The Impact of Change Management on Organizational Development: The Case of Selected Private Commercial Banks at Dire Dawa Administration

This research was made to examine impact of change management practice on organizational development: the case of selected private Commercial banks at Dire dawa administration in light of change readiness, sustaining change, committed leadership and change resistance. The general objective of the study was to determine the individual and aggregate impacts of these factors on organizational development of the private banks; therefore, a content analysis approach research design was adopted. This study was used of a descriptive and explanatory survey research design. The population consists of 2079 staff of private commercial banks in Dire Dawa city. Random sampling techniques was employed to select the sample size of 336 from the population. Regression analysis were used to analyze the data that was collect using a five-point likert scale structured questionnaire. Both primary and secondary data collections were applied with the main data collection instruments of questionnaire and observation. Descriptive statistics, correlation analysis and multiple regression analysis techniques were used to analysis the data. Multiple regression model was applied to examine the relationship between change management and organizational development and correlation analysis was used to determine how one variable affects the others. The analysis also includes model summary, ANOVA, regression coefficient (β), t-test, and p-value. The correlation analysis result was pointed out from four proposed variables three of them: change readiness, sustaining change and committed leadership positive and significant effects. While one variable change resistance negatively affects. The result of ANOVA table showed, the P-Value of dependent variable organizational development and independent variables of change management dimension of change readiness, sustaining change, committed leadership and change resistance for change is well below .05(P<0.001). Multiple model regression result showed so as to evaluate the change management practices on development of commercial banks in Dire dawa using the four variables. Based on the finding the study concluded that change resistance negatively impacts on private commercial banks. Therefore, the researcher recommended that resistance to change in the private commercial banks can be avoided through implementation of change strategies by change managers and that participative strategy.