The Dynamics of Organizational Change and Employee Performance among Selected Banks in Victoria Falls, Zimbabwe

The Dynamics of Organizational Change and Employee Performance among Selected Banks in Victoria Falls, Zimbabwe

Japhet Mutale

Lecturer, Department of Accounting, Computer and Management Information Systems and Finance, Solusi University, Zimbabwe

DOI: https://doi.org/10.51244/IJRSI.2025.12020074

Received: 06 February 2025; Accepted: 11 February 2025; Published: 19 March 2025

ABSTRACT

This study investigates the impact of organizational change on employee performance in the banking sector of Zimbabwe. The research examines how various organizational change factors—such as motivation, leadership, communication, employee development, procedural justice, tolerance to change, education level, and working experience—affect employee performance in the context of Zimbabwean banks. A regression analysis was conducted to assess the relationships between these factors and employee performance. The findings reveal that leadership, communication, employee development, and procedural justice have a positive impact on employee performance, while motivation and education level show a negative correlation. The study highlights that motivation, when used in isolation, may not necessarily lead to improved performance, aligning with the AMO model and Expectancy Theory. Additionally, the results indicate that organizational change, if not managed carefully, may pose challenges to employee performance. Based on the findings, several recommendations are made to policymakers, banking industry leaders, and management to foster a supportive environment that enhances employee performance amidst organizational change. These include the implementation of policies that promote communication, employee development, and procedural justice, as well as the need for leadership to clearly communicate the necessity of change. The study provides valuable insights into the complexities of organizational change in the banking sector and offers directions for future research in this area.

Keywords: Organizational change, employee performance, banking sector, motivation, leadership, communication, employee development, procedural justice, Zimbabwe, regression analysis.

INTRODUCTION

The banking industry plays a pivotal role in economic growth, as its transactions directly impact the nation’s financial progress (Khosa et al., 2015). In the 21st century, the business environment has become increasingly complex due to rapid changes and heightened competition. To remain relevant, organizations must adopt strategies that enable them to navigate these shifts effectively. A crucial strategy is organizational change, which requires organizations to embrace a radical paradigm shift in operations to maintain competitiveness. Organizational change, however, often triggers stress, uncertainty, and resistance among employees, impacting their performance (Battilana et al., 2010; Armenakis & Harris, 2009). While change fosters progress, employee reluctance remains a challenge. This study investigates the dynamics of organizational change and its influence on employee performance, with a focus on the selected banks in Victoria Falls, Zimbabwe, providing insights into effective strategies for managing change.

BACKGROUND OF THE STUDY

The central question in the banking industry amidst a turbulent business environment is the extent to which organizational change impacts employee performance. Several studies (Khosa et al., 2015; Ojo, 2009; Ahmed & Razan, 2013; Makosana, 2014; Ndlovu, 2013) have identified concerns regarding organizational change impacts. Khosa et al. (2015) explored the impact of organizational change on employee performance in Pakistan’s banking sector, noting the significant evolution since the Asian economic crisis. The post-independence period saw the absence of a central bank until 1948, followed by nationalization in 1974 and subsequent reforms under military rule in the 1980s. Technological changes increased employee workloads, resulting in anxiety and stress (Khosa et al., 2015). By 2015, the number of banking branches in Pakistan had reached 10,361.

Similarly, Ahmed & Razan (2013) investigated the relationship between job stress and job performance among bank employees in Pakistan. Ojo (2009) assessed the impact of corporate culture on employee performance in Nigeria’s banking sector, while Samson, Waiganjo & Koima (2015) examined the effect of workplace environment on employee performance in Nakuru, Kenya. Datta et al. (2010) focused on employee downsizing, suggesting potential consequences of such changes in organizations. Zimbabwe’s banking sector shares historical challenges with Pakistan’s. The industry, which began in 1872, evolved from a free banking system to central banking in the 1940s and 1950s. By 1960, Zimbabwe had a well-developed banking sector (Makina, 2009; Ndlovu, 2013). After independence, the number of registered banking institutions increased from 9 to 21 by 2016 (RBZ, 2016; Makanyeza & Chikazhe, 2017). The liberalization of the financial sector in the 1990s spurred competition and greater credit allocation (Ndlovu, 2013; Makina, 2006).

However, between 1998-2008, Zimbabwe’s banking sector faced economic collapse, culminating in the adoption of a multi-currency regime in 2009 to stabilize the economy (Ndlovu, 2013). As of 2024, Zimbabwe had 24 banking institutions profiles, 238 microfinance institutions by December 2023 (RBZ-MPS, 2024). In recent years, the Zimbabwean banking sector has experienced significant developments. In April 2024, the Reserve Bank of Zimbabwe introduced the Zimbabwe Gold (ZiG) currency, aiming to stabilize the economy and build public trust. However, by October 2024, the ZiG had depreciated by 43% against the US dollar, leading to renewed public reliance on foreign currencies (Reuters, 2024).

