Managing Change in Corporate Organizations

8/9/2019 Managing Change in Corporate Organizations

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MANAGING CHANGE IN A CORPORATE ORGANIZATION: A

CASE STUDY OF UNION BANK OF NIGERIA PLC

ABSRACT

This research is on managing organizational change, particularly in a traditional corporate

environment. Specifically the study aims to understand and assess the critical success

factors in driving organizational change, using the change programme in Union Bank of

Nigeria Plc as a case study.

The study examined the scope and o!ectives of the current change programme in Union

Bank, identified the various risk factors" challenges on the programme and assessed the

level of employee involvement and resistance. #t also assessed the effectiveness of the

implementation strategies of the change programme to$ards the achievement of

corporate o!ectives.

The study used oth primary and secondary sources of data collection. Statistical tools as

fre%uency distriution, tales, percentages, and chi&s%uare '()* $ere also used in the

analysis of data and tests of hypotheses. Based on the findings and analyses, the

follo$ing conclusions $ere made

+rganizations should emrace the culture of encouraging team$ork among

employees for desired o!ective in change management to e realized.

#nade%uacy of resources $ill hinder the systematic process for implementing

and managing change in an organization.


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$areness campaign and enlightenment program should e estalished y

organizations for their employees on the need for corporate change

management.

-egulatory control of the government and her agencies should e flexile to

permit and improve on performance through change management.

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INTRODUCTION

1.1 BACKGROUND OF THE STUDY

change according to ari '/0001 )23* involves creating a ne$ strategy from an existing

one on the use of resources. #n this case, resource inputs are carefully selected and

processed for efficient and effective output. #n making any change in an organization,

difficulty is encountered in the area of attitudinal changes $hich usually is extremely

slo$. #n other $ords most changes planned for in a system could e delayed y people.

This is the reason degite '/000.43* argued that for any successful turn round, there

should e a turn around of the %uality of manpo$er and the level of training5 turning

around the culture5 uilding a team spirit5 evolving a strategy for effective risk

management5 managing technology and more importantly, offering effective leadership.

#n her contriution 6zek$esili ')7731 /3* said that effecting a change in an organization

leadership is supreme among other factors and is capale of transforming socio&economic

fortunes. #n her argument, the change in Nigerian ministries and parastatals are inevitale

for an improved living standard. #n this effect, the regulating activities 'e it controlling

or assisting* are useful especially in policies or programmes formulation and execution.

To Bro$n ')7731 /3*, corporate governance is needed in a corporate change and it

involves managing affairs of a corporation $ith a vie$ to increasing shareholders value

or meeting the expectations of all stakeholders. 8ere, a change re%uires putting in place

the right systems to ensure that the affairs of the corporations are managed smoothly to

achieve the stated corporate o!ectives. #t also emraces improving usiness performance

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and competitiveness, making it a driver in the effort of ensuring ade%uate capital

management.

9hatever form corporate change may take 'reengineering, restructuring, reorganizing,

privatization and commercialization, etc* it serves, according to :ohnson and Scholez

'/0001 /0*, as tool for corporate profitaility. This is achieved through competition $hich

introduces competence, excellence and varieties in goods and services. #n their analysis,

corporate change is aout ho$ the present and future resources availale in an

environment determine efficiency or improved performance and productivity. #n rief,

corporate change checks and alances opportunities and threats availale in an

environment for some predetermined organizations goals 'e.g. profits*. #n this $ay, errors

and $astes are minimized and o!ectives maximized. ;oreso, it is a kno$n fact that

changes in organizations enale $orkforce to develop or ac%uire ne$ skills capale of

oosting production.

Similarly, 9it and ;eyer ')77


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THEORETICAL FRAMEWORK

6ffective management of change in an organization like Union Bank re%uires usiness

and individual" people perspectives. ccording to the =- model, successful change

happens only $hen the usiness and people dimensions occur simultaneously. The

usiness dimension involves the typical pro!ect elements $hich most managers are fairly

comfortale $ith& definition of usiness need and scope"o!ectives5 design and

development of usiness solutions 'ne$ structure, processes, systems* and

implementation of the solutions. 8o$ever, managing the people dimension of change is a

high&critical success factor as prolems in this area are responsile for the failure of most

change programmes. The =- model identifies 4 elements $hich can e used to plan

change effectively or diagnose failure points in a change programme, as follo$s1 i*

$areness ii* =esire iii* no$ledge iv* ility and v* -einforcement. This research $ill

focus on all the five elements and their effects on the current change management process

in Union Bank.

1.2 STATEMENT OF THE PROBLEM

>orporate change is an inevitale constant to ensuring that organizations are strategically

positioned in performance and profit making, in vie$ of the competitive environment and

the effect of scientific and technological advances on the contemporary usiness $orld.

