Task 3

Running head: Digitalization of the financial sector and change management of Barclays bank 1
DIGITALIZATION OF THE FINANCIAL SECTOR AND CHANGE MANAGEMENT
OF BARCLAYS BANK
Name
Institution
Digitalization of the financial sector and change management of Barclays bank 2
ABSTRACT
Rapid technological changes and digitization have an impact on the performance of various
sectors. The main purpose of this research study is to evaluate the impacts of digitization of
Barclays bank and how the change management strategies have affected the employees. In
essence the study was focused on determining the perspectives of employees regarding the
handling of digital changes at the firm. In order to achieve these objectives the study relied on
the use of questionnaires which were administered using email. Up to 163 participants took part
in the study. The results from the questionnaires in this case enabled the questionnaire to
complete the study. The study revealed that a large fraction of the employees are contented with
the change management strategies which have been put in place at the firm. Some of the reasons
given for the support included the indication that digitization has had a positive impact on their
professions. The positive response was a reflection of an effective change management strategy
at Barclays. The study recommends that the firm should put in place measures to ensure that the
other employees who oppose the changes are well educated regarding the benefits of the changes
and that proper communication system is put in place.

CONTENTS
ABSTRACT .................................................................................................................................... 2
INTRODUCTION .......................................................................................................................... 5
Background of the Thesis ........................................................................................................... 5
Research Statement ..................................................................................................................... 5
Objectives ................................................................................................................................... 7
Questions..................................................................................................................................... 8
Definition of key terms ............................................................................................................... 8
Structure of the paper .................................................................................................................. 9
CHAPTER 1: LITERATURE REVIEW ...................................................................................... 10
1.1 Introduction ......................................................................................................................... 10
1.2 Digitization ......................................................................................................................... 10
1.2.1 Internet banking ........................................................................................................... 12
1.2.2 Mobile Pay ................................................................................................................... 14
1.3 Change management ........................................................................................................... 17
1.3.1 Digital changes............................................................................................................. 19
1.3.2 Impact of digital change............................................................................................... 19
1.3.3 Strategies used in adopting digital changes ................................................................. 22
1.3.4 Change management process ....................................................................................... 27
1.3.5 Mistakes experienced in change management ............................................................. 30
1.3.6 Benefits of communication .......................................................................................... 31
1.3.7 Opposition to change ................................................................................................... 33
CHAPTER 2: METHODOLOGY ................................................................................................ 35
2.1 Introduction ......................................................................................................................... 35
2.2 Data Collection ................................................................................................................... 35
2.3 Data Analysis ...................................................................................................................... 37
CHAPTER 3: DISCUSSIONS ..................................................................................................... 38
3.1 Introduction ......................................................................................................................... 38
3.2 Personal details ................................................................................................................... 38
3.2.1 Age ............................................................................................................................... 38
3.2.2 How long have you worked at the organization?......................................................... 39
3.2.3 Role in the organization ............................................................................................... 39
3.3 Change associated with Digitization ................................................................................... 40

3.3.1 Do you believe that digital changes are beneficial to you as an employee? ................ 40
3.3.2 Do you think that the changes have been beneficial in meeting customer needs? ...... 42
3.3.3 The changes are effectively designed to improve the performance of the firm........... 43
3.4 Change management ........................................................................................................... 44
3.4.1 Has the communication about changes been transparent? ........................................... 44
3.4.2 I have had a positive experience as a result of the changes ......................................... 46
3.4.3 I believe I can have an impact on the changes being put in place ............................... 47
3.4.4 Do you support the digital change programs put in place? .......................................... 49
CHAPTER 4: CONCLUSION AND RECOMMENDATIONS .................................................. 51
4.1 Introduction ......................................................................................................................... 51
4.2 Conclusion .......................................................................................................................... 51
4.3 Recommendation ................................................................................................................ 53
REFERENCES ............................................................................................................................. 55
INTRODUCTION
Background of the Thesis
The banking sector has experienced a .wide array of changes and developments recently. The
increasing competition has also made it imperative that the sector should under continuous
changes and development1. Some of the primary factors behind the changes in the banking sector
include digitation and technological development2. In particular, digitization has enabled for the
development of new approaches to the running of banking operations such as the creation of new
business models, creation of development concepts as well as the adoption of internet and mobile
banking in business transactions3. The new developments and changes in the business
environment are making it necessary for employees to improve their awareness and skills in
order to properly handle the emerging changes in their working environment. Currently, the
handling of change management and digitization are some of the major challenges which are
affecting the performance of banks. In the next decades, it is expected that the changes will
increase significantly with innovations in the information technology being the major drivers. In
addition to that, it is worth noting that increased digitization will result in improved performance
of operations in the banking industry.
Research Statement
Digitization of the financial sector as indicated above is one of the biggest occurrence currently.
Apparently technological developments combined with increased competition have made it
imperative to adapt to the changes. As indicated by Omarini, (2017) the digitization of the
banking sector has had numerous effects on the financial industry as a whole. The author
1
Carbó-Valverde, S. (2017). The impact on digitalization on banking and financial stability. Journal of Financial
Management, Markets and Institutions, (1), 133-140.
2
Omarini, A. (2017). The digital transformation in banking and the role of FinTechs in the new financial
intermediation scenario.
3
Alt, R., Beck, R., & Smits, M. T. (2018). FinTech and the transformation of the financial industry.
specifically highlights the case of fintech companies which have targeted the growth of the
mobile lending platforms. Irrespective of the numerous benefits and improvements attributed to
digital technology the change management techniques adopted by the various firms have not
been clearly established. Given the vital role played by the financial sector in the society, it is
evidently necessary to establish the impacts of digitization as well as the change management
techniques put in place4. As revealed by a study conducted by Mandiefe (2015) the financial
sector is an integral component in the growth of economies. As revealed in evaluation of some of
the developing countries around the world such as South Africa and Cameroon, the former has
been able to survive numerous financial shocks on the global economy as compared to the latter.
In this case, the stability of the South African financial sector was cited as being the major reason
why the countries has been able to survive numerous financial shocks as compared to that of
Cameroon5. In this case, it is clear that the financial sector is an integral component for economic
development that requires continuous evaluations in order to determine their performance.
Barclays bank is one of the largest banks globally6. The British headquartered firm is involved in
various fields such as financial services and investment banking. The operations of the firm are
centred in various areas such as personal and corporate banking, investment as well as wealth
management. The bank's history can be linked to the goldsmith banking period during the 1690s
in the old city of London7. The bank owes its name to James Barclay who became a partner in its
4
Zingales, L. (2015). Presidential address: Does finance benefit society?. The Journal of Finance, 70(4), 1327-1363.
5
Mandiefe, P. (2015). The impact of financial sector development on economic growth: analysis of the financial
development gap between Cameroon and South Africa. Available at SSRN 2616296.
6
Radda, A. A., Uzodinma, I., Akanno, S. N., Isa, M. S., Abdulkadir, A. A., Abba, S. A., & Abdulmajid, A. (2015).
Customer Relationship Management and Organizational Performance–The Case of Barclays Bank Plc. Studies, 4(4),
34-56.
7
Bari, A., & Syazwani, N. A. (2018). Bank Specific and Macroeconomics Determinants of Profitability in Barclays
Bank PLC, United Kingdom.
management in 17368. Over the years the bank has expanded to over numerous branches across
the world. In particular, the firm’s expansion has been driven by various corporate acquisitions
which it has undertaken over the years9. In addition to that, the firm has been involved in various
innovations which have catapulted its expansion into various world economies10.
The effectiveness of the firms banking app is reflected in the fact it has been regarded as the best
banking application in the United Kingdom (UK). In the period between 2012 and 2017, for
instance, mobile banking up experienced improved transactions from a low of 83.3milion pounds
to 1.7 billion pounds11. Currently, the bank has over 7.4 million customers relying on the mobile
banking application a clear indication of the important role played by digitization12. This is a
clear indication of the firms shifting operations towards digitization, a strategy which has enable
it to remain relevant and competitive in an industry which has witnessed an increase in the
number of players over the years.
Objectives
This study will be focused on the establishment of the following objectives:
1. To establish the impact of digitization in Barclays bank
2. To evaluate the change management approaches initiated at the bank
3. To determine the views of the bank employees regarding the change management
approaches which have been put in place.
8
Kollewe, J., & Ruddick, G. (2017). Barclays whistleblower case sparks calls for more protection. The Guardian,
11.
9
Pohl, M., & Tortella, T. (2017). A century of banking consolidation in Europe: the history and archives of mergers
and acquisitions. Routledge.
10
Frank, B., & Sienkiewicz, M. (2015). An eagle eye: Africa in the 20th century as viewed through the archives of
Barclays bank. African Research & Documentation, (125), 29-44.
11
Bank PLC, United Kingdom
12
Bank PLC, United Kingdom
Questions
The research will be guided based on the following questions
1. What are the views of employees regarding the digitization changes at the bank
2. What are the effects of digitization in the Barclays bank performance
3. How has the bank reacted to the impacts
4. What are the change management techniques put in place by Barclays bank
Definition of key terms
1. Digitalization – refers to the process of converting analogue information into digital
information consisting of zeros and ones13.
2. Banking sector- refers to a sector of the economy which is concerned with the collection
and storage of financial assets on behalf of other people14
3. Change management- refers to the operations and strategies which are initiated in order
to help an organization in addressing and handling change15.
4. Change- entails a variation from the norm16
5. Digital transformation- the transformation of a business with a focus on taking advantage
of digital technologies17.
13
Loebbecke, C., & Picot, A. (2015). Reflections on societal and business model transformation arising from
digitization and big data analytics: A research agenda. The Journal of Strategic Information Systems, 24(3), 149-
157.
14
Gupta, S., & Yadav, A. (2017). The Impact of Electronic Banking and Information Technology on the Employees
of Banking Sector. Management and Labour Studies, 42(4), 379-387.
15
Hamraz, B., & Clarkson, P. J. (2015). Industrial evaluation of FBS Linkage–a method to support engineering
change management. Journal of Engineering Design, 26(1-3), 24-47.
16
Hayes, J. (2018). The theory and practice of change management. Palgrave
17
Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2015). Strategy, not technology, drives digital
transformation. MIT Sloan Management Review and Deloitte University Press, 14, 1-25.
Structure of the paper
The first section of the study entails an explanation of the background of the study, research
statement, presentation of study objectives and the questions which guide the research. The
section also entails a definition of the various terms used in the thesis. Chapter 1 provides a
critical review of the various information sources which are related to digitization in the financial
sector and the change management approaches which have been used towards the handling of the
same. Chapter 2 is focused on presenting the methodology which was used in the collection of
data with the major sections being data collection and data analysis approaches. Chapter 3
encompasses data presentation and discussion based on the collected information pertaining to
change management at Barclays bank. The fourth chapter is concerned with presenting a
conclusion and recommendations based on the discussion in the third chapter.

