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Change management and its effect on employees: Case study of Alinma Bank of Saudi Arabia - Dissertation Example

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Change management and its effect on employees: Case study of Alinma Bank of Saudi Arabia

At the same time, it should be remembered that many change management decisions of the supervisors are heavily influenced by the employees (Barnett and Carroll, 1995). On the other hand, such decisions, in many cases, have a direct impact on the subordinates. Therefore, effective change management decisions should always take into account how employees, as one of the most valuable assets of an organization, will get influenced by the decision. In this context it can be said that employees, as an internal resource of a company, are the key to creating a competitive advantage through change and innovation (Teece, Pisano and Shuen, 1997). Therefore, the task of the company is to ensure that its employees adapt to changes well and, a result, continue showing good, or even improved, performance. For this reason the effect of change management decisions on employees should be studied in order to determine the most effective and efficient tools and strategies for managing change. This paper, therefore, aims at analyzing the existing change management theory and practical applications, as well as studying employees’ perception and reactions to change. The research will also try to determine how change management techniques and strategies influence employee motivation, organization and leadership. This information, in its turn, might become a basis for developing a system of change management strategies, tools and techniques that will help businesses and organization in managing their change processes more effectively. So, the major objectives of the given work are as follows: Studying how change influences employees’ motivation, organization and leadership. Finding out to which extent uncertainty might lower performance of employees going through the change management life cycle. Researching how important is the quality of communication in the change process. Determining how changes impact employees’ performance through motivation, organization and leadership. These issues are particularly important because they, as the literature review below suggests, have a direct impact on organizational performance. Furthermore, effective management of the change process itself is, according to the IBM Global CEO Study (2008), becoming crucial for companies to survive. Eight out of ten CEOs that participated in the study conducted by IBM admitted they were seeing significant change ahead. Almost all of the 1,130 CEOs “are adapting their business models, two-thirds are implementing extensive innovations. More than 40 percent are changing their enterprise models to be more collaborative” (IBM, 2008). In particular, Alinma Bank of Saudi Arabia is the organization where the research will be conducted. Being a relatively young organization, Alinma Bank does not have any experience going through some large radical changes. However, some ongoing, caused by the changing external environment, changes are being continuously implemented by the company that employs 1052 people. The major activity of the Bank is providing banking and investment services compliant with Islamic Sharia. The mission statement of the Bank implies that Alinma Bank is the ‘best workplace.’ This objective is meant to be reached with the help of innovation, taking initiatives, respect for all, strengthening relationships and honesty. The Bank values it employees and devotes much of its resources to ...Show more


MMUBS Masters Network – Dissertation Unit (5A4060) Research Proposal Pro-Forma and registration number Programme title and mode of attendance Title of the research project Change management and its effect on employees: Case study of Alinma Bank of Saudi Arabia Research context Contemporary business environment is continually developing and changing…
Author : schadenforrest
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