CHANGE MANAGEMENT AS A STRATEGY FOR ORGANIZATIONAL GROWTH IN MANUFACTURING SECTOR OF ENUGU STATE

ABSTRACTThis study focused on change management as  a strategy for organizational growth in the Manufacturing sector in Enugu State. This study sought to evaluate the effects of change in manufacturing sector,   identify the forces for  change in manufacturing sector, determine the effect of managing change in manufacturing sector, determine the extent to which resistance to change affects organizational growth in the manufacturing sector  and find out the role of communication in managing change. To accomplish the aim of the study, five hypotheses were formulated to direct the major activities of  the research. The study adopted survey research design. A  stratified sampling method  was used in  selecting the  manufacturing sector in  Enugu State.  The  organizations selected were Sharon Paints and Chemical Company (Nig) Ltd, Nigeria Bottling Company PLC (NBC) and Seven-Up Bottling Company PLC. A sample of 314 respondents was determined from the population of 1,450 drawn from the management and non-management staff of the selected organizations using Taro Yamane’s sample size determination method. The sources of data for the study were primary and secondary. The questionnaire was structured in five-point Likert scale. Content validity approach was used to ensure that the variables measured were all covered. The instrument was checked for reliability using test-re-test method. The result gave reliability co-efficient of 0.99. The hypotheses were tested using Chi-Square and Z-test. Findings indicate that change improved performance and facilitate organizational effectiveness in manufacturing sector in Enugu State, technological advancement, culture and competition are forces  for  change  in  the  manufacturing sector  in  Enugu  State,  managing  change  reduced resistance to change in manufacturing sector in Enugu State, furthermore, resistance to change to a high extent affects organizational growth in manufacturing sector in Enugu State and also,communication has a significant role in managing change in Enugu State. In the recommendation, (1) install effective communication strategy which would bridge any gap in the understanding   of   change   benefits   and   its   implementation  strategy.   (2)Management  of organization should endeavor to involve employees in the change management and decision making. (3) Effective education, training and skill upgrading scheme for the organization. (4) Provide personal counseling to staff members (if required) to alleviate any fears related to change. (5)  Monitoring of  the  implementation, fine-tuning and  reinforcement to  retain  the change once it has been made.

CHAPTER ONE INTRODUCTION

1.1      BACKGROUND OF THE STUDY

Modern organizations operate in a global competitive and an ever-changing environment. They lose their effectiveness and competitiveness if they follow the traditional way of management. These organizations are expected to apply new solutions to the whole management system. The methods of management (Lean Management, Outsourcing, Spin Off, Agile Management, Just in time…) are to make the organizations more flexible, so as to quickly and painlessly adapt to the

new market requirements and expectations which result in organizational growth (Grzybowska,

2005: 976)

Thus new trends in changes management appear. Only yesterday, change was perceived as a risk. At the moment change is regarded as an opportunity. Only yesterday a good idea for company operation could be given by a specialist. Now, a good idea may come from various sources. Eventually, change itself is subject to changes. Few organizations may perceive change as an example of disruption of otherwise peaceful world. Too many things are changing too fast for the managers of any organization to afford to be calm (Robbins, 1997: 719).

Changes exist in both the external and internal environments. To be successful in dynamic environments, organizations must  be  willing  to  expend considerable amounts of energy  in examining fundamental questions to the organization. In the last half century, there has been great interest in the process of planned change and the role of individuals in creating change. This is described in three phases: unfreezing, the stage during which a person becomes ready to learn or acquire a new behavior, perhaps by recognizing the ineffectiveness of a current behavior or by learning about the benefits that would accrue if the new behavior were implemented, changing itself, which will involve a trial period during which the person familiarizes him or herself with the new behavior and refreezing which occurs as the new behavior becomes habitual or ingrained with the individual. Change is an even greater reality in contemporary life; it is occurring at an accelerated pace, and there is almost no likelihood of slowing the pace of change. No longer is it possible to focus on “business as usual.” As organizational environments exert pressure for change, organizations must adjust if they are to survive and prosper. Most firms

desire growth in order to prosper, not just to survive. The challenge for today’s managers is to learn to manage change effectively for organizational growth. (Westover, 2010: 885)

Workers at all levels of an organization, be they top levels, junior levels, or operatives, recognize that change is inevitable.  However, the successful implementation of organizational change in response to changes in an organization can be one of the greatest challenges top-level leaders face.  Regardless of how far-seeing and meticulously planned organizational change may be, it will not be effectively implemented unless it is communicated to an organization’s staff in such a way that resistance is overcome, fears are assuaged, confusion is minimized, and buy-in by all affected individuals is secured (Gordon, 2006: 224).