CHAPTER 1: LITERATURE REVIEW
1.1 Introduction
This chapter will be focused on conducting a critical evaluation of digitization and how it has
affected the operations of Barclays. Given the fact that there are a few researches which have
been conducted in this particular organization, the research relied on the studies conducted on
similar banks across the world. This is in view of the fact that all banks are affected by the
factors that occur within the banking industry while appreciating the individual differences that
specific banks might encounter during their operations as independent entities.
1.2 Digitization
According to Parviainen, Tihinen, Kääriäinen, & Teppola, (2017) digitization refers to the
changes in the approaches to working which are attributed to the adoption of technological tools
in the operations of a firm on the industry in which it operates18. Digitization has also been
defined as the process of incorporating digital technologies with a view of creating new business
concepts and models and subsequently improving the revenue which is collected by a particular
firm19. In essence, digitization provides the chances and avenues through which organizations
can achieve growth.
The adoption of digitization techniques has been motivated by the realization of the benefits
which can be accrued by the organizations20. In particular, it has been revealed that firms
involved in information-intensive operations can be able to save up to 90% of the costs
associated with the running of the firm21. Furthermore, studies have also revealed the fact that
18
Parviainen, P., Tihinen, M., Kääriäinen, J., & Teppola, S. (2017). Tackling the digitalization challenge: How to
benefit from digitalization in practice. International Journal of Information Systems and Project Management, 5(1),
63-77.
19
Kagermann, H. (2015). Change through digitization—Value creation in the age of Industry 4.0. In Management of
permanent change (pp. 23-45). Springer Gabler, Wiesbaden.
20
Masuda, Y., & Whang, S. (2019). Digitization and Profitability.
21
Bandi, S., Angadi, M., & Shivarama, J. (2015). Best practices in digitization: Planning and workflow processes.
organizations can be able to streamline their operations by doing away with pen and paper22. In
particular, the approach has been found to result in an automatic collection of data which is
subsequently beneficial towards an improved understanding of the customer needs and proper
decision making at the organization23. In addition to that, the collection of real-time reports is
integral for the identification of problems within organizations and ensuring that they are
resolved as they operate and subsequently avoiding further destruction24.
It is also worth noting that improved digitization has increased the interaction between firms and
stakeholders in their industry25. In particular, firms have significantly improved their ability to
get involved with their customers, suppliers, shareholders as well as the local authorities who are
often keen on the performance of their firms26. This phenomenon has been increasingly reflected
in the financial sector where the banks have had an improved interaction with the customers as a
result of digitization. According to Sonono, and Ortstad, (2017) the Swedish banks have
currently moved to embrace the use of digital platforms for their operations. In particular, the
study reveals that up to 80% of the sales in the banking industry will be conducted through the
online platforms. In anticipation of this development, a large fraction of the banks have moved
towards the reduction in the number of employees as their operations will be replaced through
the use of the online channels27. The above highlighted assertions are corroborated by studies
which reveal that up to 20% of international customers rely on internet banking for their
22
157.
23
Agrawal, A., Horton, J., Lacetera, N., & Lyons, E. (2015). Digitization and the contract labor market: A research
agenda. In Economic analysis of the digital economy (pp. 219-250). University of Chicago Press.
24
Vendrell-Herrero, F., Bustinza, O. F., Parry, G., & Georgantzis, N. (2017). Servitization, digitization and supply
chain interdependency. Industrial Marketing Management, 60, 69-81.
25
Scardovi, C. (2017). Digital transformation in financial services. Springer.
26
Maiti, M., & Kayal, P. (2017). Digitization: it’s impact on economic development & trade with special reference
to services and MSME sector of India. Asian Economic and Financial Review, 7(6), 541-549.
27
Sonono, B., & Ortstad, R. (2017). The Effects of the Digital Transformation Process on Banks’ Relationship with
Customers: Case Study of a Large Swedish Bank.
operations. On the other hand, the study also revealed that 10% of bank customers rely on mobile
banking for their operations whereas only 3% indicated that they rely on branch services 28.
1.2.1 Internet banking
Internet banking as the title suggests is a web-based banking transaction. This banking platform
can be dated to the 1990s when the internet was first adopted on a wider scale by most
organizations. In particular Wells Fargo was the first bank to allow its customers to check their
balance on the online platform and subsequently creating a precedent which has been adopted by
numerous banks across the globe.
As shown, electronic banking is perceived as one of the most revolutionary components in the
banking industry29. Apparently more banks have been embracing internet banking in their
operations and phasing out other traditional approaches to banking. Ostensibly the technological
developments pertaining to information technology are making it significantly easier and cheaper
to rely on the internet for banking operations. Stoica, Mehdian, and Sargu (2015) corroborate the
above assertions by indicating that internet banking not only reduce the operational costs but also
enhance the profits which can be generated by the banks. This is because the platform reduces
the need for the customer to travel to the banks and as such minimizing the need for face to face
service which are often costly to maintain. Apparently the presence of the customers in the
banking halls has always made it imperative for the banks to effectively maintain the banking
halls as well as hiring additional staff to address the needs of each customer. Such costs have
however been eliminated with the adoption of internet baking given the fact that the customers
can easily complete their transactions from the comfort of their homes. Furthermore the
28
Deutsche Bank (2015). Delighting customers and Democratizing Finance: Digitalization and the Future of
Commercial Banking. https://cib.db.com/docs_new/GTB_Digitalisation_Whitepaper_(DB0388)_v2.pdf
29
Simon, V. T., & Thomas, A. S. R. (2016). Effect of electronic banking on customer satisfaction in selected
commercial banks, Kenya. International Academic Journal of Human Resource and Business Administration, 2(2),
41-63.
decreased need for workforce to handle the needs of the customers has enabled the firms to
reduce their overall wage bill hence enhancing profitability. It is also worth noting that the
reduced workload on the employees has resulted in increased productivity. Ostensibly the
employees have had to focus their efforts on other areas of the organization which require urgent
intervention without being overwhelmed by numerous tasks. In essence digitization has
enhanced the overall performance of the employees.
According to Binuyo and Aregbeshola, (2014) developments in technology have led to a shift
towards a knowledge-based economy that is driven by information communication technology
(ICT). ICT, in this case, encompasses electronic capture of information, processing as well as
transmission. The technologies involved in these improvements in production include the likes of
computers, handheld devices, as well as the development of the internet30.
Skvarciany and Jurevičienė, (2018) argue that trust in firm practices has been one of the greatest
drivers behind the adoption of internet banking by the customers. In addition to that studies have
also revealed that the alleviation of various challenges has motivated the customers towards the
adoption of internet banking31. Apparently, the customers are allowed to carry out banking
transactions at the comfort of their homes and within a real-time given the fact that they do not
have to waste time travelling to the banking halls in order to access their funds32. Skvarciany and
Jurevičienė, (2018) argues that irrespective of the various other benefits which were to be
accrued form internet banking, trust has remained the most influencing factor. In this case, the
30
Binuyo, A. O., & Aregbeshola, R. A. (2014). The impact of information and communication technology (ICT) on
commercial bank performance.
31
Vejacka, M., & Štofa, T. (2017). Influence of security and trust on electronic banking adoption in Slovakia.
32
Namahoot, K. S., & Laohavichien, T. (2015). Quality management and trust of internet banking in Thailand.
International Journal of Scientific and Technology Research, 4(9), 257-262.
trust that the funds will be properly dispensed and that the privacy of the users will be upheld has
encouraged most customers to embrace internet banking33.
In line with the above-highlighted assertions, studies have revealed that satisfaction with internet
banking transactions has been one of the greatest precursors of trust34. In other words, the
satisfaction with the services offered has often resulted in the development of trust towards the
organizations. In essence, the perceived benefits of internet banking are some of the factors
which have led to the development of trust. Notably the ability to get the services at one's
convenience and without the time and effort wastage has contributed towards the development of
trust towards the digital platform.
On the other hand some of the notable factors which have been shown to affect the uptake of
internet banking include lack of information regarding their existence or their characteristics.
These assertions are revealed in a study carried out in Romania where it was revealed that the
adoption of this platform had been hampered by lack of understanding regarding its benefits. In
line with such indications therefore it is critical that organizations ensure that they provide
adequate training to its employees in order to avoid low uptake35.
1.2.2 Mobile Pay
Mobile payment platform refers to the use of mobile phones for transactions. According to
Lafraxo, Hadri, Amhal, and Rossafi, (2018) disruptive technologies are changing the landscape
of banking. In this particular case, the mobile payment platform has emerged to be the fastest
growing areas of the banking sector. This has specifically been motivated by technological
33
Skvarciany, V., & Jurevičienė, D. (2018). Factors Influencing Individual Customers Trust in Internet Banking:
Case of Baltic States. Sustainability, 10(12), 4809.
34
Lafraxo, Y., Hadri, F., Amhal, H., & Rossafi, A. (2018). The Effect of Trust, Perceived Risk and Security on the
Adoption of Mobile Banking in Morocco. In ICEIS (2) (pp. 497-502).
35
Stoica, O., Mehdian, S., & Sargu, A. (2015). The impact of internet banking on the performance of Romanian
banks: DEA and PCA approach. Procedia Economics and Finance, 20, 610-622.
developments which have resulted in increased penetration of mobile phones across the world.
Apparently, smartphones have become a must-have device in contemporary society. The devices
not only have internet access capabilities but they are also equipped with various software which
allows for the installation of applications which can be used in carrying out transactions. In
particular, mobile banking comprises of applications which allow for monitoring of account
balances, money transfer as well as bill payments. The applications have also become vital in the
identification of ATM locations and hence enhancing access for the customers to the ATMs. The
significance of mobile banking in the finance industry is reflected in the acknowledgments of the
IS professionals who labelled it as “one of the most promising developments in the banking
industry”
The adoption of mobile payments has not been limited to the banking sector alone given the fact
that large technology firms have been keen to benefit from the use of the technology. Some of
the notable firms which have adopted mobile pay include the likes of Google, and Apple.
Barclays bank has been able to adopt various types of mobile banking applications across the
world and in the reflection of the needs of its customers. In particular, the application allows the
customers to implement various tasks such as making payments, transferring money as well as
checking balances.
The phone banking application, unlike other banking platforms, allows the customers to access
such vital services on a continuous and round the clock basis. As shown by Chandran, (2014)
mobile banking is relatively convenient as it can allow the customer to access the services at any
time which they desire to access the said services. In addition to that, there is increased
convenience where the customers are afforded the privilege of accessing the funds irrespective of
their location and proximity to the banking facility36. In essence, this allows for the avoidance of
queues which often characterize the banking facilities and which is often a disadvantage to the
customers. Mobile banking has also been regarded as the most secure form of banking as
compared to other alternatives such as internet banking37. This is attributed to the fact that any
transactions are often accompanied by text messages notifying the customer of the details of the
said transaction38. The high accessibility of information and their real-time nature in this regard
has proved vital in improving the security of mobile banking platforms over the other
alternatives39. The banks have also benefited from increased efficiency as attributed to the fact
that the strategy has enabled them to decongest the banking halls40. In this case, a large number
of the customers can complete their transactions without necessarily visiting the banking halls
which subsequently translated to better handling of operations by the banks. Similar to security
mobile banking is characterized with high levels of fraud detection41. In essence, the ability to
provide a real-time account of the performance of their accounts to the customers makes them
active participants in the prevention of fraud42. This as such implies that the mobile banking has
significantly improved the fraud handling capabilities of the banks43.
36
Chandran, R. (2014). Pros and cons of mobile banking. International journal of scientific and research
publications, 4(10), 1-5.
37
Bai, H. M. (2019). Mobile Banking Services and Customer Satisfaction with Reference to ICICI Bank-A Study.
Journal of Commerce, 7(2), 7-18.
38
Kavitha, K. (2015). Mobile Banking Supervising System-Issues, Challenges and Suggestions to improve Mobile
Banking Services. Advances in Computer Science: an International Journal, 4(4), 65-67.
39
Abbas, S. K., Hassan, H. A., Iftikhar, S., & Waris, A. (2018). Assimilation of TTF and UTAUT for Mobile
Banking Usage.
40
Michalow, M. J. (2016). Analysis of the impact of technological advances on financial institutions (Doctoral
dissertation, Utica College).
41
Abbas, S. K., Hassan, H. A., Asif, J., Ahmed, B., Hassan, F., & Haider, S. S. (2018). Integration of TTF, UTAUT,
and ITM for mobile Banking Adoption. International Journal of Advanced Engineering, Management and Science,
4(5), 89-101.
42
Chuang, C. C. (2019). Adopt M-Banking as a Successful Business Strategy. International Research Journal of
Applied Finance, 10(4), 160-169.
43
Vijayasarathi, V. (2016). A Study On Usage Of Kiosk Banking Services With Special Reference To City Union
Bank Ltd, Vellore Branch, Tamilnadu. Journal of Internet Banking and Commerce, 21(S5), 1.
1.3 Change management
The contemporary business environment is characterized by a high rate of changes. Ostensibly
technological innovations and increasing globalization have created an environment that is
experiencing numerous changes44.
In line with this increasing changes, it is becoming more imperative that organizations have to
put in place change management approaches. In particular, the handling of IT changes is one of
the areas that are characterized by numerous changes45. This is based on the fact that that the
developments have had a disruptive aspect on organizations with most adopting new business
approaches as well as strategies for business. The changes in this regard have been developed
based on the realization that success is based on the firm’s ability to embrace change.
Apparently, those firms which have failed to adapt to the numerous technological changes have
ended up being rendered obsolete in their industries. Some of the notable negative impacts of
change management include the loss of economic activity as well as the closure of the firm's
operations.
In as much as businesses have been aware of the various impacts of information technology on
their operations, few show existence of change management techniques in place. Notably, it has
been revealed that up to 60% of the managers have not been successful in their interventions
aimed at handling the effects of change management46. Some of the particular findings of the
study include the indications that there are poor process implementations on organizations which
44
de Andrade, P. R. M., Albuquerque, A. B., Teófilo, W. D., & da Silva, F. A. (2016). Change management:
Implementation and benefits of the change control in the information technology enviroment. arXiv preprint
arXiv:1603.03110.
45
Karkoskova, S., & Feuerlicht, G. (2015). Extending MBI Model using ITIL and COBIT Processes. Journal of
Systems Integration, 6(4), 29-44.
46
Khanagha, S., Ramezan Zadeh, M. T., Mihalache, O. R., & Volberda, H. W. (2018). Embracing Bewilderment:
Responding to technological disruption in heterogeneous market environments. Journal of Management Studies,
55(7), 1079-1121.
have made them unable to effectively address the emerging changes47. Besides the leadership
aspects which lead to the inability of adopting technology, it is also worth noting that technology
adoption has been hampered by the perspectives of employees towards the changes 48. For
instance, it is worth noting that the employees have always perceived technology from a negative
perspective especially given the fact that they have always resulted in job losses49. As indicated
above, some of the major motivations for the adoption of technology by firms is to reduce
operational costs by cutting down on the number of employees who are being managed. It thus
follows that the adoption of technological tools has in most instances ended up creating negative
perspectives among the employees50. Such perspectives have therefore ended up derailing the
adoption of technology to the detriment of the concerned organization51. Lack of communication
regarding the benefits of the set changes is another area which has been cited as being the major
cause behind the failure of changes instituted in the financial sector. In this case, the inability to
understand the functionalities of the various changes has hampered the ability of the employees
towards meeting the objectives of the firm. In essence, the lack of knowledge has ended up
hampering the implementation of change52.
47
Khanagha, S., Ramezan Zadeh, M. T., Mihalache, O. R., & Volberda, H. W. (2018). Embracing Bewilderment:
Responding to technological disruption in heterogeneous market environments. Journal of Management Studies,
55(7), 1079-1121.
48
157.
49
Lozano, R., Ceulemans, K., & Seatter, C. S. (2015). Teaching organisational change management for
sustainability: designing and delivering a course at the University of Leeds to better prepare future sustainability
change agents. Journal of Cleaner Production, 106, 205-215.
50
Angonese, R., & Lavarda, C. E. F. (2014). Analysis of the factors affecting resistance to changes in management
accounting systems. Revista Contabilidade & Finanças, 25(66), 214-227.
51
Gupta, S., & Yadav, A. (2017). The Impact of Electronic Banking and Information Technology on the Employees
of Banking Sector. Management and Labour Studies, 42(4), 379-387.
52
1.3.1 Digital changes
Digital change or transformation refers to the process an organization integrates digital
technologies for the purpose of implementing its pertinent operations such as its processes and
competencies53. The digital transformation has been motivated majorly by the need to improve
interconnectivity and ease of implementing ordinary functions within organizations54. In the
financial sector digital changes, as shown above, has been manifested in the form of adopting
technology in different aspects such as mobile banking and internet banking platforms55.
1.3.2 Impact of digital change
The continuous improvement in digitalization and the subsequent changes it is having on the
performance in the financial sector has had a corresponding effect on employees. The effects, in
this case, have been experienced in various levels such as rationalization, skill development, and
use, efficiency and the overall performance56. In particular, the changing technological tools and
the introduction of artificial learning technologies have had a significant impact on employee
rationalization. Apparently, it is becoming difficult for employees to develop rationalization
capabilities that match the technologies57. In this case, therefore, it is evident that the guarantee
of a lifelong career is no longer feasible. Ostensibly there is a likelihood that some professions
such as those in the financial sector will be replaced by machines and computers58.
53
Japparova, I., & Rupeika-Apoga, R. (2017). Banking business models of the digital future: the case of Latvia.
European Research Studies, 20(3A), 846.
54
Majchrzak, A., Markus, M. L., & Wareham, J. (2016). Designing for digital transformation: Lessons for
information systems research from the study of ICT and societal challenges. MIS quarterly, 40(2), 267-277.
55
Gabor, D., & Brooks, S. (2017). The digital revolution in financial inclusion: international development in the
fintech era. New Political Economy, 22(4), 423-436.
56
57
Foerster-Metz, U. S., Marquardt, K., Golowko, N., Kompalla, A., & Hell, C. (2018). Digital Transformation and
its Implications on Organizational Behavior. Journal of EU Research in Business, Article ID, 340873.
58
Kenney, M., & Zysman, J. (2015, June). Choosing a future in the platform economy: the implications and
consequences of digital platforms. In Kauffman Foundation New Entrepreneurial Growth Conference (Vol.
156160).
The above highlighted assertions are corroborated by studies which indicate that the digitization
has resulted in a decreasing organizational structure59. In particular organizations studies have
shown that organizations have been shrinking in size with most of them reducing the number of
their workforce due to the adoption of technological devices and tools. Information technology in
this case has resulted in some manual jobs beings scraped away. Some of the notable tasks which
have been affected by these developments include those in the financial sector60. In most
instances the affected jobs are those which have often been characterized with data collection
and processing. These developments have also led to the emergence of virtual organizations
which are entirely run on e-commercial activities. As indicated by Kuusisto, (2017) virtual
organizations are characterized with members working in different geographic locations with the
use of computers and information technology.
In essence digitation has had an immense impact on organizations with a specific impact on the
transfer of information. It is worth noting that digitization has enabled organizations to provide
improved accessibility to information as well as transparency to the benefit of its stakeholders
who have previously been forced to operate with little information regarding the performance of
their firms. Notably employees are able to make more informed decisions pertaining to their
tasks and responsibilities an aspect which has resulted in increased productivity of firms.
Business intelligence programs have also emerged to be critical in the decision making process.
Apparently the managers can now access a wide array of information pertaining to the
performance of their organization an aspect which is vital for the making of the most appropriate
decisions (Kuusisto, 2017).
59
Kuusisto, M. (2017). Organizational effects of digitalization: A literature review. International Journal of
Organization Theory and Behavior, 20(03), 341-362.
60
Vaishnavi, V. K., & Kuechler, W. (2015). Design science research methods and patterns: innovating information
and communication technology. Crc Press.
Besides the overall access to information and transparency, organizational learning has also been
significantly bolstered by digitization. According to Namada, (2018) organizational learning
refers to a dynamic process which is vital for the creation of knowledge that is aimed that
improving the overall performance of an organization through an improvement in competencies.
In particular digitization has enabled internal learning through codification as well as an
improvement in the analysis of knowledge61. A notable example is in the use of databases in
order to establish the performance of the organization and the various activities which have to be
implemented62. Apparently the use of databases in this regard is quite effective as compared to
the use of other traditional methods. This is based on the fact that one can easily access them and
without much effort as compared to traditional methods of perusing through large number of
documents manually. Other studies have also revealed the fact that digitation leads to increased
organizational memory63. This is because the firms have had the capability of storing large
volumes of data detailing each operations undertaken and cumulatively contributing towards the
creation of a detailed database (Thong, Chau, & Tam, 2019). The business intelligence programs
have also contributed to the creation of organizational memory given the fact that the managers
can learn from the decisions made in the past and subsequently improving on the decision
making process in the future. In particular the managers can identify any mistakes which
occurred in the past and how it affected the firm and subsequently leading to the avoidance of the
same in the future. In essence the speed and accuracy of the decision making process is
61
Namada, J. M. (2018). Organizational learning and competitive advantage. In Handbook of Research on
Knowledge Management for Contemporary Business Environments (pp. 86-104). IGI Global.
62
de Reuver, M., Sørensen, C., & Basole, R. C. (2018). The digital platform: a research agenda. Journal of
Information Technology, 33(2), 124-135.
63
Namada, J. M. (2018).
significantly boosted by organizational memory attributed to digital tools such as the business
intelligence programs64.
As indicated above, digitization has also contributed to the enhancement of communication. In
particular various tools and platforms such as emails, videoconferencing and conference calls
have emerged as a result of digitization. As shown by Vaishnavi and Kuechler, (2015) this
communication channels have resulted in the formation of weak ties between employees where
they can have discussions on issues affecting them at work. Further studies have indicated that
the weak ties have been integral in the enhancement of organizational learning since the various
participants can engage in decisions pertaining to issues affecting them at work. Besides
encouraging communication between employees digitization has also led to the creation of a
large pool of information pertaining to the organization. In essence employees can easily get
access to a wide range of information pertaining to various issues concerning the workplace65.
1.3.3 Strategies used in adopting digital changes
As indicated by Ememe, (2017) some of the most common change management strategies which
have been introduced in the Nigerian banking industries include the likes of improved training
for staff, application and embrace of technology, optimization of costs, provision of improved
service to the customers, as well as the adoption of a leadership strategy that is transformative66.
It is also worth noting that strategies are the major driver of change as opposed to technological
developments. In other words, the determination to achieve certain targets within an organization
is often the main determiner of whether a firm will be able to change or not67. Organizational
64
Namada, 2018.
65
Thong, J. Y., Chau, P. Y., & Tam, K. Y. (2019). Organizational Learning and Knowledge Management: A Special
Issue of the journal of Organizational Computing and Electronic Commerce.
66
Ememe, J. (2017). Leadership Strategies for Managing Change in the Nigerian Banking Industry.
67
Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2015). Strategy, not technology, drives digital
transformation. MIT Sloan Management Review and Deloitte University Press, 14, 1-25.
change programs are vital for the continuity of an organization. As shown by Kane, Palmer,
Phillips, Kiron, and Buckley, (2015) organizational change ensures that an organization enhances
the competitive nature of the firm and subsequently its ability to continuously earn profits68.
Unlike in the past change management in contemporary society has become increasingly
complex as attributed to the fact that there are numerous developments and occurrences which
require the attention of the management. In the particular case of digital changes, firms have to
put in place an elaborate mechanism in order to achieve success69. This is due to the fact that
digital change have had immense impact on the performance of organizations right from the
process of manufacturing to employment as well as interaction with employees.
The embrace of technology is one of the most obvious approaches through which a firm can
adopt digital changes. Apparently, the involvement of employees in the change process is an
integral step towards ensuring successful implementation70. This assertion is based on the fact
that employees are often required to implement the objectives of the organization and as such
ensuring that they understand what is being implemented is vital. Specifically, the training in this
case not only leads to the awareness creation but it leads to the acquisition of necessary skills for
the implementation of desired changes71. In addition to that, it is worth noting that change can
only happen if those concerned become aware of the fact that the current conditions are no
longer conducive and as such requiring changes and the development of necessary
interventions72.
68
Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2015).
69
Muscalu, E., & Ciocan, F. (2016). Attracting and motivating employees during changes in organization. The role
of the human resources department. Journal of Defense Resources Management, 7(2), 153
70
71
Sartori, R., Costantini, A., Ceschi, A., & Tommasi, F. (2018). How do you manage change in organizations?
Training, development, innovation, and their relationships. Frontiers in psychology, 9, 313.
72
Petrou, P., Demerouti, E., & Schaufeli, W. B. (2018). Crafting the change: The role of employee job crafting
behaviors for successful organizational change. Journal of Management, 44(5), 1766-1792
Optimization of costs, as shown above, is one of the ways in which organizations can use in
adopting digital changes. In essence cost optimization refers to the process used in reducing costs
