WELCOME

Assessing Employees Reaction towards

Title Organizational Change: The Case of
Yeka Sub-City Trade Office
The name of student and the name of supervisor

By Student:
• Melaku Tadewos
• ID No. ECSU-150-1138

Under the Supervision of:

Bersisa Kacho (PhD)
2
 Major outline of the presentation is…

Introduction
Statement of the problem
Research Objective
Research Question
Methodology
Data Analysis and Discussion
Major Findings, Conclusion and Recommendation
3
 Introduction
The modern society is manifested by a process called change (Paton, 2004).
And, organizations with successful change management strategies are more
likely to be:
 Survive and
 Provide sustainable employment for their workers. (Picot et al.1999).
On the other hand, one of the most difficult problems organizations face is
 Dealing with the change and
 Employees behavior towards the change.
Employees may have a positive or negative perception towards change. 4
 Ac
c
to ord
pe Glo ing
rsp ba
ect l
i ve
Statement of the Problem

According to some SCHOLARS, change initiatives tends to fail, more often than they
succeed.
For instance:
1. 30% to 80% of change initiatives were fail (Applebaum, 2012) and also,
2. According to Kotter (1995) approximately 70% of all organizational change initiatives fail and
3. As Herold and Fedor (2008) stated that, around 20% of change initiatives were successful.
Therefore, failure rate was somewhere between 67-80% and
4. According to (Jones et al., 2008), resistance to change from employees is one of the key
reasons, for high rate of failure of change. and
5. As Kotter (1995) stated that, the biggest reason, in failed organizational change is the human
factor, i.e. Attitudes, behaviors and responses by the employees of the organization
5
 Ac
co
Na rdin
pe tion g to
rsp a
… Cont’d ect l
ive

In the case of Ethiopia:

 Change implementation & management activities was prominent since 1994, when result based
performance management system implemented.
 And it became well-known after the implementation of Business Process Reengineering (BPR).

Moreover, subsequent change tools were implemented in the public firms. This includes:
 BSC,
 TQM, and
 Other change management strategies.

As, Tesfaye Debela, (2009) noted that, there are, some change management studies in Ethiopia,
however:
 Most of them focused on change management tools (BPR) instead of focusing on employees perception
6

towards organizational change.

 Ac
co
rd
i
pe oc ng to
L
rsp al
… Cont’d ect
ive

In the case of Yeka Sub-city, Trade office:

 Change management tools were implemented after 2009, which
includes BPR, and BSC. And,
Before conducting the study, the researcher was informally
observed that
 There were a problem with the employees perception towards
organizational change, in Yeka Sub-city, Trade office
Therefore, the researcher was interested to investigate this prominent 7

point in Yeka Sub-city, Trade Office

 Objectives of the Study

General Objective
 Was to assess the determinants of employees’ reaction towards organizational change in Addis Ababa, Yeka
Sub-City Trade Office.
Specific Objectives
1. To examine the effect of employees demographic difference on their reaction to change
2. To examine the effect of perceived organizational support on employees’ reaction to change
3. To evaluate the effects of employees’ perception about procedural justice on their reaction to change
4. To know the effects of employees perceived fear of consequences of change on their reaction to change
5. To examine the effects of employees perceived self-confidence for learning and development on their
reaction to change
8

6. To evaluate the effects of employees perceived trust in management on their reaction to change
 Research questions
The research addresses the following questions:
1) What is the extent to which employees’ demographic difference affecting their reaction to
change?
2) What is the extent to which perceived organizational support affect employees’ reaction to
change?
3) What is the extent to which perceived procedural Justice affects employees’ reaction to
change?
4) What is the extent to which employees’ perceived fear of consequences of a change affects
their reaction to change?
5) What is the extent to which employees’ perceived self-confidence for learning and
development affect their reaction to change?
9

6) What is the extent to which employees perceived trust in management affect their reaction to
change?
 Chapter Three Research Methodology

Research Design
The researcher has used: Descriptive research design because it is
appropriate to:
Describing the existing situation. And,
Help the researcher to:-
 Explain,
 Understand and
 Predicts
10

The cause and effect relationship between variables.

 Research Approach

For the purpose of this study, Quantitative approach

was employed. Because it is:
Vital to create quantifiable causes and effect
relationship between the variables of the study.
And,
 The most appropriate to describe the degree of
11

relationship which exists between the variables.

