The Role of Organization Development in Effective Change Management: Banking Sector Perspective
Grace Magwani, Justine Chinoperekweyi
Journal Title:Organization Leadership and Development Quarterly (OLDQ)
The banking services sector plays an important financial intermediation role in any economy. Zimbabwean banks are at the centre of economic transformation and the growth of other sectors. The banking environment is highly complex and chaotic as a result of the inevitability of change and the resultant tensional forces. Effective change management demands a consideration of the internal and external environment through the adoption of organization development interventions. It is an aphorism that organization development is a strategic and operation imperative for sustainable change management in the banking sector. This research sought to critically analyze the role of Organization Development (OD) in effective change management. The researcher adopted an explanatory, exploratory, and descriptive strategy in conducting this qualitative study. The research indicated that organization development is fundamental to the stability and continuity of banking institutions in Zimbabwe. The study shows that the banking sector in Zimbabwe is greatly affected by both the macro, meso, and micro environmental factors. Change management interventions are mainly affected by the political, legal system, stakeholders, and technology in Zimbabwe. The researcher posits that a failure to develop and implement organization development interventions within the banking sector will lead to slow growth as the individual banks will be incapacitated to resolve the complex emergent issues prevalent in the industry, prolong chaos (disorganized and unordered structures), and promote conflict among key stakeholders thereby limiting the capacity to be critical in addressing change.