and maximizing the value which can be achieved by the firm in the process73. This approach can
be integral in the implementation of change since most programs tends to consume resources
which were not allocated74. In addition to that, the likelihood of cost overruns during the change
implementation is significantly high an aspect which should be taken into account by the
management. According to Lind and Brunes, (2015) cost overruns tend to be significantly high
especially when the projects are large and involve the investment of large finances. In such
instances, external shocks such as currency fluctuations can easily have an impact on the number
of funds which can be used in the completion of a change or project75.
The other strategy which has to be taken into account during the adoption of change is the
involvement of all stakeholders. Apparently change is one of the most important occurrence in
an organization since it has an impact on the approach of doing work and if not handled properly
it may have negative repercussions. According to de Reuver, Sørensen, and Basole, (2018) the
involvement of all stakeholders is also important step towards avoiding resistance. As shown by
various studies some of the major causes of resistance include the lack of knowledge regarding
the benefits which can be accrued from the system which is being put in place. In addition to that
resistance can occur due to the development of perceptions that they are being considered
insignificant in the organization. Ostensibly stakeholder perceptions on being involved in the
change implementation can have a significant impact on whether the changes can be successful
73
Schuh, G., Riesener, M., Tönnes, C., & Aleksic, S. (2017). Technical change management for the maintenance of
product platforms. Procedia CIRP, 60, 458-463.
74
Pekkola, S., Saunila, M., & Rantanen, H. (2016). Performance measurement system implementation in a turbulent
operating environment. International Journal of Productivity and Performance Management, 65(7), 947-958.
75
Lind, H., & Brunes, F. (2015). Explaining cost overruns in infrastructure projects: a new framework with
applications to Sweden. Construction management and economics, 33(7), 554-568.
or not. Given the vast nature of organizations and the high number of stakeholders it is always
necessary to develop a strategy for identify the most important participants in the making of
change.
The development of rollout plan is another important aspect in the implementation of change. As
it is expected planning is often an integral component in project implementation. The change in
this case is a large project which requires adequate planning by the managers and those in charge
of directing the change. Some of the most important aspects which have to be considered in the
plan include the key dates, deployment tiers, training opportunities as well as the expectations or
goals which have to be met by the change. In regards to the key dates the initiators of change
should show the specific dates when the changes will be rolled out, and when the current systems
or programs will be switched out. This also displays the timelines when the users will be
expected to fully adopt the new changes. The deployment tiers on the other hand will entail and
indication on whether the changes will be initiators to all the users at once or whether a piloting
approach will be used. In the case of a pilot approach the plan should show the sections and
departments of the organization which will be targeted. In regards to training opportunities the
plan should show the type of programs which will be used in meeting the expected training
goals. Some of the aspects which will be captured in this section include whether certain sections
of the organization will require more training as compared to the others. The expectations section
on the other hand will show the measures which will be used in ensuring that the changes are
adhered to within the organization. Some of the notable aspects which will be contained in the
section include whether they will be punishments for those who fail to adhere to the changes or
not.
The provision of incentives is also an important component in change management. As expected
most of the employees may not be willing to ensure the successful implementation if the
programs are intensive or beyond their skills and expertise76. The provision of incentives in this
case will be a necessary motivation for them to improve their performance especially during the
training instances. Alfandi and Alkahsawneh, (2014) corroborates these assertions by indicating
that incentives is one of the major factors which is used in encouraging workers to put forwards
great efforts in the implementation of their tasks. In essence this phenomenon is attributed to the
fact that incentives enable the employees to channel their efforts towards the achievement of
certain goals. In this case the determination to get benefits provide the employees with the
necessary drive for productivity. This can be significantly essential during change when the
organization is focused on maximizing the performance of all resources. Apparently the
likelihood of failure is significantly high hence necessitating maximum performance from all
stakeholders. This as shown above can only be achieved by ensuring that the employees are well
motivated77.
Evaluation of the achievements is another step necessary for ensuring that change is effectively
implemented78. In as much as the management may have put in place various measure to ensure
that the change is effected as required, there are chances that mistakes may occur hence resulting
in failure. As indicated by Latham, (2014) the overall success of a project depends on the ability
to identify shortcomings at earlier stages. It is also worth noting that without proper evaluation
an organization stands a chance of losing in various ways. Firstly there is the likelihood that the
76
Alfandi, A. M., & Alkahsawneh, M. S. (2014). The Role of the Incentives and Reward System in Enhancing
Employee's Performance" A Case of Jordanian Travel and Tourism Institutions". International Journal of Academic
Research in Business and Social Sciences, 4(4), 326.
77
Alfandi, A. M., & Alkahsawneh, M. S. (2014).
78
Latham, N. (2014). A practical guide to evaluating systems change in a human services system context. San
Francisco: Center for Evaluation Innovation.
firm may lose financially as attributed to the fact that change is often costly and any mistakes can
lead to huge losses. In addition to that there is likelihood of time wastage given that most such
initiatives take long to implement. Any mistakes also exposes the organization to a lost
opportunity. As shown above, the determination to keep up with the changes in the society is
often the greatest motivation towards the introduction of change. In this regard therefore the
inability to implement change successful is tantamount to a lost opportunity and may even be an
indication of the end of the organization. In this regard therefore it is often critical that the
organization put in place change evaluation measures79.
1.3.4 Change management process
The change management process often entails various stages such as preparing for change,
managing change and finally reinforcing change80. In detail the stages often entail creating
urgency, developing a guiding coalition, creating a vision and subsequently empowering others
towards the achievement of the vision. In this case, developing a sense of urgency regarding the
adoption of certain projects leads to the increased enthusiasm and vigour on the part of the
employees regarding the implementation of certain projects81. In essence, this is vital towards the
creation of the necessary energy that will be integral towards timely completion of a project 82.
79
Latham, N. (2014). A practical guide to evaluating systems change in a human services system context. San
Francisco: Center for Evaluation Innovation.
80
Hammer, M. (2015). What is business process management?. In Handbook on business process management 1
(pp. 3-16). Springer, Berlin, Heidelberg.
81
Sjödin, D. R., Parida, V., Leksell, M., & Petrovic, A. (2018). Smart Factory Implementation and Process
Innovation: A Preliminary Maturity Model for Leveraging Digitalization in Manufacturing Moving to smart
factories presents specific challenges that can be addressed through a structured approach focused on people,
processes, and technologies. Research-Technology Management, 61(5), 22-31.
82
34-56.
Developing a guiding coalition, on the other hand, entails setting up a management team which
will oversee the implementation of the anticipated changes83. The adoption of an independent
management team for such purposes is vital given the fact that the operations involved can be
overwhelming to the managers84. In this case, the management team will work towards
structuring the change implementation and ensuring that it meets the set objectives of the firm85.
The creation of a vision is another vital approach to the implementation of the projects. As
shown by Papulova, (2014) vision has been integral in driving large technology firms such as
Microsoft towards success which relied on Bill gates in the creation of a guiding objective. In
this case, the creation of vision is regarded as a component of strategic management86.
The final stages include creating quick wins building on the change as well as institutionalizing
change. Quick wins in this case act as milestones which have to be fulfilled within a short time
before the ultimate goal is met87. Apparently, the achievement of the ultimate goal may be an
energy consuming process based on the various steps and requirements which have to be met. In
this regard, therefore, meeting shorter and minor objectives is an effective way towards
encouraging those concerned towards improving their participation in the process88. In other
words quick wins provide the necessary energy and propulsion towards the achievement of a
greater goal.
83
Harmon, P. (2019). Business process change: a business process management guide for managers and process
professionals. Morgan Kaufmann.
84
Rosemann, M., & vom Brocke, J. (2015). The six core elements of business process management. In Handbook
on business process management 1 (pp. 105-122). Springer, Berlin, Heidelberg.
85
Hayes, J. (2018). The theory and practice of change management. Palgrave.
86
Papulova, Z. (2014). The significance of vision and mission development for enterprises in Slovak Republic.
Journal of Economics, Business and management, 2(1), 12-16.
87
Trkman, P., Mertens, W., Viaene, S., & Gemmel, P. (2015). From business process management to customer
process management. Business process management journal, 21(2), 250-266.
88
Van der Voet, J., & Vermeeren, B. (2017). Change management in hard times: Can change management mitigate
the negative relationship between cutbacks and the organizational commitment and work engagement of public
sector employees?. The American Review of Public Administration, 47(2), 230-252.
The institutionalization of change, on the other hand, pertains to ensuring that the employees or
those concerned are well versed with changes. In essence, this involves merging the changes
with organizational culture and practices89. At this stage the employees are no longer resisting
change or taking about change since it has become part and parcel of the organization. The
requirements of the organization and the obligations of the employee towards the organization as
such becomes a responsibility which have to be implemented. In addition to that
institutionalization of change is often characterized with the employees acquiring the necessary
skills needed to implement the changes effectively.
Figure 1 change management stages
89
Buick, F., Blackman, D. A., O'Donnell, M. E., O'Flynn, J. L., & West, D. (2015). Can enhanced performance
management support public sector change?. Journal of Organizational Change Management, 28(2), 271-289.
1.3.5 Mistakes experienced in change management
The change management process is of hampered by several challenges. Apparently, appropriate
leadership approaches are an integral component towards the achievement of change in an
organization90. In this case, it is integral that the leaders should be positive, and with a clear
direction to the subordinates91. An effective leader is also involved in providing communication
for all those involved up and down the leadership hierarchy92. In essence, this is necessary for
providing the necessary strength which can drive the organization forward towards success 93. On
the other hand, a manager who becomes an impediment towards an effective communication
between employees curtails the expected change in an organization94. This as such leads to the
emergence of failure on leadership which can have an immense negative impact on the change
management process.
Quantification of the impacts of change is another aspect which often hampers the effective
implementation of change. As it is, the major motivation of initiating change is often the
achievement of certain tasks95. In this regard, therefore, the failure to evaluate the success of
certain change can be a major impediment towards the effective implementation of the same96.
The worst case scenarios regarding the inability to measure change may be characterized by the
90
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management: Gaining a
competitive advantage. New York, NY: McGraw-Hill Education.
91
Holten, A. L., & Brenner, S. O. (2015). Leadership style and the process of organizational change. Leadership &
Organization Development Journal, 36(1), 2-16.
92
Akinbode, A. I., & Al Shuhumi, S. R. A. (2018). Change Management Process and Leadership Styles. PEOPLE:
International Journal of Social Sciences, 4(2).
93
Agote, L., Aramburu, N., & Lines, R. (2016). Authentic leadership perception, trust in the leader, and followers’
emotions in organizational change processes. The Journal of Applied Behavioral Science, 52(1), 35-63.
94
Binci, D., Cerruti, C., & Braganza, A. (2016). Do vertical and shared leadership need each other in change
management?. Leadership & Organization Development Journal, 37(5), 558-578.
95
Saunila, M. (2016). Performance measurement approach for innovation capability in SMEs. International Journal
of Productivity and Performance Management, 65(2), 162-176.
96
Nudurupati, S. S., Tebboune, S., & Hardman, J. (2016). Contemporary performance measurement and
management (PMM) in digital economies. Production Planning & Control, 27(3), 226-235.
management failing to follow up on instituted changes97. A notable example is a reliance on old
methods of running the organization in rewarding the employees an aspect which can have an
immense demoralization effect on the employees98. In essence, the failure to follow up on the
changes implies that they cease to have any benefit to the organization rendering all efforts
rendered useless99.
Declaring victory prior to full implementation of change is another aspect which has been found
to have a negative impact on the process. In as much as declaring of victory is a good factor in
boosting the morale of the employees; it can negatively affect the overall performance of the
organization if the said victory is premature100. This is based on the realization that this can often
result in the reduction in commitment from the employees and those involved in the project
implementation101.
1.3.6 Benefits of communication
As shown above, the process of implementing change is often characterized by numerous
challenges. This assertion is based on the fact that there are a large number of individuals who
are required to take part in the process of implementing change102. In addition to that those
involved often have different opinions regarding the changes that may be intended on the
organization. The presence of such differences as such leads to numerous challenges in the
97
Ittner, C. D. (2015). Performance Measurement, Implementation Issues. Wiley Encyclopedia of Management, 1-4.
98
Pekkola, S., Saunila, M., & Rantanen, H. (2016). Performance measurement system implementation in a turbulent
operating environment. International Journal of Productivity and Performance Management, 65(7), 947-958.
99
Alexander, A., Kumar, M., & Walker, H. (2018). A decision theory perspective on complexity in performance
measurement and management. International Journal of Operations & Production Management, 38(11), 2214-2244.
100
101
Hamraz, B., & Clarkson, P. J. (2015). Industrial evaluation of FBS Linkage–a method to support engineering
change management. Journal of Engineering Design, 26(1-3), 24-47.
102
Lewis, L. (2019). Organizational change: Creating change through strategic communication. Wiley-Blackwell.
implementation process an aspect which may derail the whole process103. In other words, the
difference in opinion significantly increases resistance since those involved do not understand
how the whole project will be beneficial to them. Communication is one of the best approaches
towards the handling of such challenges104. This perspective is corroborated by studies which
indicate that change and communication are two aspects which work together. In this regard
without communication, it would be difficult to achieve any change within an organization105.
Notably, the managers rely on the communication channels in order to convey their messages
regarding the objectives of the organization and the approaches which will be taken towards the
achievement of the same. In addition to that communication enables the managers to take into
account the needs and concerns of the employees during the change process106. Ostensibly there
can be the occurrence of certain activities which were not intended by the initiators of change. In
this case, the existence of a working communication channel will ensure that such concerns are
directed to the involved stakeholders and that the necessary measures. It is also worth noting that
the motivation and employee attitudes towards a program depend extensively on the existence of
a close relationship between the two parties107. Apparently, the existence of a closer relationship
and communication makes the employees to feel appreciated and as such boosting their resolve
to ensure the success of the projects108.
103
Smet, K., Vander Elst, T., Griep, Y., & De Witte, H. (2016). The explanatory role of rumours in the reciprocal
relationship between organizational change communication and job insecurity: a within-person approach. European
Journal of Work and Organizational Psychology, 25(5), 631-644.
104
Ocasio, W., Loewenstein, J., & Nigam, A. (2015). How streams of communication reproduce and change
institutional logics: The role of categories. Academy of Management Review, 40(1), 28-48.
105
Muscalu, E., & Ciocan, F. (2016). Attracting and motivating employees during changes in organization. The role
of the human resources department. Journal of Defense Resources Management, 7(2), 153.
106
Petrou, P., Demerouti, E., & Schaufeli, W. B. (2018). Crafting the change: The role of employee job crafting
behaviors for successful organizational change. Journal of Management, 44(5), 1766-1792.
107
Babalola, M. T., Stouten, J., & Euwema, M. (2016). Frequent change and turnover intention: The moderating role
of ethical leadership. Journal of Business Ethics, 134(2), 311-322.
108
Jabri, M. (2017). Managing organizational change: Process, social construction and dialogue. Palgrave.
1.3.7 Opposition to change
Opposition to change as shown above is a common phenomenon especially when those involved
in the change are not well informed regarding the benefits of the same. According to Bringselius,
(2014) various studies have shown the employee resistance to be one of the greatest impediments
to change. Most of the employee objections have been associated with feelings of fear, distress
as well as anger regarding the intended changes in the organization109. However, this perspective
regarding the negative effects of employees in the implementation of change has been contrasted
by recent studies110. According to Bringselius, (2014) the issue of resistance from employees has
to be reconsidered given the fact that the resistance may be a form of feedback and as such
beneficial to the whole process of change. In other words, the feedback from resistance can be
used in instituting improvements in the change and subsequently attaining a better result for the
organization. Other scholars have argued that employee resistance to change should be perceived
as a sign of loyalty to the organization as opposed to disloyalty as has been the case in most
instances111.
In light of the above-highlighted assertions employee resistance has been perceived to have a
degree of flexibility as indicated in figure 2 below. As shown in the figure each level of
resistance has a unique approach through which the managers can use in handling them. For
instance, if the objections raised by the employee are perceived to be an opinion, the managers
can then proceed towards establishing a dialogue112. Apparently, dialogue is an important step
109
Oreg, S., Bartunek, J. M., Lee, G., & Do, B. (2018). An affect-based model of recipients’ responses to
organizational change events. Academy of Management Review, 43(1), 65-86.
110
Bringselius, L. (2014). Employee objections to organizational change: a framework for addressing management
responses. Organization development journal, 32(1), 41-54.
111
Will, M. G. (2015). Successful organizational change through win-win: How change managers can create mutual
benefits. Journal of Accounting & Organizational Change, 11(2), 193-214.
112
Georgalis, J., Samaratunge, R., Kimberley, N., & Lu, Y. (2015). Change process characteristics and resistance to
organisational change: The role of employee perceptions of justice. Australian Journal of Management, 40(1), 89-
113.
towards ironing out of any concerns regarding a project113. On the other hand, if the objections
are perceived to be a whistleblowing, then it would be integral to adopt an exit strategy114. This
particularly important in the instances where there is no understanding between the manager and
the concerned employees115. In essence, this position is based on the assumption that the
employee is not willing to change his position regarding certain changes which are being
initiated in the organization116.
Figure 2 source: Bringselius, (2014)
113
Rafferty, A. E., & Jimmieson, N. L. (2017). Subjective perceptions of organizational change and employee
resistance to change: direct and mediated relationships with employee well‐being. British Journal of
Management, 28(2), 248-264.
114
Conroy, S., Henle, C. A., Shore, L., & Stelman, S. (2017). Where there is light, there is dark: A review of the
detrimental outcomes of high organizational identification. Journal of organizational behavior, 38(2), 184-203.
115
Grama, B., & Todericiu, R. (2016). Change, resistance to change and organizational cynicism. Studies in
Business and Economics, 11(3), 47-54.
116
Appelbaum, S. H., Degbe, M. C., MacDonald, O., & Nguyen-Quang, T. S. (2015). Organizational outcomes of
leadership style and resistance to change (Part Two). Industrial and Commercial Training, 47(3), 135-144.
CHAPTER 2: METHODOLOGY
2.1 Introduction
This section presents the methods which were adopted in the process of completing this research.
As shown in the introduction section, this study is focused on highlighting the impacts of
digitization and change management at Barclays Bank. The main focus in this regard was
determining how the employees at Barclays Band perceived the changes which have been put in
place as a result of digitization of operations.
2.2 Data Collection
The determination of research methods is one of the most important approaches in the
completion of the study. This is based on the fact that the research method will determine if the
study will be able to achieve the objectives of the study117. In regards to this particular study, the
researcher adopted a quantitative data collection approach. A quantitative data approach is a vital
data collection tool in the case where the targeted populations are relatively large118. This is
based on the fact that this data collection tool is relatively earlier to administer and that it is less
costly as compared to other data collection approaches119. Ostensibly the administration of the
tools does not require the researcher to be directly available in the field as is the case in the use
of interview data collection tool. In addition to that, the respondents are often afforded high
levels of convenience which encourages them to take part in the study. This is attributed to the
fact that the participants can fill the document at their own convenience and with maximum
privacy. On the other hand, such levels of privacy have been linked to low authenticity since the
117
Bell, E., Bryman, A., & Harley, B. (2018). Business research methods. Oxford university press.
118
Testa, M. A., & Simonson, D. C. (2017). The Use of Questionnaires and Surveys. In Clinical and Translational
Science (pp. 207-226). Academic Press.
119
Hurst, P., and S. Bird. "Questionnaires." (2019): 93-101.
researcher cannot establish that the targeted persons actually filled the questionnaire120.
Essentially cases of delegating such duties to other people often results in the collection of data
which is not genuine or valid hence affecting the data collected. The researcher took account of
such limitation by ensuring that the number of participants was significantly increased 121. In this
way, any instances of invalid data were resolved by the genuine data which was collected from
other respondents122.
A total of 300 individuals were contacted in this study out of which there were 163 valid replies.
The researcher contacted the target population using emails acquired from the organization's
platform and with permission from the firm’s human resource manager.
In regards to ethics, the researcher attached a consent form with the emails informing the
respondents of the intentions of the study123. Specifically, the participants were informed that the
research was purely for academic purposes and that the collected data would be destroyed once
the needed information had been acquired and necessary academic targets achieved. In addition
to that, the consent form stated that the personal information of the respondents would not be
revealed to third parties. All this was in accordance with the protection of privacy which is an
integral component especially when the information being sought as was in the case of this
research is sensitive. Apparently, the likelihood of victimization could have been heightened if
the personal details of the participants were revealed124.
120
Debois, S. (2016). Advantages and disadvantages of questionnaires. SurveyAnyPlace Blog.
121
Krupić, D., Corr, P. J., Ručević, S., Križanić, V., & Gračanin, A. (2016). Five reinforcement sensitivity theory
(RST) of personality questionnaires: Comparison, validity and generalization. Personality and Individual
Differences, 97, 19-24.
122
Bolarinwa, O. A. (2015). Principles and methods of validity and reliability testing of questionnaires used in social
and health science researches. Nigerian Postgraduate Medical Journal, 22(4), 195.
123
Golder, S., Ahmed, S., Norman, G., & Booth, A. (2017). Attitudes toward the ethics of research using social
media: a systematic review. Journal of medical Internet research, 19(6), e195.
124
Harriss, D. J., MacSween, A., & Atkinson, G. (2017). Standards for ethics in sport and exercise science research:
2018 update. International journal of sports medicine, 38(14), 1126-1131.
The researcher ensured the validity and reliability of the study through various ways such as
limiting the publication dates of the secondary information sources to 2014 to 2019. The
limitation, in this case, was integral for ensuring that only the sources used had current
information pertaining to digitization in the financial sector and the change management
techniques adopted to address the same. Reliability of the study was also ensured through the
utilization of information sources considered to be credible. In particular, the researcher utilized
scholarly articles, online articles and books, all of which are regarded as being important sources
for academic research due to the quality of data that they contain125. In general, the combination
of both primary and secondary data sources in this study was another important aspect which
helped in improving its reliability and validity. This is based on the fact that the secondary data
sources used in this case were published by people with a wide understanding in this field of
study hence providing the necessary backing for the primary data126.
2.3 Data Analysis
Data analysis is an important segment of the research completion exercise based on the fact that
it allows for the grouping and interpretation of data. The data collected from the questionnaires
were analysed using Ms excel software127.
125
Heale, R., & Twycross, A. (2015). Validity and reliability in quantitative studies. Evidence-based nursing, 18(3),
66-67.
126
Kooiman, T. J., Dontje, M. L., Sprenger, S. R., Krijnen, W. P., van der Schans, C. P., & de Groot, M. (2015).
Reliability and validity of ten consumer activity trackers. BMC sports science, medicine and rehabilitation, 7(1), 24.
127
Schubert, O. T., Gillet, L. C., Collins, B. C., Navarro, P., Rosenberger, G., Wolski, W. E., ... & Aebersold, R.
(2015). Building high-quality assay libraries for targeted analysis of SWATH MS data. Nature protocols, 10(3),
426.
CHAPTER 3: DISCUSSIONS
3.1 Introduction
This section entails a discussion of the data acquired from the respondents through the use of
questionnaires. In particular, the section contains a display of data from the 163 respondents who
successfully filed the questionnaires and returned them to the researcher. Information from the
questionnaires is presented in the form of charts, tables and diagrams for easier interpretation.
Subsequently, the data is discussed in line with the information collected in the literature review
section with an aim of making sense of the information collected form the respondents.
3.2 Personal details
3.2.1 Age
Age of respondents
5, 3%
20, 12%
18-25
26-35
81, 50%
36-45
57, 35%
46+
The research questionnaire began with a focus on establishing the background details of the
respondents where it was clear that most of them were aged 46 years and above. As shown in the
table able those aged 46 and above comprised 50% of the entire population. It was also noted
that 56% of the 163 respondents were female while 44% were male.
3.2.2 How long have you worked at the organization?
In regards to work experience in the bank, most of the respondents revealed that they have been
working in the bank for more than 11 years. In particular, 56% of the participants indicated that
they had worked for more than 11 years. 35% indicated that they had been working in the bank
for 6 to 10 years while 9% indicated that they had been working in the bank for 2 to 5 years.
None of the participants had worked in the organization for less than 1 year.
No. of participants
0, 15,
0% 9%
0-1
2 to 5
91, 56% 57, 35% 6 to10
11+
3.2.3 Role in the organization
The research also sought to establish the specific roles played by the respondents at Barclays
bank. The results revealed that most of the respondents were involved in the loans department of
the organization comprising 40% of the respondents. They were followed closely in number by
those in the daily banking section that made up 34% of the participant population. Those
working in the investment section had the least number comprising 26% of the population.
No. of participants
56, 34% Loans