Despite these challenges, the banking sector has shown resilience. The African Development Bank’s 2024-2026 Country Brief for Zimbabwe highlights the private sector’s dynamic nature, noting growth in agriculture, financial services, construction, distribution, mining, and development (African Development Bank, 2023). The brief emphasizes the importance of strengthening governance and enhancing private sector investment for inclusive growth. Notwithstanding the economic shifts, research on the impact of organizational change on employee performance in Zimbabwe’s banking industry remains scarce. Previous studies focused on different macroeconomic and political contexts, making it difficult to generalize findings to Zimbabwe. While some studies have explored organizational change impacts, few have tested its significance in the Zimbabwean banking sector (Khosa et al., 2015; Ojo, 2009; Ahmed & Razan, 2013; Ndlovu, 2013).

This study addresses the gap in literature and examines the relationship between organizational change and employee performance within the Zimbabwean banking industry. The research aims to provide insights into how organizational change factors affect bank employees in Zimbabwe, given the country’s unique economic and political environment.

Objectives of the Study

This study sought to:

1. To assess the impact of organisational change on employee’s performance in the banking sector of Zimbabwe
2. To establish the relationship of organisational change to employee’s performance
3. To suggest policy recommendations to be taken by relevant authorities to circumvent the challenges brought about organisational change in the banking industry of Zimbabwe

Research Questions

This study is guided by the following research questions:

1. What is the impact of organizational change on employee’s performance in the banking sector of Zimbabwe?
2. Is there any correlation between organizational changes on employee’s performance in the banking sector of Zimbabwe?
3. What policy recommendations to be taken by relevant authorities to circumvent the challenges brought about organizational change in the banking industry in Zimbabwe

Theoretical Framework

Lewin’s Change Management Model

Lewin’s Change Management Model provides a structured approach to understanding how organizational change affects employee performance in the banking sector. The model’s three stages—unfreezing, changing, and refreezing—highlight the psychological and structural adjustments employees undergo during change (Lewin, 1951). In the context of the banking industry in Victoria Falls, organizational changes such as digital transformation, restructuring, or policy shifts require employees to first recognize the need for change (unfreezing), adapt to new operational frameworks (changing), and eventually integrate these changes into their daily routines (refreezing) (Burnes, 2004). Effective management of these phases influences employee performance by reducing resistance, ensuring smoother transitions, and fostering long-term productivity improvements.

The ADKAR model

Similarly, the ADKAR model (Hiatt, 2006) emphasizes the individual-level factors that determine how employees respond to change, which directly impacts their performance. In the banking sector, employees must develop Awareness of why changes are necessary, cultivate Desire to support them, gain Knowledge of new procedures, acquire the Ability to implement them, and receive Reinforcement to sustain performance improvements. Without addressing these elements, organizational change may lead to uncertainty, decreased motivation, and reduced efficiency. By applying ADKAR, banks in Victoria Falls can ensure that employees are adequately prepared for and engaged in the change process, ultimately enhancing their performance and the institution’s overall effectiveness (Hiatt, 2006)

RELATED LITERATURE

Employee Performance (EP)

Employee performance (EP) is central to organizational success, particularly in the dynamic and competitive business environment. It is crucial for achieving organizational goals and profitability. The performance of employees, particularly those who exceed expectations, directly influences organizational outcomes (Khosa et al., 2015; Kansal & Singh, 2015; Kelepile, 2015; Karanja, 2015; Wanza & Nkuraru, 2016). In service sectors like banking, companies invest heavily in their workforce to enhance long-term relationships and improve performance through job satisfaction. Organizational changes, including downsizing, mergers, and restructuring, often negatively impact employee performance. These changes disrupt work routines, leading to stress and decreased productivity (Khosa et al., 2015). Effective leadership, communication, motivation, and organizational culture can mitigate these effects and enhance employee performance (Khosa et al., 2015).

Ahmed & Razan (2013) emphasize the importance of employee performance in all organizations. High-performing employees contribute significantly to organizational success by improving operational efficiency. Their study highlights the relationship between organizational commitment and work behaviour, underscoring the importance of continuous improvement (Qureshi & Ramay, 2006). Summers & Hyman (2005) argue that organizations should avoid complacency and focus on enhancing competencies to maintain organizational effectiveness. Cole & Kelly (2011) suggest that performance management is a continuous process aimed at aligning individual performance with organizational goals. This process includes setting standards, appraisals, and goal-setting to enhance performance systematically. Job performance, defined by Colquitt, Lepine & Wesson (2014), is the contribution of employee behaviours toward achieving organizational goals. Task performance, in particular, refers to behaviours that directly affect the production of goods or services. Employees with strong skills and responsibility are key to achieving organizational goals. Effective management of employee performance directly contributes to organizational success (Roberts, 2005). To enhance employee performance, managers should offer rewards and recognition to motivate employees and foster a sense of belonging (Herzberg & Snyderman, 2007). Recognition of employee achievements is crucial for maintaining motivation (Swart & Purcell, 2003).

