Change Management Simulation

CEO and founder of Spectrum Sunglass Company, I want to bring a change in the company that can make the company and its products more environmentally sustainable. To do that, I need to convince 20 managers at Spectrum to adopt my Initiative In 96 weeks. And I used 85 weeks to reach that goal. Here’s what I did. At the beginning, I want to let them be aware of this initiative as soon as possible, so my first 3 choices are to issue e-mail notice, walk the talk and hold town hall meetings, and I thought that would be a good way to start.

But result Is not good at al, no one seems to be affected, at that moment noticed how difficult It Is to bring a change into the company, no one wants to move from their comfortable position, and they would pay no attention to what said, I need put more devotion into it. After wasting 5 weeks, I start to conduct private Interviews with 4 top managers to let them know this change project and to see what their opinions, the first conduct makes 6 people enter the awareness stage, and I got 4 different opinions.

Then I spend week 6 to get consultant’s support and makes one person into the interest stage, because moieties outside experts can gain the attention of organizational member better than Internal authorities can. At week 8, I privately confronted the resister Andrew Chem. who is the general counsel of the company, trying to persuade him since he plays such an important role in the company, but I failed, I think it is because I still have nothing to show him that I’m right, maybe after a short-term win of this change he may change his mind.

At week 9, I conducted private Interviews and got 5 people enter the awareness stage and 1 person enters the interest stage. And at week 10, I old a “success” story to 3 people, because I think the example of other companies that benefit from sustainability would make them interest in this project, and it turned out to make 1 person enter the interest stage and 1 person enters trial stage.

Then I used private Interviews and “success” stories alternatively though week 1 1 to week 1 5, because both of them took only one week to complete, so this would be the most efficient way to lead people into the awareness stage and make this awareness into interest, it turned out that I’m right and I successfully bring 9 people into wariness stage and 6 people Into Interest stage. And so far all 20 managers have been aware of this change project. At Week 16, I provided internal skill- building to show those who are willing to change the way to adopt this project, and I made 1 person enter the trial stage.

At week 18 1 decided to issue an e-mail notice, by now they should pay some attention to the context of this e-mail, and It made 1 person entered the interest stage. At week 19, I conducted a pilot project, hoping to achieve a short-term win that can nourish faith in the change efforts, and the results are that 1 errors entered the interest stage, 1 person entered the trail stage and first person entered the adoption stage. At week 25, I conduct private Interviews again and made 1 person enter the Interest stage. And week 26, I privately confront resister Pal Dairy hoping that he may change his mind, but he didn’t.

At week 27, I walked the talk and 1 OFF the interest stage and 4 people enter the trial stage. At week 29, I recognized an adopter and hoping this would have an influence on others, but it only made one person enter the interest stage. At week 32, I provided external skill-building and add one trainee enter the trial stage and one enter the adoption stage. At week 36 1 hold town hall meetings to communicate the change vision, and it made 3 people into the interest stage and 3 people into the trial stage. At week 38, I post progress reports and made 1 person into the trial stage.

From week 39 to week 45, I choose to build a coalition of support and recognized an adopter, because I think it would bring the coalition members, the adopter and their friends into adoption stage, however, it affected no one, the reason is still unknown. At week 46, privately confronting resister till didn’t work. At Week 47, I told a “success” story again and made 1 person enter the adoption stage. At Week 48, I announced goals and deadlines to provide a target to aim for, but no one was affected, goals and deadlines may be to early to set.

At week 52, I decided to walk the talk again, and got 2 people enter the trial stage and 4 people enter the adoption stage, the visible actions really worked. At week 55, I post progress reports to all, and made 2 people enter the trial stage. From week 56 to week 62, I conducted private interviews and pilot project but didn’t work. At week 63, I lariat organization values and made 1 person enter the trial stage and 8 people into the adoption stage, this is a big achieve, and I believe a change sticks when it melt into the company’s culture. At week 71, I tried to hold town hall meetings to make the last 4 people adopt but I failed.

At week 73, I revise reward system to stimulate them and success at week 85. It took me 85 weeks to successfully convince all 20 managers to adopt this change, less than 96 weeks, so I think I’m a qualified change agent. However, I also take a lot of invalid actions and wasted a lot of time, so I’m not that efficient. If I can do it all ever again, I will begin with private interviews, and avoid the invalid actions (though I still have no idea why some of these actions have no affect on any managers), and I will take the relationship network in to consideration when I make choice.

I’m sure the result would be much better. This change management simulation and readings of 5 articles taught me a lot as a change agent in a company. First of all, I find that making a change happen is much more difficult than I thought, we all want benefits of change, but we are afraid of failure, so we prefer to stand at the comfortable position and refuse to move forward. As a change agent, I much help others to overcome these difficulties. To do that, I must understand the heart of change first.

People will not be changed by what they are told, they can only be changed by what they believe, so I must find a right way to make them believe in this change initiative. And there are 8 steps I learned and used in this simulation. First is to create a sense of urgency, in the simulation I conducted private interviews with every one of 19 managers, trying to make them have this feeling of urgency. Second is to form a guiding team, in the simulation, I tried to approach those who are positive about this change first, and then pulled some of them as a guiding team.

Then creating clear, simple visions and strategies. And the way of communication in the simulation, but first I need to make them read and think about the e-mail I sent. The fifth is to empower people by removing obstacles to the vision, like providing internal and external skill-building in the simulation. The sixth one is to create short-term win, like conducting pilot project in the simulation, and this made people be more faithful about this change project and may change the sister’s mind.

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Change Management and Bank

Table of contents

They aim to provide employees with all the resources, programs, and training necessary to achieve their business goals. They have been giving everyone an opportunity to operate at their best selves, and provide their customers with the best ND most innovative products and services. How They Are Structured By partnering with their business leaders, human resource organizations, and key stakeholders and constituents, they have built a holistic diversity framework that is embedded in every part of Cisco.

They have constructed an Inclusion and Diversity Coalition, a global team that advises and supports Cisco executives at the function and region level. Along with established inclusion and diversity ambassadors, it includes advocates in the field. The team helps to accelerate program execution by Coco’s employee engagement strategy: Coco’s employee engagement strategy has yielded several benefits through the use of collaboration tools. For example, the quarterly company meeting has gone through a total transformation.

In the past, Cisco held the company meetings in a physical location, usually a local convention center near the headquarters in San Jose, California. Today the quarterly company meetings are virtual. Through the use of video and collaboration technologies, employees globally can participate in these meetings and interact with senior executives through a live chat (using Cisco Jabber@ technology). The entire event is recorded (along with chat transcripts and other documents) and shared with all employees.

This approach has increased employee participation and provided a new venue for rich interaction between employees and senior executives, all of which have boosted overall employee satisfaction. Cisco uses a virtual format for other events as well such as the annual global sales experience (20,000-plus attendees) and strategic leadership offset (3000-plus senior leaders). More than ever employees are conscious of their health and wellness, while employers are looking for ways to provide employees with high-quality healthcare options while keeping their costs under control.

The model explains that commitment to an organization is a psychological state, and hat it has three distinct components that affect how employees feel about the organization that they work for. The three components are:  Affection for your Job (“affective commitment”). Fear of loss (“continuance commitment”). Sense of obligation to stay (“normative commitment”). We can use this model to increase commitment and engagement in your team, while also helping people to experience a greater feeling of well-being and Job satisfaction.

Affection for Your Job (Affective Commitment)

Affection for your Job occurs when you feel a strong emotional attachment to your organization, and to the work that you do. You’ll most likely identify with the organization’s goals and values, and you genuinely want to be there. If you’re enjoying your work, you’re likely to feel good, and be satisfied with your Job. In turn, this increased Job satisfaction is likely to add to your feeling of affective commitment. Fear of Loss (Continuance Commitment) This type of commitment occurs when you weigh up the pros and cons of leaving your organization. Read which statement correctly explains the chart

You may feel that you need to stay at your company, because the loss you’d experience by leaving it is greater than the benefit you think you might main in a new role. These perceived losses, or “side bets,” can be monetary (you’d lose salary and benefits); professional (you might lose seniority or role-related skills that you’ve spent years acquiring); or social (you’d lose friendships or allies). The severity of these “losses” often increases with age and experience. You’re more likely to experience continuance commitment if you’re in an established, successful role, or if you’ve had several promotions within one organization.

Sense of Obligation to Stay (Normative Commitment)

This type of commitment occurs when you feel a sense of obligation to your organization, even if you’re unhappy in your role, or even if you want to pursue better opportunities. You feel that you should stay with your organization, because it’s the right thing to do. This sense of obligation can stem from several factors. You might feel that you should remain with your organization because it has invested money or time in your training. Or perhaps it provided a reward in advance, such as paying for your college tuition.

This obligation can also result from your upbringing. For instance, your family might have stressed that you should stay loyal to your organization. Note: These three types of commitment are not mutually exclusive. You can experience all three, or two of the three, in varying degrees. Applying the Model at our TOMB: Affection for Your Job (Affective Commitment): We are very fortunate in having dedicated employees at all levels who have been energetic and working with untiring zeal for the good growth and prosperity of the institution for the past 92 years.

The name and fame of the bank are in a large measure, due to the efficient and diligent service of the highly loyal staff members and officers. This has enabled the Bank to adopt the official motto “Totally Motivated Bank”. Most of the employees in TOMB are committed towards our organization. This has been proven through the profits earned and dividends paid to the stake holders. Without the positive commitment of affectionate this would not have been possible. In TOMB, employees treat themselves to be a part of the family.

With this unique feature Titman’s move forward and make the organization goals and achieve great heights. Fear of Loss (Continuance Commitment): It’s important to do our best to grow affective commitment, and reduce our team’s reliance on continuance and normative commitment, so that we can lead a team of tit continuance commitment, which not only impact their growth but also impacting other Team enthusiastic employees, or even lower the morale of the organization. To encourage positive changes, we will link people’s goals with those of the team or organization.

If appropriate, we align our team’s roles with their skills and interests, with techniques such as Job Crafting . It’s important to help people find purpose in their work, which will help them to come out from the above commitment.

Sense of Obligation to Stay (Normative Commitment)

In our organization, some officers from STEP programmer feel a sense of normative ointment since our organization has invested a lot in their training and development. Since they have been contracted for 5 years, they could not able to switch Job even if they got better opportunity.

To overcome this we are likely to develop affective commitment through explaining them about their growth in this esteemed organization and make them to feel ; experience positive emotions at their work. Further, we will encourage these people to thrive, and to enjoy the work that they’re doing. We make sure that we give praise regularly, and create a healthy workplace , so that these kind of people will be happy and productive.