65, 40%
investments
banking
42, 26%
3.3 Change associated with Digitization
3.3.1 Do you believe that digital changes are beneficial to you as an employee?
Effects of digitization on my Job
7%0%
strongly agree
agree
34% neutral
59% disagree
strongly disagree
In response to the query on whether digitization has had an impact on their job descriptions, most
of the participants showed that they had been significantly affected. This is reflected in the fact
that 59% of the respondents strongly agreed with the query while 34% agreed with the statement.
Those who had a neutral perspective towards the statement only made up 7% of the participant
population. These results serve to corroborate the findings in the literature review section
whereas indicated there have been numerous improvements attributed to digitization in the
financial sector128. In particular, the firms have had to shift towards mobile and online banking
platforms. This aspect as shown has had an immense impact on the financial institutions with
most opting to reduce the number of employees given the fact that there has been a decrease in
the number of customers visiting the banks in order to complete their transactions129. Apparently,
the online and mobile banking platforms have enabled the customers to complete their
transactions without visiting the banking halls. This as such has necessitated the downsizing of
the workforce while others have been redeployed to other areas with lower workload. In
particular those employees assigned lighter duties have benefitted from an overall work
conditions. As it is most employees perception towards work tends to improve when they have
fewer and less confusing tasks. This assertion is corroborated by studies in the literature review
section which have revealed that the overall digitization has resulted in improved efficiency. The
efficiency in this case can be linked to the development of positive attitudes towards work which
are reflected in the results highlighted above.
128
Skvarciany, V., & Jurevičienė, D. (2018). Factors Influencing Individual Customers Trust in Internet Banking:
Case of Baltic States. Sustainability, 10(12), 4809.
129
Namahoot, K. S., & Laohavichien, T. (2015). Quality management and trust of internet banking in Thailand.
International Journal of Scientific and Technology Research, 4(9), 257-262.
3.3.2 Do you think that the changes have been beneficial in meeting customer needs?
Importance of digitization and

