DECLARATION

I hereby declare that I am the author of this research project report titled: “THE EFFECT OF

ORGANISATIONAL RESTRUCTURING ON EMPLOYEES’ COMMITMENT IN

ACCESS BANK PLC” submitted to the Department of Employment Relations and Human

Resource Management, Faculty of Management Sciences, University of Lagos, as a record of the

original work done by me under the supervision of “MR. SAMUEL OKEKE". I am fully

responsible for all errors that may be found in this work. All citations and sources of information

are acknowledged using references.

JAIYEOLA TINUOLA BOLATITO DATE

160206019

i
 CERTIFICATION

This is to certify that this research project report, titled: “THE EFFECT OF

ORGANISATIONAL RESTRUCTURING ON EMPLOYEES’ COMMITMENT IN

ACCESS BANK PLC”, was written by JAIYEOLA TINUOLA BOLATITO with

matriculation number 160206019.

MR. SAMUEL OKEKE DATE

Project Supervisor

PROF. CHRIS OBISI DATE

Head of Department

ii
 DEDICATION

I dedicate this project first and foremost to God Almighty, my parent, my siblings and well-

wishers for their support all through this project.

iii
 ACKNOWLEDGEMENT

I express my deep gratitude and appreciation to God Almighty for sparing my life throughout my

stay at the University of Lagos. I am greatly indebted to several individuals who participated in

this research work, for their time expanded and courage in sharing their insights with a fledgling

student.

I had been well-enriched being under the supervision of Mr Samuel Okeke, who is my supervisor

with his quality level of knowledge and who as an art of encouraging, correcting and directing

me in every situation as possible, which has enabled me to complete this project. Lastly, I would

like to thank my family and friends. Mr and Mrs Jaiyeola,Miss Jadesola Jaiyeola, Gboyega

Jaiyeola, Bunmi Adesanya, Biyi Jaiyeola ,Ogunsakin Oluwaseyi, Ajewole David, Nnamadim

Oluchi. Words cannot express the profound love I have for you all.

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 TABLE OF CONTENTS

Contents
DECLARATION.........................................................................................................................................i
CERTIFICATION.......................................................................................................................................ii
DEDICATION...........................................................................................................................................iii
ACKNOWLEDGEMENT..........................................................................................................................iv
TABLE OF CONTENTS............................................................................................................................v
LIST OF TABLES.....................................................................................................................................ix
LIST OF FIGURES.....................................................................................................................................x
ABSTRACT...............................................................................................................................................xi
CHAPTER ONE..........................................................................................................................................1
INTRODUCTION.......................................................................................................................................1
1.1 Background to the Study..............................................................................................................1
1.2 Statement of Problem......................................................................................................................3
1.3 Research Questions............................................................................................................................4
1.4 Objectives of Study..........................................................................................................................4
1.5 Research Hypotheses.........................................................................................................................5
1.6 Scope and Delimitation of the Study..................................................................................................5
1.7 Significance of the Study...................................................................................................................6
1.8 Operationalisation of Concepts..........................................................................................................7
1.9 Brief History of Access Bank..........................................................................................................7
1.10 Plan of the Study..............................................................................................................................8
References.................................................................................................................................................10
CHAPTER TWO.......................................................................................................................................12
LITERATURE REVIEW AND THEORETICAL FRAMEWORK..........................................................12
2.1 Preamble........................................................................................................................................12
2.2.1 CONCEPTUAL REVIEW OF THE LITERATURE.................................................................12
2.2.2 The Concept of Restructuring....................................................................................................13
2.2.3 The Concept of Employee Commitment....................................................................................15
2.2.4 Types of Organisational Restructuring......................................................................................18
2.2.5 Purpose of Restructuring in an Organisation..............................................................................19

v
2.2.6 Ways of Achieving a Successful Restructuring Process............................................................21
2.2.7 Dimensions of Employee Commitment.....................................................................................23
2.2.8 Importance of Having Committed Employees in an Organisation.............................................27
2.2.9 The Role of Restructuring on Employee Commitment..............................................................29
2.3 EMPIRICAL REVIEW OF THE LITERATURE..........................................................................30
2.4 THEORETICAL FRAMEWORK.................................................................................................32
2.4.1 Planned Change Theory.............................................................................................................32
2.4.2 Human Capital and Commitment Theory..................................................................................33
2.5 CONCEPTUAL FRAMEWORK..................................................................................................33
............................................................................................................................................................... 34
............................................................................................................................................................... 34
............................................................................................................................................................... 34
Source: Researcher, 2020......................................................................................................................34
2.6 Synthesis of the Literature Review................................................................................................34
References.................................................................................................................................................36
CHAPTER THREE...................................................................................................................................42
RESEARCH METHODOLOGY...............................................................................................................42
3.1 Preamble........................................................................................................................................42
3.2.1 Research Design........................................................................................................................42
3.2.2 Rationale for the Choice of Research Design.............................................................................42
3.3.1 The Study Area..........................................................................................................................43
3.3.2 The Study Population.................................................................................................................43
3.3.3 The Target Population...............................................................................................................43
3.4.1 Sampling Frame.........................................................................................................................44
3.4.2 Sample Size Determination........................................................................................................45
3.4.3 Sampling Procedure...................................................................................................................45
3.5.1 Research Instrument..................................................................................................................45
3.5.2 Validity of the Research Instrument...........................................................................................46
3.5.3 Reliability of the Research Instrument.......................................................................................46
3.6.1 Ethical Consideration.................................................................................................................47
3.6.2 Method of Data Collection.........................................................................................................47
3.7.1 Fieldwork Experience................................................................................................................48
3.7.2 Problems Encountered in the Study...........................................................................................48

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3.7.3 Resolutions to the Problems Encountered in the Study..............................................................48
3.8.1 Method of Data Analysis...........................................................................................................49
3.8.2 Limitations of the Study.............................................................................................................49
3.8.3 Strengths of the Study................................................................................................................50
References.................................................................................................................................................51
CHAPTER FOUR.....................................................................................................................................52
DATA ANALYSIS AND INTERPRETATION.......................................................................................52
4.1 Preamble........................................................................................................................................52
4.2 Socio-Demographic Characteristics of the Respondents................................................................52
4.3.1 Respondents’ Views on Workforce Restructuring.....................................................................54
4.3.2 Respondents’ Views on Process Restructuring..........................................................................56
4.3.3 Respondents’ Views on Cultural Restructuring.........................................................................58
4.3.4 Respondents’ Views on Employee Commitment.......................................................................61
4.4 Test of Hypotheses........................................................................................................................63
4.4.1 Hypothesis One..........................................................................................................................63
4.4.2 Hypothesis Two.........................................................................................................................65
4.4.3 Hypothesis Three.......................................................................................................................67
4.5 Summary of Findings....................................................................................................................69
4.6 Discussion of Findings...................................................................................................................69
References.................................................................................................................................................71
CHAPTER FIVE.......................................................................................................................................72
SUMMARY, CONCLUSION, AND RECOMMENDATIONS................................................................72
5.1 Preamble........................................................................................................................................72
5.2 Summary.......................................................................................................................................72
5.3 Conclusion.....................................................................................................................................74
5.4 Contributions to Knowledge..........................................................................................................74
5.5 Recommendations..........................................................................................................................75
5.6 Suggestions for Further Studies.....................................................................................................76
BIBLIOGRAPHY.....................................................................................................................................77
APPENDIX...............................................................................................................................................84

vii
viii
 LIST OF TABLES

Table 3. 1: Population Size of Access Bank Branches...............................................................................44

Table 3. 2: Case Processing Summary.......................................................................................................46

Table 3. 3: Reliability Statistics.................................................................................................................47

Table 4. 1: Socio-Demographic Characteristics of the Respondents..........................................................53

Table 4. 2: Respondents’ Views on Workforce Restructuring...................................................................55

Table 4. 3: Respondents’ Views on Process Restructuring........................................................................57

Table 4. 4: Respondents’ Views on Cultural Restructuring.......................................................................60

Table 4. 5: Respondents’ Views on Employee Commitment.....................................................................62

Table 4. 6: Regression Analysis of Workforce Restructuring and Employees’ Commitment....................64

Table 4. 7: Regression Analysis of Process Restructuring and Employees’ Commitment.........................65

Table 4. 8: Regression Analysis of Cultural Restructuring and Employees’ Commitment........................67

ix
 LIST OF FIGURES

Figure 2. 1: Organisational Commitment Model.......................................................................................24

Figure 2. 2: Conceptual Model..................................................................................................................34

x
 ABSTRACT

This study examined organisational restructuring and employees’ commitment in Access Bank
Plc. Three dimensions of organisational restructuring including workforce restructuring,
process restructuring and cultural restructuring were examined as specific objectives. The study
was based on quantitative approach through systematic analysis of quantitative data with
descriptive research design. Census study was utilised with simple random sampling technique
to sample the respondents including University of Lagos and Sabo branches. Data of the study
were obtained through questionnaire distributed online specifically with google form to the
respondents through a staff of the bank to their respective WhatsApp contact. The data collected
were analysed using descriptive statistics involving frequency tables and the hypotheses
formulated were tested using linear regression analysis at 5% significant level. The findings
showed that the three dimensions workforce restructuring, process restructuring and cultural
restructuring have significant positive effect on employee commitment. It was recommended
among others that management of the bank should ensure effective execution and management
of their restructuring process by adopted systematic approaches and ensuring proper
communication.

Keywords: Commitment, Cultural, Process, Restructuring, Workforce.

xi
 CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

In today's era of stiff competition, the world is continually changing, continuous organization

restructuring is necessary to stay up to date. A successful organization requires preparation,

planning to initiate new programs, incentives effective workforce planning and communication.

The commitment among members should be directed towards achieving the strategic goals and

objectives. Zupan and Ograsensek (2004) added the globalisation and information technology

have also been factors that pressure organisations, the need to constantly reinvent ways to

compete. In other words, restructuring should be based on proper strategic planning. The word

"restructuring" is used to infer the process of taking drastic steps, whether on the highest level

using mergers and acquisition or on the lower levels in the company using outsourcing,

reengineering or downsising (Akintunde & Akaigbe, 2015).

According to Berg, Wrzesnieweki and Dutton (2010), restructuring involves changes and

attraction in the assignment, schedules, the structure and process at the workplace within an

organisation. Gichoni (2015) reviewed that although the main aim of conducting restructuring in

an organisation is to revitalise the organisation, it often harms employees work altitude.

Kurgat (2016) views it as a process of making a major change in organisation structure which

involves reducing management level and possibly changing components of the organization

through divestiture or acquisition as well as shrinking the size of the workforce. Furnari (2012)

suggest that when a company is restructured, it is significant that key people are involved with

1
all aspects of the planning, developing and implementing stages. Of the plans in other words by

seeking input from employees, greater acceptance and lay to will emerge and its support for

change will materialise.

In recent decades, the increasingly competitive market pressure and changing business

environment have necessitated management in an organisation to continuously search for a high

commitment work system. Besides globalisation and information technology have further added

pressure to the need of constantly reinventing ways to compete such as organisation restructuring

that is often seen as the most favoured option when the challenges of change are felt in work

organisations.

This revolutionary manager approach is aimed at the improvement of the organisation to enhance

effectiveness and responsiveness to environmental change through better realignment of

employee work attitude and adaptation in the work environment (Handfield & Nichols, 2015).

Hu (2014) asserted that one of the objectives, while organisations do restructuring, is internal

adjustment objectives which are to improve the attitude and behaviours of members of the

organization and upgrade organisation culture.

Human Resources are the greatest assets to face this business world competition in an

organization because how the employees behave at work contributes either positively or

negatively to the success of their organization. This is especially true for a service organisation.

In the service sector organisation's employees, influences their behaviour to provide friendly and

trustworthy service to their customers in a competitive environment. According to Shiffman and

Kanuk (1999) "An attitude is relatively consistent, learned, predisposition to behave in a certain

way in response to a given objective".

2
The external adjustment objective is to ensure the internal organisational advantages are put into

full play on the opportunity in the external environment to achieve stable growth of the

organization, thus upgrading the performance of the organisation. Jones (2011) stated that the

organisational restructuring process enhances efficiency toward the future changes of the current

status to expectation. There has been little research work that seeks to identify the effect of

organizational restructuring on employee commitment in Nigeria. This research work also

however seeks to determine how different types of restructuring have affected employee

commitment in the Nigerian banking sector using Access Bank Plc as a study area.