Successful corporate change in organizations could e achieved through participatory

performance et$een leaders and their suordinates. 8o$ever, a closer look at activities

in corporate change of organizations reveals certain dra$acks or failures to achieving

lofty goals. Some of the setacks are caused y the follo$ing5

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i. The psychological factors in human eings, $hich make them, ehave

differently in different circumstances. #n other $ords team$ork for a change

may not e easy due to individual resistance.

ii. #nade%uate resources 'oth human and non&human* re%uired in initiating and

adopting corporate changes.

iii. 8igh level of illiteracy among users of a changed programme. #n fact some

organization memers are not consulted on an intending change programme

hence they are unale to decode related terms.

iv. 8igh cost of installing and using technological devices needed in any change

situation.

v. -igid regulatory controls of the government and her agencies affect corporate

changes that could improve organizational performance.

1.3. RESEARCH OBJECTIVES

Basically, this research aims to examine the current change programme in Union Bank

$ith a vie$ to assess the critical success factors in driving organizational change,

particularly in a traditional corporate environment.

The research $ill attempt to

i. 6xamine the scope and o!ectives of the current change programme in Union

Bank of Nigeria Plc

ii. #dentify the various risk factors" challenges on the change programme in

Union Bank of Nigeria Plc

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iii. ssess the level of employee involvement"resistance and its impact on the

change programme Union Bank of Nigeria Plc

iv. ssess the effectiveness of the strategies in change programme to$ards the

achievement of corporate o!ectives. Union Bank of Nigeria Plc.

v. To evaluate the impact of rigid regulatory controls of the government and her

agencies on corporate changes that improved organizational performance.

1.4 RESEARCH UESTIONS

Based on the statement of the prolem and o!ectives of the study, the follo$ing research

%uestions are formed to guide the study5

i. To $hat extent has the scope and o!ectives of the current change programme

in Union Bank of Nigeria Plc affected service delivery?

ii. =oes effective #>T and expertise accounts for ma!or risk factors" challenges

on the change programme in Union Bank of Nigeria Plc?

iii. =oes initiation and implementation of change programme in Union Bank of

Nigeria Plc results into employee involvement"resistance in !o performance?

iv. =oes effectiveness of the strategies in change programme result into the

achievement of corporate o!ectives in Union Bank of Nigeria Plc?

v. =oes a rigid regulatory control of the government and her agencies on

corporate changes improve organizational performance?

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1.! RESEARCH HYPOTHESES

#n line $ith the statement of prolem, the follo$ing hypotheses are formulated5

H": The scope and o!ective of the current change programme in Union Bank of

Nigeria Plc affect service delivery to customers.

H1: The scope and o!ective of the current change programme in Union Bank of

Nigeria Plc has not affected service delivery to customers.

H": 6ffective #>T and expertise is a ma!or risk factor on the change programme in

Union Bank of Nigeria Plc.

H2: 6ffective #>T and expertise is a ma!or risk factor on the change programme in

Union Bank of Nigeria Plc

H": #nitiation and implementation of change programme in Union Bank of Nigeria Plc

has not resulted into employee involvement"resistance.

H3: #nitiation and implementation of change programme in Union Bank of Nigeria Plc

has resulted into employee involvement"resistance.

1.# SIGNIFICANCE OF THE STUDY

The significance of managing change in corporate organizations 'especially Union Banks

of Nigeria Plc* is an important study, $hich $ill enefit many individuals and groups in

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the society. The eneficiaries of this study include5 the government, practitioners,

corporate organizations, stakeholders of an organization and the academia.

To the government, this study $ill e of importance to her in managing and controlling

activities of corporate organizations. #t $ill also assist government in resource planning,

organizing and controlling, including revenue that could e harnessed from taxes for

developmental purposes in the economy.

To the practitioners, this study $ill immensely assist them to learn ne$ techni%ues in

corporate changes for improved performance and profitaility. Thus, this study is

important to practitioners to$ards serving their clients etter.

To corporate organizations, this study $ill e eneficial to their resource allocation and

utilization for predetermined goals.

To stakeholders, this study $ill assist them in areas of investment and de&investments5 in

other $ords, their stake in an organization is assessed to kno$ if their expected returns

are feasile.

To the academia, this study $ill e added to an existing one and serve as a reference

material.

To the general pulic, this study $ill enale them ac%uire kno$ledge and experience on

costs"enefits relationship of managing changes for opportunities and setack in

organizations and industries.

1.$ LIMITATIONS OF THE STUDY

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The conduct of this research may e limited y the follo$ing factors5

Time, $hich may not e enough for the enormous facts and ideas the research study

re%uired. dded to this is may e reluctance of the respondents to granting intervie$s or

respond favouraly to %uestionnaire administered to them.

@inance may e another area $here the study may encounter some setacks. ;ost

materials needed for the research $ork might e %uite expensive and not $ithin the reach

of the researcher.

These shortcomings not&$ithstanding, ade%uate data $ill e collected and analyzed.

1.% SCOPE OF THE STUDY

The study $ill cover significance of managing changes in a corporate organization $ith

emphasis on corporate head office of Union Banks of Nigeria Plc in Aagos. The

respondents $ill e from the functional departments 'i.e. 8uman -esources, +perations,

@inance Planning, #nspection, #T, ;arketing, Ceneral Services, Aegal etc* of Union

Bank of Nigeria Plc.

