Critical Factors in Organizational Change and Employee Performance

Abstract

Change is sometimes perceived as an opportunity for growth for business and sometimes as a necessary evil to survive. The purpose of this study is to examine the relationship between organizational change and employee job performance at Sabah Credit Corporation, Sabah. The organization changes in this study consist of two critical factors which are technology and structure. A total of 138 questionnaires were distributed to eight departments at Sabah Credit Corporation, currently going through a series of change. Multiple regression analysis revealed that technology and structure factors did highly support organization change and significantly affect employee job performance. It can be concluded that organizational change practiced in the organization has an effect toward employee job performance. As a result, management should be concerned with organizational change elements which lead to employee job performance. Further research is suggested in exploring emotional intelligence as a strategy for employees to embrace and manage change in the workplace.