1.2 Statement of Problem

This study is solely for the evaluation of organisational restructuring and commitment among the

employees in the industrial sector which has become a necessity to inject new work-life, interest

and enthusiasm into the organisation and members therein. In the job Industries like the banking

sector that is restructured to increase productivity and gain competitive advantage are finding

that what they have gained is a depressed, anxious and angry workforce at a time when they need

spirit and creativity to ensure future success. The problem associated with organisational

restructuring and commitment among the employees is that massive layoffs and redundancy

resulting from restructuring exercises in any organisation will bring about dissatisfied employees

who feel left out of the change processes thus leading to poor performance (Rusek, 2012).

It is important to know how organisation restructuring brings changes in the employee's

tendency, commitment, attitude, and performance. Employees often displayed negative work-

related behaviours and attitudes such as demotivation, cynicism, insecurity, and demoralisation,

which significantly lower levels of commitment (Longe, 2013). Hence, this study has been

3
conducted to find out the present problems facing organisation restructuring and commitment

among the employees, the identification of these problems, a recommendation will be made to

improve the organisation restructuring and commitment of employees of the banking industry.

1.3 Research Questions

I. How does workforce restructuring directly affect employee commitment in Access Bank

Plc Lagos?

II. What is the effect of process restructuring on commitment among employees in Access

Bank Plc Lagos?

III. What is the effect of cultural restructuring on employee commitment in Access Bank Plc

Lagos?

1.4 Objectives of Study

The broad aim of this research was to assess the general effect of organisational restructuring on

employees’ commitment of Access banks in Nigeria. Specific objectives include:

I. To examine the effect of workforce restructuring on employee commitment in Access

Bank Plc Lagos.

II. To investigate how process restructuring has affected the commitment among employees

in Access Bank Plc Lagos.

III. To determine the effect of cultural restructuring on employee commitment in Access

Bank Plc Lagos.

4
1.5 Research Hypotheses

The null hypothesis as stated below will be tested.

H01: Workforce restructuring does not have a significant effect on employee commitment in

Access Bank Plc Lagos.

H02: Process restructuring does not significantly affect the commitment among employees in

Access Bank Plc Lagos.

H03: There is no significant effect of cultural restructuring on employee commitment in Access

Bank Plc Lagos.

1.6 Scope and Delimitation of the Study

The scope of the study is to determine the effect of organisational restructuring on employee

commitment in the workplace. It would provide both a conceptual and analytical study of

organisational restructuring and commitment among employees and further explore how

different dimensions of organisational restructuring including workforce restructuring, process

restructuring and cultural restructuring have wholly affected the commitment of employees in the

study area.

This study focuses its research work on the banking industry. The Nigerian banking sector was

once characterized as unhealthy and lacking stability which gave birth to the consolidation of the

over 80 banks to the lesser banks we have now through mergers and acquisitions. Although we

have strong banks today rendering excellent services through innovation and technologies

intervention, the banking sector is still characterised with restructuring process whereby they

reorganized their divisions, restructured their assets, streamlined their operations and spun-off

5
their divisions in a bid to spur organisational performance which affects the morale and

commitment of the staff (Cosc, 2015).

This is why this study attempts to find out how organisational restructuring carried out in the

banking industry has affected their staff commitment using Access bank Plc as the study area.

Access bank is chosen because they are currently known for merging and acquiring other banks

which sometimes led to restructuring. Employees in two branches of Access Bank would be

selected as the sample for this study.

1.7 Significance of the Study

The study is considered significant for the following reasons: The finding of the study would hopefully

reveal how organisation restructuring influence the performance of employees, such a revelation may

place managers in a better position to appreciate the need for adequate workforce restructuring and

the appropriate strategies to adopt to sustain a high level of employee commitment.

The findings of the study would also provide useful insight into the employee commitment strategies

of the management of Access Bank in Lagos, the acceptability of these strategies among the

employees of the access bank and the effectiveness of these strategies in promoting or mitigating high

morale and performance among the Chief Executives of Access bank to know how their actions or

inactions influence the commitment among employees and performance of their subordinates and

to adjust their management style necessary to guide their staff towards higher performance. The

findings of the study would also serve as a useful source of data for future researchers in this field

of study.

6
1.8 Operationalisation of Concepts

Organisation Restructuring: According to Girod and Karim (2017), restructuring can be

defined as the most crucial method to redesign the organization and co focus on re-configuring

the organisation units. In this study, it means the process whereby an organization reorganise its

structure, work activities, workforce size due to current developmental needs.

Downsizing: This is used to imply a method used by organisations for the reduction of the

overall size and operating costs of their organisations through a reduction in the total number of

employees.

Employee Commitment: This is the attachment that an employee has on their organisation due

to their experience. It can indicate the level of satisfaction, and engagement among employees.

Workforce restructuring: This is an aspect of restructuring that takes place in an organisation

when there is reorganisation in the strength /size of the employee, it also releases an employee

from a job group by separation, demotion, re-assignment and required displacement.

Process Restructuring: It is an aspect of restructuring that takes place in an organisation in a

way that there is an adjustment in activities or corporate operations carried out in an

organisation.

Cultural Restructuring: This is an aspect of the independent variable that involves changes in

the organisation structure, values, strategy, and culture policies that guides the actions of

members in the organisation.

7
1.9 Brief History of Access Bank

Access Bank PLC is a bank popularly known to have evolved from an obscure Nigerian Bank

into a world-class African financial institution. Access Bank delivers sustainable economic

growth that is profitable, environmentally responsible and socially relevant. Access Bank is also

well-known for acquiring and merging with banks not only in Nigeria but also in other African

nations they are present.

Over the past 26 years, Access Bank Plc. has evolved from an obscure Nigerian Bank into a

world-class African financial institution. Today, we are one of the five largest banks in Nigeria

in terms of assets, loans, deposits and branch network; a feat which has been achieved through a

robust long-term approach to client solutions – providing committed and innovative advice.

Access Bank has built its strength and success in corporate banking and is now applying that

expertise to the personal and business banking platforms it acquired from Nigeria’s International

Commercial bank in 2012. The next two years were spent integrating the business, investing in

infrastructure and strengthening the product offer. As part of its continued growth strategy,

Access Bank is focused on mainstreaming sustainable business practices into its operations. The

Bank strives to deliver sustainable economic growth that is profitable, environmentally

responsible, and socially relevant.

1.10 Plan of the Study

This present study contains five chapters. Chapter one contains the introduction of the study, and

the background and statement of the problem were presented. The key objective to be achieved

after the study. The hypothesis of the study is presented and the research questions are answered.

8
The scope and limitation of the study is also explained in the definition of terms which are

presented in chapter 1.

Chapter 2 presents the literature review and theoretical framework. The review of the literature

will include a conception review of the literature and an empirical review of the literature. The

review of the literature will be based on research questions. Also, a suitable theoretical

framework outlining relevant theories will be presented in chapter two.

Chapter 3 also present the method used for collecting data, it also pens down the research design

and statistical techniques to be used by testing the hypothesis. This study area, study population

as well as the target population for the research study would be provided in this chapter. The

problems encountered by this study; fieldwork experience method of data analysis will also be

represented in this chapter.

Chapter 4 has the revisal of data analysis, presentation and interpretation of results in this study,

the respondent's view on the various formulated objectives will be analysed in this chapter.

Discussion of findings from the tested hypothesis will also examine in this chapter.

Chapter five which is the final chapter pen down the various discussion conclusions that are

arrived at the limitation of the study and recommendation and suggestions to knowledge will be

presented in this chapter.

9
 References

Akintunde, O., & Akaighe, G. O. (2015). Corporate restructuring and organizational productivity
in Nigeria insurance industry. Nigerian Journal of Management Studies, 15(1), 55-67.

Cosc, A. (2015). Why organization need restructuring. An international journal, 4(4), 167-175.

Berg, M., Dutton, E., & Wrzesniewski, J. (2010). Perception and response to major issues
encountered while drafting jobs at various bank. Journal of organization behavior, 31(2-
3), 156-158.

Fumari, J. (2012). Key concerns when revitalizing and restructuring organization. Retrieved
from www.kafconsulting.com/articlesconcerns.html (accessed, February, 2020).

Gichohi, W. (2015). The organization restructuring audit guide. A handbook for corporate open
society Initiative for East Africa.

Girod, S. J. G., & Karim, S. (2017). Restructuring of reconfigure. Harvard Business Review,
March-April. Retrieved from https//hbr.org/2017/03/restructure or reconfigure.

Handfield, R. B., & Nichols, E. L. (2015). Introduction to restructuring management. Prentice-

Hall, USA.

Hu, C. (2014). Organizational restructuring: Special article of National Library: Organization

Science, 15(3), 364-369.

Jones, G. R. (2011). Organization theory: Text and case. New York: Person Education Inc.

Kurgat, A. (2016). Organizational restructuring: An opportunity for growth and social networks.
International Journal of Economics, Commerce and Management, 4(8), 626-655.

Longe, O. (2013). Social effects of organisational restructuring on employee workplace attitudes

in selected manufacturing industries in Nigeria. African Research Review: An
International Multidisciplinary Journal, Ethiopia, 7(3), 292-307.

Rusek, R. E. (2012). The theory of organizational restructuring revisited. Organization Science,

15(3), 364-369.

10
Schiffman, L. G., & Kanuk, L. L. (2000). Consumer behavior (7th ed.). Wisconsin: Prentice
Hall.

Zupan, N., & Ograjenesk, L. (2004). The link between human resources management and
company performance. Journal of East West Business 10(11), 10-18.

11
 CHAPTER TWO

LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.1 Preamble

The purpose of this research study is to examine how workplace restructuring has affected the

commitment of employees in the observed organisation. This Chapter, therefore, set to scrutinise

relevant research studies on restructuring and employee commitment. The Chapter is structured

into the conceptual review of the literature, conceptual framework, empirical review as well as

theoretical framework for this study.

The findings of the existing studies will be used to support the framework of this study. Different

scholarly publications including journal articles, books and other relevant documents and

adequate citations will be provided for all ideas, concepts and perspectives to be derived from the

existing studies. The background put forward in Chapter one, research objectives, questions and

hypotheses set the tune for the review in this Chapter.

2.2.1 CONCEPTUAL REVIEW OF THE LITERATURE

This section of the chapter presents a review of the literature based on the subject matter and

research questions and other issues in the statement of the problem as presented in Chapter one.

It provides a brief illustration of the concepts that will be reviewed and also shows the linkages

between the concepts. This section will emphasise the following: the concept of restructuring,

the concept of employee commitment, types of organisational restructuring, dimensions of

employee commitment, the purpose of restructuring in an organisation, importance of having

12
committed employees in an organisation, ways of achieving a successful restructuring process,

the role of restructuring on employee commitment.

2.2.2 The Concept of Restructuring

Restructuring generally refers to the reorganisation of the corporate operations to achieve higher

levels of operating efficiency. It could be considered as a drastic or fundamental internal change

that alters the relationships between different components or elements of an organisation.

Organisational restructuring has therefore been defined by Gibbs (2007) as a process whereby

organisations make significant changes in their structural properties. In other words,

restructuring is a significant change made to the depth, operation or structure of the organisation.

This implies that organisational restructuring in any organisation is an intentional as well as a

significant planned change that affects the entity of an organisation's activities.

Therefore, Kurgat (2016) put forward an elaborated definition of restructuring as an orchestrated

systematic change which is not incremental, ad-hoc, or partial nor a mere alteration of the

organisational chart but involves a major realignment of the culture, vision, values, strategy,

structure, management systems, management styles, technologies and staff skills. Restructuring

has to do with a change in an organisation’s strategic direction involving organisations adjusting

their key internal structures (such as legal, ownership, operational or strategic) to meet its present

and evolving needs (Vongani, George & Anis, 2014).

In line with this, Gibbs (2007) defines restructuring as a change in the operational structure,

investment structure, financing structure and governance structure of a company. Similarly,

Sulaiman (2012) defines corporate restructuring as altering ownership, asset and business

13
alliances with the intent of optimising the wealth of shareholders and repositioning the

organisation for added value.

Organisational restructuring could also be defined according to Heugens and Schenk (2004) as

significant changes in the structural properties of the organisation most times involving

reorganising jobs. Many authors have conceptualised organisational restructuring to involve

making critical decisions about how to deploy or re-deploy talent. Therefore, restructuring is

seen as a process of making a major change in the organisation structure that often involves

reducing management levels and possibly changing components of the organisation through

divestiture and or acquisition, as well as shrinking the size of the workforce (Kurgat, 2016).

