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