Effects of Technological Changes on employee Performance in Commercial Banks in Trans Nzioa County, Kenya

Increasing market pressures and market regulations have forced commercial banks to implement drastic organizational changes in order to remain competitive. However, while organizational change is a constant experience, the process of managing change involves a lot of challenges which if not well dealt with could hinder the attainment of desired goals. The purpose of this study therefore was to investigate the effects of technological changes on employee performance in commercial banks in Trans Nzoia County, Kenya. The study was guided by Uncertainty Management Theory, Lewin’s Change Management and McKinsey 7‑S Change Management Models. The study adopted an explanatory research design. Target population of the study consisted of 470 employees drawn from 14 commercial banks in Trans Nzoia County. A sample size of 216 of employee was arrived at and stratified simple random sampling used to categorize managers, supervisors/administrators and clerical/tellers. Data was collected using the questionnaires. Validity and reliability of the study instrument were ascertained and results showed that the instrument was valid and reliable. Cronbach alpha coefficient was determined and yielded an alpha value of 0.770 which was considered reliable. Descriptive and inferential statistics were used to analyze the collected data. The results indicated that technological change (β = 0.654, p = 0.000) had statistically significant effect on employee performance in commercial banks. Therefore, the study concluded that changes in technology at the commercial banks had statistically significant effect on the employee performance in commercial banks in Trans Nzoia County. The study recommended that management of commercial banks embrace participatory leadership and communication strategies to enhance employees’ readiness for technological changes. Further, commercial banks management should strive to be a learning organization and promote changing attitudes toward those technological changes. The findings of this study would be beneficial to the employees of commercial banks as they would be sensitized technological changes adopted by the commercial banks in Kenya. The findings of this study would also be invaluable to future researchers who would wish to explore further on how technological changes affect employee performance in commercial banks.