Motivation and performance are intrinsically linked, and organizations must continuously encourage and support their workforce to stay competitive (Stredwick, 2002). Greene (2011) highlights that performance can be assessed in terms of results or behaviors. While quantitative measures offer objectivity, they may not be suitable for all jobs. Behavioural measures, though subjective, are often more appropriate for evaluating performance in various roles. In recent years, organizational performance in sectors like banking has increasingly relied on employee engagement and motivation to drive success. As competition intensifies, continuous performance improvement is vital for staying ahead of rivals. The effective management of employee performance remains a critical determinant of organizational success (Khosa et al., 2015).

Organizational Change (OC) and Employee Performance

Organizational change is crucial for business survival and growth, encompassing shifts in technology, operations, strategic direction, and workforce attitudes (Kansal & Singh, 2015; Kelepile, 2015; Wanza & Nkuraru, 2016). In today’s dynamic environment, companies must embrace restructuring, downsizing, and technological advancements to remain competitive (Datta et al., 2010; Nazir & Zamir, 2015). However, if not managed effectively, organizational change can lead to stress and decreased employee performance, particularly in sectors like banking, where restructuring and technological changes are prevalent (Ahmed & Razan, 2013).

Employee downsizing has become a critical aspect of organizational change, as firms seek to reduce human resource costs due to competitive pressures (Datta et al., 2010; Nazir & Zamir, 2015). Studies indicate that leadership, communication, and procedural justice can enhance employee performance during change (Khosa et al., 2015). In Pakistan’s banking sector, effective change management improved employee performance, but researchers called for further studies in different regions, such as Zimbabwe, to understand broader impacts. Similarly, Ahmed & Razan (2013) found that job stress negatively affects performance in banking, particularly due to technological changes. They emphasized the importance of a supportive work environment in mitigating stress and improving employee outcomes.

Corporate culture also plays a vital role in shaping employee performance. Ojo (2009) found that a strong corporate culture positively influences productivity in Nigeria’s banking sector. Similarly, research in Kenya’s banking industry revealed that psychological and work-life balance factors have a significant impact on employee performance (Samson, Waiganjo & Koima, 2015). While leadership, communication, and corporate culture remain key drivers of employee performance, managing stress and maintaining a positive work environment are essential for ensuring successful organizational change (Khosa et al., 2015; Ahmed & Razan, 2013). Future studies should explore these interactions in various industries.

Leadership (L) and Employee Performance

Leadership plays a crucial role in guiding employees toward goal achievement and improving organizational performance (Khosa et al., 2015). Effective leadership styles enhance employee performance by fostering commitment and ensuring alignment with organizational goals (Yun, Cox & Sims, 2006). Leadership is also essential for navigating organizational change, as it involves motivating and guiding employees through transitions (Donaldson & Grant-Valloe, 2002). Visionary, transformational, and charismatic leadership practices help align employees with the organization’s mission, inspiring them to overcome challenges (Peterson & Arnn, 2005). These leadership qualities are integral to achieving sustained employee performance and organizational success.

Communication(C) and Employee Performance

Effective communication is a crucial element in organizational change, significantly impacting employee performance (Dulger, 2009). It facilitates the efficient exchange of information, enhances collaboration, and builds trust among employees (Smith & Reinertsen, 2006; Kansal & Singh, 2015). Open, two-way communication aligns employees with organizational goals, improves decision-making, and enhances job satisfaction (Rich, 2009). During organizational change, clear communication reduces uncertainty, reinforces employees’ sense of value, and mitigates negative reactions (Wang et al., 2009; Nikandrou & Papalexandri, 2006). Face-to-face interactions further aid in reducing resistance and fostering understanding (Dahlberg, 2007). Additionally, internal communication plays a vital role in performance evaluation, development, and overall organizational effectiveness (Wamser, 2009; Asmub, 2010). Organizations with open communication policies encourage employee participation, leading to improved performance, while poor communication results in demoralization and reduced productivity (Darling & Beebe, 2007). Thus, maintaining effective communication channels during change is essential for organizational success.