Ongwae and Moronge (2016) also perceived organisational restructuring to be a scenario in

which companies attempts to improve their efficiency and management, reduction in staff and

wages and sale of assets with the expectation of higher profitability and cash flow. Cameron and

Green (2015) also see restructuring as the modification of the structure of a business to increase

efficiency and employee productivity thus organisational performance.

The word "restructuring" in an organisation simply connotes a proactive intention on the part of

management aimed at exploiting new opportunities in the organisational environment. That is,

restructuring is carried out to enhance performance by realigning the organisational social

structure and work attitudes of employees therein to ensure a proper fit in the work situation.

This was also supported by Hu (2014) that the internal adjustment objective of restructuring is to

improve the attitudes and behaviours of members of the organisation and upgrade organisational

culture. In essence, organisational restructuring involves the act of transforming work –

behaviours and attitudes, dismantling or replacing the existing management structure by relevant

14
goal-oriented and competitive structure that will satisfy the needs of both the organisation and

employees in the workplace (Longe, 2013).

When organisations engage in organisational restructuring, they cultivate new culture, comes up

with new methods of production and treatment, new organisational pattern or new labour

efficiency which enables them to effectively adjust to changes in the environment (Chitere &

Nzulwa, 2018). Hu (2014) further emphasised that the external adjustment objective of

restructuring is to ensure that internal organisational advantages are put into full play on

opportunities in the external environment to achieve stable growth of the organisation, thus

upgrading the performance of the organisation. Vongani et al. (2014) asserted that in many

instances, the restructuring is precipitated by an unexpected, emergency crisis or events such as

economic demands and changes, technological advancement, need for cost-cutting, and

increasing productivity that force the organisation to respond quickly to prevent a threat to its

very survival.

2.2.3 The Concept of Employee Commitment

The word "commitment" can be described as an internal force that prompts an individual to

maintain certain behavioural conditions or an individual's inclination to act in a given way to

achieve set targets. Commitment can otherwise be seen as a state of being where an individual is

bound by his/her actions to sustain activities in which he/she is involved. Therefore, employee

commitment can be defined as the loyalty and attachment that employees have in an organisation

which is associated with their feelings about the organisation (Armstrong, 2012). Commitment is

said to be associated with the acceptance of organisational goals by the employee, willfulness to

15
exercise effort for the sake of the organisation and the desire to remain part of the organisation

(Lemons & Jones cited in Naveed, Irfana, Hakim & Usman, 2015).

Isaack and Dinah (2016) in their study by analysing different definitions state that employee

commitment is the desire that employees have or an emotional state that exemplifies employees’

relationships with an organisation which determine their choice to stay in the organisation by

having confidence in its values and objectives. Similarly, Joe (2011) in generalising the view

about organisational commitment asserts that it is the employee’s psychological attachment to

the organisation and the organisational objectives.

In other words, organisational commitment refers to the degree of involvement and identification

that employees have with their organisation in line with their values, mission and goals (Price,

2011). This is why Armstrong (2012) explains that organisational commitment is the linkage

between an organisation and the individual employees as it signifies both the behavioural

tendencies and the feelings that employees have towards an organisation as well as its goals and

values.

Ayeni (2015) emphasised that commitment as an overall attitude about the work which is a result

of job satisfaction is influenced by various facets including job conditions, supervision, nature of

the work, co-workers, pay and benefits and personal characteristics. Employee commitment is

essential because high levels of commitment lead to several favourable organisational outcomes.

Commitment amongst employees makes them show strong intentions to serve their organisations

and makes them have no intentions to leave. Dixit and Bhati (2012) also argued that

organisations won't be able to sustain a competitive advantage unless their workers are

16
committed to the organisational goals and objectives. In other words, the success of any

organisation lies in the hands of a committed workforce.

The reason for the above assertion could be deduced from the explanation of Mullins (2007) on

employee commitment that it has to do with giving all of one-self while at work which reflects

employees' habits such as using time constructively, attention to detail, making that extra effort,

accepting change, cooperation with others, self-development, respecting trust, pride in abilities,

seeking improvements and giving loyal support. All these will therefore make any organisation

succeed in their work activities. An individual who has high organisational commitment is

considered very loyal, which brings about several organisational benefits such as higher

productivity, better work quality, higher employee morale, reduced turn over and more employee

willingness to exert extra effort (Mullins, 2007).

Eaton (2003) is of the view that the success of any organisation coupled with the achievement of

quality in its services depends on how the organisation makes use of the competencies of its

human resources as well as how it stimulates commitment amongst employees in an

organisation. However, Osibanjo, Abiodun and Fadugba (2012) have stated that the degree to

which workers are satisfied with and committed to their jobs vary and is subject to factors such

as job environment, work hours and schedules, reward system.

According to Ayeni (2015), managers must put in place strategies to keep workers for a long

time on the job to improve the level of commitment and reduce the level of inefficiency in an

organisation. One of the most effective strategies that managers can put in place is an effective

reward system. The need to attract, motivate, develop and retain employees is critical to any

organisation’s prosperity in recent time, therefore, creating an environment in which employees

17
feel truly committed connected to the organisation’s goals and objectives, and satisfied with their

jobs is also of paramount importance. Organisations can only be successful as much as their

employees are committed to the goals and objectives of the organisations.

According to Doorley and Garcia (2015), employee commitment has both rational and emotional

attributes. The emotional element refers to a situation when staffs express and experience

positive views and feelings concerning an organisation/individual they have established

commitment with. Meanwhile, the rational element of commitment is when the majority of staff

in an organization choose to show commitments and therefore make plans and carry out actions

required to meet them.

2.2.4 Types of Organisational Restructuring

Many authors in their study have classified restructuring into the portfolio, financial and

organisational restructuring such as Bowman and Singh (2013); Kajirwa, Oloishorua and

Nyankuru (2016); and Norley, Swanson and Marshall (2012). However, for this study,

restructuring would be classified into the process, cultural and workforce restructuring.

Process Restructuring

This type of restructuring involves the reorganisation in the way work activities are carried out

and corporate operations of the organisation. According to Ganz (2010), the dynamism of

business environments, infrastructure problems, disruptive technological advancement and so on

always force continuous change in the way businesses to carry out processes and operations to

stay competitive and sort out the organisational performance challenges.

18
For example, in the UK as noted by Bowman and Singh (2013), many organisations are shifting

into using the social web, internet-based applications and systems to improve their organisational

performance. Almost all activities are now being conducted using the internet which has made

the operational processes to be effective, simpler and shorter communication lines, and

customers can access their products and services in a shorter time frame through the use of

technology. These needs may bring about changes in the process of carrying out business

activities of many organisations.

Cultural Restructuring

Cultural restructuring as used in this study depicts systematic changes in values, strategy,

management systems, management styles as well as policies that guide the activities of people

within an organisation. Change in management, mergers and acquisitions could lead to cultural

restructuring as turnaround strategies put in place corrective measures at the workplace.

Workforce Restructuring

Workforce restructuring occurs when there is reorganisation in the strength/size of manpower in

the organisation, downsizing or adjustment in the responsibilities of members of an organisation.

According to Stybel (2010), job changes at the workplace in terms of workforce restructuring

could take the form of retirement, job rotation, job enrichment, job enlargement besides transfer

of services.

2.2.5 Purpose of Restructuring in an Organisation

Handfield and Nichols (2015) define organisational restructuring as the act of reorganising the

legal, ownership, operational or other structures of a company to make it more profitable and

19
better organised to meet its present needs. In other words, profitability is one of the purposes

organisations carry out restructuring. Kurgat (2016) listed the reasons for restructuring to

include: business and economic factors, changes in the environment, political factors,

globalisation, entry into new market regions, the addition of new product lines and production

facilities, service outlets (i.e. through a merger, acquisition, or internal expansion), and the

decision to reach new customer groups.

According to Norley et al. (2012), the key strategic objectives of restructuring the organisation as

to do with the following: improving profits; refocusing efforts on changing markets and strategic

directions; incorporating new markets, products, services, and production facilities;

accommodating new growth areas and opportunities; enhancing communication and cooperation

within the organization; redistributing management skills; enhancing customer service; making

better use of limited resources; streamlining operations and reduce costs; and focusing effort by

grouping related tasks into organisational units, thus replacing duplication with synergy.

Other studies such as the work of Kajirwa et al. (2016) also put forward the following reasons

generally given by most organisations for reorganising: to enhance the profitability of the

company; to enhance productivity; compete effectively in the market; to enhance the ratios of the

balance sheet; to improve growth rates; and, to strategically change the direction and focus.

Managers reorganise their businesses to minimise the uncertainty and maximise fit by optimising

management processes, enhancing performance, reducing costs, optimising product mix or

generally strengthening their competitive position (Bowman & Singh, 2013). Response to

external forces, globalisation, deregulation/privatisation, innovation and global competition, and

copying what other organisations are doing are also reasons why organisations restructure.

20
Kinshore (2004) states that the motives behind corporate restructuring could be as a result of the

following: availability and advancement in information and communications technology that

could lead to better organisational operations and productivity; changed government policies,

like deregulation, liberalization and privatisation to allow private organisation compete for

customers and develop new markets; the global market concept which has caused many

companies to embark on corporate restructuring to compete favourably and increase their market

share through economies of scale; the need to lower cost of operations and increase productivity

by downsizing or rightsizing management and non-management employees; and lastly easy

domestication of foreign currencies which has attracted both large and medium-sized companies

to play in the global competitive market.

According to Hane cited in Kajirwa, Oloishorua and Nyankuru (2016) the following are

symptoms that may indicate the need for organisational restructuring: parts of the organisation

are significantly over or understaffed; organisational communications are inconsistent,

fragmented, and inefficient; technology and/or innovation are creating changes in workflow and

production processes; significant staffing increases or decreases are contemplated; new skills and

capabilities are needed to meet current or expected operational requirements; accountability for

results are not communicated and measurable resulting in subjective and biased performance

appraisals; personnel retention and turnover becomes a significant problem; stagnant workforce

productivity or deteriorating morale.

2.2.6 Ways of Achieving a Successful Restructuring Process

It is important to note that employees in the organisation do require some help to effectively deal

with the process of organisational restructuring. Restructuring must be viewed as an ongoing

21
process rather than a project. The successful implementation of change requires organisations to

change their mindset and this does not happen overnight. Organisations need to assist their

employees in starting to see the business environment differently and not just given both

intellectual and financial tools needed to cope with future business challenges (Kurgat, 2016).

This will help them to comprehend the need for change in their organisation and this will

naturally make them more supportive of change (Senger et al., 2008).

The saying that one should always begin with the end in mind applies in the restructuring of an

organisation as well. When restructuring occurs without specific goals, productivity levels that

have to be met for a company to be competitive are influenced negatively. According to Chase,

Jacobs and Aquilano (2004), organisations need to organise around outcomes resulting in greater

speed, improved productivity and customer responsiveness. Employees are also an important

component to successfully implementing a strategy. When employees are involved in the

restructuring process, there is a high possibility that this will enhance the effectiveness of

implementing strategies and plans (Evans, 1996). Organisational restructuring should have as a

fundamental goal the facilitation of clear, open communication that can enable organisational

learning and clarify accountability for results.

Pandit (2005) argued that the surgical solution of workplace restructuring; overloading work

roles, reducing workforce and cutting cost is not a healthy and sustainable way for the

rejuvenation of any company. Kotter and Schlesinger (1979) posit that organisational

restructuring should adopt a six-step approach that helps to reduce resistance factors to change

and manage the impact of the proposed change. The factors may manifest as self-interest,

misunderstanding, low tolerance for change, and employee disagreement with reasoning. The six

steps include education and communication, participation and involvement, facilitation and

22
support, negotiation and agreement, manipulation and co-option, and explicit and implicit

coercion.

2.2.7 Dimensions of Employee Commitment

Meyer and Allen (1997) use the tri-dimensional model to conceptualise organisational

commitment in three dimensions which are as follows: affective commitment, continuance

commitment and normative commitment. These dimensions describe the different ways

organisational commitment development and the implications for employees' behaviour. Figure

2.1 presents the tri-dimensional organisational commitment model and subsequently followed by

an explanation of the three dimensions.

