Abstract:
This study was investigated the effect of change management practices on bank competitiveness
in the context of Oromia Bank Head Office. A descriptive and exploratory research design was
adopted, with primary data collected from 122 respondents through a structured five-point
Likert scale questionnaire. Simple random sampling was used, and the sample size was
determined via Yamane’s formula. Descriptive findings revealed leadership strengths in
communication and vision, but weaknesses in innovation and resistance management; market
adaptability was moderate, though service alignment lagged; strategic alignment was strong, but
feedback mechanisms and monitoring were weak; readiness for change showed positive mindset
but lacked resource support and timely communication. Correlation analysis showed all four
variables had strong, statistically significant relationships with competitiveness, with Readiness
for Change (r = 0.970) and Strategic Control (r = 0.913) being the most influential. Regression
results indicated these variables collectively explained 86.8% of the variance in competitiveness
(R² = 0.868), with all predictors significant. The study concludes that Oromia Bank has a
foundational change management structure but must strengthen strategic control, innovation
culture, and readiness planning to sustain competitive advantage. Recommendations include
enhancing leadership capacity, aligning services with market trends, implementing robust
strategic monitoring, and conducting formal readiness assessments before initiating change.
