Organizational Change and Employee Performance: A Case of Novartis East Africa Cluster

Abstract

The pharmaceutical industry operates in an environment defined by rapid innovation, evolving regulations, and intense competition, requiring organizations to continuously adapt through organizational change. At Novartis East Africa Cluster, recent performance challenges—including missed annual targets and position redundancies—highlight potential links between organizational transformations and declining employee performance. This study investigates how different types of organizational change affect employee performance within Novartis East Africa Cluster. Anchored in Kotter’s Theory of Change, McKinsey 7S Model, and Expectancy Theory, the research employed a descriptive design to examine this relationship. Data were collected through structured questionnaires administered to employees across the region, with key findings revealing that departmental restructuring and leadership changes were the most prevalent organizational transformations. Analysis demonstrated a significant relationship between organizational change and employee performance, with structural changes exhibiting the strongest association. While most employees maintained high self-rated performance and motivation, organizational changes introduced substantial well-being challenges: only a minority reported positive effects, whereas others experienced decreased job satisfaction and work-life balance. The study concludes that organizational changes at Novartis East Africa Cluster have created significant employee well-being challenges despite generally strong operational performance. Recommendations include implementing comprehensive psychological support systems, enhancing change communication strategies, adopting phased implementation approaches, and balancing transformation initiatives with workplace stability measures to optimize both organizational outcomes and employee experience during periods of change.