Affective Commitment

According to Meyer and Allen (1997), the affective dimension of organisational commitment

refers to employees’ emotional attachment, identification and involvement in the organisation.

Similarly, Price (2011) sees affective commitment as the emotional attachment that an employee

has in an organisation. It can be otherwise seen as the extent to which employees appreciate

being members of an organisation. Lee (2010) citing Meyer and Allen emphasised that affective

commitment is associated with employee personal characteristics, organisational features,

experiences about the work and job characteristics. Beck and Wilson (2000) note that

organisational members who have an effective level of commitment are willing to remain in the

23
organisation because they view their values and goals to be congruent with those of the

organisation.

Figure 2. 1: Organisational Commitment Model

Source: Adapted from Meyer, J., & Allen, N. (1997).

According to Mowday cited in Zivota, Vesna and Milan (2017), the causes of affective

commitment would include but are not limited to personal characteristics of staff, structural

24
characteristics (organisational), the characteristics related to the type of work being performed,

and work experience. Zivota et al. (2017) further listed job status, remuneration and working

values as factors that affect the degree of dependency of workers to their organisation which

result in affective commitment.

According to Rhoades, Eisenberger and Armeli (2001), affectively committed employees are

seen to have a sense of identity and belonging and this motivates them to increase their

participation in the activities of an organisation. Furthermore, affective commitment makes

employees have the willingness to meet the goals of an organisation as well as the desire to stay

in the organisation (Isaack & Dinah, 2016). Nujjoo and Meyer (2012) assert that affective

commitment is strongly related to positive occupational and organisational outcomes such as job

satisfaction, motivation and employee retention. Muncherji and Dhar (2011) observe that

employees become emotionally attached to an organisation when there is the presence of an

environment that is intrinsically rewarding for the employees.

Continuance Commitment

To Meyer and Allen (1997), the continuance dimension of commitment refers to commitment

based on the costs that employees associate with leaving the organisation. In other words, it is

the employee awareness of the costs that are related to departing his/her organisation. Isaack and

Dinah (2016) in their study see continuance commitment as the enthusiasm to remain in an

organisation due to the personal investments which cannot be transferred. Therefore, employees

with continuance commitment choose to stay with an organisation because they have no choice

(Nujjoo & Meyer, 2012).

25
Zivota et al. (2017) while highlighting the potential costs of leaving an organisation put forward

that they may include the threat of wasting time and effort spent on the acquisition of non-

communicable skills, loss of attractive benefits, waiver of privilege that brings long years of

service, and the collapse of family and personal partnerships. In addition to costs related to

leaving the organisation, continual commitment will also develop in the absence of alternative

employment opportunities.

Price (2011) also argues that continuance commitment exists when an employee needs the

benefits and the salary associated with remaining in an organisation. Also, it may arise when

employees feel that they cannot find another job or when they believe that they owe their success

to the organisation. Continuance commitment is calculative in nature because it is based on an

employee opinion by weighing the risks and costs associated with leaving an organisation

(Coetze, 2005).

Normative Commitment

According to Meyer and Allen (1997), normative commitment is a feeling of obligation that an

individual has to continue with the employment in an organisation. It arises from an employee

morale obligations and personal values that the person feels towards the organisation. This

implies that individuals consider it morally right to remain in an organisation irrespective of

whether they are satisfied with their jobs or not (Isaack & Dinah, 2016). Coetzee (2005)

emphasises that employees with a high level of normative commitment feel that they ought to

remain with the organisation. That is, employees with normative commitment remain in the

organisation because they feel their organisation has done a lot for them and they need to repay

them by remaining in the organisation.

26
Zivota et al. (2017) also emphasised that normative commitment would develop when the

organisation allows employees to be awarded in advance (for example, that they are paid tuition

fees for faculty) or compensates significant costs for the provision of employment (e.g.

compensation for ‘hunting employees’ or the costs associated with training for the job).

Similarly, the feeling of obligation to stay in the organisation according to Muncherji and Dhar

(2011) is that it might have come about due to the internalisation of normative pressures

exercised on an employee before joining the organisation.

Price (2011) otherwise argues that normative commitment may arise when employees are

provided with rewards in advance by an organisation. This may in turn make the employees feel

obliged to reciprocate thereby committing themselves to the organisation. Therefore, normative

commitment emerges as a result of employees’ feelings to repay the organisation for investing in

them (Isaack & Dinah, 2016).

2.2.8 Importance of Having Committed Employees in an Organisation

Without being overemphasised, the importance of employee commitment is that the higher the

level of commitment, the greater the favourable outcomes within an organisation. Enhancing

organisational commitment among the employees is an essential element because that will result

in higher employee commitment, enhancing retention, increasing their job motivation and

improving their performances. Oyoo (2015) observe that organisations need effectively and

efficiently committed employees to enable them to achieve their objectives.

According to Oyoo (2015), an employee's commitment to an organisation is a big incentive for

such an organisation simply because the long tenure of employees at the same organisation helps

the person to understand the goals of the organisation and strive to compete for the target. Welty,

27
Burton and Wells (2014) also support this that employees who have higher levels of

organizational commitment will be less likely to engage in job search behaviours as they would

wish to stay associated with the organisation to which they are committed and maintain a

relationship with the employer who motivates and inspires them.

Many studies have also established that no organisation could ever achieve its goals without

having committed human resources. As with the increased global competition, businesses seek to

ensure increased employee commitment to enable them to have high levels of excellence and

competitiveness in their processes (Wekesa, Namusonge & Iravo, 2015). They also emphasise

that ensuring the commitment of employees is important to an organisation because it is

concerned with an employee's eagerness to go above and beyond the call of duty while

performing his or her duties and it is also about the employees’ desire to maintain membership

with an organisation.

The similitude of employees’ commitment to an organisation is like that of a strong magnetic

force attracting metallic objects to another, it is a measure of the employee’s willingness to

remain with a firm in the future (Newstrom, 2009). He further asserts that employees’

commitment also leads to improvement in customer satisfaction because long-tenured employees

have better knowledge of work practices, and customers like the familiarity of doing business

with the same employees; they make referrals resulting in new customers and even pay a

premium price. Messner (2013) noted that employee commitment plays a significant role in an

organisation because it could be using a predictor of the staff performance, absenteeism and

other attributes of staff within an organisation.

28
Wekesa et al. (2015) highlighted the positive outcomes of organisational commitment to be: low

turnover rates, higher work motivation, less tardiness and absenteeism, higher job performance,

adherence to company policies and greater organisational citizenship behaviour. Therefore, the

costs associated with high turnover and absenteeism are avoided when employees are committed

to their organisation. Committed employees will bring about organisational effectiveness and

performance (Wasiu, 2013) and this would make an organisation have a competitive edge over

other organisations thus, producing a healthy organisational climate, increasing morale,

motivation and productivity (Salami, 2008).

2.2.9 The Role of Restructuring on Employee Commitment

Brockner, Grover, Reed and DeWitt (2009) have argued that people who survive a round of

redundancies often exhibit characteristics such as decreased morale, lower commitment and

anxiety, considered as symptoms of “survivor syndrome”. According to Arnolds (2005), there is

overt and covert resistance to change brought about by restructuring. Overt resistance includes

strikes, reduced productivity, inferior work and even sabotage. Covert resistance is expressed in

increased absenteeism, requests for transfers, resignations, loss of motivation, decreased

organisational commitment, low morale and high levels of accidents and work errors.

Ashok (2005) also found evidence of damaged morale of managerial and non-managerial

personnel based on indicators like lack of employee commitment, poor job satisfaction,

excessive labour turn-over in post-restructuring context. One of the most damaging forms of

resistance is passive resistance as this result in the employee refusing to participate in the

formulation of change proposals and this ultimately manifests itself in a lack of commitment to

these proposals (Arnolds & Boshoff, 2004).

29
Nickels (2002) in a health care organisation also found that employees suffered poor morale and

work satisfaction as a result of the necessary evil of creative destruction of organisational

restructuring. According to Akintunde and Akaighe (2015), the needed skills needed by the

organisation to adapt to the changes and to increase productivity may be lacking or unprepared

for which may reduce the commitment of employees. In other words, the restructuring process if

not properly managed could affect the morale of employees negatively. However, it is important

to note that not all change or restructuring is viewed as harming employees. When change is well

managed it can have a positive impact on the employee and the organisation.

2.3 EMPIRICAL REVIEW OF THE LITERATURE

This section of the study deals particularly with the formulated hypotheses in Chapter one; it

scrutinises various empirical studies on the subject matter and therefore provides information

such as; information about where the study was conducted, issues addressed in the study and the

main findings of the scrutinised empirical research studies. The findings will also include the

results of hypotheses tested in the journals that are reviewed. Therefore, below are empirical

reviews of studies related to the formulated hypotheses:

The study of Naveed et al. (2015) intends to examine the impact of downsizing on organisational

commitment and turnover intentions of surviving employees in the moderating role of social

support. The target audience for this study was four public and private sector organisations

located in Islamabad. The sample size consisted of 333 employees of upper and middle-level

management which were selected through simple random sampling. The result shows that

downsizing is positively related to employee turnover intention and has a significant negative

30
impact on employee commitment. However, social support as a moderator enhanced employee

commitment.

In the study of Longe (2013) on the social effects of organisational restructuring on employee

workplace attitudes in selected manufacturing industries in Nigeria whereby he used stratified

random sampling technique to select a sample of 800 respondents in four manufacturing firms

involved in extensive workplace restructuring within the past five years found out that there is no

significant relationship between organisational restructuring and work satisfaction of employees.

He used Chi-Square analysis to test the hypothesis based on the data gathered through a

questionnaire. The result shows X2 = 1.592, df = 1, p-value = 0.207 which implies that there is

no significant relationship between organisational restructuring and work satisfaction of

employees.

Chitere and Nzulwa (2018) in their study on the influence of organisational restructuring on

employee job satisfaction in selected commercial banks in Kenya also used stratified random

sampling to select a sample size of 230 employees from the operations, information technology,

credit, business development, human resources and internal audit departments in the

headquarters of National Bank of Kenya and Kenya Commercial Bank. The questionnaire was

also designed to gather data from the respondents and regression analysis was used to analyse the

data gathered. The result shows that R-Square = 0.790 significant at 0.01 level of significance

implying that organisational restructuring has a significant effect on job satisfaction of

employees. They concluded that this will in turn affect their morale and commitment to the

organisation.

31
Theissen (2004) carried out a study on how organizational restructuring affected employee

commitment using Otago Polytechnic as the study area. One hundred and fifty academics and

non-academic members of staff in restructured and non-restructured positions were randomly

selected to complete a quantitative and short answer questionnaire designed to gauge their

perception of the restructuring process and its impact on their commitment to the organisation.

He found that after the restructuring there is the presence of symptoms of survivor syndrome

which show a significant negative impact on the level of commitment members of staff now feel

towards their organisation.

2.4 THEORETICAL FRAMEWORK

This part of the chapter critically analyzes relevant theories related to the subject matter being

investigated in this study. These theories will be briefly discussed in this part of the chapter and

will be linked to the study to provide the right framework for the study. The theories that will be

discussed in this section include Planned Change Theory, and Human Capital and Commitment

Theory which are seen to provide a basis for the theoretical framework on restructuring and

employee commitment.

2.4.1 Planned Change Theory

This theory was proposed by Kurt Lewin in 1951. Planned change theory assumed that

organisations are purposeful, adoptive and that change occurs because leaders, change agents and

others see the necessity of change. According to Carnal (2002), the process for change is rational

and liners thus making individual managers more instrumental to the process of change. Internal

organisational features or decisions rather than the external environment motivate change

(Longe, 2014). Key aspects of the change process include planning, assessment, incentives and

32
rewards, stakeholder analysis and engagement, leadership, scanning, strategy, restructuring and

re-engineering, (Bill & Worth, 2000).

World over, organisations have introduced key reforms to enhance the effectiveness and

responsiveness of their services. Many of the reform policies have had an internal bearing on the

organisations. Hard and Tranant (2006) assert that the degree to which decision making is

centralised and the quality of strategic management has been identified by policy-makers and

scholars as determinants of performance that are readily susceptible to political and managerial

control. This theory is adopted because it points out that organisations do not just embark on a

restructuring process, but the internal factors within the organisation are most likely the reason

while stakeholders in the organisation exercise such processes.