The research intends to reflect on all the managerial level 'top, middle and lo$* of the

Bank of study. This is ecause no one particular department or managerial level is

independent. The study $ill emphasize effectiveness in planning, productivity and

implementation of change management for an enhanced employeeDs"organizations

performance.

1.& DEFINITION OF TERMS

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Terms for definition include

C'()'(*+, -*/0,This concerns the overall for$ard looking of an organization in

utilization of its resources to$ards achievement of stated o!ective.

O(0*/*+'/ +rganized ody that uses managerial functions of planning, organizing

and controlling to achieving predetermined goals of an organization.

R,'5(-, This concerns human and material inputs, $hich act in con!unction $ith one

another to$ards the achievement of organizational o!ectives.

P,(6'(7*/-,EThis is a measure of results and standards.

P'8-9E#t is a plan employed y individuals and firms to guide their thinking and actions

to$ards achievements.

P('6+*8+9 Beneficial investment.

I/685,/-, Po$er to effect or change character, elief or action through authority, choice

and admiration.

C'/+('8 Ferifying $hether everything is $orking in accordance $ith plan adopted.

R, ,/0/,,(/0 ;This is rethinking, re&invention transformation and redesigning of

usiness process to achieve a etter performance aimed at achieving corporate goals.

R,+(5-+5(/0;This concern redesigning the corporate outlook of an organization y

either do$n sizing or uilding resources through a revie$ to fall in line to expected

standard.

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R,'(0*/*+'/ This concerns re&arranging an adopted procedure or policy of an

organization to making it more effective or functional.

P(hange at NigeriaDs ;inistry of solid minerals

=evelopmentH, Business =ay, Tuesday, ;arch 0, P. /3.

:ohnson, :. and Scholes, . '/000*, 6xploring >orporate Strategy5 Text and >ases,

6ngland5 Pearson 6ducation Atd.

ari, ;. '/000*, GNigeriaDs >orporate strategies, Aagos5 ;c=ee >ommunications

Aimited.

9it, B. =. and ;eyer, -. ')77ontent, >ontext5 n #nternational

Perspective, #taly5 >anale and >. Pulishers.

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CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1. ORGANIZATIONAL CHANGE DEFINED

>hange from organizational perspective re%uires kno$ledge of t$o concepts E creativity

and innovation. >reativity refers to the introduction of a ne$ idea $hile innovation is the

modification of product, service, production process or technology.

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+rganizational change is the restructuring of policies, practice or the modification of the

attitudes and ehaviour of the $orkforce in order to improve performance. The process of

change starts $ith creativity, $hich eventually leads to innovation. @or example,

Cuttenerg started printing using the movale type and this later metamorphosed into an

innovation, $hich altered the existing printing method. To adapt to the ne$ method

re%uired retaining the skills of staff and the practice of pulishing firms.

Ciles '/00/1IJ)* identifies three key variales, $hich are necessary efore change takes

place1

. I=,/+69/0 */= D,6//0 +, P('8,7:Kou cannot change something unless

you have identified existing prolem $ith status %uo. #f you find out that a ne$ $ay

of doing something $ill enhance productivity then you take the risk of going for it.

team manager in Union Bank Nigeria for example, may encourage suordinates to

emark on a service that is capale of enhancing efficiency y solving prolems

encountered through asence of training and experience. #n other $ords, unidentified

and unresolved prolems y a team manager through suordinates in anks especially

Union Bank of Nigeria is capale of causing losses in performance and profits.

. B58=/0 C'*8+'/: This is the second step in introducing change and

getting other staff to support the change efforts. 9eer '/0J4* descries coalition

uilding as a process that resemles a zigzag than a progression of chain of

command. To uild coalitions one must first get the idea cleared or approved y an

immediate oss.

+nce the idea has een planted and accepted, negotiationegins. The innovator

promises enefits from the pro!ect in exchange for their support. @or example. #n

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achieving desired o!ectives of satisfying stakeholders of Banks, managers 'top level

staff* ensures that various departments or units are consulted in a relationship that

could captures directors"chairmanDs corporate plans. This is ecause

directors"chairman are key players for any desiring change or innovation for the

Bank.

. P5++/0 */ =,* +' W'(>:t this stage the =irectors"chairman $ill solicit the

support of the generality of employees, especially managers in the Bank 'Union Bank

of Nigeria Plc*. #n this arrangement, managers are vital to %uick response of other

employees $hose supports guarantees success of changes.

#t is noted $orthy that change $ell transmitted to employees in Banks receives minimal

o!ective, hence are accepted. +n the hand change not communicated y managers to

employees are sure to fail.