 Population, Sampling Techniques & Sample Size

The case area of the study was:

 Yeka Sub-City, Trade Office, in Addis Ababa.
The targeted populations were:
 The total number of employees found in the organization (which are 94 employees).
Due to small number of population size:
 The researcher was used census study instead of using sampling.

This study took the whole 94 employees of Trade office working in the Yeka Sub-
sub city:
12
 As the research population and sample.
 Data source and collection method

This study used: Primary Source of data

 The data was collected by using:
A structured questionnaire

In order to, described the perception of

employees to the organizational change 13
 Chapter FOUR Data Analysis and Discussion

Data Analysis and Discussion

SPSS, version 22 were used to analyze the data. And,

Descriptive statistics were used:
(1) To analyze and describe the results of demographic and general results of variables
/By using frequency, percentages, and mean score/
(2) To compare the mean value which helps to know the level of employee perception towards
organizational change.
 The higher the mean score, the more the respondents agreed with the statement and the lower
the mean score the more the respondents disagreed with the statement.
 According to Zaidaton & Bagheri (2009) as cited by Abraham, Assegid, and Assefa, (2014) the
mean score below 3.39 was considered as low, the mean score from 3.40 up to 3.79 14was
considered as moderate and mean score above 3.8 was considered as high.
Demographic information of the respondents

1st
Gender,

The
4th Educational demographic 2nd
level of the information of Age,
respondents
the respondents
were

Marital 3rd
status and 15
Frequency and percent of demographic information of the respondent

16
 Gender demographic information of the
respondents

Gender
distribution of of the sample
Gender distribution
the sample are:

51 (54.3%) of
the total 43 (45.7%) are
respondents are female
male,

This implies that, the proportion of male employees is slightly larger than 17

female employees in the Yeka Sub-city, Trade Office.

 The effects of respondent’s gender difference on employees
reaction to organizational change

T test to gender difference As table shows that,

  • There is a significance difference between
Gender N Mean Std. T Sig. (2- male and female employees towards
Deviation tailed) organizational change (p=.000) and
Reaction • The mean score (3.80, 2.40) respectively.
Male 51 3.80 .901
to -4.530 .000
According to the mean score interpretation,
Change
• The mean score value of female employee
Female 43 2.40 .884
was fall below 3.39, indicating a low
score.

This means, the female employees in Yeka Sub-city Trade Office 18

shows high level of resistance to change than males.

 Age demographic information of the respondents

Age of the respondents shows that:

18 (19.1%) of the respondents are in the range of under 25 years,
55 (58.5%) of the respondents are in the range of 26-35
years,
12 (12.8%) are in the range of 36-45 years and
9 (9.6%) are above 46 years,

It can be understood that:

 The majority of employees are under the youngest age group of 26-35
years.
19
 As a result, this may help the employees to cope up with organizational
change initiatives.
 The effects of respondents age difference on employees
reaction to organizational change

As table shows that:-

 There is a significance difference between age group
under 25 & age group above 46 employees towards
organizational change (p=.000) and Also,
 There is a significance difference between age group
26-35 & age group above 46 employees towards
organizational change (p=.017) and
 However, there is no significant effect between age
group 36-45 and other age groups.
The mean result (3.87) also revealed that:-
 The age group above 46 show high level of support
than the other two age groups
20
(which are (under 25 and 26-35) with the
mean score of (2.41, 2.16) respectively)
 Marital Status of demographic information of the respondents

Marital status of the respondents shows that:

Married are (40) 42.6% of the total population and those
Unmarried (single) are (54) 57.4%.

The result indicates that:

Majority of employees in Yeka Sub-city, Trade office are
21

unmarried or single.
 The effects of respondents marital status difference on employees
reaction to organizational change

T Test for marital status There is significant difference between

  Single and
Marital N Mean Std. Std. t Sig.
Status Deviatio Error (2- Married employees on their reaction to
n Mean
tailed) organizational change with the value of (p= .
  024) and
Reaction Single 54 2.37 .960 .066
to .024
Change 2.269
The mean score (2.37, 3.82) respectively.
Married 40 3.82 .840 .069
In line with, the mean score interpretation:-
• The mean score value of Single employee was
The result revealed that: fall below 3.39, indicating a low score.

Single employees show high level of resistance to change than 22

employees who have married.

 Educational level of demographic information of the
respondents

Educational Only 3 (3.2%)

22 (23.4%) of 69 (73.4%) of
level of the of the
the respondents the respondents
respondents are
respondents are diploma are degree
masters and
shows that: holders, holders and
above holders
The result indicates that:
Majority of employees in Yeka Sub-city, Trade office are Degree
holders and above, Which implies that:
Most of employees in the organization are:
Educated and 23

It may help to increase the performance of the organization.