Change is a common thread that runs through all businesses regardless of size, industry and age. Our world is changing fast and, as such, organizations must change quickly too.

Organizations that handle change well thrive, whilst those that do not may struggle to survive. The concept of “change management” is a familiar one in most businesses today. But, how businesses manage change (and how successful they are at it) varies enormously depending on the nature of the business, the change and the people involved. And a key part of this depends on how far people within it understand the change process. One of the cornerstone models for understanding organizational change was developed by Kurt Lenin back in the asses, and still holds true today.

His model is known as Unfreeze – Change – Refreeze, refers to the three-stage process of change he describes. Lenin, a physicist as well as social scientist, explained organizational change using the analogy of changing the shape of a block of ice Linen’s Three-Step Model For Implementing Change Unfreeze: This first stage of change involves preparing the organization to accept that change is necessary, which involves break down the existing status quo before you can build up a new way of operating.

Key to this is developing a compelling message showing why the existing way of doing things cannot continue. This is easiest to frame when you can point to declining sales figures, poor financial results, worrying customer satisfaction surveys, or suchlike: These show that things have to change in a way that everyone can understand. To prepare the organization successfully, you need to start at its core – you need to challenge the beliefs, values, attitudes, and behaviors that currently define it.

Using the analogy of a building, you must examine and be prepared to change the existing foundations as they might not support add-on hang process is usually the most difficult and stressful. When you start cutting down the “way things are done”, you put everyone and everything off balance. You may evoke strong reactions in people, and that’s exactly what needs to done. By forcing the organization to re-examine its core, you effectively create a (controlled) crisis, which in turn can build a strong motivation to seek out a new equilibrium.

Without this motivation, you won’t get the buy-in and participation necessary to effect any meaningful change. Change: After the uncertainty created in the unfreeze stage, the change stage is where people egging to resolve their uncertainty and look for new ways to do things. People start to believe and act in ways that support the new direction. The transition from unfreeze to change does not happen overnight: People take time to embrace the new direction and participate proactively in the change.

A related change model, the Change Curve , focuses on the specific issue of personal transitions in a changing environment and is useful for understanding this specific aspect in more detail. In order to accept the change and contribute to making the change successful, people need to understand how the changes will benefit them. Not everyone will fall in line Just because the change is necessary and will benefit the company. This is a common assumption and pitfall that should be avoided. Time and communication are the two keys to success for the changes to occur.

People need time to understand the changes and they also need to feel highly connected to the organization throughout the transition period. When you are managing change, this can require a great deal of time and effort and hands-on management is usually the best approach. Refreeze: When the changes are taking shape and people have embraced the new ways of irking, the organization is ready to refreeze. The outward signs of the refreeze are a stable organization chart, consistent Job descriptions, and so on. The refreeze stage also needs to help people and the organization internalize or institutionalize the changes.

This means making sure that the changes are used all the time; and that they are incorporated into everyday business. With a new sense of stability, employees feel confident and comfortable with the new ways of working. The rationale for creating a new sense of stability in our every changing world is often questioned. Even though change is a constant in many organizations, this refreezing stage is still important. Without it, employees get caught in a transition trap where they aren’t sure how things should be done, so nothing ever gets done to full capacity.

In the absence of a new frozen state, it is very difficult to tackle the next change initiative effectively. How do you go about convincing people that something needs changing if you haven’t allowed the most recent changes to sink in? Change will be perceived as change for change’s sake, and the motivation required to implement new changes simply won’t be there. As part of the Refreezing process, make sure that you celebrate the success of the change – this helps people to find closure, thanks them for enduring a painful time, and helps them believe that future change will be successful.

Applying the model at TOMB : New Logo: Unfreeze: Even though our Bank has been established in 1921, the logo was set for the bank only in 1962. Since the logo was not competent to match to the current generation of banking and also not expressed the future face of the bank. It has been decided to change the Logo. After having various meetings with our stake holders, at last our Management got approval from our stake holders to change our logo. Our Management has started the process for changing the logo of our bank after 50 years.

We are well aware that changing our established logo should be approached with a great deal of caution and forethought. Only a new logo design makeover (executed correctly) can infuse our company brand with new excitement, new blood. We are the leading private sector bank with strong development in modern banking and need a logo that is more in line with, and appealing to, our vision along with modern banking facilities. Change: After got approval from stakeholders, our bank started planning on designing the new logo which should express our vision along with modern banking facilities.

The organization has ready to take risk by changing the Logo. The Dispel rumors by answering the questions asked by any one the openly and honestly and also relate the need for change back to operational necessities. Our organization has announced a contest among the staff members for creating a logo which should reflects our vision and Modern banking and also to make the staff involvement. Which made everyone feel that it’s a right time to change Logo of our bank and will vie new face to our bank.

With help of our all staff members our bank has designed a new log which described our vision and modern banking. The magenta-and-royal-blue combo is a colorful showcase of the brand’s illustrious past, where the inherent DNA of our bank – customer orientation ; commitment to excellence takes center-stage. The complementary colors and the clear-cut typeface underline our banks new philosophy of staying in tune with the current generation. What holds the logo together and helps break the clutter is the clever play on the letter ‘M’.

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Change Management Report

Through an extensive range of skills and experience, the A-Belch Group has significant engineering and design capabilities to provide a complete and bespoke first class engineered solution from design to manufacture. Electrical and Mechanical engineering excellence Bespoke design solutions New product development programmer with continuous testing and development Quality design software enabling precision design and manufacture Continuous The Group incorporates HAD Lighting, A-Belch Hazardous Area, MAP Solutions, Electrical Engineering and Industrial Connectors.

The extensive product portfolio includes the HAD Hazardous area lighting range, hazardous area enclosures, witchery, electrical distribution panels, electrical accessories and innovative modular building service solutions. The Group is an established supplier to the UK and international petrochemical, energy, rail and construction markets. With over 25 years’ experience in the energy sector, A-Belch excels in quality, price and delivery and after sales support.

My role within the organization is to plan and manage the production of the Had cell. A-Belch is SISSIES :2008 accredited – see attachment 1 . Part of my role is to ensure the product we manufacture is of a high quality and tests the SIRS certification requirements. Due to the highly hazardous environments our products are used in we must ensure all shop floor operatives follow controlled drawings and SOPs for each build stage. See attachment 2 for controlled drawing. Attachment 3 is an SOP that is used by shop floor operatives.

The department strives for continuous improvements and all staff are encouraged to offer their opinions to develop the department further. It is important that the department continuously improves in its working practices and procedure to keep up with a growing demand for our product and changing market place. As the company is ISO accredited the quality management systems have been prepared to BBS EN ISO 9001 :2008 and ISO/ICE 80079-34. My department manufacture products that are certified explosion proof lighting for hazardous area.

All products are TEX and ICE certified and due to this a high level of quality is required during manufacture. All products are built to drawings which have been produced from certification drawings issued to SIRS the certification body. Without SIRS certification and approval no products can be manufactured. On each drawing is a list of components required is listed for the build. Along with the manufacture drawing a wiring diagram is supplied and a works instruction for the product. All finished goods are signed off by the production supervisor after being inspected.

Each build has a check sheet with stages of each Job that need to be complete and signed off by the relevant operator, these are then kept and filed for future reference and can be used if goods are returned due to a quality issue relating to the build as I am able to identify which operator manufactured the unit and apply the appropriate action or complete refresher training. Identify a change that is required identify a change required in the workplace and explain the potential benefits of this change to the organization.

Changing our current potting canines and process this will reduce down time and lead times, reduce annual cost, increase additional business and add to the growth and success of the department which will allow the company to develop in line with changes in the market place. Currently both potting machines run on a manual fill system where by each operative using the machine has to fill each hopper up by hand. In order to do this they need to stand on ladders and fill each hopper.

The approve. Weight of both the activator and base is KEG each. The activator is a harmful substance which can irritate the skin an eyes. Correct PEP is worn by each operative; however there is always a risk of both the activator and base splashing the individual. Manual handling is also a concern as the operative must climb onto step ladders carrying the base/activator to fill the hopper. Handling and risks to each operative can be avoided by moving to an automated bulk feed system.

By moving over to the automated system the health and safety risks will be reduced significantly as there will be no need for each individual to manually fill each hopper. The automated bulk feed system will be installed for both potting machines and will insist of twin pneumatically operated double acting diaphragm pumps with dip tubes and four off outlet hoses up to machine mounted reservoirs. Electronic high- level sensors will be fitted to each reservoir to automatically call-off material from the supply drum on demand and stop when the reservoir is full.

Pneumatically actuated ball valves will also be fitted onto each reservoir. Approve. Cost for this fitment EH,386. O + vat (inclusive of control box & on-site labor to fit) The proposed move over to an automated bulked system for both machines will: Reduce down time Reduce lead times Improve Health and Safety Improve potting procedures Reduce cost Reduce the amount of space needed to store the potting compound Reduce waste There will also be a cost saving to the company of approve.

EH,81 5 per annum based on previous usage. This is due to the unit price of the potting compound being reduced by moving over to large KEG drums. Planning and monitoring the change State the objectives of the change in order of their priority. At least one must be a SMART objective. Prepare an action plan for implementing the change. Explain the technique you would use to monitor the achievement of the primary objective. The objectives of the change are as follows:

  • To purchase and install automated bulk feed system within stated budget week commencing 16th September 2013
  • To have all shop floor operatives trained on the safe use of new equipment by 30th September 2013

Priority:

  1. Health and Safety Improvements
  2. Reduce cost
  3. Reduce down time
  4. Reduce manufacturing lead times
  5. Improve potting procedures waste

The above has been identified by conducting a SMART analysis Specific Implementation of bulk feed system for both potting machines What: What do I want to accomplish?

Improvements to health and safety of shop floor operatives Cost saving – see below. Why: Specific reasons, purpose or benefits of accomplishing the goal. Reduce down time Who: Who is involved? Potting Machine Supplier – Meter Mix Potting Compound Supplier – Greenfield Polymers Production Manager – Me Floor Manager – SST Handmaids Shop floor operatives Divisional Director – Bob Scott Chief Executive – Brian Trench Where: Identify a location. New Had manufacturing facility Which: Identify requirements and constraints.

Proposal of the change and cost savings/payback and benefits will have to be presented to higher management Upfront cost needed Current stock may be an issue as we use KEG drums and not KEG – need to identify if we can use current drums or swap with supplier for larger ones Identify space needed – this could be an issue. Will we have enough space for the bulk feed system in the new factory? Measurable How much? How many? Two machines will be needed How will I know when it is accomplished in 12 months’ time when cost savings can be recorded Achievable How: How can the goal be accomplished?