2.2 MANAGING CHANGE AND ORGANIZATIONAL CULTURE

9hen managing change ecomes the culture of on organization, the employers in that

organization are turned to striving to doing only the right things. '+gonna /001


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an activity of product or service is, is institutionalized in managing change in

organization, it $ould not expend its energy on useless activities that cannot move itsD

usiness for$ard.

dding to the concept of culture Smirrich '/02I1)7* said that after identifying the right

thing to do, a structured process is used top ensure that all associated activities are

correctly performed. This means that output 'product"service* meet the customer

re%uirement first time every time. By first determining $hat is the right thing to do and

doing it right time every time, the managing of change ensures that money, time and

energy are not expended on correctly errors, scrapping output or ne$ $orks.

#t is patently ovious, therefore, that organizations $here doing the right thing first time

every time every time ecomes a culture, sustantial Ereduction in operating cost and the

concomitant effect of higher profitaility are the re$ards. @aithful adherence and

missionary commitment to managing a change is the secret of effective performance in a

organization managing change in an organization is a process that enales a %uality

organization to focus on customers, allo$ employees to take o$nership of $hat they do

and to deliver products"services to standard agreed $ith the customer. #n addition, the

organizationDs product" service must e reliale, e delivered on time all the time and

give value for money.

#n rief, culture revie$s suggests a complex and far reaching agenda for implementation

of change management, encompassing management style, human resource policies, and

the $ork environment generally.

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2.3. MANAGING CHANGE AND HUMAN RESOURCE IN AN ORGANIZATION

-egardless of $hether the high managing strategy is a matter of choice or of necessity,

suggestions are that change re%uires a particular approach to human resource strategy if it

is to e implemented successfully.

Savanna et al '/02


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effective organization performance. This revie$ $ill help uild cooperation and team

&ased performance, $hile assessing the managers and supervisors or y suordinates

may help develop a more open positive management style. dditionally, approach ased

on the setting and revie$ing of personal o!ectives, linked to a revie$ of the raining and

development needs of the individual should e adopted. The emphasis occasionally need

e on development and moving the !udgment the aspects of assessment and moving a$ay

from the allocation of GlameH to$ards the development of the individual.

;ost scholars have regarded training and development as essential to the implementation

of organizational change, example is $here an employee need training in the principles of

continuous improvement, prolem solving techni%ue, and statistical process control

managing change could involve organizations into training strategic planning market

research, standardizing procedure, preventive maintenance %uality and process ench

marketing, measurement and feedale system re$ard and recognition, programmes,

productive meetings and punctuality $hile those that can e classified as cost of ad

organizational employee turnover, excess marketing costs, excess services or product

features lost customers and market share asenteeism, re&$ork overtime, la$ suits,

$arranty costs, redesign, unproductive meetings and lateness.

2.4 BENEFITS OF ORGANIZATIONAL CHANGE

#n order to maximize the enefits from organizational change initiative, the follo$ing

critical success factors should e kept in mind.

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i. 6nsure that the company has the re%uired capailities5 firstly, senior management

must e committed to lead the initiative.

ii. 6mploy the appropriate skills and technology in the implementation of o!ectives

iii. Be prepared to deal $ith resistance to change

iv. 6stalish the standards for measuring results to ensure effective control.

>ustomers are the ultimate eneficiaries of organizational change. Boynton and Fictor

'/00)1)4* noted that as the overall efficiency of the organization improves5 customers

receive etter and faster service. ;oreover, organizational change can motivate support

and focus efforts to meet specific client needs& $ith the elimination of many extraneous

or duplicate processes and the automation of routine processes. 6mployee responsiilities

are likely to change and ehaviours $ill have to e transformed.

Some employees may e given responsiility for a larger part of core processes. This

re%uires a $ider range of skills ut can lead to greater !o challenge 'and cause

satisfaction* as $ell as greater motivation ecause of the increased aility to re$ard

individual or small group performance. Staff have less routine $ork to do any can e

exposed to more earning opportunities.

+n the other hand, as Baily and >hakraarti '/0221I4* confirmed, some other employees

may e told that their service is no longer re%uired as a result of organizational change.

6mployees, especially middle managers, often perceive process redesign to e a ruse to

get them out of their !os

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2.! ORGANIZATIONAL PROBLEMS RESULTING FROM CHANGE

>hange efforts have constantly een faced $ith ostacles. ;any organizations have

aandoned their change efforts after making significant investments. +thers have failed

to achieve anticipated enefits. Barton '/00I1)2* has distinguished the follo$ing as

critical prolems for successful change implementation.

i. Understanding the rationale for organizational change

ii. =eciding $hich internal processes should e redesigned

iii. ccepting the enormous cost associated $ith the initiative

Some resistance to change should e expected as people $ho are used to doing things in a

certain $ay $ill e sceptical aout a ne$ mode of operation. Sufficient technical

expertise or system must e internally availale or externally contracted in order to assure

the smooth assimilation of advanced technologies. Socio&technical design principles

highlight the need for concurrent management of technological and human change.

lthough the organizational change process may give lot of enefits to the firm,

sufficient communication must e provided to the staff efore implementation5 therefore,

organization should make sure all staff understand the purpose of the transformation

efore its implementation egins. 6valuation and re$ard structures should encourage

support for any change. Training of staff on $orking $ith the ne$ process and

technology not only reduce fears to change ut also increase their confidence5 thus,

Barrett '/00


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The presence of a transformational leader, to inspire and facilitate change, is also

crucial. ;any organizational change failures can e traced to top management inade%uate

understanding or leadership of the effort.