change
0% strongly agree
23%
agree
neutral
disagree
77%
strongly disagree
In response to whether digital changes were beneficial in the handling of customer needs, most
of those queried showed a strong agreement. Specifically, 77% of the respondents strongly
agreed with the statement while 23% agreed with the question. None of the participants showed
disagreement with the statement.
This result is a clear pointer regarding the essential nature of digitization in the contemporary
financial sector. As shown in the literature review section, the technological inventions have
made it possible for a large number of people to be in possession of mobile devices as such
providing the necessary platform for implementing internet and mobile banking. The increased
competition between organizations has also made it imperative that organizations should adapt to
emerging changes without which they might be rendered obsolete and incompetent in their
industry. In addition to that the studies have also revealed an improvement in the services offered
to the customers. As shown above, internet and mobile banking has made it possible for
customers to conduct their transactions at the comfort of their homes, an aspect which has
revealed to have resulted in improved efficiency for the firms since they can manage more
transactions at a lower cost. Fraud incidences have also been minimized especially with the use
of mobile banking given the fact that customers can receive real-time information regarding their
bank accounts and transactions.
3.3.3 The changes are effectively designed to improve the performance of the firm
In response to the query on whether the changes being instituted were well developed to address
the needs of the organization most of the participants strongly agreed with the statement. Up to
86% of the respondents were in strong agreement with the statement while 11% were in
agreement with the statement. None of the participants disagreed with the statement.
Desing of the changes
0%
3%
0%
11% strongly agree
agree
neutral
disagree
86% strongly disagree
The above result is a clear pointer of the effective change management approaches which have
been instituted at Barclays bank. Apparently, the ability to effectively meet the needs of the
organization while at the same time addressing the challenges in the industry is a clear indication
of effective leadership130. As shown by Bringselius, (2014) proper change management
techniques entail the handling of the employee concerns and opinions. This is based on the
realization that employee concerns are vital input which can provide positive guidance towards
the implementation of change131. In this regard, the overwhelming indication by the employees
that they acknowledge the changes which have been put in place is a reflection of effective
leadership approaches which strived to encompass the views of the employees during the change
management process and implementation132.
3.4 Change management
3.4.1 Has the communication about changes been transparent?
Explanation of change
12%0% strongly agree