 The effects of respondents educational level difference
on employees reaction to organizational change

There is significant difference due to their level of education

ANOVA test for educational level difference
between diploma holders & the holders of:
* Degree and Dependent Educational Educational Sig. Mea
Variable level level n
* Masters and above with the value of (p= .018, 0.000) and
There is significant difference between degree holders with   Diploma degree .018  
the holders of masters and above   master and .000 2.77
  above
with the value of (p= .001) and
Reaction to
The Mean score interpretation:- Change Degree diploma .018  
diploma = 2.77, degree = 3.52 masters and above=, 3.81   master and .001 3.52
respectively
above
The result indicates that:
Diploma holders show high level of resistance to Master and diploma .000  
24

change initiatives than degree and masters & above Above degree .001 3.81
holders
Descriptive statistics output

The higher the mean

score:
The more the
respondents agreed
with the statement and
The lower the mean
score:
The more the
respondents disagreed
with the statement.
25
 … Cont’d Accordingly,

The mean score of the independent variable:

 Perceived organizational support, and
 Procedural justice have moderate mean (3.61, 3.42) respectively

Which indicates that employees of Yeka sub-city, trade office believes that:
 They get moderate level of support from their organization and
 They also think that there is a moderate level of procedural justice. As well as,
 Their need for undertaking the change is moderate

Self-confidence for learning and development and trust management has smallest mean which is (2.89, 3.36)
respectively it indicates that:
 Employees of Yeka sub-city, trade office have low self-confidence for learning and development and
 They have low level of trust on the top managers of the organization. Whereas,

Fear of consequence of change have the highest mean (3.93) which indicates that:
 Employees of Yeka sub-city, trade office believes that they are troubled for the known and the
unknown consequences of organizational change and this make them feel disturbed about what
26
is
going to be happening when the change is implemented.
 … Cont’d
The dependent variable reaction to change mean value score
show 3.88
The result indicates that:
Employees of Yeka Sub-city, Trade office have show low
level of resistance to change.
Meaning, they are supporting the change. Because, the
Mean value score 3.88 is fall under the category of high
27

mean.
 Inferential Analysis Part I Correlation

Inferential Analysis were used:

 To examine the relationship between independent and dependent variable
(mainly correlation and multiple regression analysis were computed)
Correlation
 According to Cohen, (1988), Correlation analysis determines the
 Strength of the relationship
 The extent of association between two or more variables. And,
 Direction of the relationship

Correlation coefficient can range from

 -1.00 to +1.00. The value of -1.00 and +1.00 represents a perfect negative and positive correlation
28
respectively.
 While a value of 0.00 correlations represents no relationship
 … Cont’d

Correlation Coefficient Interpretation Pearson’s product moment correlation coefficient

used to determine:
Correlation Coefficient Description 1) The relationship between perceived
organizational support and reaction to change
0.70-1.00 Very Strong Association 2) The relationship between perceived procedural
justice and reaction to change
0.50-0.69 Substantial Association 3) The relationship between fear of consequences
of change and reaction to change
0.30-0.49 Moderate Association 4) The relationship between self-confidence for
learning and development and reaction to
change
0.10-0.09 Negligible Association
5) The relationship between trust in management
29

and reaction to change

 The relationship between perceived organizational
support and reaction to change

Correlation Analysis for relationship between perceived organizational support and reaction to change

Correlations As table shows that:-

  Reaction Perceived Organizational
to Support
There was a
Change  Strong and
Reaction to Pearson 1 .767**
Change Correlation  Positive
Sig. (2-tailed)   .000
N 94 94
Correlation between the two variables
Perceived Pearson .767** 1 [r = .767, n=94, p<.0005].
Organizational Correlation
Support Sig. (2-tailed) .000   The result indicates that:
N 94 94
As perceived organizational support increases30
**. Correlation is Significant at the 0.01 Level (2-tailed).
reaction to change will also increases positively.
 When we see step by step:
1st. Information about the sample:
 The number of cases N=94 is correct.

2nd. Direction of the relationship .767

 The direction of the relationship between the variables is positive. This means,
 The more you support the employees of the organization, the more they react positively.