A report will need to be drafted up to highlight the benefits Installation will be done by Intermix Training of all shop floor operatives will be complete by the Floor Manager Relevant Does this seem worthwhile? The upfront cost is expensive, however the benefits the manufacturing cell and cost saving the company will gain outweigh the cost There is also a payback time due to the cost saving of the potting compound Is this the right time?

Yes, the changeover is needed to reduce downtime and to allow output to increase Completion of the new factory extension will be the best time to implement this Are you the right person? As the Production Manager for the department I am responsible for the improvements to the department Time Based When? Implementation/installation – September 2013 What can I do six weeks from now? Sign off from Director Arrange Meeting with potting machine supplier to get the ball rolling Arrange meeting with potting compound supplier to inform of change What can I do today?

Prepare report for Director of the benefits and cost of the bulk feed system In order to proceed with the change I have prepared an action plan detailing the stages I will need to work through in order to implement the change.

Action Plan:

  1. Date of activity  Supplier Meetings Potting Machine – Meter Mix Advise on how the bulk feed system will work Discuss Cost Delivery and installation date to be agreed Discuss Training of staff
  2. Potting Compound – Greenfield Polymers Cost of KEG drums Can current KEG drums be used on bulk feed machines December 2012  Prepare report for Divisional Director Highlight cost saving Payback Benefits January 2013 – See attachment 4
  3. Sign off by Divisional Director and Chief Executive January / February 2013
  4. Supplier Meeting Agree options Discuss payment options Agree installation date April 2013
  5. Raise purchase order and send to Meter Mix September 2013
  6. Discuss with Floor Manager and add new location to new factory floor plan June 2013
  7. Implementation/limitations w/c 16th September 2013
  8. Staff Training Include in training matrix for all Shop Floor Operatives Tool Box Talk to be auctioned SOP to be updated 9
  9. Stock change over January 2014
  10. Record cost savings monthly

Monthly spend and usage Compare finding against previous 12 months sales Record findings in a spread sheet In order to monitor the achievement of the primary objective I would monitor the monetary value of the activator and base per month based on the usage and compare this against previous months before the new bulk feed system was implemented. This would be recorded in in a spreadsheet which I would design. The health and safety of each member of staff using this equipment is vital, however the improvements to the health and safety is difficult to manage. In order to ensure highlighting the differences between the two machines relating to health and safety. I would also perform a questionnaire with the operators using the machine to record feedback on the improvements to health and safety.

Implications of the change Explain the possible financial effects of the change on the organization, Explain the possible effects on people inside the organization Identify any potential barriers to change and suggest practical ways of overcoming these In order to commission the bulk feed system there is an initial outlay of EH,386. O, however this has a payback time of 43 months after which the company will save approve. EH,81 5 per annum on potting compound based on current usages. If I factor in the saving in down time on the factory floor this equates to a saving of 0. App per 25 KEG drum so therefore the payback time will decrease to 30 months.

Even though there is a financial out lay the improvements to health and safety outweigh these massively. There will be a staff training exercise to complete with each Shop Floor Operative and raining to be received from Intermix who are installing the potting machine. The training will be given by the Shop Floor Manager to each staff member and a tool box talk will be completed. Future stock of the potting compound will have to be managed differently so training will need to be given to the department buyer as to how she will manage this. Attachment 5 shows the team update that was sent to inform every one of the status of the bulk feed system and update the buyer on how she is to manage stock Sty and orders.

Discussions with Greenfield Polymers have been made by me in order to inform them f our current stock Sty’s and discuss when the change over to KEG drums will take place. The final batch of KEG drum stock needs to be purchased from our supplier first before the changeover happens. Currently the activator and base are purchased on one part number and ordered in a 5:1 ratio. In order to simplify this I have created separate part numbers for both components which after discussing with Greenfield Polymers will make ordering and consumption of stock more manageable and straight forward. Attachment 7 shows the price breaks for both the activator and potting compound.

By creating separate art numbers AL 10049 – Base and ALLELUIA – Activator will also allow us to manage the stock more efficiently when stock takes take place as each individual item will be counted separately. The biggest barrier I will need to overcome will be convincing the Had Director and Chief executive that this change needs to happen and the positive impact it will have benefits to the organization and people within it and the cost saving this change will make. This should suffice as evidence the system is needed and the benefits this will have to the team and company. See attachment. This report will be presented to he Had Director and the main objectives discussed.

Communicating and implementing the change Identify who needs to know about the change, describe how you will communicate with them and explain why it is important to communicate the change to them. Explain how you will continually improve once the change has been implemented. Explain how you will involve your team in doing this, and identify which tools or techniques you could use and how you would evaluate these improvement activities. The Had Office team and Shop Floor Operatives need to know about the change as there are action points for some staff members. They will be made aware of the commission of the bulk feed system via email and any questions they have will be discussed. Attachment 5 shows one of the updates I will send to the team making them aware of the commission date and stock management.

Once the bulk feed system has been commissioned an email will be sent with photographs of the bulk feed system and the improvements this will make to the team and Production Department. This email will be sent to the Office team, Floor Manager and Had Director. The Health and Safety Manager will also be included in this email and made aware of the change as the improvements to Health and Safety f Staff members is quite significant. Once the change has been implemented it is important to review this in order to improve the process. Some areas that I would review would be the following: Improvements to equipment – I would contact Intermix who installed the machine to see if there is any additional equipment that could be bought to reduce down time further.

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Case Study Analysis – Change Management

Assignment Format Case Study Analysis: The Vanguard International Hospital, Bangkok

Your assignment must be word-processed in Microsoft Word. All pages should be numbered. You are strongly advised to make a copy of your assignment before submission. Students are assessed anonymously. You should put your student registration number (but not your name) on the front cover and on the top right hand corner of every subsequent page. Please do not include your name anywhere on the document. Policy on Plagiarism:

  • A) The work that you submit must be expressed in your own words.
  • B) Plagiarism, which is presenting the views and/or words of another person as if they are your own is strictly forbidden. If you do use quotations from books, Journals and or websites then these must be placed inside quotation marks and referenced Ideally using the Harvard method.
  • D) If you do cite the views/ideas of another person then you must refer to this person in the main body of the assignment, including the work cited in your bibliography. Cite, in this context means to quote a passage, book or author in support of an argument, etc.
  • E) Copying the work of a fellow student also constitutes plagiarism. It must be pointed out, though, that any student allowing another student to copy part or all of his/her assignment Is just as guilty as the plagiarism.You should therefore protect your own work, so as to avoid others copying your work, without you knowledge.
  • F) If you do not observed the above rules then this will lead to an allegation of cheating and, if found guilty, you will incur a severe penalty which may involve having to leave the College. Any repetition of plagiarism in any module will lead to expulsion from the College.

Contemporary Issues In Management Assignment Assignment Title: Managing Change Format: Individual assignment. 40% of total marks for the module.

“We need to change,” said the CEO Michael Taylor to his senior management team during an extraordinary meeting at the world class hospital. “Events must not overtake us; I am very concerned about our staff retention levels within our organization. I am getting reports from staff that they are experiencing burnout and am getting feedback about poor work-life balance especially from our Surgeons, Nurses and Marketing executives.

Many of our staff have to look after young children and some also have to care for their elderly parents, the so-called ‘Sandwich Generation’. Long and unsociable working hours are taking a physical and mental toll on them. ” He further went on to talk about… ” Our business strategy also needs rethinking as technology becomes ever more important – some of our international rivals have now even begun to introduce ‘remote surgery. I want us to redesign our strategy to make us the world’s leading technologically advanced hospital.

I want to enable patients to play a more active role in their own care – I want to utilities the latest advances in science and technology to help us do this. ” “We need to redesign our policies on these matters and to think clearly about how staff work within our organization. Michael noted quietly to himself that he must be careful when adopting radical changes, there is always the issue of staff resistance to change their working practices, Just like what happened during the ‘revitalization plan’ which he led in 2008. We must ensure that staff fully embrace any change efforts we make and our world class reputation for patient care and service quality is maintained” he stated After the senior management meeting, Michael composed the following email for recirculation to Senior Management Team: Dear colleagues, Following my comments at the meeting, we need to begin to plan for some fundamental changes to our work practices and business strategy. Please bring your responses, to the next Management Meeting scheduled for later this month.

Regards Michael Taylor CEO Vanguard International Hospital Assignment Brief Write an assignment outlining a response to the issues within The Vanguard International hospital covering the following sections:

  1.  Prepare a force field analysis to illustrate the drivers and restraining forces for change applicable to The Vanguard Hospital
  2. Evaluate the characteristics that may prove beneficial to an individual appointed to a role and demonstrate how they may be utilized when implementing change strategies for The Vanguard Hospital
  3. Examine and evaluate various options and practices that are open to this organization to enhance staff retention and work-life balance improve technology to gain a lasting competitive advantage Offer conclusions to the issues that you have examined Please consult your notes and recommended textbook for any clarification of theory or concepts. Make sure to cite academic sources support your answer explaining the impact of these threats. Use graphs and statistics to aid your answer (reference these).

Marking Scheme Marks will be allocated for the following sections: 0 Force Field Analysis The Change Agent 20 marks 25 marks Strategic Changes introduced staff retention and work-life balance (20 marks) Technology and Competitiveness (20 marks) 40 marks Conclusions Presentation and Referencing 5 marks 10 marks Plagiarism and Referencing

Referencing: The sources should be properly referenced both within the text and at the end of the assignment

– All sources should be cited within the text e. . Murphy (2008) believes that… All quotations from the works of authors must be clearly identified as such. Organizations must be aware of their external environment” (Murphy, 2008). Hence the full reference should be listed in the bibliography at the end of the assignment. Plagiarism Students must submit their work through turning. Com.

Students should submit their assignment via turning. Information how to register and submit your work is posted on the college notice boards. Make sure you have all written in your words – taking large chunks of material direct from websites is unacceptable Assignments will not be corrected without submission to Turning.

There will be no exceptions to the rule. Please also hand a hard disk together with the assignment. No need to print and submit full turning report. Plagiarism is a serious academic offence. It arises when a student is suspected of presenting work undertaken by other people as if it were their own. A student is liable to be found contain the unacknowledged work of some other person or persons. Examiners then the offence is very grave indeed. All sources should be cited and all quotations from he works of other authors clearly identified as such.

