FEEDBACK CONTROL SYSTEM AND CHANGE MANAGEMENT IN THE NIGERIAN BANKING INDUSTRY

Abstract

This study investigates the impact of feedback control systems on change management processes—specifically planning, execution, and monitoring— within the Nigerian banking industry. Drawing on Feedback Control Theory, the research conceptualizes feedback systems as structured mechanisms for guiding organizational adaptation in dynamic environments. A quantitative, descriptive survey design was adopted, with data collected from 212 employees across selected Tier 1 and Tier 2 Nigerian commercial banks using a validated questionnaire. Descriptive results showed strong institutionalization of feedback mechanisms (M = 4.12, SD = 0.63), with similarly high scores in change management planning (M = 4.01), execution (M = 3.87), and monitoring (M = 3.94). Pearson correlation revealed significant positive relationships between feedback control systems and all three dimensions of change management: planning (r = 0.61), execution (r = 0.57), and monitoring (r = 0.64), all at p < 0.001. Multiple regression analysis demonstrated that feedback control systems significantly predict planning (β = 0.61, R² = 0.37), execution (β = 0.57, R² = 0.33), and monitoring (β = 0.64, R² = 0.41). Structural Equation Modeling further confirmed strong model fit (CFI = 0.94, RMSEA = 0.049), validating the theoretical model. These findings underscore the strategic role of feedback mechanisms in enhancing change outcomes in the banking sector. The study concludes that banks with robust feedback systems are more likely to achieve successful change implementation and continuous improvement. It recommends that managers institutionalize real-time, multi-directional feedback channels as a core component of organizational change infrastructure