2.#. REDUCING RESISTANCE TO CHANGE

=onnelly, et al '/02I1IJ* stated that resisting change is a human response, and that

management needs to take steps to minimize such resistance. They $ent on to state that

$hen resistance is minimized the time it takes for a change to e accepted or tolerated is

reduced and the performance of employees reound more %uickly. They summarized

certain approaches that had een used in minimizing resistance to change. These include5

i. 6ducation and communication. 9hen people are $ell informed and educated

prior to a change, they are likely to e more receptive and less resistant to the change

ii. clear understanding of the nature of the change and the rationale ehind it.

s communication is essential for proper change, lack of understanding reeds

rumours and $hen not properly handled, this can increase the level of resistance to

change.

iii. Participation and involvement have impact on reducing resistance. 8aving

the people contriute to the design and implementation of change helps increase their

commitment to the change. #f individuals feel their ideas and attitudes are eing

included in the change effort, they tend to ecome less resistant and more receptive.

People tend to follo$ their o$n decision est5 thus, participation can e a po$erful

force for change.

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iv. @acilitation and support. ;anagers must help facilitate the change $hen fear

and anxiety are at the heart of resistance. This involves sho$ing concern for

suordinates and eing a good listener to their concerns $ith a vie$ to providing

appropriate support.

2.$. BRIEF HISTORY OF UNION BANK OF NIGERIA PLC

Union Bank of Nigeria, $ith history dating ack as far as /0/J, is perhaps the second

oldest surviving ank in Nigeria. #ts corporate vision is GTo e the est of the est to ank

onH $ith a complementary mission statement Gto e the foremost financial institution

$ith the most satisfied customers.H #n the past 0I years, the ank had gro$n from its

modest eginning into a financial supermarket $ith susidiaries and associate companies

in insurance, capital market, trusteeship, mortgage finance, discount usiness and share

registry. #n addition, its customer net$ork is one of the est in the country in terms of

spread, penetration to rural areas and generational loyalty. To serve its numerous

customers, the ank parades an array of products ranging from conventional to

contemporary, customised and electronic. These include savings and current accounts,

Union Aifetime ccount, Union Calaxy ccount, U&Trade, Union 6ver ccount,

#mporters 6xpress, Union Teachers 6mpo$erment ccount, etc.

The BankDs shareholding is spread over many stakeholders, $ith the $orkforce holding

aout I4L of the e%uity, the largest holding of any $orkforce in any of the countryDs

anks.

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#n the Nigerian anking terrain, Union Bank prides itself in having the largest

concentration of %ualified, chartered ankers. ccording to The Stallion ')7/7*, No. 0J,

harted #nstitute of Bankers

of Nigeria '>#BN*

Until recent past, the BankDs financial performance and indicators have een for the most,

etter than the industrial average and among the top ten. #t $as the first Bank to record

the one illion deposit mark in the country. Nonetheless, over the years, the Bank has

remained perceptily old&fashioned $ith traditional system of anking. 8o$ever, as

gloal competition increases and local living standards improve, people in Nigeria have

come to expect progressively faster and higher %uality service particularly $ith the

advent of Mne$&generationD anks.

To achieve a competitive turnaround time for its services, the Bank emarked on a

reengineering of its processes in /00< to upgrade its internal operations, in collaoration

$ith rthur ndersen, an external consultant. ll ma!or processes $ere revie$ed,

modelling the $ork flo$ and measuring the timelines. The process redesign ranged from

minor modifications to ma!or overhauls5 particularly routine processes including alance

en%uiry, che%ue ook issuance and passook updating $ere automated. +oh '/0001)7*

noted that a post redesign survey indicated that employee !o satisfaction level increased

y )7L $hile laour force utilization $as up aout /4L.

=espite the process upgrade ho$ever, the ank $as still heavily ent to$ards the

traditional mode of anking than the emerging contemporary mode of the ne$er anks.

-ecruitment of experienced staff of other anks that could have challenged the system

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$ith fresh ideas $as not encouraged. ;oreover, the staff remuneration package of the

Bank $as elo$ industrial average and not attractive enough to attract young experienced

ankers.

part from operational issues, the ank also had critical prolems $ith its risk

management frame$ork. These ranged from advancing loans to customers $ith

incomplete documentation and inade%uate security collateral, or sometimes, $ithout any

collateral at all. t times, loans $ere advanced to customers y ranch officers simply on

trust or on a compassionate ground5 $hile in other cases, some management staff $ould

fraudulently use some ody as a front to otain loan, against due processes. The effect of

this slack monitoring of loans $as a mounting volume of un&reconciled items and non&

performing loans, resulting inevitaly into ad det.