Employee Training and Development (ETD) and Employee Performance

Employee training and development (ETD) play a crucial role in enhancing employee performance, as it helps improve skills, career growth, and the achievement of organizational goals (Khosa et al., 2015; Khan et al., 2016). Organizations investing in employee development programs help employees reach their full potential, thereby driving overall performance. In the banking industry, training is essential for employee success, with studies showing a positive relationship between training, job satisfaction, and performance (Khan et al., 2016; Kansal & Singh, 2015). Employees who are trained experience higher job satisfaction and take on their roles with greater responsibility (Khan et al., 2016). Elnagai & Imran (2013) highlight that employee performance directly influences the success of an organization. Their study reinforces the idea that investing in training programs can improve employee efficiency, though they lacked empirical evidence to test the propositions. Despite this, their work affirms that training positively impacts employee performance. Therefore, organizations should prioritize effective training to ensure a motivated and capable workforce.

Procedural Justice (PJ) and Employee Performance

Procedural justice ensures that employees are treated equally, with no discrimination in job distribution or performance assessment (Khosa et al., 2015; Khan et al., 2016). It is linked to employee performance, job satisfaction, and organizational commitment. Employees are more satisfied when they perceive that their leaders treat them fairly, which enhances their work efforts. In cross-functional teams, procedural justice positively affects performance and improves team quality. Teams adhering to procedural justice typically demonstrate higher performance levels compared to those with lower procedural justice (Khosa et al., 2015; Khan et al., 2016).

Tolerance to Change (TC) and Employee Performance

Tolerance to change is crucial in the organizational change process. Employees who resist change often express anxiety about adopting new skills and knowledge, leading to decreased performance. Employees with low tolerance may perceive change as an increased burden, causing resistance (Khosa et al., 2015; Khan et al., 2016). In the banking sector, varying tolerance levels to change arise due to limited internal training and cultural differences across countries, making it challenging to implement cross-training (Khosa et al., 2015; Khan et al., 2016). Managers’ attitudes can also hinder organizational growth, as they may fail to initiate change due to employees’ resistance. However, employees with high tolerance for change are flexible, creative, and effective in handling complex situations (Khosa et al., 2015; Khan et al., 2016).

Motivation (M) and Employee Performance

Motivation is a key determinant of employee performance, with both intrinsic and extrinsic factors playing a crucial role (Kurose, 2013; Ngima & Kyongo, 2013). Maslow’s hierarchy of needs theory suggests that employees are driven by physiological, safety, social, esteem, and self-actualization needs, which influence their performance as organizations evolve (McLeod, 2018). While motivation is often seen as the primary driver of performance, other factors such as ability, skills, and opportunities to contribute also play essential roles. The AMO model, introduced by Bailey (1993) and later expanded by Appelbaum (2000), highlights three elements—Ability (A), Motivation (M), and Opportunity (O)—that collectively determine employee performance. Organizations enhance ability through recruitment and training, while motivation is influenced by intrinsic rewards like career growth and extrinsic incentives such as bonuses (Hutchinson, 2013). Providing opportunities for teamwork, job rotation, and effective communication further enhances employee engagement and organizational success (Hutchinson, 2013).

The Expectancy Theory supports this perspective, suggesting that motivation alone does not guarantee performance; rather, it is shaped by individual perceptions of the work environment (Eshun & Duah, 2011). The AMO framework remains widely accepted in HRM literature for linking management practices to performance, reinforcing the idea that motivation must be complemented by skill development and workplace opportunities (Marin-Garcia & Thomas, 2016). Thus, while motivation is critical, a holistic approach incorporating ability and opportunity ensures sustainable employee performance and organizational growth.

RESEARCH METHODOLOGY

Positivist Paradigm Research

The positivist approach is ideal for this study’s quantitative research. It posits that research findings can be generalized and that numerical data is critical for testing hypotheses. The study hypothesizes that there is no relationship between organizational change and employee performance. Data is collected through large or small-scale surveys using closed-ended questionnaires, analyzed statistically. This paradigm allows for empirical testing and theory formulation, using descriptive or inferential statistics to address research questions.

Research Design

This study utilizes a quantitative descriptive research design, focusing on the banking industry in Victoria Falls town. A case study approach is applied, which involves detailed contextual analysis of specific subjects within a particular industry. Case studies are particularly useful for theory testing and generating new hypotheses (Cohen, Manion, & Morrison, 2013). The descriptive survey design assesses how organizational change impacts employee performance. It provides a structured way to gather data about population characteristics, current practices, and needs (Chandran, 2004). The use of quantitative techniques, including statistical analysis, ensures reliability and valid conclusions based on empirical evidence.

Population of the Study

The target population consists of employees from the 12 banks in Victoria Falls. The total number of employees in these banks is 94, who formed the sample for this study. The research aimed to investigate the impacts of organizational change on employee performance within this specific group, as their experiences can offer insights into the broader impacts of change within the banking sector.