2.4.2 Human Capital and Commitment Theory

This theory was propounded by Becker in 1962. The key argument of this theory is the

psychological contract between employer and employees. In this engagement, employees and

employers are committed to each other. On the side of the employer, by investing in improving

skills and knowledge for employees, they would better serve customers who would come back to

use the services of the business hence improving organisational performance (Tung, Khuong &

Phuong, 2014).

In addition to skill enhancement, organisational support climate such as career development,

team building activities also play an important role in enhancing business performance as

employees have conditions to do their best for the business interest. It may be referred to as a

psychological contract between employer and employees. On the side of employees who receive

investments in capacity enhancement, which is a signal from their employer’s long-term

33
commitment, they know that their organisation takes care of their livelihood and in return for it

the employees will be more committed to the organisation (Tung et al., 2014). This theory is

adopted in this study because it could be used to illustrate that in the restructuring process if the

interests of the employees are taken into consideration they would reciprocate with more

commitment.

2.5 CONCEPTUAL FRAMEWORK

This section of the Chapter provides a model for the study which pictorially presents the purpose

of this study. The figure below shows a relationship between the relevant variables of this

research work. Restructuring is the independent variable and employment is the dependent

variable. This study aims to determine how the independent variable (restructuring) has affected

the dependent variable (employee commitment). The independent variable is further broken

down to include three measures; process restructuring, cultural restructuring and workforce

restructuring. Therefore, statistical inferential techniques would be used to determine the effect

of these measures on employee commitment.

Figure 2. 2: Conceptual Model

Process
Restructuring

Restructuring Cultural Employee

Restructuring Commitment

34
 Workforce
Restructuring

Source: Researcher, 2020.

2.6 Synthesis of the Literature Review

From the above literature review, it is evident that the commitment of employees in the

organisation is crucial for the effective performance needed for the achievement of the

organizational goals. This can be deduced from the assertion of Oyoo (2015) who observe that

organisations need effectively and efficiently committed employees to enable them to achieve

their objectives. The competitiveness of the business environment has however prompted many

organizations to engage in restructuring exercises and it can be seen from the study that

depending on how effective a restructuring process is, employee commitment may be affected

positively or negatively.

As opined by Brockner et al. (2009) that people who survive a round of redundancies often

exhibit characteristics that include lower commitment considered as symptoms of “survivor

syndrome”. Akintunde and Akaighe (2015) also supported that when organisations do not

effectively carry out their change process by preparing for post-restructuring exercises, there

may be lower employee commitment.

Many research scholars have also evidently shown that organisational restructuring affects the

commitment of the employee to work activities. Researchers such as Theissen (2004), Naveed et

35
al. (2015) and others found that restructuring or change in an organization will affect the

commitment of employees adversely. On the other hand, Nasiru (2018) and Vongani et al.

(2014) found out in their study that organisational restructuring exercise carried out in the

organisation has a positive effect on the commitment of employees. This study is however

conducted to fill the gap in the literature on the availability of limited empirical published

research journals in line with the subject matter in Nigeria. This study is also important in that it

will provide evidence on how different dimensions of restructuring including workforce

restructuring, cultural and process restructuring which were found lacking. Therefore, this study

would contribute to existing research works.

36
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42
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Preamble

Research methodology is an experimental and precise search for appropriate data on a particular

study. In addition, the research contains characterizing and redefining issues, constructing theory

or hypothesis; gathering, sorting out and assessing information collected; and achieving

conclusions. The Chapter, therefore, describes the proposed research design, the study area and

population, sampling techniques, validity and reliability of the selected instrument, method of

data collection, method of data analysis and many more.

3.2.1 Research Design

Research design is a master plan of the study which explains the methods and procedures for

gathering and evaluating the needed information (Zikmund, Babin, Carr & Griffin, 2010).

Saunders, Lewis and Thornhill (2007) also defined research design as the general plan of how

the research questions would be answered. The descriptive survey design was adopted for this

study in which a structured questionnaire was used to elicit information from the target

respondents who were employees of Access Bank PLC.

3.2.2 Rationale for the Choice of Research Design

For this research, the choice of design was based on the fact that the research design enabled the

collection of data and reporting of the same without subjecting it to any manipulations. The

descriptive survey design method provides quantitative data from a cross-section of the chosen

population. According to Patton (2002), quantitative research uses standardised measures to fit

43
the varying experiences and perspectives of people into a limited number of predetermined

response categories to which a number is assigned.

3.3.1 The Study Area

The study area for this research work is Access Bank PLC as this study aims to assess how

restructuring carried out in this study area has affected their employee commitment. Access Bank

PLC is a bank popularly known to have evolved from an obscure Nigerian Bank into a world-

class African financial institution. Access Bank delivers sustainable economic growth that is

profitable, environmentally responsible and socially relevant. Access Bank is also well-known

for acquiring and merging with banks not only in Nigeria but also in other African nations they

are present.

3.3.2 The Study Population

Welman, Kruger and Mitchell (2005) defined population as the full set of elements from which a

representative sample is taken as a target of participants. Population refers to the entire group of

people, events or things of interest that the researcher wishes to investigate (Sekaran, 2003). The

population considered for the sake of this study is all the employees of Access Bank PLC in

Lagos state with an estimated population of 28,121 employees.

3.3.3 The Target Population

Olaseni (2004) also sees the target population as all the relevant sampling units in a study. The

target population for this research work comprises all male and female staff working across

different departments and levels in Access Bank PLC branch in University of Lagos and Sabo,

Yaba with a total population of 60 employees altogether.

44
3.4.1 Sampling Frame

A sampling frame is a list of all the items in your target population. It's a complete list of

everyone or everything you want to study. The difference between a population and a sampling

frame is specific. For the study, the sampling frame covers the employees in Access Bank PLC

branch in University of Lagos and Sabo branch categorized based on department. The table

below is used to depict the sampling frame for this study:

Table 3. 1: Population Size of Access Bank Branches

S/N UNITS UNILAG BRANCH SABO BRANCH TOTAL

1 Retail Banking 5 6 11

2 Business Banking 1 4 5

3 Commercial Banking 3 5 8

4 Corporate and Investment 0 3 3

Banking

5 IT and Operations 3 5 8

6 Enterprise Resource 4 8 12
Groups

7 Risk Management 0 2 2

9 Others 4 7 11

TOTAL 20 40 60

Source: Branch Managers, Access Bank, 2021.

45
3.4.2 Sample Size Determination

This section involves the determination of the required number of a sample that the researcher

would distribute research instruments to which are made to represent the entire population. In

other words, the sample is a portion or part of a subset of the population of interest. This study

adopted a census approach also called saturation sampling whereby all the elements in a target

population are used as the sample because the target population is relatively small.

3.4.3 Sampling Procedure

Sampling techniques are the method used in selecting a proportion of the population as a sample.

A simple random sampling technique is used to select a sample from the population because the

study is using all the individuals in the target population as the sample. According to Kumar

(2011), the simple random sampling method ensures high reliability of sample, high degree of

representative and allows for generalisation of research findings.

3.5.1 Research Instrument

The research instrument for this study is a self-designed questionnaire developed by the

researcher tailored specifically for this study and study area in line with the subject matter. A

structured questionnaire is used because it would make it easy for the researcher to be able to

analyse the responses easily and to reduce the time involved in collating data sourced from other

means. A questionnaire as the research instrument chosen is relatively easy to analyse, simple to

administer, quick for the respondent to complete, the format is familiar to respondents and

straightforward (Adam, 2014). The questionnaire is developed in Sections A and B. Section A

seeks the respondents’ socio-demographic data, while Section B seeks their opinions on
46
restructuring and employee commitment in the workplace. Section B is designed on a 5-point

Likert Scale, with a response scale of 5 for Strongly Agree (SA), 4 for Agree (A), 3 for

Undecided (U), 2 for Disagree (D) and 1 for Strongly Disagree (SD).

3.5.2 Validity of the Research Instrument

Validity refers to the degree to which an instrument accurately measures what it intends to

measure (Yue, 2016). Furthermore, Content validity ensures that all aspects and parameters that

impact the main content of the questionnaire were evaluated. To improve further on efficacy the

instruments were checked by a research expert, in this case, it was the research supervisor. Thus,

the items on the questionnaire were adjusted to fit the subject matter.

3.5.3 Reliability of the Research Instrument

Reliability refers to the degree to which an instrument yields consistent results (Yue, 2016). That

is, how consistent the ratings are for each from one administration of an instrument to another

and from one item to another (Gakuu & Kidombo, 2008). To test how reliable the research

instrument is, upon approval of the research instrument by the project supervisor, a pilot study

was carried out amongst the employees of the First Bank Nigeria branch of the University of

Lagos. Thereafter, the reliability test was performed using Cronbach Alpha with the aid of SPSS.

The tables below show the result from the reliability test:

Table 3. 2: Case Processing Summary

N %
Valid 15 100.0
Cases Excluded a
0 .0
Total 15 100.0
a. Listwise deletion based on all variables in the procedure.

47
 Table 3. 3: Reliability Statistics
Cronbach’s Alpha N of Items
.638 25

3.6.1 Ethical Consideration

As emphasised by Collis and Hussey (2003) that ethical considerations include acknowledging

other researchers’ ideas by clearly citing the original work, ensuring the anonymity of the

respondents, clearly stating the scope of the proposed research, clearly stating filters/items on the

questionnaire and observation checklist, avoiding leading and bias questions, among others; this

study ensures that the privacy of the respondents is not compromised. Participants were

guaranteed privacy and that no identifiable information was revealed in both written and verbal

communication.

3.6.2 Method of Data Collection

One part of the type of data collected and used for this study is the primary data and the

collection tool is a self-administered questionnaire given to employees of the selected branch

Access Bank PLC. Cooper and Schindler (2011) state that data collection methods refer to the

process of gathering data after the researcher has identified the types of information needed

which is; the investigative questions the researcher must answer, and has also identified the

desired data type (nominal, ordinal, interval or ratio) for each of these questions and also

ascertained the characteristics of the sample unit that is, whether a participant can articulate his

or her ideas, thoughts and experiences.

48
The other part of the data used in this study is the secondary data collected from existing

scholarly published and unpublished materials including journal articles, books, online research

materials and other relevant documents. The secondary data helps to support the ideas, concepts

and perspectives used in this study. The secondary data also served as a guide for the researcher

to carry out a concrete study.

3.7.1 Fieldwork Experience

The researcher firstly conducted a pilot study amongst employees of First Bank Nigeria in the

University of Lagos Branch. This serves as a pretest to evaluate the reliability of the items on the

questionnaire to know if they will serve their purpose. The researcher also paid a visit to the two

selected branches to get the population size and the researcher was allowed to go round the

department to take a headcount of people in the departments. The researcher also paid another

visit to administer the questionnaire among the employees in each branch.

3.7.2 Problems Encountered in the Study

Some problems were encountered in the process of administering the questionnaire. The

managers of the branches were at first reluctant in allowing the researcher to carry out the study

in their bank and only later concede after much pleading. The researcher also went on several

visits to the branches because the researcher was not able to administer the questionnaire to all

employees in one visit because of the busy schedule of the employees.

3.7.3 Resolutions to the Problems Encountered in the Study

In an attempt to mitigate against these problems, the researcher ensure that certain measures are

taken based on the problems encountered to achieve the purpose of this study. The researcher

took an approved letter from the department to the branches which also served as a way of
49
convincing the branch managers about the authenticity of the research work. The researcher also

adopts a drop and pick later approach during the administration of the questionnaire whereby the

researcher picked up the filled questionnaire on later dates. The researcher also structured the

questionnaire to be clear and less wordy to interest the participants.

3.8.1 Method of Data Analysis

The purpose of data analysis is to reduce accumulated data to a manageable size, develop

summaries, look for patterns, and apply statistical techniques (Cooper & Schindler, 2011). The

data collected were coded and captured into the computer for analysis using Statistical Package

for Social Sciences (SPSS) version 22.0. This would enable the presentation of the data in the

following Chapter to be in a convenient and informative way including frequency tables, mean

scores and inferential statistics for easier analysis and interpretation. Descriptive analysis was

used to determine the proportions and frequency of the variables; socio-demographic

characteristics and research questions.

Regression analysis was also used to draw inferences about the population from the sample

based on the research hypotheses formulated in Chapter 1. Simple Linear Regression Analysis

was adopted to analyze the hypotheses formulated as this is useful in examining the predictive

ability of sets of the independent variables on the dependent variable in hypotheses.