1.2                              STATEMENT OF THE PROBLEM

In our turbulent world, there is nothing more permanent than change. Any organization that fails to adapt to change cannot compete and grow in the global economy. The absence of change in any organization bring about skill obsolescence, increase in cost of production, excessive waste, low productivity, deficiency in performance, unable to cope with new technology advancement, laissez-faire attitude, conflicts and competitive pressures. These could cause downsizing of the organization’s workers thereby leading to the dissolution of the organization.

The organization will not prosper if it fails to face the continuous prospect of change to stay afloat  and  compete in an  increasingly competitive and globalized economy. Organizational change initiatives fail due to ineffective change strategy, inadequate and miss-guided organizational communication. Companies are not extremely flexible to adapt to changes in the market thereby not meeting up with the demands of their customers.

Change  often  produces  disruptions  in  organizations  when  the  change  is  anticipated  or announced. Managers do not adequately anticipate or plan for the responses of their subordinates to a proposed change, thereby making it far more disruptive than is necessary. Organizations need to acknowledge that changes are happening and must adapt to them for organizational growth and survival hence the study is set out to look at change management as a strategy for organizational growth.

1.3                              OBJECTIVES OF THE STUDY

The specific objectives of this study are:

1.        To evaluate the effects of change in the manufacturing sector.

2.        To identify the forces for change in the manufacturing sector.

3.        To determine the effect of managing change in the manufacturing sector.

4.         To determine the extent to which resistance to change affects organizational growth in the manufacturing sector.

5.        To find out the role of communication in managing change.

1.4      RESEARCH QUESTIONS

This study will attempt to find answers to pertinent research questions such as:

1.        What are the effects of change in the manufacturing sector?

2.        What are the forces for change in the manufacturing sector?

3.         What is the possible effect of managing change in the manufacturing sector?

4.         To what extent does resistance to change affect organizational growth in the manufacturing sector?

5.        What is the role of communication in managing change?

1.5      RESEARCH HYPOTHESES

For the purpose of the study the following research hypotheses will be formulated and tested.

1    Ho: Change does not improve performance and facilitate organizational effectiveness in the manufacturing sector.

Hi:  Change improve performance and facilitate organizational effectiveness in the manufacturing sector

2    Ho: Technology advancement, culture and competition are not forces for change in the manufacturing sector

Hi: Technology advancement, culture and competition are forces for change in the manufacturing sector.

3     Ho: Managing change does not reduce resistance to change in the manufacturing sector.

Hi: Managing change reduce resistance to change in the manufacturing sector.

4     Ho: Resistance to change to a high extent does not affect organizational growth in the manufacturing sector.

Hi: Resistance to change to a high extent affects organizational growth in the manufacturing sector.

5          Ho: Communication has no significant role in managing change

Hi: Communication has a significant role in managing change

1.6      SIGNIFICANCE OF THE STUDY

The significance of this study can be viewed from the following perspectives:

1.         It is significant in the sense that its findings will serve as a base and framework for future researchers to carry out further studies.

2.        Managers in manufacturing sector will use the information obtained from the finding of study   to   formulate   and   implement   long-term   goals   and   create   approaches   in problem solving through out the organization.

3.      The study significantly will assist managers to improve their business overall performance that will enhance organizational growth

4.     The study will increase the understanding of managers and employees in Nigerian organizations about management.

5.      The study will help organizations to adapt to change.

1.7      SCOPE OF THE STUDY

The study focus on change management as a strategy for organizational growth. Three manufacturing sector  were  selected  from South-East  Geopolitical Zone.  The  manufacturing companies for the study include: Sharon Paints Company Ltd, Nigeria Bottling Company PLC and Seven-Up Bottling Company PLC.

1.9       LIMITATIONS OF THE STUDY

The main constraints of the study include;

Time constraint: Due to limited time given for the study, the researcher could not get all the information needed for the study.

Financial constraint: The researcher has no enough money to embark on the study. Due to financial constraint, the researcher could not visit places where information relevant to the study could be obtained.

Attitude of the respondents: Some of the respondents shows negative attitude towards the study because they felt that they has no financial benefit.

1.9      DEFINITION OF KEY TERMS

Action research- Action research is refers to as the process of gathering data, feeding data back to the client, problem solving or dealing with issues that arise from the data, developing action plans to resolve problems, and following up to see if the action has worked as planned

Pragmatists- Pragmatists are  those  who  support  change  when  it  clearly  addresses  current challenges. Pragmatists are less committed to the existing structure that to structures that are likely to be successful. Every person reacts to change differently.

Refreezing- Refreezing is the stage during which a person becomes ready to learn or acquire a new behaviour

Transitions – These is the psychological process people go through to come to terms with the new situation

Unfreezing- Unfreezing occurs as the new behavior becomes habitual or ingrained with the individual.

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