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Leadership and Change Management: a Case Study of Pemancar

For personal use only. Leadership and Change Management: A Case Study of Pemmican Mr.. Denial Tarter, the new plant manager was walking through the factory floor during his daily rounds in Pemmican’s, a production plant located in Peninsular Malaysia. This is his first week on the job. Pemmican’s parent company, Nova Europe International Corporation (Nova), was not happy that Pemmican had not consistently achieved the production targets set by them. The previous plant manager, Mr.. Adam was held to task for the non-achievement of the set targets. He was demoted and asked to head another small subsidiary a few months earlier.

Before Denial was brought in, Pemmican was temporarily managed by managers brought in from Nova. Tindal heard that Adam, the previous plant manager, who had been working at Pemmican for nearly twenty years, might probably be laid off later. He keeps thinking of the situation in Pemmican and the changes he is going to make to ensure that the production targets are met and the cost contained. After walking through the factory floor, Denial took the stairs to the administrative office of Pemmican. Although it was nearly seven in the evening, there were still staff working at their desk.

He needed to talk to the head of finance regarding the Issues and problems faced In the factory. On his way to the office of the head of finance, he saw that one of the employees was filling in application forms to work in other companies. All Beth names have been changed. Name of the company has been changed to ensure confidentiality. DOE 10. 1142,’S0218927512500058 0 2012 by World Scientific Publishing Co. 116 ACRE Denial reflected on the conversation and the information he gathered from the managers and other employees since the first week he was in Pemmican.

In fact, in his various conversations with the employees, some of them did mention that they had created resumes, surfed the websites to look for other Job opportunities, or applied for continuing education to prepare for the eventuality of being out of a Job at Pemmican. He now needed to identify the issues and problems pertaining to the non-achievement of targets and the ways to keep the employees motivated and their morale high. Pemmican Pemmican is an automotive part production company located in Peninsular Malaysia. The company was established in the late sass and was owned by several state and federal government agencies.

In the mid-sass, the company was acquired by KILL Corporation (Color), one of Malaysia’s leading multinational conglomerates. Since the acquisition by Color, the company has undergone a technical cooperative agreement with a Japanese company in 1987. This was to ensure that Pemmican is equipped with the latest technology and expertise of their production. The marketing and distribution of the products was then carried out by the marketing and sales department in Pemmican. Figure 1 portrays the kind of organizational structure that used to exist at Pemmican while it was under Color.

Pemmican, under Color was headed by a Plant Manager, who oversaw the whole operation of the plant and the support division. The Manufacturing Division consists of seven main departments, namely, Production, Engineering, Industrial Engineering (E), Planning, Quality Management (KM), Product Industrialization (P’), and Plant Operation. While the Support Division consists of the following six main departments, namely, Human Resources, Finance and Accounting, Controlling, Purchasing, Information Technology (IT) and Environmental, Health & Safety (SHE). Asian Case Rest. J. 012. 16:11 5-132. Downloaded from www. Worcestershire. Com by Plant Manager (PLUM) First PLUM (before acquisition to December 2006) Senior Management Secretary to PLUM Head of Plant Purchasing Head of Finance & Accounting Head of Controlling Head of IT Head of SHE Head of POP Head of Planning Head of IEEE Head of Production Head of Eng Head of KM Head of PI Middle Management Executives Section Heads & Executives Junior Management Supervisors & Personal Assistants Staff (Clerical and non-clerical) Lower Level Employees Shop-floor Employees (Leading Hands & Machine Operators)

LEADERSHIP Oral CHAngE Marriageable: A CASE STUDY OF Pemmican 117 Fig. 1 . Pemmican -? Organizational Structure before acquisition until December 2006. 118 In terms of manpower, Pemmican has approximately 1,700 employees of which 100 are at the middle management and managerial level, 130 are at the supervisory level, 100 are administrative (clerical) staff and 1,370 are at the operative level (direct and non-direct). Under Color, Pemmican is the largest plant in the northern part of Peninsular Malaysia, which produces various types of automotive parts.

Its keg in year 2003/04. Pemmican has grown and flourished over the years and its production volume has secured the company as one of the leading automotive parts suppliers in Malaysia. Its products are also exported to more than fifty countries, I. E. Europe (41 the Middle East (23%), Australia (18%), Sean countries (15%) and other countries (3%). Pemmican has received recognition at both the national and international levels.

They have received several quality and management awards (such as the ISO 9002 recognition and the Malaysian Standard awarded by SCRIM, the European Standard and the gulf Standard, SHOOS, the China Standard ACT) and also recognition awards from their customers (for example: Best Supplier Award, Best Supplier Performance Award, Quality Management Award, Export Excellence Award, and Energy Savings for Industrial Sector Award). OrgANizAtiONAL CuLturE under Color under Color, the mission of Pemmican is to become the most prominent producer of automobile parts in the region and in the world.

It aspires to achieve its mission by satisfying the customers’ wants with the quality and competitive products and services that it has to offer. Pemmican believes that excellence begins with each individual, which is the catalyst of what they are ongoing. With the above mission in mind, Pemmican is committed to reach a world-class operation through their corporate philosophies and values. Pemmican’s corporate philosophies then were to always think of the Customer, Quality, Excellence, Shareholders, Employees, Services and Safety.

The corporate values that LEADERSHIP Oral CHAngE Marriageable: A CASE STUDY OF Pemmican 119 they want to be inculcated in each and every employee are Sincerity, Trust, Openness, Realization and Interdependence. Under Color and the leadership of Mr.. Adam, the sense of responsibility and ownership (or empowerment) within most of he organizational members was lacking. They need to be instructed and pushed before they started to act on arising issues. This was strengthened by the view of the Assistant Manager (Industrial Engineering), Mr.. Ihram, when he mentioned that people were more reactive then, rather than proactive.

The monthly performance report to Color was very simple. The Factory Controller, Ms. Lima, explained: “under Color, we did not prepare the monthly report in detail. The moment the top management sees the bottom line is good, that’s it! Everybody is happy. ” The Manager (Accounting), Ms. Anita, shared similar views when she indicated: under Color, if you are not able to complete your report in the time period specified, it is still permissible for you to extend the submission to a few days later, or delay the submission and things like that! In addition, it is normal for the Finance department to be held responsible and Lima: “Last time, if anything goes wrong, they will say “Finance! “. Since Costing is also under Finance, hence, they said, “you have to tell me why? ” Anything that goes into [their departmental] costs, [they] will come back and ask me why. ” Pemmican, under Color used to prepare not Just the one upcoming-year budget but also the next five years’ budget, thus, the figures for the five-year budget were sometimes simply put rather than going through a process of deep thinking and justification. In other words, accuracy was not so much emphasized under Color.

In terms of performance, under Color, the management regarded it as good performance if Pemmican could achieve 90% of what was required by the budget. Achieving a 100% performance was regarded as very good performance. As indicated by the Factory Controller, Ms. Lima: 120 “Previously, our culture [is such that to be able to achieve] 93% is [considered] good! Hit 100%, [is considered] very good! ” The plant operates twenty-four hours a day, seven days a week and an average of 345 days in a year. The operatives are trained such that they are multi-skilled so that they can perform various production processes as and when required.

This is made possible by running two unique shift systems called the Brazilian Shift System and the Rota Shift System. The employees worked together and regarded the factory as their second home. Teamwork was never a problem for the people at Pemmican, as indicated by Ms. Lima when she said: “Of course, our people here, the good thing in Pemmican is, teamwork. Although, I’m from a different race, they give me good cooperation and teamwork. ” Even though Pemmican was a small business under Color, it was considered as one of the best model plants and had contributed to the high profits of Color.

Hence, even during economic recession, the employees were given lucrative bonuses, as explained by one of Pemmican’s managers: “We are only a small business in Color. And yet we were seen as one of the best models at the time. During recession, we heard of electronics plants being closed down here and there. We, however, were enjoying three, four months bonus during that time. ” Acquisition by NOVA EurOPE international corporation The acquisition of Pemmican took place following two major events that had a huge impact upon its operation.

With the liberalizing of the Malaysian economy and the opening up of felt that they had to find a business partner to sustain the existence of Pemmican. Moreover, their Japanese counterpart, who had been providing the technical assistance for Pemmican, had been LEADERSHIP Oral CHAngE Marriageable: A CASE STUDY OF Pemmican 121 bought over by Pemmican’s competitor. Thus, the Technical Cooperative Agreement was terminated in late 2001. In 2001, Color went into a technical agreement contract with nova, one of the world’s leading automotive industry suppliers. Nova was established in Europe in the late 19th century.

It is an international conglomerate with nearly 90,000 employees working at more than 100 locations in 30 countries. Subsequently, 30% of Pemmican was divested to nova. In 2003, nova increased their interest in the Joint venture to 51% and, subsequently, to 70% in 2005 in order to strengthen their position. For nova, the Joint venture will put them in a sections to close the regional gap in its global production activities in Southeast Asia. They have a more solid production and sales base, which will make the Sean and Australian markets accessible to them and, therefore, increase their market share.

With annual sales of more than 30 million units of its products, the region is said to have more than twice the market volume of China. The strategic alliance augurs well for Color since the corporation is expected to benefit from nova’s product technology, which will further enhance Malaysia’s competitiveness in the Sean region and other markets. At the same time, the Joint venture will also benefit from the production and marketing of one of the world’s top brand names in the kind of products manufactured. Nova will have access to Sloop’s product dealer network in Malaysia, which is one of the largest in the country.

LifE with NOVA Value creation is a central management philosophy in Nova. All employees are encouraged to understand the added value they have created in their day-to-day actions. In this way, all employees need to think and act as entrepreneurs. This concept is also very much stressed by the Manager (Accounting), Ms. Anita when she said: “nova is very specific. Nova has a management style that requires individual responsibility and they delegate the responsibility downwards. For instance, you can be a clerk 122 but you have got a certain responsibility.

Previously, a clerk would process all the invoices, and, hence, checked by the supervisor and released. Another executive would have a look and then sign off. Now, under nova, once the clerk goes in, it’s that everything is in order. K? Hence, the burden is going down! ” The management is also attentive of the development of corporate spirit, focusing on he culture of high performance, striving for the best, cooperation, responsibility and learning and knowledge management. Employees at nova are required to take full responsibility for their actions and performance.

Employees are expected to welcome constructive criticism, honor suggestions from other stakeholders, and be innovative to achieve performance improvement. Nova managers are expected to foster a cooperative management style that encourages delegation and accountability. Programmer to facilitate the exchange of knowledge and expertise internally, and with their partners outside the corporation are formulated in pursuance of employees’ lifelong learning. A new management team, which comprises some members from the old management team, outsiders and expatriates from nova, has been set up to manage and run the plant operations at Pemmican.