3.8.2 Limitations of the Study

The scope of this study is restricted to the employees of Access Bank PLC. In other words, the

sample of the selected banks used may not be generalisable to other banks in the banking sector

without further study or inspection while considering other factors and variables. Other

50
limitations involve financial and the restriction to effectively carry out the study without

hindrance due to the pandemic.

3.8.3 Strengths of the Study

The study focuses on how workplace restructuring has affected employees' commitment to

Access Bank PLC. Access Bank is one of the emerging banks in the global market of financial

institutions while rendering diverse services to people of different cultures. The bank also has a

diverse pool of talented workers; this study would however determine how the commitment of

these talented workers has been affected by the restructuring exercise of the bank. Therefore, it is

believed that if the findings and recommendations of this study are beneficial to the bank, other

banks within the nation could also adopt the findings and recommendations of this research

study.

51
 References

Collis, J., & Hussey, R. (2003). Business research: A practical guide for undergraduate and
postgraduate students. Hampshire: Palgrave MacMillan.

Cooper, D. R., & Schindler, P. S. (2011). Business research methods. New York, NY:
McGraw-Hill.

Gakuu, C. M., & Kidombo, H. J. (2008). Research Methods. Masters in Project Planning and
Management, Distance Learning Study module.

Kumar, R. (2011). Research methodology: A step by step guide for social scientists. London:
Sage.

Olaseni, A. M. (2004). Basic principles of research. Lagos: Concept Publications Ltd.

Patton, M. (2002). Qualitative research and evaluation methods (3rd ed.). London: Sage
Publications, Thousand Oaks, 91.
Saunders, M., Lewis, P., & Thornhill, A. (2007), Research methods for business students (4th
ed.). England: Pearson Education Ltd, Harlow.

Sekaran, U. (2003). Research methods for business: A skill building approach (4th ed.). New
Jersey: John Wiley and Sons.

Welman, J. C. Kruger, S. J., & Mitchell, B. (2005). Research methodology (3rd ed.). Cape Town:
Oxford University Press Southern Africa.

Yamane, T. (1967). Statistics: An introductory analysis. New York: Harper and Row.

Zikmund, G. W., Babin, B. J., Carr, C. J., & Griffin, M. (2010). Business Research Methods (8th
ed.). South-Western, Cengage Learning.

52
 CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION

4.1 Preamble

This study analyses the effect of organisational restructuring on employee commitment in the

workplace. In line with the sample size of the study which is 60, primary data were gathered by

the researcher by administering the questionnaire to employees of the selected two branches of

Access Bank. All the 60 administered copies of questionnaire were collated and found usable for

this study implying a response rate of 100.00%. All the responses/data gathered from the 60

respondents are therefore presented, analysed and interpreted in this chapter using frequency

distribution tables, and Linear Regression Analysis with the aid of the Statistical Package for

Social Scientists (SPSS 22.0).

4.2 Socio-Demographic Characteristics of the Respondents

This section presents the respondents’ socio-demographic characteristics using frequency

distribution tables.

Table 4.1 shows the socio-demographic characteristics of the participants. In terms of the gender

distribution of the respondents; it is observed that 45.0 percent of the respondents are male while

55.0 percent are female. This implies that there were more female respondents than the male who

took part in this study. The table also shows that 86.7 percent of the respondents are single, and

13.3 percent are married. This implies that there were more single respondents than others who

participated in the survey.

53
Table 4. 1: Socio-Demographic Characteristics of the Respondents

Items Frequency Percent

Gender
Male 27 45.0
Female 33 55.0
Total 60 100.0
Marital Status
Single 52 86.7
Married 8 13.3
Total 60 100.0
Age
20- 29years 56 93.3
30-39years 4 6.7
Total 60 100.0
Educational Qualification
WASSCE/SSCE 1 1.7
NCE/OND 4 6.7
Bachelor’s Degree/HND 52 86.7
Master’s Degree 2 3.3
Others 1 1.7
Total 60 100.0
Length of Service
1-5years 53 88.3
6- 10years 7 11.7
Total 60 100.0
Employment Status
Permanent 18 30.0
Temporary 17 28.3
Contract 25 41.7
Total 60 100.0
Source: Field Survey 2021.

Table 4.1 also shows the distribution of the respondents according to their age and it was

observed that 93.3 percent of the respondents are within the age of 20-29years, and 6.7 percent

are within the range of 30-39years. This implies that respondents within the age of 30-39years

participated more in this study. Likewise, the table reveals the distribution of sampled
54
respondents according to their level of educational qualification. It is seen that 1.7 percent of the

respondents had WASSCE/SSCE, 6.7 percent were NCEOND, 86.7 percent had Bachelor's

Degree/HND, 3.3 percent had Master's Degree, and 1.7 percent had other types of educational

qualification. This implies that the majority of the respondents that participated in the survey had

Bachelor's Degree/HND.

Table 4.1 also reveals the distribution of sampled respondents based on their length of service in

the bank. It is seen that 88.3 percent of the respondents had 1-5years of working experience,

while the remaining 11.7 percent had 6-10years of working experience in the bank. This implies

that the majority of the respondents that participated in the survey had 6-10 years of working

experience in the bank. Lastly, the table shows the distribution of respondents in terms of their

employment status and it was observed that 30.0 percent of the respondents are permanent

employees, 28.3 percent are temporary employees while 41.7 percent work on a contract basis in

the bank. This implies that the majority of the respondents that participated in the survey are

employees on a contract basis.

4.3.1 Respondents’ Views on Workforce Restructuring

In this section, there is a presentation and interpretation of respondents' views on their perception

about the extent to which workforce restructuring has been executed in their bank using

descriptive statistics; frequency table. The tables presented consist of items 7-11 of the research

instrument with a scale of Likert 5-point scale ranging from strongly disagree (1) to strongly

agree (5). Strongly agree and agree are added up and used to represent the extent to which

respondents are in agreement with each statement. Strongly disagree and disagree on the other

end are also added up to represent the extent to which respondents are in disagreement with each

statement.

55
 Table 4. 2: Respondents’ Views on Workforce Restructuring

Items Strongly Disagreed Neutral Agree Strongly

Disagree Agree

re
ntre

nt re
re

nt re
F

P q
er u
ceF

ce eF
F

ce F
Pq
eru

P q
er u
q
Pu

P q
er u
e
cee

ce e
ere

nt
My task has been adjusted to 1 1.7 8 13.3 11 18.3 25 41.7 15 25.0
bring about flexibility in
performing those tasks since I
started working in this bank

There has been reorganisation in 1 1.7 6 10.0 13 21.7 24 40.0 16 26.7

the size of the workforce to
enhance the effective operation

Employees are sometimes rotated 3 5.0 5 8.0 9 15.0 23 38.3 20 33.3

across units for better experience
on the job

Employees sometimes experience 5 8.3 4 6.7 10 16.7 23 36.7 19 31.7

changes in their job such that they
are given more responsibilities

Workforce restructuring has a 4 6.7 7 11.7 9 15.0 18 30.0 22 36.7

significant effect on employee
commitment in this bank

Source: Field Survey, 2021.

Table 4.2 above reveals the respondents’ view on the practice of workforce restructuring in the

organisation. The table indicates that the majority (66.7 percent) of the respondents are in

agreement that their task has been adjusted to bring about flexibility in performing those tasks

since I started working in this bank, 18.3 are neutral while the remaining 15.0 percent are in

disagreement with the statement. The table also reveals that majority (66.7 percent) of the

56
respondents are in agreement that there has been reorganisation in the size of the workforce to

enhance effective operation, 21.7 percent are neutral while the remaining 11.7 percent are in

disagreement with the statement. The table also shows that the majority (71.6 percent) of the

respondents are in agreement that employees are sometimes rotated across units for better

experience on the job, 15.0 percent are neutral while the remaining 13.3 percent are in

disagreement with the statement.

Furthermore, the table also reveals that the majority (68.4 percent) of the respondents are in

agreement that employees sometimes experience changes in their job such that they are given

more responsibilities, 16.7 percent are neutral while the remaining 15.0 percent are in

disagreement with the statement. Lastly, the table also indicates that the majority (66.7 percent)

of the respondents are in agreement that workforce restructuring has a significant effect on

employee commitment in this bank, 15.0 percent are neutral, while the remaining 18.4 percent

are in disagreement with the statement. From the above responses, it is deduced that employees

have experienced workforce restructuring in the bank.

4.3.2 Respondents’ Views on Process Restructuring

In this section, there is a presentation and interpretation of respondents' views on their perception

about the extent to which process restructuring has been executed in their bank using descriptive

statistics; frequency table. The tables presented consist of items 12-16 of the research instrument

with a scale of Likert 5-point scale ranging from strongly disagree (1) to strongly agree (5).

Strongly agree and agree are added up and used to represent the extent to which respondents are

in agreement with each statement. Strongly disagree and disagree on the other end are also added

up to represent the extent to which respondents are in disagreement with each statement.

57
58
 Table 4. 3: Respondents’ Views on Process Restructuring

Items Strongly Disagreed Neutral Agree Strongly

Disagree Agree

nt

nt

nt

nt
re

er
ce
re

er
ce
re

er
ece
re

er
ece
re

er
ce
F

eF

eF

P
q
u

q
u

q
u

q
u

q
u
e
There has been reorganisation in the 3 5.0 7 11.7 14 23. 20 33.3 16 26.7
way work activities are being carried
out in the workplace since I started 3
working in this bank

Technologies that enhance work 4 6.7 7 11.7 4 6.7 20 33.3 25 41.7

operations are now been used in this
bank

Some activities of the bank are being 7 11. 4 6.7 6 10. 11 18.3 32 53.3
automated and now differs from the
traditional methods 7 0

There are changes in our business 3 5.0 6 10.0 8 13. 18 30.0 25 41.7
processes in order to stay
competitive in the banking industry 3

Process restructuring significantly 6 10. 5 8.3 13 21. 18 30.0 18 30.0

affect the commitment among
employees in this bank 0 7

Source: Field Survey, 2021.

Table 4.3 above reveals the respondents’ view on the practice of process restructuring in the

organisation. The table indicates that the majority (60.0 percent) of the respondents are in

agreement that there has been reorganisation in the way work activities are being carried out in

the workplace since they started working in this bank, 23.3 are neutral while the remaining 16.7

percent are in disagreement with the statement. The table also reveals that the majority (75.0

59
percent) of the respondents are in agreement that technologies that enhance work operations are

now been used in this bank, 6.7 percent are neutral while the remaining 18.4 percent are in

disagreement with the statement. The table also shows that the majority (71.6 percent) of the

respondents are in agreement that some activities of the bank are being automated and now

differs from the traditional methods, 10.0 percent are neutral while the remaining 18.4 percent

are in disagreement with the statement.

Furthermore, the table also reveals that the majority (71.7 percent) of the respondents are in

agreement that there are changes in our business processes in order to stay competitive in the

banking industry, 13.3 percent are neutral while the remaining 15.0 percent are in disagreement

with the statement. Lastly, the table also indicates that the majority (60.0 percent) of the

respondents are in agreement that process restructuring significantly affect the commitment

among employees in this bank, 21.7 percent are neutral, while the remaining 18.3 percent are in

disagreement with the statement. From the above responses, it is deduced that process

restructuring has been carried out in the bank.

4.3.3 Respondents’ Views on Cultural Restructuring

In this section, there is a presentation and interpretation of respondents' views on their perception

about the extent to which cultural restructuring has been executed in their bank using descriptive

statistics; frequency table. The tables presented consist of items 17-21 of the research instrument

with a scale of Likert 5-point scale ranging from strongly disagree (1) to strongly agree (5).

Strongly agree and agree are added up and used to represent the extent to which respondents are

in agreement with each statement. Strongly disagree and disagree on the other end are also added

up to represent the extent to which respondents are in disagreement with each statement.

60
61
 Table 4. 4: Respondents’ Views on Cultural Restructuring

Items Strongly Disagreed Neutral Agree Strongly

Disagree Agree

nt

nt

nt

nt
re

er
ece
re

er
ece

re

er
ece

re

er
ce
re

er
ce
F

P
q
u

q
u

q
u

q
u

q
u
e

e
My organisation now has a new 6 10.0 5 8.3 7 11.7 20 33.3 22 36.7
strategy in meeting customers’
needs

The bank’s policy has been 3 5.7 6 10.0 8 13.3 18 30.0 25 41.7
restructured to permit social
interaction that would benefit the
bank with customer

Employees are encouraged to adopt 3 5.0 6 10.0 6 10.0 22 36.7 23 38.3

the culture of working together to
get the task completed

The bank promotes a culture of 6 10.0 6 10.0 3 5.0 26 43.3 19 31.7

contacting colleagues when their
assistance is needed to get the job
done

There is a significant effect of 4 6.7 5 8.3 8 13.3 27 45.0 16 26.7

cultural restructuring on employee
commitment in this bank

Source: Field Survey, 2021.