2.%. PROJECT GEAR UNION BANK?S CHANGE PROGRAMME

#n recognition of the glaring fact that the Nigerian anking competitive space $as

changing, Union Bank emarked on an enterprise&$ide transformation programme code&

named Pro!ect C6- in )77J, in collaoration $ith ccenture, $orld reno$ned

consultants. ccording to the Stallion ')77J*, Pro!ect C6- $ould enale the ank to

address all the challenges posed y post&consolidation, gloalization and competition.

The end&o!ective is to set fresh standards that $ould impact positively on the ottom&

line and enale the ank regain its leadership position in the anking industry.

numer of transformation su&pro!ects $ere set up, particularly in the areas of

corporate strategy, information technology strategy, strategic usiness unit planning,

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$orkforce transformation, enterprise performance management, and usiness process re&

engineering.

@ollo$ing completion of the design phase of the programme, the ankDs management

identified the %uick $ins, sought practical and pragmatic solutions and engaged staff

across different cadres to$ards the implementation of the desired changes. Particularly

useful $ere the various conferences organised for all the Business =evelopment >entres

'B=>s* and led y the Croup ;anaging =irector, Barth 6ong, to galvanise staff support

and commitment. carefully selected team, called >hange >ouncil, $as also inaugurated

to drive the change process and monitor the overall successful implementation of the

programme. There is also a >hange ;anagement department $hich serves to implement

decisions and ideas of the >ouncil, particularly in the area of instituting and

communicating a ne$ leadership concept and $orkplace culture.

By the end of the first phase of the programme, a ne$ corporate strategy has een

developed for the Bank. Strategic Business Units 'SBUs* $ere focused as the primary

operating unit of the Bank responsile for executing the corporate strategy. +n the

usiness marketing front, the ank is to leverage on its core strengths to defend its hold in

the corporate anking market segment in the short&term, $hilst developing the

capailities re%uired to play effectively in the more risky middle and retail anking

segments in the medium to long&term. dditional B=>s $ere created to ring the BankDs

services closer to customers across the country, empo$er the managers and %uicken

decision&making. @or effective support, a series of %uick measures to address existing #T

issues and challenges $ere identified $hile a lueprint on #T development $as

developed. #n addition, all the ma!or usiness processes of the Bank $ere revie$ed and

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re&designed to increase operational efficiency and make them more customer&friendly.

reas covered included ranch operations, treasury operations, international anking and

finance services. The Bank had also created a performance&driven culture y instituting

an integrated, o!ective and fair performance management system, $hile a ne$

$orkforce model had een developed to align the $orkforce to the ne$ corporate

strategy and encourage skills specialization. s part of this, a ne$ uality ssurance

department $as estalished to monitor and enforce service standards, oth internal and

external. To address customer service and satisfaction issues delierately, the ank

launched the Foice of the >ustomer 'F+>* programme as a customer advocacy product

aimed at complaints"feedack management and continuous rigorous revie$ of service

%uality. The F+> >entre has the po$er to deal $ith service failures and find solutions to

customerDs service challenges. t the head of the F+> programme is a >ustomer ction

>ouncil headed y the Croup ;anaging =irector, therey ringing a high&level executive

support and oard&level responsiility to ear on service issues.

9hile the change programme $as ongoing, the ankDs financial position ecame

negatively affected y the crash in the Nigerian stock market in )7/7, accentuating the

already existing challenges of large non&performing loans and inade%uate capital. Barde

')7/7* noted that the BankDs shareholders, at an extraordinary general meeting '6C;* in

Septemer )77J had approved plans for additional capital including placement from

foreign investors $ith multinational ackground. >entral Bank of Nigeria ho$ever

disapproved of the capital raising plans, particularly the foreign core investor

participation.

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2.%.1. REFOCUSING OF CHANGE PROGRAMME BY NEW MANAGEMENT

+n ugust /entral Bank of Nigeria in!ected one hundred and t$enty illion

naira 'N/)7 illion* ne$ capital into Union Bank as part of ail&out package to some

anks to prevent imminent financial crisis. The >entral BankDs intervention in the ank

$as due to its failure in three key regulatory areas& capital ade%uacy, li%uidity and

corporate governance& $hich ecame ovious follo$ing an extensive inspection audit on

the ank for the year ended ;arch I/, )7/7. ccording to the >entral BankDs audit

report, the li%uidity ratios of the ank dropped as lo$ as )JL & !ust a little aove the )4L

statutory minimum.

#n the area of corporate governance, the >entral Bank report also noted that the ank

failed to keep a transparent record of all their accounts. #n addition, the ank $as housing

a lot of un&reconciled items and non&performing loans recorded resulting in loan loss

provision of eighty three illion naira 'N2I Billion* and eventual loss efore tax of sixty

seven illion naira 'N3J Billion*.