Mr.. Adam, the head of production, was promoted to be the plant manager. However, during the first two years after their partial takeover, nova did not implement many changes to Pemmican. Nova’s management sent over their people to visit the plant in order to study and understand how works are done at the plant. Pemmican’s productivity level, in terms of output per employee, was below nova standards. A higher radioactivity level was expected. Ms. Anita as the Manager (Accounting) highlighted: “For nova everything must be the same. If it’s a plant, the way you calculate, the way you define things must be the same as their other plants. The Senior Manager (Quality Assurance), Ms. Freddie added: LEADERSHIP Oral CHAngE Marriageable: A CASE STUDY OF Pemmican 123 “nova is very tight in terms of manpower. Pemmican’s has been cut tremendously to ensure that if this is the level that you are producing, hence, this is the level of manning that you should be having. ” Asian Case Rest. J. 2012. 16:115-132. Downloaded from www. Worcestershire. Mom by Consequently, in 2005, with the majority stake of 70% of Pemmican, nova decided to reduce the number of employees and intensively implement various changes to improve productivity and contain costs. Nova philosophy, I. . , high performance culture, value creation, quality without compromise and effective communication were to be adopted and integrated by Pemmican’s management. Integration into NOVA global OrgANizAtiON The integration of Pemmican into nova of new procedures and processes in almost all areas in Pemmican. One of the reasons for the restructuring is to align the organization according to the type of Truckee that nova has for all its subsidiaries all over the world. The second reason for the restructuring is to break down the high levels of bureaucracy and hierarchies that Pemmican used to have under Color.

This is also one of the ways to achieve the corporate spirit of having a good cooperation between all the employees. As the Senior Manager (Production), Mr.. Solely responded: “now [under nova], we have a flatter organization! Under Color our organizational structure was more like a pyramid, but now, we are going towards a flatter organization. That is one other thing that we have introduced. Ender nova, it’s not advisable to create layers. ” Thus, Pemmican has to implement new administrative and reporting procedures, budgeting processes, information system and performance evaluation systems.

In terms of the report, nova expected a very detailed one as Ms. Lima, the Factory Controller indicated: 124 “nova compares every single figure. For example, if you take your conversion costs. You need to extract out and show as a separate item the repair/maintenance costs. They want you to show the movement of your repair/ maintenance costs every month… Per standard product. They want you to show your energy costs every onto. They want you to show your freight costs every single detail. They compare. And by improving all these costs, then only you can see your costs reduced.

This we have never done before [under Color]. ” Asian Case Rest. J. 2012. 16:115-132. Downloaded from www. Worcestershire. Com by 60. 50. 234. 3 on 07/30/13. For personal use only. In addition, the report will need to be submitted on time, without fail, as the Manager (Accounting), Ms. Anita mentioned: “They want the information, timely! So they have a certain guideline as to when the reporting is supposed to be done and it’s fixed, per ay, per month, per time!!! Thus, if nova requires it by twelve noon European time, then that’s the time you’ve got to submit… By hook or by crook! Eve got to get it done! ” Moreover, nova introduced new product specifications, new product recipes, new machinery and technology and imposed higher quality and production standards. Practically, these changes have an impact on all aspects of Pemmican, from the work- culture to the specifications of the products manufactured. All these together have created a lot of changes, which, simultaneously, has created a lot of stress at Pemmican, as noted by Mr.. Adam: “Honestly, people are flexible. But, at the moment, maybe there are too many things and changes all at once.

It seems they are at a loss. The new product to be introduced. And then we have the new system that we have to follow. So, it is a little bit chaotic. ” Since 2003, when nova held the majority share, Pemmican has undergone several restructuring exercises. The final organizational structure implemented in Pemmican resulted in people moving to different sections or having new responsibilities. The restructuring was done to comply with nova’s requirement, which standardized the organizational LEADERSHIP Oral CHAngE Marriageable: A CASE STUDY OF Pemmican 125 structure of its plants worldwide.

The previous pyramidal, hierarchical and bureaucratic type of structure in Pemmican was replaced with a leaner and flatter structure to promote better and effective communication flows in the organization. Since plants within nova are not allowed to handle direct sales to the end customers or retailers, the marketing and sales functions of Pemmican are now handled by a separate marketing arm, which is another separate company. Thus, the sales and marketing staff of Pemmican have been either absorbed by this marketing arm or eve opted to leave the company.

The focus on Pemmican is now totally on production, as explained by Mr.. Adam “nova will send their team to Pemmican to study the plant capability, prices and whatsoever! Then they will propose a certain amount that we have to produce. However, prior to that, we have to propose to them also what is our intention for next year, based on our capacity. Thus, based on that, there is some negotiation”. Several departments were affected by the re-structuring exercise. The Finance Department has been split into two different departments, I. . Accounting Department and Controlling Department. The Technical Department has been segregated into Product Industrialization (P’) and Quality Management (KM) departments. The Production Department, which was previously separated into two production areas, has been merged into one production area, headed by the Head of Production Department. Pemmican also placed two expatriates from nova in Quality Management and Plant Operations so that they are able to manage both quality and plant operations according to nova standards. Ova has a very strict standard. If the required quality level is not achieved, then the whole production batch will be rejected. Thus, there is a need for Pemmican’s management to ensure that they produce good quality products. Due to the re-structuring, downsizing and re- shuffling exercises, many employees, especially those at the management level need to transfer to different sections or newly created departments. Many meetings were developed according to nova Corporation’s meeting structure.

The meetings are held often, as often as daily, weekly or monthly, but are usually short, between half-hour to one hour at the most. Among the meetings are the Quarterly Operations Review Meeting, Monthly Management Meeting, the Daily Factory Operations Meeting (FOAM), he daily business team meeting, the shift coordination meeting (twice per shift per day) and roll call for every shift. Another change that had a huge impact in Pemmican was the reduction in the number of employees through the voluntary separation scheme (VS.), which was offered between 2004 and 2005.

More than 100 employees took the VS., including a number of long-serving skilled supervisors and senior supervisors. Consequently, some sections in the production department were crippled because they did not have enough skilled staff to manage and operate the section. To ensure smooth running of the factory, Adam had to negotiate with some f the skilled employees who took the VS. to stay for a few months to train the remaining employees so that they could do the required tasks.

To fill the vacancies, some senior operators were promoted to the supervisory level. From managing four or five different machines and small production sections, they were now responsible for twenty machines and more people. Adam realized that some of them were not capable of managing a bigger section of probably twenty machines and more people. Furthermore, they did not have the required supervisory skills. Nova closely monitors the operations and performance of Pemmican. Detailed monthly reports need to be submitted to nova. Ova implemented strict cost control whereby they compare and contrast every single figure of the current month with that of the previous month. Previously, the reports submitted to Color were not comprehensive. Color was satisfied as long as Pemmican’s bottom-line was higher than expected. However, the bottom-line is not the only important information that the current management monitors. According to the factory controller, “… Nova goes for every single detail. ” Adam found that gaining acceptance to all these new changes, even at the management level, is not easy.

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Change management Banks operations

Since of the fast technological inventions, people are more depends on the technology. In Banking sector customers are now can operate their transactions through from their mobile or an e-mail whenever they wants from any place. This will makes customers life easier and to reduce the time of waiting in queues to do the transactions, also it’s minimize errors throughout banking operations. This technology will keep clients away from the bank and it will major Impact on personal relationship with the clients and officers In the bank. The Importance of PR Is KEY Know Your Customer).

Throughout this transaction as a officer we are unable to Identify the transaction reasons. If customer vaults to the branch to do a transaction there Is a form to be filled mentioning the reason to do the transaction. These methods will make 100% customer secure through his or her transaction through the bank. In Mobile banking It customer lost his or her mobile all the financial Information can be known to 3rd party. If that 3rd party transfer the funds to overseas Bank it is impossible to do the reversal.

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Change Management of Business Transformation Initiatives

FACULTY OF ADMINISTRATIVE SCIENCE AND POLICY STUDIES CHANGE MANAGEMENT OF BUSINESS TRANSFORMATION INITIATIVES IN POS MALAYSIA By, NORAINI BINTI MOHD SALLEH – 2008256926 WAN NOR HAFIZA BINTI WAN ZAKI – 2006100587 Table of Contents TITLE| PAGE| Chapter 1: Introduction1. 1: Introduction and background of study1. 2: Statement of the problem1. 3: Research Objective1. 4: Research Question1. 5: Scope of Study1. 6: Limitation1. 7: Organization of chapter| 3-8| Chapter 2: Literature Review2. 1: Overview of Organizational Transformation Initiatives2. 2: Implementation success2. 2. : Predetermined goals2. 2. 2: User satisfaction2. 3: Resistance to change2. 4: Change Management Initiatives2. 4. 1: Leadership2. 4. 2: Communication2. 4. 3: Training| 9-18| Chapter 3: Research Methodology3. 1: Research Framework3. 2: Sampling3. 3: Research Design3. 3. 1: Data Collection Method3. 3. 1. 1: Primary data3. 3. 1. 2: Secondary data3. 3. 2: Research questionnaire3. 3. 3: Data analysis technique| 19-22| Chapter 4: Result and Discussion4. 1: Overview of data collected4. 2: Frequency Analysis4. 2. 1: Gender4. 2. 2: Age4. 2. 3: Position4. 2. 4: Location4. 3: Discussion4. 3. : Resistance to change and user satisfaction4. 3. 2: Resistance to change and predetermined goals4. 3. 3: Change management initiatives| 23-29| Chapter 5: Conclusion and Recommendation5. 1: Summary5. 2: Recommendation5. 2. 1: Sampling Size5. 3: Conclusion| 30-32| Reference| | Chapter 1: Introduction 1. 1. Background of the Study Most of the Government Link Companies in Malaysia are required to participate in the Government Link Company Transformation Program that was launched in May 2004 by the Malaysian government. This is part of an ongoing effort by the Government to develop and grow Malaysian economy.

As one of the top 20 Government Link Companies, Pos Malaysia Berhad (Pos Malaysia) embarked on a comprehensive transformation program based on the Government Link Company Transformation Manual that was launched on 29 July 2005. Since then many transformational projects were implemented to build strong capabilities, improve performance, undertake better decision making and achieve competitive advantage. Moving forward, Pos Malaysia put in place a five-year transformation plan in August 2009 which is intended to transform the group into a more agile postal organization that is cost-efficient and customer-centric.