0%
15% agree
neutral
disagree
73%
strongly disagree
In response to the query on whether the management has always explained the methods for
achieving change, most of the participants were in agreement. 73% of the respondents were in
130
34-56.
131
Will, M. G. (2015). Successful organizational change through win-win: How change managers can create mutual
benefits. Journal of Accounting & Organizational Change, 11(2), 193-214.
132
responses. Organization development journal, 32(1), 41-54
strong agreement with the statement while 15% agreed with the statement. There was however a
small number of the respondents who of the view that they did not get an explanation on how the
changes would be implemented. The disagreeing respondents comprised 12% of the total
population.
In light of the above-highlighted data, it is clear that the management at Barclays bank has
always strived to provide information regarding the changes and how the same could be
implemented. This goes in line with best practices of change management whereas indicated
above, should always strive to consider the views of the employees. This is based on the
realization that the employees are the key participants in achieving a successful change
management. In this regard therefore the ability to inform the employees has been an appropriate
approach towards the handling of change at Barclays bank. This assertion is corroborated by
Lewis, (2019) who shows that communication is a vital organ towards ensuring that all
participants operate on the same page towards the achievement of success133. In addition to that it
shown in the literature review section that the employee resistance has often been attributed to
lack of adequate information regarding the changes that have to be initiated. In this regard the
presence of adequate information regarding the changes put in place at the organization has been
an important step taken by the management to avoid any aspects which may result in resistance
and the failure of the change process.
133
3.4.2 I have had a positive experience as a result of the changes
Positive expereince
6% strongly agree
8% 22%
agree
neutral
disagree
64% strongly disagree
In regards to the query on whether they had had a positive experience as a result of the changes,
most of the participants agreed with the statement. In particular, 64% of the respondents agreed
with the statement, 22% were in strong agreement, 8% were neutral towards the statement while
6% disagreed with the statement.
The positive experience highlighted in the results above is a clear indication of the manner in
which the changes have affected the employees and the willingness of the management to clarify
the issues. As shown by Bringselius, (2014) in the literature review section, most employee
opposition to change is often motivated by fear or anger towards the intended changes. The
author goes ahead to assert that most of such feeling are often based on the assumption that the
changes will have a negative impact on them such as job loss or increasing their workload134.
The ability to deal with such concerns is therefore expected to result in the phenomenon reflected
in the chart above where most of the employees have a positive experience of the changes put in
134
Management, 28(2), 248-264.
place135. The above highlighted trend is also a clear reflection of the benefits of communication
in implementing change. As indicated by Lewis, (2019) communication is a vital organ during
instituting change since it allows for the clarification of all employee concerns and ensuing that
the stakeholders hold a similar perspective regarding the implementation of change136.
3.4.3 I believe I can have an impact on the changes being put in place
Employee impact on the changes
5%
17%
have no effect
have little effect
sufficinet effect
50% 28% very sufficient
The study was also focused on establishing the level of effect which the participants had on the
changes being put in place. In response to the question, 50% of the respondents indicated that
they had sufficient effect on the changes being initiated at the organization. This was followed
closely at 28% by those who stated that they had little effect on the changes. The least fraction of
the participants at 17% and 5% respectively stated that they had no effect on the changes and
very sufficient effect respectively.
135
responses. Organization development journal, 32(1), 41-54
136
Smet, K., Vander Elst, T., Griep, Y., & De Witte, H. (2016). The explanatory role of rumours in the reciprocal
relationship between organizational change communication and job insecurity: a within-person approach. European
Journal of Work and Organizational Psychology, 25(5), 631-644.
From the above-highlighted data, it is evident that most of the employees have been given access
to the determination of the direction which has to be followed by the organization. This goes in
accordance with various studies highlighting the importance of developing a closer relationship
with the employees as highlighted in the literature review section. For instance, as shown by
Lewis, (2019) developing a well-structured communication channel between the management
and the employees is an integral aspect towards the ironing out of any concerns. In this regard,
any concerns raised by the employees are conveyed to the managers who then put in place
appropriate solutions137. It is also worth noting that stakeholder involvement is also considered
critical for the elimination of negative perceptions towards the project. Notably the stakeholders
who are not consulted during the change planning process can develop a perception that they are
not valued by the management and as such may not be willing to commit their efforts towards
the implementation of change. In line with this assertions the indication by most of the
respondents that they have an immense impact on the implementation of change at their
organization is an indication of a healthy environment. Apparently most of the employees have
been actively involved in the planning as well as the implementation phases of the project an
aspect which leads to the development of positive attitude towards the workplace and
subsequently an improved productivity. Bringselius (2014) corroborated the above assertions by
indicating that employee resistance should not be perceived as being an impediment to the
implementation of change but rather as crucial feedback which can be used in the improvement
of projects138.
137
138
responses. Organization development journal, 32(1), 41-54.
3.4.4 Do you support the digital change programs put in place?
Support for the changes
15% strongly agree