Table 4.4 above reveals the respondents’ view on the practice of cultural restructuring in the

organisation. The table indicates that the majority (70.0 percent) of the respondents are in

agreement that their organisation now has a new strategy in meeting customers’ needs, 11.7 are

neutral while the remaining 18.3 percent are in disagreement with the statement. The table also

reveals that the majority (71.7 percent) of the respondents are in agreement that the bank's policy

62
has been restructured to permit social interaction that would benefit the bank with the customer,

13.3 percent are neutral while the remaining 15.0 percent are in disagreement with the statement.

The table also shows that the majority (75.0 percent) of the respondents are in agreement that

employees are encouraged to adopt the culture of working together to get the task completed,

10.0 percent are neutral while the remaining 15.0 percent are in disagreement with the statement.

Furthermore, the table also reveals that the majority (75.0 percent) of the respondents are in

agreement that the bank promotes a culture of contacting colleagues when their assistance is

needed to get the job done, 5.0 percent are neutral while the remaining 20.0 percent are in

disagreement with the statement. Lastly, the table also indicates that the majority (71.7 percent)

of the respondents are in agreement that there is a significant effect of cultural restructuring on

employee commitment in this bank, 13.3 percent are neutral, while the remaining 15.0 percent

are in disagreement with the statement. From the above responses, it is deduced that cultural

restructuring has been carried out in the bank.

4.3.4 Respondents’ Views on Employee Commitment

In this section, there is presentation and interpretation of respondents' views on their perception

about the extent to which they show a high level of commitment in the bank using descriptive

statistics; frequency table. The tables presented consist of items 17-21 of the research instrument

with a scale of Likert 5-point scale ranging from strongly disagree (1) to strongly agree (5).

Strongly agree and agree are added up and used to represent the extent to which respondents are

in agreement with each statement. Strongly disagree and disagree on the other end are also added

up to represent the extent to which respondents are in disagreement with each statement.

63
 Table 4. 5: Respondents’ Views on Employee Commitment

Items Strongly Disagreed Neutral Agree Strongly

Disagree Agree

nt

nt

nt

nt
re

er
ece
re

er
ce
re

er
ece

re

er
ce
re

er
ce
F

eF

P
q
u

q
u

q
u

q
u

q
u
e

e
I am happy to be a staff of this bank 2 3.3 5 8.3 13 21.7 17 28.3 23 38.3

I am attached and involved in the 3 5.0 6 10.0 5 8.3 23 38.3 23 38.3

achievement of the organisational
goals and objectives

I don't have the intention to quit my 7 11.7 4 6.7 27 45.0 14 23.3 8 13.3
work in this bank because it will be
costly for me

I experience an exciting and 5 8.3 7 11.7 10 16.7 30 50.0 8 13.3

pleasurable emotional state whenever
I am at the workplace

I have the feeling that I ought to 6 10.0 12 20.0 19 31.7 13 21.7 10 16.7
remain in the organisation because of
what I have gained from the
organisation

Source: Field Survey, 2021.

Table 4.5 above reveals the respondents' views on their level of employee commitment in their

bank. The table indicates that the majority (66.6 percent) of the respondents are in agreement that

they are happy to be a staff of this bank, 21.7 are neutral while the remaining 11.6 percent are in

disagreement with the statement. The table also reveals that the majority (76.6 percent) of the

respondents are in agreement that they are attached and involved in the achievement of the

64
organisational goals and objectives, 8.3 percent are neutral while the remaining 15.0 percent are

in disagreement with the statement. The table also shows that the majority (45.0 percent) of the

respondents are indifferent about the statement that they don't have the intention to quit my work

in this bank because it will be costly for them, 36.6 percent are in agreement while the remaining

18.4 percent are in disagreement with the statement.

Furthermore, the table also reveals that the majority (63.3 percent) of the respondents are in

agreement that they experience an exciting and pleasurable emotional state whenever they are at

the workplace, 16.7 percent are neutral while the remaining 20.0 percent are in disagreement

with the statement. Lastly, the table also indicates that the majority (38.4 percent) of the

respondents are in agreement that they have the feeling that they ought to remain in the

organisation because of what they have gained from the organisation, 31.7 percent are neutral,

while the remaining 30.0 percent are in disagreement with the statement. From the above

responses, it is deduced that there is a high level of employee commitment in the bank.

4.4 Test of Hypotheses

This section tests and shows the result of the hypotheses formulated in chapter 1 of this study.

The data collected were subjected to a statistical test – Linear Regression using Statistical

Package for Social Scientists (SPSS 22.0). The use of regression analysis enables to test of the

formulated hypotheses by examining the predictive ability of sets of the independent variables on

the dependent variable in hypotheses one to three.

4.4.1 Hypothesis One

H0: Workforce restructuring does not have a significant effect on employee commitment in

Access Bank Plc Lagos.

65
H1: Workforce restructuring has a significant effect on employee commitment in Access Bank

Plc Lagos.

Table 4. 6: Regression Analysis of Workforce Restructuring and Employees’ Commitment

Model R R Square Adjusted df F Sig. Beta

R Square

1 .728a .530 .522 59 65.461 .000b .728

Source: Field Survey, 2021.

The table as seen shows the model summary which depicts the relationship that exists between

the observed variables. In the table, R-Coefficient of Regression measuring the relationship

between independent variables and the dependent variables based on strength was (0.728),

indicating that the relationship is strong. R-Square known as the Coefficient of determination

which is used to explain what percentage of the total variation of the dependent variable is

caused by the variation in the independent variables.

Therefore, the R2 for the model is 0.530 indicating that 53.0% of the variations or changes in

employee commitment of the bank are caused by the independent variable; workforce

restructuring. Adjusted R-Square shows that 52.2% of the variation in employee commitment in

the bank was explained by the model, while the remaining 47.8% of the variation is explained

outside this model which could also mean a very high explanatory variable. In other words, a

moderate degree of changes in the employee commitment in the bank is caused by changes in the

effectiveness of workforce restructuring in the bank.

The seventh column on table 4.6 depicts the significance of the model that is, whether the model

sufficiently explains the deviations in the dependent variable. In the last column, we can see a

66
value and this is what shows the goodness of fit of the model; when the number is small in unit

closer to 0, we can say we have better goodness of fit. In addition, when the value is greater than

0.01 or 0.05, we would conclude that the model could not fit the data at a different level of

significance. Therefore, the value (Sig.) which is 0.000 less than 0.01 implies that we would

accept that the model is significant at 99%. That is, the model sufficiently explains the variation

in the dependent variable. In other words, since the p-value (Sig.) of the model (0.000) is less

than 0.01 level of significance, then we can conclude that the result from this analysis is valid.

In other words, the Sig value (0.000) less than 0.05 at a 95% level of confidence also predicted

that the beta value (0.728) is significant which means there is a very strong significant and direct

effect of workforce restructuring on employee commitment in the bank. The implication of this

is that the higher the effectiveness of how workforce restructuring is carried out in the bank, the

higher level of employee commitment towards the bank.

4.4.2 Hypothesis Two

H0: Process restructuring does not significantly affect the commitment among employees in

Access Bank Plc Lagos.

H1: Process restructuring significantly affects the commitment among employees in Access Bank

Plc Lagos.

Table 4. 7: Regression Analysis of Process Restructuring and Employees’ Commitment

Model R R Square Adjusted df F Sig. Beta

R Square

1 .627a .393 .382 59 37.499 .000b .627

Source: Field Survey, 2021.

67
The table as seen shows the model summary which depicts the relationship that exists between

the observed variables. In the table, R-Coefficient of Regression measuring the relationship

between independent variables and the dependent variables based on strength was (0.627),

indicating that the relationship is strong. R-Square known as the Coefficient of determination

which is used to explain what percentage of the total variation of the dependent variable is

caused by the variation in the independent variables.

Therefore, the R2 for the model is 0.393 indicating that 39.3% of the variations or changes in

employee commitment of the bank are caused by the independent variable; process restructuring.

Adjusted R-Square shows that 38.2% of the variation in employee commitment in the bank was

explained by the model, while the remaining 61.8% of the variation is explained outside this

model which could also mean a very high explanatory variable. In other words, a low degree of

changes in the employee commitment in the bank is caused by changes in the effectiveness of

process restructuring in the bank.

The seventh column in table 4.7 depicts the significance of the model that is, whether the model

sufficiently explains the deviations in the dependent variable. In the last column, we can see a

value and this is what shows the goodness of fit of the model; when the number is small in unit

closer to 0, we can say we have better goodness of fit. In addition, when the value is greater than

0.01 or 0.05, we would conclude that the model could not fit the data at a different level of

significance. Therefore, the value (Sig.) which is 0.000 less than 0.01 implies that we would

accept that the model is significant at 99%. That is, the model sufficiently explains the variation

in the dependent variable. In other words, since the p-value (Sig.) of the model (0.000) is less

than 0.01 level of significance, then we can conclude that the result from this analysis is valid.

68
In other words, the Sig value (0.000) less than 0.05 at a 95% level of confidence also predicted

that the beta value (0.627) is significant which means there is a strong significant and direct

effect of process restructuring on employee commitment in the bank. The implication of this is

that the higher the effectiveness of the execution of process restructuring in the bank, the higher

level of employee commitment towards the bank.

4.4.3 Hypothesis Three

H0: There is no significant effect of cultural restructuring on employee commitment in Access

Bank Plc Lagos.

H1: There is a significant effect of cultural restructuring on employee commitment in Access

Bank Plc Lagos.

Table 4. 8: Regression Analysis of Cultural Restructuring and Employees’ Commitment

Model R R Square Adjusted Df F Sig. Beta

R Square

1 .768a .589 .582 59 83.243 .000b .768

Source: Field Survey, 2021.

The table as seen shows the model summary which depicts the relationship that exists between

the observed variables. In the table, R-Coefficient of Regression measuring the relationship

between independent variables and the dependent variables based on strength was (0.768),

indicating that the relationship is strong. R-Square known as the Coefficient of determination

which is used to explain what percentage of the total variation of the dependent variable is

caused by the variation in the independent variables.

69
Therefore, the R2 for the model is 0.589 indicating that 58.9% of the variations or changes in

employee commitment of the bank are caused by the independent variable; cultural restructuring.

Adjusted R-Square shows that 58.9% of the variation in employee commitment of the bank was

explained by the model, while the remaining 41.1% of the variation is explained outside this

model which could also mean a very high explanatory variable. In other words, a moderate

degree of changes in the employee commitment in the bank is caused by changes in the

effectiveness of cultural restructuring in the bank.

The seventh column on table 4.8 depicts the significance of the model that is, whether the model

sufficiently explains the deviations in the dependent variable. In the last column, we can see a

value and this is what shows the goodness of fit of the model; when the number is small in unit

closer to 0, we can say we have better goodness of fit. In addition, when the value is greater than

0.01 or 0.05, we would conclude that the model could not fit the data at a different level of

significance. Therefore, the value (Sig.) which is 0.000 less than 0.01 implies that we would

accept that the model is significant at 99%. That is, the model sufficiently explains the variation

in the dependent variable. In other words, since the p-value (Sig.) of the model (0.000) is less

than 0.01 level of significance, then we can conclude that the result from this analysis is valid.

In other words, the Sig value (0.000) less than 0.05 at a 95% level of confidence also predicted

that the beta value (0.768) is significant which means there is a very strong significant and direct

effect of cultural restructuring on employee commitment in the bank. The implication of this is

that increase in the effectiveness of the institution of cultural restructuring in the bank will also

bring about a higher level of employee commitment.

70
4.5 Summary of Findings

Based on the result of the analysis, it was discovered that workforce restructuring has a

significant positive effect on employee commitment with the beta 0.728 significant at 0.05 level

of significance as shown in table 4.6. It was also discovered that process restructuring also has a

significant positive effect on employee commitment because, on table 4.7, the beta is 0.627 with

sig. value 0.000 less than 0.05 level of significance. Finally, it was also derived from table 4.8

that cultural restructuring shows an effect of 0.768 on employee commitment which is also

significant at a 0.05 level of significance. This made the researcher accept all the alternative

hypotheses. In other words, it has been found out that organisational restructuring has a

significant positive effect on employee commitment in Access Bank Plc.