Many of the transformational projects are delivering significant results that meet Pos business objectives. In Berita Harian Online (April 1, 2010), the Malaysia’s leading Malay daily, stated that Pos was among the performing Government Link Companies. This was reaffirmed by The Star Online (April 19, 2010), which reported the former group managing director and Chief Executive Officer Datuk Syed Faisal Albar has said that “Pos Malaysia Bhd expects its revenue to rise by 15% to 18% in each of two 12-month periods after its postal tariff hike takes effect on July 1 2009”.

In transforming organization, Pos Malaysia employs various technologies to run its operation efficiently in order to maintain its competitive edge. Various projects such as the ultra modern hub (The Star Online, 2010), PITTIS, Shared Banking Services (Pos Malaysia Annual Report, 2009), GIFTS (Pos Malaysia Annual Report, 2008) exploited Information System (IS) and postal latest technology. Therefore in order ensure successful exploitation of purchased technology, enhancing an individual’s desire to use a given new technology is vital.

Successful in doing this will lead to higher productivity organization. Ahmed Z. U. et al. (2006) mentioned in their research that contribution of technology in any transformational projects can be determined by measuring productivity as the fundamental economic measurement tool. They highlighted that the ability and willingness of the employees to exploit and adopt new technology in their day-today operations are the key factors to ensure higher productivity. The return of investment of technology could be minimized whenever employees refuse or resist dopting new technology to fully utilize the potentials of the technology. The reluctance of employees could depend on how difficult to understand, learn, or operate in order to adopt new technology (Rogers, 1962). And it also related to the extent to which a person believes that by using a certain technology will result in free of effort (Davis, 1989). Therefore, resistance to change of employee could be one of the reasons implementation failures in transforming the organizations. Malhotra (1998) estimated that 70% of the Business Process Reengineering (BPR) projects fail.

He also stated that the most important obstacles are: i. lack of sustained management commitment and leadership; ii. unrealistic scope and expectations, and iii. resistance to change. Therefore, the prime objective of this study is to examine the relationship between resistance to change and implementation success of transformation initiatives, as well as the moderating effect of change management initiatives. 1. 2. Problem Statement Implementation success of transformational projects in any organization is very crucial.

Many organizations are struggling in ensuring their organizational transformational initiatives such as Business Process Reengineering (BPR), Enterprise Resource Planning (ERP), Lean Six-Sigma program etc. are successfully implemented. It is known that 70% of the Business Process Reengineering projects had failed to deliver the intended outcome (Malhotra, 1998). The most important obstacles are: 1) the lack of sustained management commitment and leadership, 2) the unrealistic scope and expectations, and 3) the resistance to change.

At Pos Malaysia, various transformational initiatives were introduced since August 2009 as part of it strategic plan to build strong capabilities, improve performance, undertake better decision making and achieve competitive advantage as demanded by the stakeholders. In implementing all the initiatives, Pos Malaysia also faces the same problem as other organization that embarked on organizational transformation efforts. Not all of the initiatives were successful implemented or progressing smoothly as per plan due to various factors.

Factors such as lack of sustained management commitment and leadership, unrealistic scope and expectations, and resistance to change (Maholtra, 1998) exist in Pos Malaysia. Especially factors that related to human because the transformational initiatives involve many changes on the way employees carry out their day-to-day operation. Many manual-type operations are going to be replaced by system or machineries. Employees are required to accept the changes and at the same time they also required to learn how to fit themselves in the new way of doing things.

Therefore, the negative organizational response to transformational initiatives implementation i. e. resistance to change, can become a biggest problem to Pos Malaysia in executing its transformational programs. In order to overcome this problem, study current change management initiatives effectiveness and examine resistance to change will help further Pos Malaysia in implementing transformational initiatives. 1. 3. Research Questions Based on the problem statement stated above, the following research questions have been developed: a) Is there any resistance to change in the organization? ) Do employees satisfied with the project implemented? c) What is the impact of resistance to change on transformational projects implementation success? d) Do change management initiatives influence the relationship of resistance to change and implementation success? 1. 4. Research Objectives The research objectives are elaborated by each variable as follows: a) To determine resistance of change in the organization? b) To determine employee satisfaction of the outcome of implemented project. ) To examine the relationship between resistance to change and implementation success; d) To examine the change management initiatives influence on relationship of resistance to change and implementation success. The expectation of this study is that it outcome may help in increasing the implementation success in service organization i. e. Pos Malaysia. The outcome of this study will generate a list of factors that are responsible for employees’ resistance to change, provide a measurement tool for the assessment of resistance and produce a model for reference by other scholars nd future researchers. 1. 5. Significance of the Study This study is expected hopes to provide significant theoretical and practical contributions in the area of change management. Theoretically, this study should provide guidelines for the organization especially in service organization on how to manage resistance to change effectively and practical contribution on operation of organization especially in field of change management. 1. 6. Scope and Limitation of the Study The scope of this study is relates to implementation success of the completed transformational initiatives in Pos Malaysia Berhad.

The other factors include in this study are employee resistance to change and change management initiatives in the organization. The study has several limitations that need to be considered. The study uses a sample drawn from a population of Pos Malaysia employees in Klang Valley. This population may not be representative of implementation success on transformation initiatives in general. Therefore, the actual implementation success result throughout Pos Malaysia nationwide could not be measured accurately due to demographic, geographic and psychographic differences that become a constraint (e. . varies of position, job and initiative availability) to this study. 1. 7. Organization of Chapter This research has been organized into five chapters. The first chapter is an introduction of the research and explains the statement of the problem, purpose of the study, assumptions of the study, research questions, significance and the limitations of the study. The second chapter presents a review of relevant literatures on the subject. Variety topics were reviewed for the study.

Some of the topics studied were implementation success, resistance to change and change management initiatives. The third chapter explains the methodology for the research used for the study. In-depth explanation and rationale have also been specified for the use of survey questionnaires for the study. In chapter three also explains the measurement tools and methods for questionnaires administration. The forth chapter consists of the analysis, findings and results obtained from the study. The final chapter presents an overview of the research findings derived from the tudy with a series of recommendations. Chapter 2: Literature Review 2. 1 Overview of Organizational Transformation Initiatives The business environment has become increasingly complex and changes the marketplace from local setting to a global one. Constant pressure is applied on the management to improve competitiveness by lowering operating cost and improving logistic. For the case in Malaysia, the Malaysian government is promoting organizational transformation efforts to all public listed companies under its stable.

Through Khazanah Nasional Berhad, all Government Link Companies have to embark on a comprehensive transformation program based on the Government Link Company Transformation Manual that was launched on 29 July 2005. There are various ways an organization could transform how they should improve their business. Some may adopt the principles and techniques of total quality management and re-engineering (Llana, 1998) or embark in Enterprise Resource Planning System (to manage the efficient and effective use of resources such as materials, human resources, finance, etc. (Nah, F. F. nd Lau, J. L. , 2001) or adopt various latest accounting systems which acronyms such as ABC/M, EVA and TOC (Cooper and Kaplan, 1988; Johnson and Kaplan, 1987). Many organizations have responded with enthusiasm, adopting them with varied results. A large proportion of corporations venturing into business process transformation succeed at the initiation and design phases. At this stage, it did not require involvement of various levels of employees in the organization. The difficulties occur during the stage of implementation of the transformational projects (Davenport, 1998).

During this stage, many people were involved and require a comprehensive change management initiative. “About half of Enterprise Systems (ES) projects fail to achieve hoped-for benefits because managers underestimate the efforts involved in managing change” (Pawlowsiki and Boudreau, 1999). Researches from past scholars have proved that most BPR failures are more caused by the processes of implementation rather than those of the innovation itself (Klein et al, 2001). A comprehensive change management model will assist not only in ensuring support from employees but it also will cushion the resistance to change as well. . 2 Implementation Success The measurement of information systems success in organizational transformation effort has been researched for over thirty years (Zviran & Erlich, 2003). There are various ways of measuring the implementation success of any transformational projects. Markus & Tanis (2000) stated that the definition and measurement of implementation success of Enterprise Resource Planning (ERP) is very much depending on who defines it. For instance, project managers and implementation consultant often define success in terms of completing the project on time and within budget.

The senior management on the other hand would prefer to translate the implementation success in term of bottom-line of financial statement. Enzweiler Group summarized other measures of implementation successes based on people improvements, process improvements, and system implemented (http://www. enzweiler. com/faq/managing. html). People improvements cover measurement of new skill sets, learning the skill to use new system. On process improvements, the measurement of improved resource utilization, improved relationships, or cost reductions can be used to determine the implementation success.

For instance, reduction in inventory from USD5 million to USD1. 5 million or reduction in customer service errors from 4% to 1%, or eliminate transaction processing time in the payroll and human resource department. However, measuring directly on the success of an information systems success has been found to be impractical and perhaps impossible because of intangible costs, and benefits of it are difficult to recognize and convert to monetary equivalent (Galetta & Laderer, 1989; Ives et al. , 1983).

For the purpose of this study, the two measures of implementation success to be used are predetermined goals and user satisfaction. 2. 2. 1 Predetermined Goals This first measure was adopted from Hong and Kim (2002). The predetermined goals were defined as the degree of deviation from project goals in terms of the expected cost overrun, schedule overrun, system performance deficit and expected benefits. This type of measurements was derived from the project implementation perspective. Oliver, Whymark, & Romm, (2005) rationalized this type of measurement as appropriate to indicates a clear istinction of why certain systems are deployed and the nature of their intended effects. The minimum set of success metrics of project implementation should include project metrics, early operational metrics, and long-term business results (Markus and Tanis, 2000). In this study, the predetermined goals of the projects were chosen as one of the implementation success variable. 2. 2. 2 User Satisfaction Employee or user satisfaction has received widespread acceptance as a substitute measure of information systems success (Wu et al, 2002).

This measure represents important feedback from the people who experience the system performance in their day-to-day operation. Nolan and Seward (1974) advocate that user satisfaction is the most feasible and practical tool for evaluating the success of information systems project implementation. Powers and Dickson (1973), Holsapple, Wang and Wei (2005) recognized that user satisfaction as one of the key factors that’s affecting the success of implementation of management information systems projects.

Ives, Olson, and Baroudi (1983) and Doll and Torkzadeh (1988) had developed several models to measure user satisfaction, including the user information satisfaction instrument and a 12 items satisfaction End User Computing Satisfaction (EUCS) instrument. Following this suggestion, successful organization transformation implementation success measurement should be evaluated based not only on cost of ownership and quantifiable benefits, but should also take into account the time required to implement the technology and also user acceptable in terms of satisfaction.