28%
5% agree
neutral
disagree
strongly disagree
52%
Most of the respondents were in agreement with the question of whether they supported the
changes which have been put in place. At 52% of those who agreed with the statement formed
the largest fraction of the respondents, they followed by 28% who strongly agreed with the
statement. 15%, on the other hand, was not in agreement with changes which have been put in
place at the bank. 5% of the respondents were neutral towards the statement.
The overwhelming numbers of those who supported the changes being put in place by the firm is
a clear indication of the effectiveness of the said changes. As shown in the literature review
section, the firm has adopted the use of mobile banking as well as internet banking in its
operations. This has apparently led to minimization of workloads given the fact that they do not
have to resolve employee needs on a face to face basis139. As indicated above one of the notable
effects of digitization is the reduction in the number of employees visiting the bank halls given
the fact that they can conduct their operations online and at their convenience. This aspects have
139
Management, 28(2), 248-264.
apparently resulted in reduced workloads on the employees who have to focus on fewer tasks. It
is also evident from the literature review section that digitization has enabled easier access to
information regarding the running of the organizations. In other words employees have been
made more aware of the practices and actions which have to undertake in order to maximize their
contributions in the organization. This apparently is one of the reasons which has made the
employees to adopt a positive attitude towards change in the financial sector and in the specific
case of Barclays bank. The change management strategy is another reason which can be given
for the overwhelming support of change as revealed in the responses from the participants. As
revealed in the literature review section, the change management strategy adopted by an
organization can have an immense impact on the reactions of the employees. In particular lack of
inclusion and adequate awareness have been found to result in increased resistance given the fact
that the employees are not aware how they can benefit from the changes. This however is not the
case in the Barclays bank employees as revealed in the data above. On the contrary it is evident
that the firm has put in place appropriate change management strategies which has served to
convince the employees into taking part in the process.
The 5% of respondents who indicated that they do not support the changes initiated by the
organization is another pointer towards concerns regarding job security. As shown by Kenney
and Zysman, (2015) the technological developments and the adoption of intelligent systems is
creating conditions that are likely to result in unemployment140.
140
Kenney, M., & Zysman, J. (2015, June). Choosing a future in the platform economy: the implications and
consequences of digital platforms. In Kauffman Foundation New Entrepreneurial Growth Conference (Vol.
156160).
CHAPTER 4: CONCLUSION AND RECOMMENDATIONS
4.1 Introduction
This section provides a conclusion of the study and recommendations on what has to be done in
order to improve the performance of the bank. As shown above, the main objective of this study
was to establish the impacts of digitization on Barclays bank and the change management
strategies which have been put in place. This section as such makes a conclusion based on the
data presented in the discussion section above. The chapter consists of a conclusion and
recommendation subsections.
4.2 Conclusion
Through the evaluation of the responses from the employees of Barclays bank, it is evident that
most of them are in support of the changes which have been initiated by the firm. In essence it is
clear that the organization has strived to ensure that all conditions for change management has
been taken into account hence ensuring a seamless change process. This is reflected in the
manner in which the respondents overwhelmingly response that they were in support of the
changes which were being put in place by the management. This assertion is supported by the
indication that the managers have always provided adequate information regarding the changes.
As shown above, this is a very important prerequisite towards the attainment of success in
change.
In particular in regards to the research question “What are the views of employees regarding
the digitization changes at the bank?” it is evident from the data presented that a large fraction
of the employees has a positive reaction towards the changes which have been implemented.
Specifically, most of those queried were of the view that they were well informed and that they
supported all the measures which were being put in place. This is a clear indication that the firm
has put in place proper change management approaches and that all the concerns raised by the
employees have always been taken into account. Apparently, the success which has been
experienced by the firm over the recent past is also a clear indication that it has taken appropriate
steps in the right direction. As shown above, the firms mobile applications have been ranked as
the most popular for mobile banking in the UK. This is a clear testament of the appropriate
measure of change. On the other hand however it is worth noting that there are a small number of
employees who have revealed their lack of support for the changes being made in the firm. The
lack of support, in this case, is a reflection of the fears that they have regarding technological
development.
In regards to the question “What are the effects of digitization in the Barclays bank
performance?” it is clear from this study that the employees have witnessed a significant
improvement in their workplace environment. In particular, a large fraction of those queried was
of the indication that they had seen a positive improvement in their work operations. This is a
clear reflection of the performance in the financial sector where most banks have witnessed
reduced congestion in the banking halls and aspect which has seen an improvement in efficiency.
On the other hand, the fear of job losses has also been reported and has also been reflected in the
data from the questionnaires whereby 5% of the respondents were not in support of the changes.
In other words, in as much as the changes were aimed at improving the performance of the
banks, there are employees who feel that these changes are not serving their interests.
In response to the question “How has the bank reacted to the impacts?” it is clear from the
data collected that Barclays bank has instituted the right measures which have taken into account
the concerns of the employees as well as the needs of its customers. This is revealed in the data
collected whereby the respondents indicated that the changes have resulted in improved delivery
of services to the customers. Notably, the embrace of the various digital tools such as mobile
banking and internet banking has made it possible for customers to access better services. As
shown above, some of the benefits accrued from such include the reduction in time wasted in
implementing transactions, improved security as well as reduced operational costs for the
concerned banks. In regards to employees, the development of better communication techniques
has apparently worked towards the elimination of resistance which is a common occurrence
during the implementation of change.
4.3 Recommendation
In relation to the above-highlighted conclusions, it is evident that the measures put in place by
Barclays bank have had a positive impact both on its clients and the employees. There is
overwhelming support from the employees regarding the performance of the bank in regards to
the handling of digitization. It is, however, important to note that there are a small number of
employees who do not support the changes which have been put in place. For the purposes of
achieving improved performance, it will be imperative upon the firm to ensure that such
concerns are taken into account. As shown above, the banking industry is experiencing increased
competition occasioned by globalization and the rising number of competitors. It is therefore
important to ensure every concern raised by the employees is taken into account.
In light of the above discussion, one of the best approaches which can be used in addressing such
concerns is improving the communication channels with employees and providing awareness. As
shown above, communication is a single most important component that is necessary for the
development of a closer relationship between the employees and the management and
subsequently the improved delivery of functions. Therefore it is important that the management
takes into account such concerns. It has also been revealed in the discussion above that employee
resistance should not be regarded as an impediment to change but rather as a source of critical
information for the improvement of the organization. Barclays bank should therefore ensure that
it collects all the dissenting views and that all concerns are taken into account and subsequently
rectified. The actualization of these steps will be critical for ensuring that the bank remains
competitive irrespective of the changes which emerge in the banking industry.