9ith the ne$ capital, the >entral Bank also replaced the old management team $ith a

ne$ team led y @unke +siodu. @ollo$ing appraisal of the ongoing implementation of

Pro!ect C6- and the ankDs position in relation to areas of regulatory concern& capital

ade%uacy, li%uidity and corporate governance& the ne$ management decided to

concentrate change efforts on three main areas1 -isk ;anagement >ontrol, ;arketing

Business =evelopment and People">ulture ;anagement.

ccording to +siodu, the Bank $ill focus on aggressive loan recovery using internal

mechanisms and external la$ enforcement resources as $ell as monitoring and

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reducing concentration risks of large ticket credits y ensuring even spread of its loan

portfolio. The ne$ management $ill also ensure the integrity of the BankDs

accounting and financial reporting system, and the institution of a corporate

governance structure uilt around enhancing transparency and accountaility.

ne$ operating model $as rolled out for ranches to give dedicated focus to marketing

and relationship. The ne$ model, eing piloted in 44 flagship ranches across the

country, is designed to reinvigorate ranch marketing and relationship management $ith

the appointment of senior management staffs as Business =evelopment ;anagers

'B=;s* in charge of ranch administration and usiness. Systematic redeployment of

staff from 8ead and Oonal offices to ranches $ere undertaken to increase the ratio of

market facing staff $hile emphasis is eing placed on rand management and upgrade of

physical amience and $ork tools $ithin the amit of availale resources.

s a $ay of pursuing a merit&ased, o!ective performance management system and

enforcement of a customer service culture, the Bank introduced Cognos 8, a

performance measurement soft$are that $ill capture individual staff performance in

relation to pre&determined targets and key performance indicators. #n addition, to

discourage $rong ehaviour, management introduced and pulished a sanctions grid

$hich specified various conse%uences for various misdemeanours. ccording to The

Stallion ')7/7*, retraining of staff using e&learning tools including compulsory training

modules and assessment tests $ould assist staff in aggressive gro$th in their

kno$ledge level and enhance capacity uilding. This $ould eventually enale staff to

deliver on their set performance o!ectives.

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REFERENCES

dimora, >. '/00)* G-e&engineering PrinciplesH :ournal of total uality Nigerian

#nstitute of ;anagement :une&ugust, p.2.

lan, >. '/00. and Fictor, B '/00)*, G#nformation technology in the post&fordist regime and

flexile responseH, #B; Systems :ournal, P. )J0.

Bello$ #.'/002*, G;anaging change E /stBanker 'unpulished*H, The home :ournal of

@BN PA>, :une, page /J.

>hakraarli, '/022*, #nnovation and the Productivity >risis, 9aslinton =.>.1 Brookings

institute.

6arh, ;. 6. '/00


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=eming, 9.6 '/02)*, +ut of >risis, Ne$ Kork1 ;it Press

=cavanna, . '/02


31/64

-upert 6ales '/00reating Cro$th form >hange,Aondon1 ;acgra$ 8ill Pulishing.

Smirrich, # '/020*, Thro$ing on >hoas, Aondon1 Pan Books Aimited.

The Stallion ')77J*, Union Bank of Nigeria Plc, :uly&Septemer, pages < and /hange, Ne$ Kork1 8arcourt Brace.

Barde, @ ')7/7* Union Bank of Nigeria Plc Ceneral >ircular No. /22")7/7

CHAPTER THREE

RESEARCH METHODOLOGY

3.1. RESEARCH METHOD AND DESIGN

@or purpose of this study the research $ill e design to collect effective and relevant

information from the staff of Union Bank Nigeria Plc y using %uestionnaires and

personal intervie$er. survey method of research may e used and staff $ill e selected

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from various units. The ma!or data collection instrument that $ill e used is the

%uestionnaires containing three section 'a* research %uestions, '* hypotheses and 'c*

personal data. The %uestionnaires $ill e used to make up for deficiencies of secondary

data.

3.2 METHODS OF DATA COLLECTION

This concerns the methods that the researcher $ill adopt in collecting and analyzing data.

These includes5research design, selection of data, sample size determination, stratified

sampling techni%ue, random sampling techni%ue, pilot or pre&test of instrument,

reliaility and validity of results, administration of the instrument, procedure for data

analysis, etc.

. PRIMARY DATA SOURCES

To explore this, a set of %uestionnaire $ill e designed. The distriution $ill e for a

sample of respondents of the anks under study.

. SECONDARY DATA SOURCES

To ac%uire the secondary data, the enumerated sources $ill e consulted.

a. Textooks, Ne$spapers, and unpulished papers

. -esearch pro!ects related to the study

c. ;aterials from liraries

3.3 POPULATION OF STUDY

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ccording to Baridam ')777*, population is made up of all conceivale element, su!ect

or oservation relating to a particular phenomenon of interest to the research su!ect. The

population of this study $ill e staff memers of Union Bank Nigeria Plc $hose

population is put at 3,777. The fact that an entire population $ill not e easily reach

makes for sample to e taken from the organization of study. The study $ill intervie$ the

top, middle and lo$ level staff. #t is ovious that not all the %uestionnaire $ill e

responded to o$ing to individual perception.