4.6 Discussion of Findings

The purpose of this study is to assess the general effects of organisational restructuring on

employees' commitment to Access banks in Nigeria. This was further elaborated to also include

investigation of the effect of dimensions of organisational restructuring including workforce

restructuring, process restructuring and cultural restructuring, on employee commitment. This

was also translated into research questions and hypotheses which were tested in this chapter.

In section 4.4.1, based on the analysis carried out; it was discovered that there is a very strong

significant and direct effect of workforce restructuring on employee commitment in the bank

which led to the rejection of the null hypothesis and acceptance of the alternative hypothesis. The

implication of this is that the higher the effectiveness of how workforce restructuring is carried

out in the bank, the higher level of employee commitment towards the bank. This is in line with

71
the findings of Longe (2013) in which it was discovered that there is a positive significant

relationship between organisational restructuring, its dimensions and work satisfaction.

In section 4.4.2 which is in line with the second formulated hypothesis, it was discovered there is

a strong significant and direct effect of process restructuring on employee commitment in the

bank which made the researcher reject the null hypothesis while the alternative hypothesis was

accepted. The implication of this finding is that the higher the effectiveness of the execution of

process restructuring in the bank, the higher level of employee commitment towards the bank.

This corroborates the assertions of Chitere and Nzulwa (2018) in their study in which it was

argued that restructuring within an organisation in relation to their activities will increase the

commitment and satisfaction of employees towards their job.

In section 4.4.3, the analysis was used to test the third hypothesis and the researcher discovered

that there is a very strong significant and direct effect of cultural restructuring on employee

commitment. This made the researcher accept the alternative hypothesis instead of the null

hypothesis with the implication that an increase in the effectiveness of the institution of cultural

restructuring in the bank will also bring about a higher level of employee commitment. This is in

line with the argument of Akintunde and Akaighe (2015) who asserted that if the restructuring

process of an organisation is not properly managed, it will adversely affect employee morale and

commitment. Thus, the effectiveness of cultural restructuring on the other hand will increase the

commitment of employees.

72
 References

Akintunde, O., & Akaighe, G. O. (2015). Corporate restructuring and organizational productivity
in Nigeria insurance industry. Nigerian Journal of Management Studies, 15(1), 55-67.

Chitere, M., & Nzulwa, J. (2018). Influence of organizational restructuring on employee job
satisfaction in selected commercial banks in Kenya. Journal of International Business,
Innovation and Strategic Management, 1(7), 291-310.

Longe, O. (2013). Social effects of organisational restructuring on employee workplace attitudes

in selected manufacturing industries in Nigeria. African Research Review: An
International Multidisciplinary Journal, Ethiopia, 7(3), 292-307.

73
 CHAPTER FIVE

SUMMARY, CONCLUSION, AND RECOMMENDATIONS

5.1 Preamble

In this chapter of the study, the researcher provided the summary of the entire research process

from the first chapter of this study which serves as the introductory part that established the tune

upon which other chapters were based; to the second chapter wherein the conceptual review,

empirical review and theoretical framework of the study were put forward; to the third chapter

which established the methodology that guides this study; and lastly the chapter which presented

the result of the analysis. This chapter also established the conclusions and recommendations of

this study based on the interpretation of results from the analysis. The contribution of this study

to existing knowledge and suggestion for further studies are also presented.

5.2 Summary

This study was solely embarked upon to assess the general effect of organisational restructuring

on employees' commitment to Access banks in Nigeria. The research in the background to the

study which could be found in chapter one observed that existing research works have

established that change is constant in the work environment of businesses and as a result

restructuring is also frequently carried out but if not properly executed and managed, it can

adversely affect the morale, commitment and satisfaction of employees in the workplace. The

researcher thus sought to determine how different dimensions of organisational restructuring

have affected employee commitment in the study area. This was further translated into research

questions and hypotheses.

74
In the second chapter, the researcher established the conceptual review, empirical review and

theoretical framework with the focus on deriving the link between the independent variable and

dependent variable from existing secondary materials. In the conceptual review, the researcher

provided an elaborated and comprehensive explanation of the concept of restructuring, the

concept of employee commitment, types of organisational restructuring, dimensions of employee

commitment, the purpose of restructuring in an organisation, importance of having committed

employees in an organisation, ways of achieving a successful restructuring process, the role of

restructuring on employee commitment.

This created the link between the variables and this was further supported by the review of

empirical literature materials as it was found that all reviewed literature materials argued that the

relationship between organisational restructuring and employee commitment varies such that

some authors found a significant direct relationship between the variables while some also

discovered that organisational restructuring adversely affected employee commitment. In the

theoretical framework, planned change theory, and human capital and commitment theory were

used to also buttress the nature of the relationship between the variables theoretically.

The researcher in Chapter 3 established the research methodology that was used to conduct the

research and the research design was adopted to be the descriptive design which further made the

researcher make an informed decision to use a quantitative approach. Based on this, a

questionnaire was also used to gather quantitative data from a sample size which also represented

the target population because of the small number; and a simple random sampling technique was

used to gather data among the target population. The validity and reliability of the research

instrument were also conducted and it was stated that the researcher would adopt linear

regression analysis to analyse the effect of the independent variables on the dependent variable.

75
The researcher in Chapter four presented the distribution of the respondents across different

socio-demographic characteristics as well as the presentation and interpretation of the responses

of participants based on the items on the research instrument was also done. Based on the

inferential analysis, it was found out that all the dimensions of organisational restructuring have

a very strong significant positive effect on employee commitment. However, cultural

restructuring was found to have the highest significant effect on employee commitment in

Access Bank.

5.3 Conclusion

The researcher has drawn some inferences and conclusions based on the results indicated by the

critical analysis done which was in line with each formulated hypothesis. Overall, the researcher

concluded that organisational restructuring affects employee commitment in an organisation.

Based on the results of the analysis on hypothesis one, the researcher concluded that if workforce

restructuring is effectively carried out, it will significantly lead to an increase in the level of

employee commitment towards the bank.

The researcher concluded based on the results of the analysis carried out on the second

hypothesis that the effective execution of process restructuring will increase employees'

commitment towards their work. Similarly, it is concluded in this study that an increase in the

effectiveness of the institution and execution of cultural restructuring in the bank will also bring

about a higher level of employee commitment.

5.4 Contributions to Knowledge

i. This study has been able to add up to the existing research work on the effect of

organisational restructuring on employee commitment.

76
 ii. The study also fills the gap in the literature as regards insufficient empirical research

work specifically on how the dimensions of organisational restructuring have affected

employee commitment.

iii. This study also further contribute to showing that there is a direct relationship and effect

of organisational restructuring and its dimensions on employee commitment.

iv. Also, this study has been able to point out that putting in place measures and strategies to

ensure the effectiveness of the organisational restructuring process will also lead to

improvement in the level of employee commitment in an organisation.

5.5 Recommendations

Based on the findings from which conclusion has been drawn, the following are recommended:

i. Management should ensure that they pay caution when reorganising their employees

around changes in their job. This is because a positive effect of workforce restructuring

was found on employee commitment and thus, if the process is well-managed, it will

contribute to improved employee commitment, otherwise employee commitment can be

adversely affected.

ii. Organisational restructuring should be strategically carried out to avoid adverse effects

on employees. In other words, management should ensure there is proper planning before

embarking on the restructuring process, the result is envisaged, there is a committee in

place that will manage the change process and that there is a survey carried out amongst

the employees before the full restructuring process to get their opinion.

iii. Proper integration of technological and effective communication of new approaches in

carrying out business activities should be promoted to ensure the effectiveness of process

77
 restructuring. This will help to ensure that employees are not overloaded with the new

process restructuring and as a result, the purpose of the restructuring will be achieved.

iv. Changes in the culture of the organisation should be done in such ways that will allow

employees to strongly imbibe the cultures. In other words, employees should be carried

along and involved in the cultural restructuring process for them to be fully aware of

what is expected of them after the restructuring process and as a result, they will imbibe

the new cultural changes in their workplace.

5.6 Suggestions for Further Studies

This study limited its scope to the examination of organisational restructuring, its dimensions and

employee commitment in Access Bank. This study can be further explored by carrying out a

related or similar study in other similar financial institutions within the financial sector.

Therefore, researchers can also refer to this research work in order to build or contribute more to

the existing studies. Similarly, future studies can also examine the link between other

organisational restructuring and employee job satisfaction.

78
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APPENDIX

UNIVERSITY OF LAGOS

FACULTY OF MANAGEMENT SCIENCES

DEPARTMENT OF EMPLOYMENT RELATIONS AND HUMAN RESOURCE

MANAGEMENT

RESEARCH QUESTIONNIARE

Dear Respondent,

REQUEST FOR COMPLETION OF QUESTIONNAIRE

My name is Jaiyeola Tinuola Bolatito, an undergraduate student at the University of Lagos,

Faculty of Management Science, Department of Employment Relations and Human Resource

Management. I am conducting a research on “The Effect of organisational Restructuring on

Employees’ Commitment in Access Bank Plc.” As a member of staff of this bank, you are

humbly requested to participate in this study by kindly answering the following questions. The

information you provide shall be treated with utmost confidentiality and will be used for

academic purposes only. You are requested not to indicate your name. Please provide responses

to the question in both sections A and B of the questionnaire.

Yours sincerely,

Jaiyeola Tinuola Bolatito

Researcher

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 SECTION A: SOCIO-DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS

Kindly tick (√) the option that applies to you.

S//N STATEMENTS/ITEMS OPTIONS

1. What is your gender? ( ) Male

( ) Female
2. What is your marital status? ( ) Single
( ) Married
( ) Divorced/Separated
( ) Widowed
3. What is your age range? ( ) Below 20years
( ) 20- 29years
( ) 30- 39years
( ) 40-49years
( ) 50years and above
4. What is your highest educational qualification? ( ) WASSCE/SSCE
( ) NCE/OND
( )Bachelor’s
Degree/HND
( ) Master’s Degree
( ) PhD
( ) Others (Specify)
___________________
5. How long have you been working in this bank? ( ) 1- 5years
( ) 6-10years
( ) 11- 15years
( ) 16- 20years

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 ( ) 21years and above
6 What is your employment status? ( ) Permanent
( ) Temporary
( ) Contract

SECTION B

ORGANISATIONAL RESTRUCTURING AND EMPLOYEES’ COMMITMENT

Kindly tick (√) the appropriate response in the allocated space that indicates your level of
agreement or disagreements with the items/statements below: Strongly Agree (SA-5), Agree (A-
4), Undecided (U-3), Disagree (D-2), Strongly Disagree (SD-1).

S/N ITEMS/STATEMENTS SA A UD D SD

Workforce Restructuring

7. My task has been adjusted to bring about flexibility in

performing those tasks since I started working in this bank

8. There has been reorganisation in the size of the workforce to

enhance effective operation

9. Employees are sometimes rotated across units for better

experience on the job

10. Employees sometimes experience changes in their job such

that they are given more responsibilities

11. Workforce restructuring has a significant effect on employee

commitment in this bank

Process Restructuring SA A UD D SD

12. There has been reorganisation in the way work activities are
being carried out in the workplace since I started working in

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 this bank

13. Technologies that enhance work operations are now been

used in this bank

14. Some activities of the bank are being automated and now
differs from the traditional methods

15. There are changes in our business processes in order to stay

competitive in the banking industry

16. Process restructuring significantly affect the commitment

among employees in this bank

Cultural Restructuring

17. My organisation now has a new strategy in meeting

customers’ needs

18. The bank’s policy has been restructured to permit social

interaction that would benefit the bank with customer

19. Employees are encouraged to adapt the culture of working

together to get task completed

20. The bank promotes culture of contacting colleagues when

their assistance is needed to get job done

21. There is a significant effect of cultural restructuring on

employee commitment in this bank

Employee Commitment SA A UD D SD

22. I am happy to be a staff of this bank

23. I am attached and involved in the achievement of the

organisational goals and objectives

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24. I don’t have intention to quit my work in this bank because it
will be costly for me

25. I experience exciting and pleasurable emotional state

whenever I am at the workplace

26. I have the feeling that I ought to remain in the organisation

because of what I have gained from the organisation

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