The impact of customer engagement on organisational change communication at Absa bank in greater Durban area

Abstract

Events that unfolded in the past decade- the ease of new entrants into the South African banking sector, uncertain economic outlook, the 2008 global financial crisis, competition within the South African banking sector, have changed the retail banking landscape in South Africa. Retail banks are under tremendous pressure to realign their banking operations to meet these global challenges. Conforming to the mounting pressure in the South African banking sector, Barclays PLC a major shareholder in Barclays Africa Group now (Absa bank) announced its departure from the bank. A move that made it lose its strategic partner with over 100 years of experience working in Africa. The departure was received with mixed reactions across the banking landscape. Research on customer engagement in South African banking sector is still in its infancy and no study has been undertaken to determine the impact of customer engagement on organisational change communication during episodes of organisational change. To address this research gap, this study seeks to determine the impact of customer engagement on organisational change communication at Absa bank in the greater Durban area. The study adopted a quantitative research paradigm, with a pre-coded structured closed ended questionnaire on a 5-point Likert scale administered to a target population of 650 000 Absa customers in the greater Durban area. Sekaran statistical table was used for sample selection. A sample of 384 customers was selected using convenience sampling a non-probability sampling technique. Some notable conclusions resulted from the extensive statistical analysis, which were also validated by national and international studies undertaken by various researchers, who also demonstrated concordance or discordance with the current findings and were appropriately referenced.