3nd. Strength of the relationship

 According to Cohen (1988), the result of Pearson correlation r=.761 relationships is considered as strong because it falls under
(r= 0.5-1.0 )
4nd. Calculating the coefficient of determination
 Coefficient of determination means, is putting the result of (r2) in to percentage format, to know the variance between the
variable. In our case the result of correlation r = .767, when squared the result indicates 0.588 which means, 58% shared
variance. So,
 Perceived organizational support helps to explain 58% of the variance in respondents’ scores on the reaction to change.

5nd. The significance level

 The significance level (listed as Sig. 2 tailed) should be significance at the traditional p<.05 level. In our case p (sig.) Value
equal to .000. Meaning it’s significant.
31
Therefore, there was a strong, positive correlation between the two variables [r = .767, n=94, p<.0005].
This means, the more you support the employees of the organization, the more they react positively.
 The relationship between perceived procedural justice
and reaction to change

Correlation Analysis for relationship between perceived procedural justice and reaction to change

Correlations As table shows that:-

  Reaction to Perceived The relationship between perceived procedural justice and
Change Procedural reaction to change was investigated using pearson product-
moment correlation coefficient.
Justice
Therefore, there was a
Reaction to Pearson Correlation 1 .695**  Strong, and
Change Sig. (2-tailed)   .000
 Positive
N 94 94
Correlation between the two variables
Perceived Pearson Correlation .695 **
1
Procedural Sig. (2-tailed) .000   [r =. 695, n=94, p<.0005]
Justice N 94 94 The result indicates that:
32
As perceived procedural justice increases reaction to
**. Correlation is Significant at the 0.01 level (2-tailed). change will also increases positively
 The relationships between fear of consequences of
change and reaction to change

Correlation Analysis for relationship between fear of consequences of change and reaction to change
As table shows that:-
Correlations The relationship between Fear of Consequences of Change and
  Reaction Fear of Consequences reaction to change was investigated using Pearson product-
to Change of Change moment correlation coefficient.
Reaction to change Pearson Correlation 1 -.704**
Therefore, there was a
Sig. (2-tailed)   .000
 Strong,
N 94 94
Fear of Pearson Correlation -.704** 1  Negative
Consequences of Sig. (2-tailed) .000   Correlation between the two variables
Change N 94 94
[r = -.704, n=94, p<.0005].
**. Correlation is Significant at the 0.01 level (2-tailed).
The result indicates that:
33
As the Fear of Consequences of Change decreases reaction to
change will increase.
 rej
e c te
The relationship between self-confidence for learning d
and development and reaction to change

Correlation Analysis for relationship between self-confidence for learning and development and reaction to change

Correlations As table shows that:-

  Reaction to Self-
The relationship between self-confidence for learning and development
Change confidence for and reaction to change was investigated using pearson product-moment
Learning and correlation coefficient.
Development
Therefore, there was a
Reaction to change Pearson Correlation 1 -.189
 Weak,
Sig. (2-tailed)   .068
 Negative
N 94 94
Self-confidence for Pearson Correlation -.189 1 Correlation between the two variables
Learning and Sig. (2-tailed) .068   [r = -.189, n=94, p>.0005]
Development N 94 94
The result indicates that:
Self-confidence for learning and development were rejected because 34 it is
not significant at the traditional p<.05. Here the value of p = .068, which
is above .0005
 The relationship between trust in management and
reaction to change

Correlation Analysis for relationship between trust in management and reaction to change
Correlations
As table shows that:-
  Reaction to Trust in
Change Management The relationship between trust in management and reaction to
change was investigated using pearson product-moment
correlation coefficient.
Reaction to Pearson Correlation 1 -.216*
Change Therefore, there was a
Sig. (2-tailed)   .036
 Weak,
N 94 94  Negative
Trust in Pearson Correlation -.216* 1 Correlation between the two variables
Management
Sig. (2-tailed) .036   [r = -.216, n=94, p<.0005]
N 94 94 The result indicates that:

*. Correlation is Significant at the 0.05 level (2-tailed).

When, loosing trust in management decreases the reaction
35
to
change will increases.
 Inferential Analysis Part II Multiple Regression

According to Julie (2005) multiple regressions is based on:

 Correlation, and helps

To investigate the effect of independent variables on dependent variable.