Therefore in this study, as for the second implementation success measure, user satisfaction method was adapted from Doll and Torkzadeh (1988) because the instrument had been used widely and has been validated through several confirmatory analyses and constructs validity tests. 2. 3 Resistance to Change Change has always been said to be the constant thing in life. Changes can be triggered either from within or outside the system. Change in many organizations may result from mergers, acquisitions, implementation of new technologies, cost-cutting, right sizing, etc (Grover, 1999).

Therefore, any resistance from employee can affect the changes intended in an organization. Resistance to change has been research for over than fifty years. Zander (1950) defined resistance to change as a behavior which is intended to protect an individual from the effects of real or imagined change. While another scholars, Folger and Skarlicki (1999, p. 36) defined resistance as “Employee behavior that seeks to challenge, disrupt or invert prevailing assumptions, discourses and power relations”.

Chawla and Kelloway (2004) said that resistance may be viewed from two different angles which were attitudinal and behavioral responses to change. They defined resistance as a phenomenon which can deter the overall change process, either by delaying or slowing down its beginning, or obstructing or hindering its implementation, and also increase its costs (Ansoff, 1990). The employees aren’t really resisting the change, but rather they may be resisting the loss of status, pay or comfort (Dent and Goldberg, 1999).

In his studied, Zander (1950) mentioned that resistance occurs due to six primary reasons as follows: a) the nature of the change is not made clear to the people who are going to be influenced by the change; b) the change is open to a wide variety of interpretations; c) those influenced feel strong forces deterring them from changing; d) the people influenced by the change have pressure put on them to make it instead of having a say in the nature or direction of the change; e) the change is made on personal grounds; and f) the change ignores the existing established institution in the group.

Major failures have been recorded for a vast majority of Systems Applications and Products (SAP) and Enterprise Resource Planning (ERP) implementations. A majority of these failures were greatly connected to shortcomings regarding managing employee resistance (Aladwani, 2001). Resistance to change can be considered as important factor in determining the success of organizational change. Hong and Kim (2002) in their research related to critical success factors for Enterprise Resource Planning (ERP) system implementation found that by lowering organizational resistance will increase the chances of success in implementing system.

According to Pawlowsiki and Boudreau (1999), about half of Enterprise System (ES) projects failed to achieve its business objectives because of underestimation the efforts involved in managing change. In a recent study on impediments to successful ERP implementation, Kim, Lee and Gosain (2005) suggested five critical impediments as follows: a) conflict of interest b) inadequate human resources commitment; c) lack of organizational change management expertise; d) business processes not reengineered to take advantage of ERP; and e) resistance of users. In their study, B. Fowke and D.

Fowke, (1991) summed up resistance to change as a manifestation of cultural values and cultural strengths. They also concluded that resistance is an artifact of corporate culture and is largely unconscious. Because of this nature, resistance and cultural variables generally are hard to understand. In order to facilitate a smooth transformational or change efforts implementation such as ERP, BPR, structure, etc. organizations must be competent in effective change management as well as manage any resistance to them. Hence, lower organizational resistance is expected to increase implementation success of transformational projects. . 4 Change Management Initiatives Research from past scholars have proved that most business process transformation failures are more caused by the processes if implementation rather than of the innovation itself (Klein et al, 2001). Summer (1999) found that many ERP implementation failures have been caused by lack of focus on “the soft issues” such as the business process and change management. While Appleton (1997) and Pawlowski and Boudreau (1999) estimated that half of ERP projects failed due to enterprise underestimating the efforts involved in change management.

An appropriate change management model will assist not only in ensuring that employees are supported in the change process but also the resistance to the innovation will be cushioned. In order to establish an effective and a successful change management by changing the behavior of individuals, Kotter (1996) suggests the following eight pitfalls: a) allowing too much complacency; b) failing to create a sufficiently powerful guiding coalition; c) underestimating the power of vision; d) under communicating the vision by factor of 10; e) permitting obstacles to block the new vision; f) failing to create short-term wins; ) declaring victory too soon; and h) neglecting to anchor changes firmly in the corporate culture. Grover et al (1995) indicated how critical is an effective change management in implementing new technology and business process reengineering. Without an appropriate change management processes, enterprise may not be able to adapt to the new systems and to capitalize on performance gains (Kim et al, 2005). This can be further extended to mean that positioning an organization with adequate and finely-tuned change management processes and procedures nurtures radical changes more effectively.

Acknowledging the need for a change is very important as the stronger the need for change, more and more top management and stakeholders will embrace change management initiatives to ensure success of the implementation of change. Norris et al (2000) pointed out that the tools of management for change are leadership, communication, training, planning, and incentive systems. They argued that these tools can be leveraged and are able to remove great obstacles with minimal efforts when applied properly. 2. 5. 1 Leadership

Lorenzi et al (1999) writes that no matter how exaggerated a technological implementation can be, an absence of effective leadership can actually deteriorate all efforts. Clarke et al (1996) discovers that an individual’s resistance to change maybe made perfects if his interest is being threatened in the proposal for change. To overcome employee resistance to change, leadership must involve employees to experience the need for the changes in effect (Pawar & Eastman, 1997). Organizations cannot separate effective leadership and their roles in accomplishing change management (Kotter, 1996).

However, there are still many organizations do not envision the informative and political roles championed by management in the implementation of change efforts until there is a major failure (Huq et al, 2006). 2. 5. 2 Communication Communication is considered as one of the most critical success factors in implementing change (Waddel and Sohal, 1998). The manager and the project team must communicate and consult regularly with the employee to make change happen. Communication during change is often a bigger task than can be imagined.

Stuart (1996) reports that there are communication principles that can be adopted such as message repletion (the more it is repeated, the less likely employees can forget), use of variety of media, face-to-face preferred, opinion leaders and personal relevant information rather than an abstraction. Every employee must be given the opportunity to be involved in all aspects of the change and they must be given the opportunity to provide feedback. 2. 5. 3 Training Training in change management has always been one major factor that is crucial to implementation of successes (Russo et al, 1999).

According to a finding by Moore et al (2000), there is a direct relationship between training and the impact it has on a company’s productivity. The report explains that employees who are trained more often are better able to sue resources at their disposal more effectively. The team that lead and involved in business process transformation needs to be trained in problem solving and communication from a initiation stage (Huq et al 2006) so that they can be educated on the politics and resistance factors (Lientz et al, 2004).

Training in this regard should involve all employees involved in the change process, be directed towards skill enhancement and ensure that the new skills are implemented quickly and absorbed into the system. In most cases, resistance has come as a result of changes in the line of command. In other instances, exaggerated leverage and cost saving benefits of the new technology is emphasized with less and infinitesimal regard to retraining employees required for all transformational projects (Grover, 1999) Researcher such as Aladwani (2001) has used change management strategies as a moderator in his research framework.

This is also consistent with other researchers (e. g. , Al-Mashari and Zairi, 2000; Aladwani, 1999) that responsiveness to internal customers is critical for an organization to avoid difficulties associated with the change. In this study, change management initiatives will represent the moderator variable. . Chapter 3: Methodology 3. 1 Research Framework This research explores and examines the relationship resistance to change and implementation success, and how change management initiatives act in the capacity of a moderating role. The theoretical framework for this study is presented in Figure 3. . The independent variable (IV) of this study is only one which is resistance to change. Resistance to change for this model refers to 1) employee resisting to change, 2) cases of blaming occurrence, 3) employee persist old ways of doing thing, and 4) people wishing change to fail. This study framework requires two dependent variables (DV). The two dimensions of implementation success will become dependent variables. The first DV is predetermined goals. Predetermined goals refer to cost, timeline, performance and expected benefits of the implemented project.

User satisfaction is the second dependent variables (DV). User satisfaction refers to user feeling using system, user satisfaction gain, and user satisfaction on the output of the system. In this framework, change management initiatives will act in the capacity of a moderating role. This study will examine on how well the moderator variable affects the relationship of the IV on the DV and interacts with the IV to predict outcome scores. The moderator variable refers to leadership, communication and change readiness. Implementation success * Predetermined goals * User satisfaction Resistance to change

Change management initiatives Figure 3. 1: Conceptual Framework This framework will use statistical moderation technique or hierarchical regression analysis. The change management initiatives such as getting the employee involved, attending to employee concerns, and making available support group will mitigate the effect of resistance to change and enhance implementation success. Early user involvement in the design and implementation of new business processes as well as extensive top-down and cross-functional communication may generate enthusiasm for ERP (Stratman and Roth, 2002).

Wee (2000) advocated that establishing a support organization such as help desk, online user manual, etc. is also critical to meet users’ needs and manage organizational change. Norris et al. (2000) pointed that the tools of management are leadership, communication, training, planning and incentive systems. They argued that these tools can be leveraged and are able to remove great obstacles with minimal efforts when applied properly. As such in this study we establish the following hypotheses:- 3. 2 Research Design A descriptive research design was used in this study.

In addition to collecting descriptive data about resistance to change and implementation success, the study will investigate change management initiatives impact on the relationship of independent variable and both dependent variables. The variables in the study were identified through a review of relevant research literature. The research provided insights and an in-depth understanding of the topic and problems, which would result in the recommendations of necessary steps that could be undertaken. 3. 3 Data Collection (Sampling and Procedures)

In this quantitative research we are using primary data collection, specifically for this research, by survey technique. The survey is using a set of questionnaires which developed for this research. The survey research is chosen because it is one of the most important areas of measurement in applied social research. The unit of analysis is individual, which mean the eligible employee of Pos Malaysia. 3. 4. 1 Sampling Population The selected respondents represent a balanced mix of employees from various level that affected by the organizational transformation project in terms of they carry out their day to day function.

The population of interest in this research was the employees of Post Malaysia Berhad. 3. 4. 2 Sampling Size The target sample for this study is employees who work in Klang Valley that involved in business transformational projects in Pos Malaysia. In this study, 130 questionnaires will be distributed and to be used as a sampling to test reliability of this study. 3. 4. 3 Data collection Data collection used in this study was cross-sectional analysis which takes place at a single point in time.

Cross-sectional studies are used in most branches of science, in the social sciences and in other fields as well. Cross-sectional research takes a slice of customers’ satisfaction target group and bases its overall finding on the views or behaviors of those targeted, assuming them to be typical of the whole group. 3. 3. 4Data Analysis Technique This section describes methods to be used in the data analysis. The data collected was analyzed with the Statistical Package for Social Sciences (SPSS) Version 18.