3.4. SAMPLE AND SAMPLING TECHNIUE

The sample size for this study $as otained from the population of the study using the

formula elo$. Pilot programme may e used to determine the $illingness of the

respondents to participate in this study. The effect may e that I out of every 4 persons

may e $illing to respond to the %uestionnaire.

The percentage of $orkers $illing to participate is I x /77 37L,4 /

$hile


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Therefore Ns '/.7


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9here1 + oserved fre%uencies, 6 expected fre%uencies and ( ) chi s%uare & the

measure of differences et$een +, the oserved and 6, the expected fre%uencies,

9ith assumed null hypothesis.

'@>* #: '-+9#* '>+AU;N:*

C-N= T+TA

9here

'fc*#: expected fre%uencies for ithro$ and !thcolumn.

-o$ ith the total of the fre%uencies in ithro$

>olumn !th the total of the fre%uencies in ! thcolumn, and

Crand total the total of all the fre%uencies in the tale.

3.$. LIMITATIONS OF METHODOLOGY

This concerns constraints encountered on the conduct of this research. This includes5

getting all the intended respondents at the same time to ans$er %uestionnaire. The

methodology processes $ill e limited to the forms as to e used in the institution of the

research. #n other $ords it $ill not e all the procedures in any statistical ook that $ill

e used.

REFERENCES

sika, N. ')773* -esearch ;ethodology in the Bahavioural Sciences, Aagos5 Aongman

Nigeria Plc.

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Baridam, =.;.'/007*,-esearch ;ethod in dministrative Sciences, Port 8arcourt5 Belk

Pulisher.

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CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

4.1 PRESENTATION OF DATA

The study is on the significance of managing change in corporate organizations such as

Union Bank of Nigeria Plc. >ross sections of the management staff of the ank of study

$ere covered from different departments '$ith emphasis on effectiveness and efficiency

of change management*. The study covered the top, middle and lo$ levels of the

management staff of Union Bank of Nigeria Plc.

s sho$n in the tale elo$, /77 %uestionnaires $ere administered to the respondents

and J7 of this numer $ere ans$ered and returned.

TABLE 4.1D+(5+'/ */= R,-,)+ '6 5,+'//*(,

R,)'/=,/+ N'. '6

5,+.D+(.

@ N'. '6

5,+.D+(.

N'. '6

5,+.R+(=.

@ N'. '6

5,+.R+(=.

N'. '6

5,+.N'+ R+(=.

@ N'. '6

5,+.N'+ R+(=.

S; and aove /4 /4.77 I


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s could e seen from the tale, 37L of %uestionnaires $ere administered to +fficer ###&

Su ;anager. This is ecause they formed the ulk of the staff count in the ank and are

the footmen in frontline and critical ack&end operations. @ollo$ing this group, is the

middle level ssistant ;anager E ;anager cadre $hich serves as a link et$een the mass

of !unior staff and senior management.

4.1.1. DEMOGRAPHIC FEATURES OF RESPONDENTS

TABLE 4.2 S, D+(5+'/ '6 R,)'/=,/+

R,)'/,


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)/&I7 years )4 I4.J/

I/&


40/64

T*8, 4.!E=5-*+'/*8 5*86-*+'/ '6 R,)'/=,/+

R,)'/, /0 E),(,/-, '6 R,)'/=,/+

R,)'/,


41/64

@rom tale


42/64

@rom tale


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T*8, 4.& S'/0 ,+,( +,(, 0/6-*/+ (,8*+'/) ,+,,/ +, C*/0,

)('0(*77, / U/'/ B*/> */= +*66 )('=5-+ '6 N0,(* P8-.

R,)'/, R,)'/=,/+ @ '6 R,)'/=,/+

gree 4J 2/. '6 N0,(* P8-

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R,)'/, R,)'/=,/+ @ O6 R,)'/=,/+

gree


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R,)'/, R,)'/=,/+ @'6 R,)'/=,/+

gree )3 IJ./ +, *))(')(*+, (,)'/,

'/* The scope and o!ectives of the current change programme in Union Bank of Nigeria Plc

affect service delivery

'a* gree '* =isagree

')* There is a significant relationship et$een Union BankDs change programme and

staff productivity?


'I* #nade%uate resources is affecting the implementation of strategic change in Union

Bank of Nigeria Plc


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'4* 6ffective #>T and expertise is a ma!or risk factor to successful implementation of

change programme in Union Bank


'3* 6mployees are significantly involved and carried along in the change programme

in Union Bank


'J* #nitiation and implementation of change programme in Union Bank has resulted

in employee resistance


'2* -egulatory control on the change programme in Union Bank is rigid and

significant


'0* >urrent strategies for implementing change programme in Union Bank is

effective


'/7* The change programme has resulted into some achievements of Union BankDs

corporate o!ectives


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Documents

Managing Change in Corporate Organizations