To examine the predictive power of each of the independent variables
Before proceeding to multiple regressions analysis, first the researcher has to check the following assumptions such as
1) Sample size,
2) Multicollinearity and,
3) Normality,
4) Linearity and outliers found
Then, the researcher can proceeds to the regression analysis.
Therefore, before carrying out multiple regression analysis the researcher tested the above assumptions
36
as
follows: …
 Assumptions of multiple regression- 1-Sample size

Different authors tend to give different guidelines concerning the number of cases required for
multiple regression. Among them,
 Authors, Tabachnick and Fidell (2001, p. 117) give a formula for calculating sample size
requirements, taking into account the number of independent variables that you wish to
use:
N > 50 + 8m (where m = number of independent variables)
 In our case, we have 5m or independent variables
 Therefore, 5*8 = 40 As a result, N = 50+40 = 90 sample case is needed.
Fortunately, the total # of employees in Yeka sub-city trade office are 94. 37

 The researcher luckily used the whole number of employees in the organization. Meaning N>90
 Assumptions of multiple regression- 2- Multicollinearity

Collinearity Statistics According Julie (2005) multicollinearity refers to the relationship

among the independent variables. Multicollinearity exists when the
  Collinearity Statistics independent variables are highly correlated (r=.9 and above).
Model Tolerance VIF (Variance
According to SPSS survival manual to check multicollinearity effect
inflation factor)
two things should be checked
Perceived Organizational Support 0.388 2.576
• Tolerance and VIF from the Collinearity table.
Perceived Procedural Justice 0.59 1.695 If the value of Tolerance is very small (less than .10),
Fear Of Consequences Of Change 0.513 1.95 • it indicates that the multiple correlation with other variables is
Self-Confidence For Learning And 0.947 1.056 high, suggesting the possibility of multicollinearity.
Development The second value given is the VIF (Variance inflation factor),
• which is just the inverse of the Tolerance value (1 divided by
Trust In Management 0.859 1.164
Tolerance). If VIF values shows above 10 it indicates
multicollinearity.
38

• Based on this assumption our model is statistically significant model and multicollinearity is not a problem for this study.
 Assumptions of multiple regression- 3- Test of Normality

The visualized histogram indicates that:

The distribution of scores on The data used in the study is normally distributed and therefore
it has fulfilled the assumption.
the dependent variable should
be ‘normal’ describing a
 Symmetrical,
 Bell-shaped curve,
Having the greatest frequency
of scores around the mean
 With smaller frequencies 39

towards the extremes.

 Assumptions of multiple regression- 4- Test of linearity

The linearity result of the distribution indicates that:

Linearity assumption of Since, the means are near to zero.
• Linearity assumption is not a problem for this study.
multiple regressions was tested
using:
 Scatter plot test (kothari C.,
2004) and
 It was found that there is a
linear relationship between
independent and dependent 40

variables.
 … Cont’d

Therefore,
Sample size
 Multicollinarity
 Normality and
 Linearity
are not a problem for this study
As a result, the researcher can proceed to the summary of multiple regression
41

analysis models below in the following table:

 … Cont’d

Multiple regression analysis of the model summary.

As table shows that:-
Model Summary  R (.863) is the correlation of independent
R Square
Model R Adjusted R Std. Error of the variables with the dependent variable.
Square Estimate
 The model summary shows the R Square
1 .863a .745 .731 .495 is 0.745
The Model indicates that:
 74.5% the independent variables affects, the dependent variable
Therefore, to assess the statistical significance of the result 42

it is necessary to look in to the ANOVA table as follow…

 … Cont’d

ANOVA Table As the ANOVA table shows

ANOVAa
that:-
Model Sum of Df Mean F Sig.
 p value (sig.) is significant at
Squares Square
p<0.01 level of significance.
The result .000b indicates that:
1 Regression 63.158 5 12.632 51.453 .000b
The model as a whole is
  Residual 21.604 88 .245    
statistically significant at p<0.01
43
  Total 84.762 93      
 … Cont’d

Multiple regression was used to:

 Investigate the effect of independent variables on
dependent variable,
 Examine the predictive power of each of the
independent variables. And,
 Show the indication of the relative contribution of
each independent variable 44
 Multiple Regressions between independent and
dependent variables

1. Model Summary
Model R R2 Adjusted R2 Sig
. 863a . 745 . 731 .000

1. Beta Coefficients
Model Un-standardized B Std. Err. Standardized Sig
(Constant) 2.567 .531    
Perceived Organizational Support .288 .076 .329 .000
Perceived Procedural Justice .396 .084 .328 .000
Fear of Consequences of Change -.313 .066 -.356 .000
Self-Confidence for Learning and Development -.131 .043 -.169 .00345

Trust in Management .111 .079 .082 .161

 … Cont’d
As the Multiple regression analysis table shown above:-
 74.5% the dependent variable affected by the direct combination of the
independent variables such as
1. Perceived organizational support,
2. Perceived procedural justice,
3. Fear of unknown consequences of change,
4. Self-confidence for learning and development,
5. Trust in management and
And, these dimensions are: discussed below 46

by answering the following research questions

 Question-1

To what level perceived organizational support affects employees

reaction to change?