Table 1. Population distribution and the sample size distribution

Banks	Population	Sampling frame
Commercial Bank of Zimbabwe	10	10
Barclays Bank of Zimbabwe Ltd	10	10
ZB Bank	8	8
BancABC	8	8
FBC bank	8	8
POSB	8	8
CABS	6	6
Stanbic	8	8
Standard Chartered Bank	8	8
NMB Bank limited	7	7
Ned Bank	7	7
Steward Bank	6	6
Total	94	94

Source: Researcher (2025)

Sampling & Sampling Technique

Sampling refers to selecting a part of the population to draw conclusions about the entire group (Waiyaki, 2017). In this study, a probability sampling technique was used to ensure the sample represented the diverse banking population of Victoria Falls. The sample consisted of 80 employees from the 12 banks in the area. Stratified sampling was employed, dividing the population into 12 strata based on the number of banks, and simple random sampling was used to select non-managerial employees. With a population size of 94 employees and a sampling frame of 94, a sample size of 80 was purposively chosen to reduce the margin of error and increase the accuracy of the results. This aligns with Saunders et al. (2009), who recommend a sample size of 79 for populations between 51-100 at a 95% confidence interval and 5% margin of error.

Instrumentation

A self-administered questionnaire was used to collect data. Adapted from Zuiderwijk et al. (2015), it included additional questions to address all the variables concerned. The questionnaire was divided into two sections: Section A collected demographic information, and Section B used a five-point Likert scale to measure employee agreement with various statements. The Likert scale ranged from 1 (Strongly Disagree) to 5 (Strongly Agree), indicating the extent of agreement.

Table 2: Scale, response, mean range, and verbal interpretation.

Scale	Response	Mean Interval	Verbal Interpretation
1	Strongly disagree	1.00 – 1.50	Very low
2	Disagree	1.51 – 2.50	Low
3	Undecided	2.51 – 3.50	Moderate
4	Agree	3.51 – 4.50	High
5	Strongly Agree	4.51 – 5.00	Very High

Source: Researcher (2025)

Reliability and Validity

Reliability is crucial in evaluating research tools, ensuring that data obtained is consistent and free from random errors (Haradhan, 2017). It reflects the ability of a data collection instrument to produce the same results in similar settings (Corner, 2009). For the current study, reliability was ensured through the consistent design and pre-testing of instruments.

Validity refers to how accurately an instrument measures what it is intended to measure (Bolwarina, 2015; Dillman, 2010). To ensure validity, the researcher used questionnaires adapted from previous studies (Khosa et al., 2015; Zuiderwijk et al., 2015; Samson et al., 2015). Validity checks, including face, construct, and content validity, were conducted with expert assistance. Cronbach’s alpha was used to assess internal consistency (Saunders et al., 2009).

Research Procedures

Permission to conduct the research was obtained from the banks. A tailor-made questionnaire was pre-tested with employees in Hwange before being administered in Victoria Falls. Informed consent was obtained from all participants, ensuring they understood the study’s aims and benefits (Cooper & Schindler, 2010). Participation was voluntary, with anonymous responses. The study used nominal and Likert scales. Nominal scales gathered demographic information, while Likert scales measured the impact of organizational change on employee performance. The study focused on 80 employees from 12 banks in Victoria Falls.

Data Analysis

Data were entered into SPSS for descriptive statistics, correlation, and regression analysis. Descriptive statistics measured frequencies, percentages, and dispersion, while correlation analysis examined the relationship between organizational change and employee performance. Regression analysis determined the extent to which independent variables explained changes in employee performance.

RESULTS AND DISCUSSION

Demographics

Response Rate

The researcher distributed 94 questionnaires and 80 were received giving the response rate of 85.10%. After scrutinizing the data to ensure all sections of the questionnaire were filled appropriately, 85.10% response rate was still realized. The response rate is the extent to which the final data set includes sample members. The number of people who completed the questionnaire divided by the total number in the entire sample (Saunders et al., 2009) calculates it.

Gender

The subjects in the study indicated their gender and the results are shown below. In this survey, 51,2 % or 41 of the bank employees were females and male respondents were 48.8% or 39 out of 80 which is the lowest percentage in this survey with respect to female, thereby indicating that the banking industry in Victoria Falls have more female employees compared to male employees.

Table 3: Gender

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Female	41	51.2	51.2	51.2
	Male	39	48.8	48.8	100.0
	Total	80	100.0	100.0

Marital Status

The table below shows the frequencies of marital status of the subjects

Table 4: Marital Status

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Married	14	17.5	17.5	17.5
	Single (Never Married)	30	37.5	37.5	55.0
	Widowed	36	45.0	45.0	100.0
	Total	80	100.0	100.0

According to this table for marital status, married respondents show 17.5% which is the lowest response rate and single respondents (never married) shows 37.5%, while the widowed respondents shows that 45 % which is the highest response rate.

