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, individual
intelligence, trust in top management, participation in decision and pay/wages/rewards has a
positive relationship with employee readiness to change. According to adjusted R square the
model explains 53.4% of the variability on readiness for organizational change and multiple
regression analysis unstandardized beta 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 statistically 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.