As the standardized Beta-value .329 indicates in the above regression table:

A one-unit increase on perceived organizational support their will be an increase on reaction to
change by 32.9% positively. And it is,
Statistically significant at standardized beta-value (ß= .329, p= 0.000)
The result indicates that:
In Yeka Sub-city, Trade Office; an employee who supported by in his/her organization; will support the change
initiative.
Prior empirical studies indicated that:-
 The positive relationship between change justification and perceived organizational support. That is,
if the employees are aware that their organization has provide them more support, they will more
likely to feel that the changes are more justified. (Dennis R. Self, achilles A. Armenakis & 47mike
schraeder, 2007)
 Question-2

To what extent perceived procedural justice affects employees reaction

to change?

As the standardized Beta-value .328 indicates in the above regression table:

A one-unit increase on perceived procedural justice their will be an increase on
reaction to change by 32.8% positively. And it is,
Statistically significant at standardized beta-value (ß= .328, p= 0.000)
The result indicates that:
In Yeka Sub-city, Trade Office; if employees think the decisions & procedures are fair,
they will support the change initiative
Prior empirical studies indicated that:-
When employees understand that, they are being treated fairly, they are more likely to
develop attitudes and behaviors conducive to successful implementation of change 48

initiatives (cobb et al., 1995).

 Question-3

To what level perceived fear of consequence of change affect employees

reaction to change?

As the standardized Beta-value -.356 indicates in the above regression table:

A one-unit decrease on perceived fear of consequence of change their will be an increase on reaction to change by
35.6%. And it is,
Statistically significant at standardized beta-value (ß= -.356, p= 0.000)
The result indicates that:
In Yeka Sub-city, Trade Office; 35.6% of employees agreed that the known and the unknown consequences of
organizational change make them feel disturbed, about what is going to be happening when the change is implemented.
Prior empirical studies indicated that:-
As noted by Dubrin and Ireland (1993) resting the organizational change was the attribute of employees’ fear. In the same
manner, Kotter and Cohen (2002) posited that fear or panic drives self-protection or immobilization.
Besides this:- Fear of consequences of change dimension makes the strongest unique contribution to affect the dependent variable. when we
look to down the beta column under standardized coefficients and find which beta value is the largest, the beta coefficient -.356, and significant
49
at
p<0.05, which is perceived fear of consequences of change dimension is strongest unique contribution to explaining the dependent variable.
 Question-4

To what extent perceived self-confidence for learning and development

affect employees reaction to change?

As the standardized Beta-value -.169 indicates in the above regression table:

A one-unit decrease on perceived self-confidence for learning and development their will be decline on
reaction to change by 16.9%. And it is,
Statistically significant at standardized beta-value (ß= -.169, p= 0.003)
The result indicates that:
high level of self-confidence for learning & development tend to be accepting the change. On the
other hand employees with low level of self-efficiency will resist the change.
Prior empirical studies indicated that:-
The empirical finding by (Cummings & Worley, 2014; Vakola & Nikolaou, 2005) indicted that during
organizational change the way things are done will be challenged, and as a result, many employees will
become uncertain and can experience fears and anxieties concerning the potential failure in dealing with
50
the
new work situation of the change.
 Question-5

In what level perceived trust in management affect employees’ reaction

to change?

Regression analysis, between :- rej

e c te
 Perceived trust in management and d

 Reaction to change
Standardized beta-value & p value is (ß= .82, p= 0.161) respectively
The result:
The independent variable perceived trust in management dimension
were removed or rejected. why for? Because,
It is not statistically significant variable for employees reaction to change 51

(p = .161) which is far away from the minimum criteria of p value = 0.05
 … Cont’d Brief summary of the multiple regression analysis

Multiple regression analysis shows the value the R2 is .745, which shows that:-
74.5% of variance in dependent variable can be explained by the direct combination of the
independent variables.
The independent variables:
√ Perceived organizational support and
√ Perceived procedural justice
Have positively and significant effect on reaction to organizational change. Whereas,
Self-confidence to learning and development and fear of consequence of change:
√ Have negative. But, significant effect on reaction to change. Unlike this, the effect
52 of
√ Trust in management is insignificant to reaction to change.
 Comparing the contribution of each independent variables