Age Group

The age group of the subjects in the study was also captured in the questionnaire and the results are as shown. Figure 4.3 depicts that 23.8% of the bank employees are aged between 18-22 years, 23.8% are between 23-27 years, 15% are between 28-31 years, 11.2% are between 32-41 years while 26.2% are above 42 years of age. This shows that the majority of the respondents are aged above 42.

Table 5: Age

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	18-22 Years	19	23.8	23.8	23.8
	23-27 years	19	23.8	23.8	47.5
	28-31 years	12	15.0	15.0	62.5
	32-41 years	9	11.2	11.2	73.8
	42 +	21	26.2	26.2	100.0
	Total	80	100.0	100.0

From the above table the lowest age range is 32-41 which shows 11.2% response rate while the highest have 26,2%.

Department

The demographic section of the questionnaire also captured the department of each bank employee. The bank employees were asked to indicate the department they worked in and the results are as depicted below in Figure 4.4.  Figure 4.4 Shows that 36.2% of the respondents are under finance, 13.8% work in the administration department, 28.8% is in marketing, 20% are in Agent and 1.2% is in other departments namely legal and architectural departments respectively.

Table 6: Department

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Finance	29	36.2	36.2	36.2
	Administration	11	13.8	13.8	50.0
	Agent	16	20.0	20.0	70.0
	Marketing	23	28.8	28.8	98.8
	Others	1	1.2	1.2	100.0
	Total	80	100.0	100.0

The results shows that finance constitute the largest department with 36.2% of the total respondents.

Tenure

The respondents were also asked to indicate the number of years they had worked in the
organization and the results are shown below. Table 4.5 shows that 11.2% of the respondents
have worked for between 0-4 years, 45% have worked for 5-9 years, 31.2% have worked for 10-14 years, 6.2% have worked for 15-19 years and 6.2% have worked for 20 years and above.

Table 7: Tenure at work

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	0-4 Years	9	11.2	11.2	11.2
	5-9 Years	36	45.0	45.0	56.2
	10-14 Years	25	31.2	31.2	87.5
	15-19 Years	5	6.2	6.2	93.8
	20+ years	5	6.2	6.2	100.0
	Total	80	100.0	100.0

The results from the above table show that the largest percentage has served between 5-9years and the highest working experience constitutes only 6.2%.

Education

The table below shows the frequencies of the educational levels of the bank employees.

Table 8: Highest Professional Qualification

		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	Diploma	26	32.5	32.5	32.5
	Undergraduate Degree	23	28.8	28.8	61.2
	Master’s Degree	18	22.5	22.5	83.8
	PHD	8	10.0	10.0	93.8
	Other	5	6.2	6.2	100.0
	Total	80	100.0	100.0

According to this table 32.5% is the highest percentage under diploma level, the second highest percentage in qualification is bachelor with 28.8 %and 6.2% is the lowest percentage in others qualification.

Correlation between organizational changes on employee’s performance in the selected banks in Victoria falls in Zimbabwe,

The table below shows the correlation matrix. The results in the table above show the relationship between variables. Motivation and Employee performance shows that the p- value is 0.021 which is less than the significant level (p<0.05). From the correlation matrix r-value is -18% showing a weak negative relationship. This implies motivation may not necessarily increase employee performance. The increase in motivation may decrease the performance of the employees, as they will concentrate on motivational related tasks only.

Table 9: Correlation matrix between organizational change factors and the Employee performance

	1	2	3	4	5	6	7	8	9
EP	1.000
M	-.180	1.000
L	.742	-.047	1.000
C	.766	.193	560	1.000
EL	.555	-.193	.733	608	1.000
ED	.677	.131	457	598	492	1.000
TC	-.054	107	.085	.263	.190	.119	1.000
PJ	.567	.076	.527	.435	.489	.504	.140	1.000
WE	.708	.137	.419	.723	.391	.643	.327	.384	1.000

Leadership has a strong positive significant relationship with employee performance with a p- value of 0.000 and an r value of 74.2% showing a strong relationship. Communication also shows a strong positive and significant relationship employee performance with a p-value of .0.00 and r value of 76.6%. The educational level has a moderate level of the positive relationship with employee performance with an r-value of 55.5%, although the regression results show a negative relationship, it is statistically significant with a p-value of 0.003. Work experience shows a strong relationship with employee performance with r-value of 70.8%.

