Abstract:
The change is unavoidable in the life of an individual or organization. In today’s business world,
most of the organizations are facing a vibrant and changing business environment. Studies have
revealed that a successful organizational change depends on well-motivated, inspired, and
committed workforce. Consequently, this study focuses on the determinants of employee
readiness for organizational change: the case of Abay bank share company Bahir Dar city
branches. In this study, among 205 workers from 17 branches of Abay Bank in Bahir Dar City
Branches, the study took 118 respondents based on a simple random sampling technique. The
investigation was done taking five independent variables and one dependent variable. The
essential hypothesis was developed to test the variables and SPSS were used for data analysis.
Person correlation result showed that each variable, quality of communication (r =.627, p
= .000), individual intelligence (r =.566, p = .000), trust in top management (r =.668, p = .000),
participation in decision (r =.359, p =.000) and pay/wages/rewards (r =. 414, p = .001) has a
positive relationship with employee readiness to change. Multiple regression analysis results
revealed that among the five tested hypothesis quality of communication (ß=0.232, P<0.05),
individual intelligence (ß =0.220, P<0.05), trust in top management (ß =0.251, P<0.05) and
pay/wages/rewards (ß =.122, P<0.05) showed a positive significant effect on employee
readiness, whereas participation in decision making (ß =-0.073, P=0.257) was found to be
insignificant to predict the employee readiness of Abay Bank SC Bahir Dar city branches. Even
though, participation in decision making is insignificant according to the result, the management
body of Abay Bank shouldn’t totally ignore this variable since it has significant effect in the
previous research results.