We have to look down the beta column under standardized coefficients and find which beta
value is the largest. In this scenario, the independent variable:-
 Fear of consequences of change is strongest unique contribution to affect the dependent variable.
Because, its beta value coefficient -.356 (35.6%) is the largest and significant at p<0.05.
(Meaning this dimension, makes the strongest unique contribution to affect the dependent variable)
 The 2nd unique contributor to reaction to change is perceived organizational support with
beta value = .329 (32.9%),
 The 3rd contributor is perceived procedural justice with beta value equal to .328 (32.8%),
 The 4th contributor is self-confidence for learning and development with beta value equal
to -.169 (16.9%) and
 The last perceived trust in management is rejected because it is not significant because the
value of p= above 0.05 which is .082. The rest of other independent variables are significant
53

at p<0.05.
 CHAPTER FIVE

Summary, Major Findings,

Conclusion and Recommendations

54
 … Cont’d
Summary of Results
 The researcher used primary source of data, to achieve the stated research objectives.
 94 structured questionnaires were distributed.
 The whole questionnaires were filled properly by the respondents (100%).
 The analysis was conducted based on the 94 employees (51 male and 43 female)
 The analysis was done using SPSS (Version 22) to compute both descriptive and
inferential statistics
 Data gathered from structured questionnaires were analyzed narratively to support
and triangulate the result obtained from quantitative analysis.
55

Finally the researcher came up with the following major findings…

 Major Findings

As the mean score revealed from T test table:-

Female employees show high level of resistance to change
than male (male = 3.80, female = 2.40).
The mean result (3.87) from ANOVA test demonstrated that:-
The age group above 46 show high level of support to
change than the other two age groups which are (under 25
and 26-35) with the mean score of (2.41, 2.16) respectively.
56
 Major Findings

As the mean score revealed from T test

table:-
Married employees show low level of
resistance to change than single
employees. (Single = 2.37, married =
3.82).
57
 Major Findings

The mean score result from ANOVA test demonstrated that:-

Diploma = 2.77,
Degree = 3.52 and,
Masters and above = 3.81
Diploma holders show high level of resistance to change than degree,
masters and above holders.
The result indicates that:-
When employees’ educational level increases their level of support to change
58

increases
 Major Findings
… Cont’d Descriptive statistics result from table 4.6

The independent variable:

Perceived organizational support, and
Procedural justice have moderate mean (3.61, 3.42) respectively
Which indicates that:-
Employees of Yeka sub-city, trade office believes that
They get moderate level of support from their organization and
They also think that there is a moderate level of procedural justice.
59

As well as their need for undertaking the change is also, moderate.
 Major Findings
… Cont’d Descriptive statistics result from table 4.6

The independent variable:

 Self-confidence for learning and development and
 Trust in management has smallest mean which is (2.89, 3.36)
respectively
Which indicates that:-
Employees of Yeka Sub-city, Trade Office have
 Low self-confidence for learning and development and
60

 They have low level of trust on the top managers of the organization.
 Major Findings
… Cont’d Descriptive statistics result from table 4.6

The independent variable:

Fear of consequence of change have highest mean (3.93)
Which indicates that:-
Employees of Yeka Sub-city, Trade office believes that:
They are troubled for the known and the unknown consequences
of organizational change &
Make them feel disturbed about what is going to be happening 61

when the change is implemented.

 Major Findings
… Cont’d Descriptive statistics result from table 4.6

Whereas,

The dependent variable:

Reaction to change scores high mean value 3.88
Which indicates that:-
The employees in Yeka Sub-city, Trade Office have
shown high level of support to the organizational 62

change.
 Major Findings
… Cont’d Inferential statistics result of correlation
As the correlation analysis result shows as:-
√ Perceived organizational support and
√ Perceived procedural justice are
Positive and have strong correlation with the dependent
variable [r = 0.767 and 0.695, n=94, p<.0005].
The result indicates that:-
√ As perceived organizational support and procedural justice 63

increases, reaction to change will also positively increase.