The impact of organizational change on employee’s performance in the banking sector of Victoria Falls, Zimbabwe

The table below shows the descriptive statistics results

Table 10: Descriptive Statistics

	N	Minimum	Maximum	Mean	Std. Deviation
Employee Performance	80	1.00	5.00	2.9250	1.54080
Motivation	80	1.00	3.00	2.2750	.74587
Leadership	80	1.00	5.00	2.2875	1.20331
Communication	80	1.00	1.00	.4875	.50300
Education Level	80	1.000	5.000	2.51250	.993571
Employee Development	80	1.00	5.00	2.4500	1.28181
Tolerance to Change	80	1.00	5.00	3.0250	1.81398
Procedural Justice	80	1.00	5.00	2.9000	1.38345
Working Experience	80	1.00	4.00	1.9750	1.04306
Valid N (listwise)	80

From the above table the mean and standard deviation of the independent variables are described as follows. Motivation (μ=.2.2750, 0.74587), Communication (μ=0.4875, .50300), Leadership (μ=2.2875, Sd=1.20331), Procedural justice (μ=2.9000, Sd=0.749), Employee development (μ=2.4500, Sd=1.28181), Tolerance to change (μ=3.0250, Sd=1.81398), Working Experience (μ=1.9750, Sd=1.38345). Criterion variable (Employee performance) has a mean 2.9250 and standard deviation 1.54080.  Table 9 below shows the linear regression analysis results.

From the table below, the regression results shows that all the variables are statistically significant (P<0-05) and this is affirmed by the 2-t rule of thumb where all the t calculated values of all the variables are greater than 2. Thus, the null hypothesis is rejected hence H₁ is accepted.

Hypothesis (H₀): There is no relationship between organizational change and employee performance in the banking industry

Table 11: Regression analysis results

Model	Unstandardized Coefficients		Standardized Coefficients	T	sig.
	B	Std.Error	Beta
(Constant)	.435	.391		.114	.269
Motivation	-.236	.100	-.114	2.361	.021
Leadership	.637	.093	.498	.871	.000
Employee development	.180	.081	.149	.228	.029
Procedural Justice	.158	.066	.141	.398	.019
Working Experience	.357	.112	.242	.199	.002
Tolerance to Change	.134	.042	.158	.178	.002
Education Level	-.369	.118	-.238	3.127	.003
Communication	.998	.239	.326	.181	.000

INTERPRETATION AND DISCUSSION OF REGRESSION ANALYSIS RESULTS

The regression analysis provides valuable insights into the factors influencing employee performance in Zimbabwe’s banking sector, with several significant findings. Firstly, motivation has a negative coefficient of -0.236, indicating an inverse relationship with employee performance. This challenges the conventional view that motivated employees always perform better. In the Zimbabwean context, banks are often financially constrained, limiting the effectiveness of motivational programs. While motivation is critical, performance also depends on skills, available resources, and opportunities to contribute. This supports the AMO model, which suggests that motivation alone is insufficient for improved performance unless employees have the ability and opportunity to apply their skills effectively (Eshun & Duah, 2011). The findings also align with Lewin’s Change Management Model, where failure to properly “unfreeze” employees by preparing them for change may lead to ineffective motivation strategies that do not enhance performance (Burnes, 2004).

Leadership emerges as a highly significant factor with a positive coefficient of 0.637, strongly influencing employee performance. Effective leadership is crucial for guiding employees through organizational change, particularly in Zimbabwe’s banking sector, where economic instability requires strong direction. Leaders who follow structured change management strategies, such as Lewin’s “changing” and “refreezing“ stages, ensure employees successfully transition through periods of transformation (Lewin, 1951). Employee development, with a coefficient of 0.180, also positively impacts performance. However, for training programs to be effective, banks must address the individual elements of the ADKAR model—ensuring employees have Awareness of why training is necessary, Desire to engage in learning, Knowledge of new skills, Ability to apply them, and Reinforcement to sustain long-term performance improvements (Hiatt, 2006).

The study reveals a positive relationship between procedural justice (0.158) and employee performance, suggesting that fairness in organizational processes boosts engagement and productivity. This is particularly important in Zimbabwe, where perceptions of unfair treatment in the workplace can lead to employee disengagement. Ensuring transparency aligns with Lewin’s unfreezing stage, where organizations must create an environment that acknowledges employee concerns and reduces resistance to change (Burnes, 2004). Similarly, working experience (0.357) positively influences performance, as experienced employees adapt better to industry changes. This adaptability is supported by the ADKAR framework, which emphasizes building employees’ ability and reinforcing their learning for sustained performance in dynamic environments (Hiatt, 2006). Research supports the notion that experience is a key factor in improving productivity and problem-solving in the banking sector (Kansal & Singh, 2015).

The positive impact of tolerance to change (0.134) underscores the importance of adaptability in Zimbabwe’s banking sector, where employees must frequently adjust to regulatory and technological changes. This finding aligns with Lewin’s model, where employees must first “unfreeze” old habits before effectively adopting new processes (Lewin, 1951). Additionally, the ADKAR model suggests that successful adaptation requires targeted interventions at each stage to ensure employees internalize and sustain new behaviors (Hiatt, 2006). This is consistent with findings from studies that emphasize the importance of adaptability in organizations facing change (Karanja, 2015).

