INFLUENCE OF CHANGE MANAGEMENT STRATEGIES ON EMPLOYEE CHANGE ACCEPTANCE IN THE BANKING SECTOR: A SURVEY OF COMMERCIAL BANKS IN NAKURU CITY

Abstract

The banking industry played a pivotal role in the economic landscape, facilitating financial transactions, driving investment, and supporting economic growth. To remain competitive and responsive to evolving market dynamics, banks often implement change management strategies to enhance operational efficiency, improve customer service, and adapt to regulatory requirements. However, the successful implementation of these strategies is usually hindered by various challenges. The main objective of this study was to examine the influence of change management strategies on employee change acceptance in commercial banks in Nakuru City. The study specifically sought to determine the effects of communication, employee involvement, leadership support, and training programs on employee change acceptance, and to evaluate how labor relations moderate these relationships. Communication Theory and Social Exchange Theory guided the study. A census approach was used, allowing the entire population to participate. Primary quantitative data were collected using structured questionnaires on a 5-point Likert scale, and pilot testing confirmed the instrument's reliability and validity. Data were analysed using descriptive and inferential statistics, including correlation and regression analysis. Findings reveal that communication, employee involvement, leadership support, and training programs collectively explain 63.7% of the variance in employee change acceptance (R² = 0.637). Labor relations significantly moderate these relationships, increasing the explained variance to 71.6% (R² = 0.716), with the strongest moderation observed for leadership support, followed by communication, training programs, and employee involvement. The study concludes that addressing these gaps is essential for enhancing employee adaptability to organizational changes. Recommendations include implementing structured communication channels, fostering participatory platforms, strengthening leadership training, designing relevant training programs, and improving labor policies to support change initiatives. Future research should explore regional variations, the impacts of long-term strategies, and specific labor union policies to address unexplained variance. These findings provide evidence-based insights for bank management to improve change management practices and foster a culture of adaptability in Nakuru’s banking sector.