 Major Findings
… Cont’d Inferential statistics result of correlation

Whereas, Trust in management is:-

 Negative and have a
 Weak correlation with the dependent variable [r = -.216, n=94, p<.0005].
This means,
 As loosing trust in management decreases reaction to change will increase.
rejected
Unlike this, self-confidence for learning and development with
reaction to change were rejected. Because, it is not significant at the
traditional p<.05, the value of p = .068, which is above .0005.
64
 Major Findings
… Cont’d Inferential statistics result of regression
In multiple regression analysis the value of R2 is .745
Which indicates that:-
74.5% of variance in dependent variable can be explained by the direct
combination of the independent variables. Such as
 Perceived organizational support,
 Perceived procedural justice,
 Fear of unknown consequences of change,
 Self-confidence for learning and development and,
65

 Trust in management
 Major Findings
… Cont’d Inferential statistics result of regression
The independent variable:-
o Perceived organizational support and
o Perceived procedural justice have positive and significant effect on reaction to change.
Which indicates that:-
o They are supporting the change incentive by the organization
The independent variable:-
o Self-confidence to learning and development, and
o Fear of consequence of change have negative and significant effect on reaction to
change.
66

Unlike this…..
 Major Findings
… Cont’d Inferential statistics result of regression
Which independent variable makes the strongest and unique contribution to explain the
dependent variable?
* Fear of consequences of change dimension. Because, the largest beta coefficient is -.356
(35.6%), and significant at p<0.05
o The 2nd unique contributor to reaction to change is perceived organizational support with
beta value = .329 (32.9%),
o the 3rd contributor is perceived procedural justice with beta value equal to .328 (32.8%),
o the 4th contributor is self-confidence for learning and development with beta value equal
to -.169 (16.9%) and
o the last perceived trust in management is rejected because it is not significant because the
67
value of p= above 0.05 which is .082.
 Conclusion

Demographic differences of employees:-

√ Female employees show high level of resistance to change than male,
√ Age group above 46 show high level of support to change than the other age
groups,
√ Married employees show high level of support to change than singles and
√ Diploma holders show high level of resistance to change than degree, masters
and above holders but,
√ Employees who have masters and above show high level of support to 68

organizational change initiatives

 Conclusion … Cont’d

Employees of Yeka Sub-city, Trade office show

 High level of support to change with the mean score of (3.88). But,
 The result also showed that there are some employees who resist the change.
The results from the correlation analysis shown that:-
 Perceived organizational support and
 Perceived procedural justice are strong, positively and significantly correlated
with reaction to change.
On the other hand, trust in management is weak, negatively and significantly 69

correlated with reaction to change.

 Conclusion … Cont’d

The multiple regression indicates, the independent variable:-

o Self-confidence to learning and development, and
o Fear of consequence of change have negative effect on the dependent variable.
Whereas, the independent variable:-
o Perceived organizational support and
o Procedural justice have positive effect on the dependent variable.
The multiple regression indicates also, the independent variable which is:-
o Fear of consequence of change is the strongest and unique contributor to explain the
70

dependent variable reaction to change.

 Recommendations
Based on the findings and conclusions of the study, the researcher would like to
give the following recommendations to the management of Yeka Sub-city, Trade
Office.
The findings from the descriptive analysis indicate that:-
 Employees are support the change initiatives implemented by the organization.
Therefore,
1. Managers should make this continuous. However,
There are employees who resist the change initiatives. Hence,
2. The organization should give attention and make these employees supporter of the change
71

By performing the following recommendations…

 Recommendations …
Cont’d
The organization should focus on:-
1) Female
2) Youngest
3) Single and
4) Employees who have low level of educational back ground

√ By effectively communicating the change initiatives and 72

√ By facilitating learning and growth opportunities.

 Recommendations …
Cont’d
If the organization, needs its employees support
during the change, it must show support for its
employees:
By giving attention to their safety and well-being
and
By showing care for their ideas and helping them to
73

achieve their goals.

 Recommendations …
Cont’d
The organization should avoid fear of consequences of change:
By building trust and should help employees to avoid fear.
Because it leads them, to resist the change initiative.
Justice in the procedure of decisions and policies has, direct
influence with reaction to change, and distrust leads employees to
resist the change.
Therefore, decisions that made in the organization should be 74

fair and participative.

 Recommendations …
Cont’d
When change is planned to implement,
Building employees’ self-confidence
for learning and development and
Creating opportunity to learning is
highly advisable.
75
 Recommendations …
Cont’d
The organization should make, its employees believe, the change is
Constructive and
Valuable,

If it is implemented properly and on the right time.

Because, this is beneficial for
Themselves and
To the organization as well as 76

For the customers at large.

 Direction for future research

These studies were undertaken by considering the direct effect

between
Perceived employees behavior and
Reaction towards organizational change.
However, this study was also, limited to Yeka sub-city, trade office in
Addis Ababa. Hence, it will be good for future researchers to focus on
Different organizations as well as
77

Country at large.
 The End
THANK YOU FOR
WATCHING! 78