An unexpected result is the negative relationship between education level and performance (-0.369). Highly educated employees may be underutilized, leading to lower job satisfaction. According to the ADKAR model, this mismatch may stem from employees lacking the Desire to engage in roles that do not fully utilize their qualifications (Hiatt, 2006). In Zimbabwe, many employees with high educational qualifications may find themselves in roles that do not fully utilize their capabilities, leading to lower job satisfaction and performance. This finding aligns with research indicating that a mismatch between education and job roles can hinder performance (Kurose, 2013).

Lastly, communication plays a vital role in performance, with a highly significant coefficient of 0.998. Effective communication ensures that employees are well-informed about organizational goals, expectations, and changes. In Zimbabwe’s banking sector, clear communication is essential for managing the impacts of economic volatility and organizational change. Previous studies have highlighted how transparent communication improves employee performance in similar settings (Wanza & Nkuraru, 2016). Lewin’s model emphasizes that communication is critical in the unfreezing stage, helping employees understand why change is necessary and reducing resistance (Burnes, 2004). Similarly, the ADKAR model identifies Awareness and Knowledge as essential elements in ensuring employees comprehend and effectively implement organizational changes (Hiatt, 2006).

These findings confirm that leadership, communication, employee development, procedural justice, working experience, and adaptability positively influence employee performance in Zimbabwe’s banking sector. The integration of Lewin’s Change Management Model and the ADKAR framework highlights the importance of structured change management in ensuring employees transition smoothly and sustain high performance during organizational shifts.

A comparative analysis across multiple regions in Zimbabwe’s banking sector

A comparative analysis across multiple regions in Zimbabwe’s banking sector reveals significant differences in how organizational change impacts employee performance. In Harare, strong leadership and advanced resources facilitate smoother transitions, while Bulawayo’s economic instability leads to higher resistance to change, making leadership and communication crucial. Mutare and Gweru face logistical challenges in adopting new technologies, affecting employee adaptability, whereas Victoria Falls’ tourism-driven economy requires employees to adjust frequently to seasonal fluctuations. These variations highlight the need for region-specific change management strategies, ensuring that leadership, communication, and adaptability align with local economic conditions and organizational structures to sustain employee performance.

CONCLUSION

The study confirms that organizational change factors significantly impact employee performance in Zimbabwe’s banking industry specifically in Victoria Falls. While motivation can negatively affect performance if used in isolation, leadership, communication, tolerance to change, procedural justice, and employee development positively influence performance. Many employees view change as challenging, highlighting the need for appropriate leadership styles to guide them through the transition. Employers should engage employees in discussions about changes and their benefits. The study suggests that motivation and education alone may not improve performance. The findings suggest that a one-size-fits-all approach to change management is ineffective, emphasizing the need for region-specific strategies to enhance employee performance. Future research could further explore these regional variations by incorporating a broader sample across Zimbabwe’s banking sector and extending the analysis to other industries for a more comprehensive framework

RECOMMENDATIONS

Based on the findings, the following recommendations are made:

• To the Reserve Bank of Zimbabwe (RBZ): RBZ should implement policies that create an enabling environment for communication, employee development, and procedural justice within the banking sector. These policies should include robust performance assessments and monitoring mechanisms to enhance employee performance.
• To the Banking Industry: Banks should innovate to improve sector performance amidst economic challenges. They should develop policies that address operational challenges while focusing on employee performance enhancement.
• To Management: Management should foster a culture of creativity and innovation, emphasizing communication, employee development, retention, and procedural justice. They should refine their leadership styles to adapt to modern organizational changes and address employee concerns during transitions.
• To Potential Investors: Investors and suppliers can use these findings to assess the risks of investing in Zimbabwe’s banking sector, considering the potential challenges posed by organizational changes.

LIMITATIONS

The study on the impact of organizational change on employee performance in Zimbabwe’s banking sector has several limitations. The sample size was limited to Victoria Falls, making generalization to the entire sector difficult. Geographical constraints may have excluded regional variations, particularly between urban and rural banking environments. The cross-sectional design only captured data at one point, limiting insights into long-term trends. Self-reported data posed potential biases, as respondents may have provided socially desirable answers. The study also focused on select variables, excluding factors like work-life balance and organizational culture. Additionally, the lack of longitudinal data prevents establishing causality between change factors and performance. External influences, such as economic conditions and government policies, were not extensively considered, despite their potential impact on employee performance. Future research should incorporate larger, more diverse samples, longitudinal methods, and broader organizational and economic factors to enhance understanding of organizational change in the banking sector.

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