about employee
readiness predictors so that management
can endeavor to understand an individual’s
attitudes, beliefs and behaviors towards
organizational change.
The external changes that have been facing
the organizations provide an avenue for
thinking. Managers have adopted change
practices with varying levels of success.
While studies on change have been done
on manufacturing, (Shem, 2005) public
sector (Nyamache, 2003) International
Development organizations (Muturi, 2006)
and in other corporations, this study will
therefore provide insights on change
practices in organizations.
Managers in most organization today
would agree that change has become a
constant phenomenon and if an
organization is to survive that must be
attended to and managed properly.
Changes in technology, the marketplace,
information systems, the global economy,
social values, workforce demographics,
and the political environment all have a
significant effect on the processes,
products and services produced. The
culmination of these forces has resulted in
an external environment that is dynamic,
unpredictable, demanding and often
devastating to those organizations which
are unprepared or unable to respond
(Burnes, 2004). According to Schaffer
(1992), those organizations which do
survive are often relegated to the role of
playing “catch up” to their competitors,
while others are either absorbed into larger
entities via mergers or acquisitions or
simply dissolved into a collection of
corporate assets and liabilities.
In fact, many of the popular trends in
management and organizational consulting
such as business process re-engineering,
total quality management and the learning
organization, represent systematic methods
for responding to and channeling
effectively the forces of change.
1. 1 Background and Scope
Contemporary organizations are social
systems govern by the same rules of
human beings, it grows, evolves, progress,
face challenges, and struggle and adapt,
therefore change becomes a natural
phenomenon experienced by each
organization. Change in its simplest form,
means to move from the current situation
to more efficient and effective future,
therefore change is the process that we
learn and discover things through on an
ongoing basis. And change management
should be effective, i.e. have the ability to
move freely, have the ability to influence
others, and directing the working forces in
the target systems and administrative units.
(Robinson, 2000) (Harem, 2004)
Change management is a structured
approach to shifting and transitioning
individuals,
Page 3 of 13
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 01
January 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 25
teams and companies from the current,
initial state to a desired future state. It is
normally a top-down change process. As
with every plan to embark on major
changes, it is wise to begin with a
systematic analysis about leadership styles
and group dynamics. Organizational
Change Management aligns groups‟
expectations, communicates, integrates
teams and manages people training. It
makes use of performance metrics, such as
financial results, operational efficiency,
leadership commitment, communication
effectiveness, and the perceived need for
change to design appropriate strategies, in
order to avoid change failures or solve
trouble change projects.
Research suggests that the failure of
organizational change initiatives can
generally be attributed to negative
employee attitudes towards the change
(Bellou 2007; Coetsee 1999; Durmaz
2007). Unless adequately managed,
organizational change initiatives result in
feelings of fear and uncertainty (Bovey &
Hede 2001), leading to increased stress,
reduced levels of trust between employees
and management, and declining levels of
organizational commitment (Coetsee 1999;
Schweiger & Denisi 1991).
However, employees can develop positive
feelings and thoughts on the basis of the
employee career commitment as well. If an
employee is satisfied with his or her career
he or she will tend to show positive
thoughts and feelings for changes in an
organization. In career development,
employees always look to organizational
support regarding the psychological and
financial variables that may strengthen
their future career.
The purpose of the study was to
investigate the impact of employee
readiness for organizational change on
employee performance at the Divisional
Secretariat in Kaluwanchikudy.
1. 2 Problem Justification
A number of researchers Hanpachern et al.
(1998); Eby et al. (2000); Madsen et al.
(2005); Rafferty and Simons (2006); and
Elias (2009), have investigated the relative
influence of employee readiness predictors
to develop attitudes, beliefs and behaviors
to organizational change. Although it is
true that researchers have worked on micro
level issues in change management, there
is still a need to learn more.
This study examines employee readiness
determinants for organizational change to
support and strengthen the existing
literature. Most studies on employee
readiness for organizational change have
focused individual, psychological,
workplace, environmental, cultural and
social factors.
Most research work has been done in
developed or western cultural work
settings. Less research work has been
found so far in developing countries like
Sri Lanka. This requires more attention by
researchers and practitioners to establish
employee readiness predictors in different
work settings environments and cultures.
In Sri Lanka, change methods adopted by
western cultures should be used as a body
of knowledge in the domestic situation
