Employee perceptions towards organizational change and leadership in the banking industry

Abstract

Organizational change involves participation of leaders, employees, structures, and systems as a strategy in anticipating and adapting to environmental changes. Leadership as a reflection of leaders’ behavior in managing organizations not only influences the policy and decision making but also indicates the approach to all members as the most important element in achieving organizational goals. This study explores perceptions of employees toward the implementation of organizational change and leadership in two leading banks in Palu City, namely, PT Bank Negara Indonesia (Persero) Tbk (BNI) and PT Bank Syariah Mandiri (BSM). The sample is purposively determined by 48 people, with 24 employees in each bank. This study is conducted using a quantitative approach with descriptive statistical data analysis and analyzed descriptively. Then it is tested with the Independent Sample T-Test. The results show that there are no differences in perceptions of employees regarding organizational change despite their experience on different levels of change, but reveal different perceptions in a leadership aspect. Organizational change at BNI is at the moving stage, while BSM has been in the last stage of organizational change, namely refreezing. The difference in leadership behavior between these two banks is very significant. Leadership at BNI is charismatic by giving idealized influence, while BSM prioritizes inspirational motivation.