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Running head: Digitalization of the financial sector and change management of Barclays bank 1

DIGITALIZATION OF THE FINANCIAL SECTOR AND CHANGE MANAGEMENT

and that proper communication system is put in place.

3.3 Change associated with Digitization ................................................................................... 40

Background of the Thesis

of operations in the banking industry.

Apparently technological developments combined with increased competition have made it

sector is an integral component in the growth of economies. As revealed in evaluation of some of

development that requires continuous evaluations in order to determine their performance.

number of players over the years.

This study will be focused on the establishment of the following objectives:

1. To establish the impact of digitization in Barclays bank

2. To evaluate the change management approaches initiated at the bank

approaches which have been put in place.

The research will be guided based on the following questions

2. What are the effects of digitization in the Barclays bank performance

3. How has the bank reacted to the impacts

Definition of key terms

1. Digitalization – refers to the process of converting analogue information into digital

information consisting of zeros and ones13.

and storage of financial assets on behalf of other people14

to help an organization in addressing and handling change15.

4. Change- entails a variation from the norm16

5. Digital transformation- the transformation of a business with a focus on taking advantage

Structure of the paper

conclusion and recommendations based on the discussion in the third chapter.

CHAPTER 1: LITERATURE REVIEW

specific banks might encounter during their operations as independent entities.

can achieve growth.

involved in information-intensive operations can be able to save up to 90% of the costs

resolved as they operate and subsequently avoiding further destruction24.

1.2.1 Internet banking

numerous banks across the globe.

intervention without being overwhelmed by numerous tasks. In essence digitization has

enhanced the overall performance of the employees.

towards a knowledge-based economy that is driven by information communication technology

computers, handheld devices, as well as the development of the internet30.

encouraged most customers to embrace internet banking33.

trust towards the digital platform.

adequate training to its employees in order to avoid low uptake35.

1.2.2 Mobile Pay

significantly improved the fraud handling capabilities of the banks43.

1.3 Change management

The contemporary business environment is characterized by a high rate of changes. Ostensibly

technological innovations and increasing globalization have created an environment that is

experiencing numerous changes44.

adoption of technology to the detriment of the concerned organization51. Lack of communication

hampering the implementation of change52.

1.3.1 Digital changes

Digital change or transformation refers to the process an organization integrates digital

interconnectivity and ease of implementing ordinary functions within organizations54. In the

1.3.2 Impact of digital change

rationalization. Apparently, it is becoming difficult for employees to develop rationalization

has resulted in a decreasing organizational structure59. In particular organizations studies have

use of computers and information technology.

improved accessibility to information as well as transparency to the benefit of its stakeholders

decisions (Kuusisto, 2017).

significantly bolstered by digitization. According to Namada, (2018) organizational learning

improving the overall performance of an organization through an improvement in competencies.

In particular digitization has enabled internal learning through codification as well as an

improvement in the analysis of knowledge61. A notable example is in the use of databases in

As indicated above, digitization has also contributed to the enhancement of communication. In

1.3.3 Strategies used in adopting digital changes