Initially, the data was coded in numerical order before it was entered into the statistical program. Subsequently, the data was screened and treated for errors and missing values. The various statistical technique used were descriptive analysis namely; factor analysis, reliability analysis, correlation analysis and hierarchical regression analysis. Frequency tables were generated to provide frequency and percentages of demographic characteristics of respondents. Chapter 4: Results and Discussions This chapter is dedicated to the analysis of data collected through questionnaire.

The main objectives of the study were to look at the significant relationship between employee resistance to change in Pos Malaysia and implementation success with change management initiatives as the moderating roles as shown in the theoretical framework. The data used in this study were gathered from Pos Malaysia’s employees, one of the major service organizations in the country. 4. 1 Overview of data collected One hundred thirty (130) copies of questionnaires were distributed but only one hundred twenty four (124) feedbacks received from respondents. The percentages of respondents’ feedback were 95. 0%, while 4. 60% did not respond. After the coding processes were completed, all 124 questionnaires were ready to be analyzed. The data collected were analyzed using Statistical Package for Social Science (SPSS) Version 18 and discussed individually in the following order; (i) frequency analysis, (ii) factor analysis, (iii) reliability, (iv) correlation analysis, and (v) hierarchical regression analysis. This study also discussed thoroughly the relationship between the resistance to change and implementation success that might contribute to research finding.

Besides, respondents’ demographic profile was also analyzed in order to examine the pattern of employees’ preferences and their interpretation of implementation success according to the variables. 4. 2 Frequency Analysis This section illustrates the demographic profile of the respondents. The questionnaire included a segment on employees’ profile, as an assortment of demographic and other factors were likely to influence the degree of implementation success of transformational projects in Pos Malaysia. 4. 2. 1 Gender Table 4. 1 represents respondents based on their gender.

The result shows that 71 respondents or 57. 3% of the whole respondents were male. Apart from that, 53 respondents were female or 42. 7% of the whole respondents. Table 4. 1 Frequency Output of Respondent’s Gender Gender| | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| Male| 71| 57. 3| 57. 3| 57. 3| | Female| 53| 42. 7| 42. 7| 100. 0| | Total| 124| 100. 0| 100. 0| | 4. 2. 2 Age Result from the Table 4. 2 shows that the sample employees were mostly in the age group below 35 years (54. 0%). From the table age between 36 – 40 years is 12. 9%, 41-45 years is 16. % and above 46 years old 16. 1%. Table 4. 2 Frequency Output of Respondent’s Age Age| | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| 20-25| 16| 12. 9| 12. 9| 12. 9| | 26-30| 27| 21. 8| 21. 8| 34. 7| | 31-35| 24| 19. 4| 19. 4| 54. 0| | 36-40| 16| 12. 9| 12. 9| 66. 9| | 41-45| 21| 16. 9| 16. 9| 83. 9| | > 46| 20| 16. 1| 16. 1| 100. 0| | Total| 124| 100. 0| 100. 0| | 4. 2. 3 Position Result shown in Table 4. 3 indicates that 84 respondents were predominantly the front line employees (68. 5%), followed by 31 respondents were supervisors (25. 0%), 6 respondents were managers (4. %) and, only 2 respondents were senior management staff (1. 6%). This implies that respondents represent the actual user of the outcome from the transformational projects. Table 4. 3 Frequency Output of Respondent’s Position Position| | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| senior management| 2| 1. 6| 1. 6| 1. 6| | management| 6| 4. 8| 4. 8| 6. 5| | supervisory| 31| 25. 0| 25. 0| 31. 5| | operational/clerical| 85| 68. 5| 68. 5| 100. 0| | Total| 124| 100. 0| 100. 0| | 4. 2. 4 Location It was obviously indicated that most of respondents’ were located the operation sites (80. 6%). And 19. % of respondents were from the headquarters of Pos Malaysia. The result shown in Table 4. 4. Table 4. 4 Frequency Output of Respondent’s Location Location| | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| HQ| 24| 19. 4| 19. 4| 19. 4| | Others| 100| 80. 6| 80. 6| 100. 0| | Total| 124| 100. 0| 100. 0| | 4. 3Discussion Many corporations embarked in transforming their organization in order to become competitive. Various transformational initiatives were deployed such as BPR, ERP, Lean Six-Sigma, Supply Chain Management etc. but, relatively little research has been conducted about the implementation success.

In this study, negative organizational response was found related to the implementation success to transformational initiatives. Resistance to change was negatively related to user satisfaction, but positively related to predetermined goals. Another significant finding was change management initiatives are not qualify as a moderating variable in both relationship of resistance to change and implementation success variables. As recommended by Hong and Kim (2002), change management initiatives can be treated as an independent variable to predicting the success of transformational initiatives.

In general, organizations must seriously deploy an effective change management to generate buy-in or ownership level of commitment of their employees in order to ensure success of transformational projects implementation. In the next section, more in-depth discussion of the results will be carried out. 4. 3. 1Resistance to change and user satisfaction As mentioned in the previous chapter, resistance to change was found negatively related with user satisfaction. The finding is consistent the research carried out by Hong and Kim (2002) and Ahmed et al. (2006).

In the case of high resistance, the employees will feel unhappy with the changes imposed on them. This situation will shape an employee with low satisfaction. An unhappy employee is not good for the organization because they are less productive and more likely to have higher absence rate (Corporate Leadership Council, 2003). This result indicates that management must effectively establish a lean and user-friendly new processes or system when transforming organization. This can be done by ensuring an effective process reengineering exercise during early implementation phase.

During this exercise, management should include the affected employees in the team that design new processes or system. The outcome of the process reengineering must pay more attention to the end user (people) and emphasize more on human issues. This suggestion is consistent with proposal made by Holsapple et al. (2005). 4. 3. 2Resistance to change and Predetermined goals Another significant result found in this study was the positive relationship between resistance to change and predetermined goals. This finding was against the study made by Ahmed et al. (2006).

The result interprets that high deviation of the pre-set goals will emerge whenever resistance to change is high. It indicates that high resistance able to influence timeline, cost management or benefits realization during implementation of transformational projects. A project that took longer time to complete or high cost overrun, or difficult to realize the benefits can be said experiencing with high resistance employees during implementation. Organization must be competent in effective change management that involves the affected employees to accept the changes in order to facilitate a smooth ERP implementation (Ahmed et al. 2006). The information about the transformational projects which include cost, timeline, deliverables and expected benefit should be made available and clearly communicated to affected employees. Ahmed et al. (2006) also noted that any effort to educate users through a structured program will overcome resistance issues during implementation. 4. 3. 3Change management initiatives Although change management was found not moderated the relationship between resistance to change and implementation success, it still remains critical for implementation of any transformational projects.

Change management has a significant relationship to implementation success and resistance to change. This study shows that an effective change management is able to increase user satisfaction and also will assist in achieving all predetermined goals. It means that change management plays an important factor in ensuring the success of implementation. Change management initiatives were also found to have a negative relation with resistance to change. This result is consistent with Ahmed et al. (2006) study.

They stated that change management initiatives will help in reducing the negative impact whenever there is resistance among employees. Kim et al. (2005) suggested that change management should not only carried out by the project team, but also to others. Therefore it is important for the senior management team to play active roles in change management initiatives. Change management tools such as leadership, communication, training, planning and incentive can be leveraged and are able to remove any resistance during implementation of the changes (Norris et al. , 2000). Chapter 5: Conclusion and Recommendation 5. 1 Summary

The main objective of this study is to examine various factors that contributed to the implementation success of transformational initiatives in service organization, which is Pos Malaysia. The studied factors were resistance to change, change management initiatives, predetermined goals and user satisfaction. A total of 130 sets questionnaires were distributed to various sites in Klang Valley and 124 sets (95. 4%) sets were returned. All data was analyzed by using SPSS ver. 18 software. In this study, all hypotheses were tested with hierarchical regression analysis to determine it significant level of DV, IV and MV relationship.

As a result, two out of the four null hypotheses were rejected. Table 5. 1 shows the summarization the findings of this study. 5. 2 Recommendation Since that not many studies were being made in organizational change, followings are the list of recommendations for future research. 5. 3. 1 Sampling size Future study should include respondents from other service organizations either at regions or state in order to obtain more robust results. The outcome will able to generalize the research results to the whole population of service organizations in Malaysia. 5. 3 Conclusion

In this study, resistance to change had been examined and confirmed as a critical factor in explaining implementation success of transformational initiatives. The management should keep resistance as low as possible in order the success in implementing transformational projects. In addition, this study also found that change management was not act as a moderating variable in relationship of resistance to change and implementation success. Although it is contradicted result from previous researches particularly change management initiatives as moderating variable.

These results can be concluded as accurate in Pos Malaysia’s perspective since each organization has different demographic profile that affects implementation success. Overall of the study revealed that the human factor such as employees’ acceptance of the changes imposed to them, as well as understanding of objectives and benefits of the changes are the important issues in implementing organizational changes in service organization, specifically Pos Malaysia Berhad. These issues if not seriously anticipated may lead to development of negative organizational response in the organization.

Finally, in order to overcome this problem, the management should embark on a structured program to educate the user about the potential benefits of the new processes or system. This may in many ways able to reduce the potential resistance and increase the likelihood of a successful implementation of any transformational projects. Reference Ahmed, Z. U. , Zbib, I. , Arokiasamy, S. , Ramayah, T. & Chiun, L. M. (2006), Resistance to Change and ERP Implement Success: The Moderating Role of Change Management Initiatives, Asian Academy of Management Journal, 11(2), 1-17 Aladwani, A. (2001).

Change management strategies for successful ERP implementation systems. Business Process Management Journal, 7, 266-275 Ansoff, I. H. (1990). Implanting Strategic Management. London: Pretice-Hall International Ltd. Berita Harian On-line. (April 1, 2010). Khazanah Nasional kuasai untung kumpulan 20 GLC http://www. bharian. com. my/bharian/articles/KhazanahNasionalkuasaiuntungkumpulan20GLC/Article/ Chawla, A. & Kelloway, E. K. (2004). Predicting openness and commitment to change. The Leadership & Organizational Development Journal, 25, 485-498 Clarke, J. , Ellett, C. , Bateman, J. & Rugutt, J. (1996): Faculty Receptivity/Resistance to Change, Personal and Organizational Efficacy, Decision Deprivation and Effectiveness in Research Universities. Paper presented at the Twenty-first Annual Meeting of the Association for the Study of Higher Education, Memphis, TN. October 31-November 3. Cooper, R. and Kaplan, R. S. , (1988). How cost accounting distorts product cost, Management Accounting, April, 20–27 Cooper, R. B. and Zmud, R. W. , (1990). Information Technology Implementation Research: A Technological Diffusion Approach, Management Science, 36(2), 123-139

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