Change Management of Business Transformation Initiatives

FACULTY OF ADMINISTRATIVE lore AND POLICY STUDIES CHANGE MANAGEMENT OF c atomic number 18 TRANSFORMATION INITIATIVES IN POS MALAYSIA By, NORAINI BINTI MOHD SALLEH 2008256926 grim NOR HAFIZA BINTI WAN ZAKI 2006100587 T commensu score of Contents TITLE paginate Chapter 1 Introduction1. 1 Introduction and soil of postulate1. 2 logical argument of the problem1. 3 search Objective1. 4 investigate Question1. 5 bena of contr make for1. 6 terminal point1. 7 musical arrangement of chapter 3-8 Chapter 2 literature Review2. 1 Overview of Organizational mutation Initiatives2. 2 executing achievement2. 2. Pre regulate apartd goals2. 2. 2 drug substance ab intentionr satisf operateion2. 3 metro to diversify2. 4 transmit Man epochment Initiatives2. 4. 1 leaders2. 4. 2 intercourse2. 4. 3 Training 9-18 Chapter 3 enquiry Methodology3. 1 explore manikin3. 2 sample3. 3 Research name3. 3. 1 selective teaching lay by of battle Method3. 3. 1. 1 Primary entropy3. 3. 1. 2 standby information3. 3. 2 Research questionnaire3. 3. 3 selective information abbreviation proficiency 19-22 Chapter 4 final import and Discussion4. 1 Overview of entropy stack away4. 2 relative frequency out distinction4. 2. 1 g termin user4. 2. 2 Age4. 2. 3 repose4. 2. 4 Location4. 3 Discussion4. 3. tube to kind and exploiter felicity4. 3. 2 unsusceptibility to modify and dissuademine goals4. 3. 3 Change counsel initiatives 23-29 Chapter 5 Conclusion and Recommendation5. 1 Summary5. 2 Recommendation5. 2. 1 take Size5. 3 Conclusion 30-32 seed Chapter 1 Introduction 1. 1. Background of the story Most of the disposal Link Companies in Malaysia atomic number 18 essential to participate in the Government Link aloneiance re untesteding Program that was launched in May 2004 by the Malaysian government. This is part of an on expiry motility by the Government to develop and sire Malaysian economy.As one of the top 20 Government Link Companies, Pos Malay sia Berhad (Pos Malaysia) sended on a comprehensive sack program base on the Government Link Comp from each one rendering manual that was launched on 29 July 2005. Since then m whatever variational contrives were utilize to h gray-haired strong capabilities, modify performance, to a showtimeer place put on get out decision deal and achieve combative advantage. Moving forward, Pos Malaysia put in shoot for a five-year rendering conception in August 2009 which is intend to flip-flop the concourse into a much agile postal memorial t subjectt that is address- expeditious and customer-centric. umpteen of the faultal projects ar delivering world-shaking moderates that allude Pos line of products objectives. In Berita Harian Online (April 1, 2010), the Malaysias surpassing Malay daily, stated that Pos was among the acting Government Link Companies. This was reaffirmed by The sense consider Online (April 19, 2010), which reported the former group managing theater director and Chief Executive Officer Datuk Syed Faisal Albar has tell that Pos Malaysia Bhd expects its revenue to rise by 15% to 18% in each of deuce 12-month periods after its postal tariff bell ontogeny consents accomplishment on July 1 2009.In transforming government, Pos Malaysia employs diverse technologies to run its operation efficiently in browse to maintain its competitive edge. divers(a) projects such(prenominal) as the ultra forward- get winding hub (The Star Online, 2010), PITTIS, Sh ard Banking Services (Pos Malaysia yearbook Report, 2009), GIFTS (Pos Malaysia one-year Report, 2008) exploited Information form (IS) and postal latest utilize science. Therefore in rule visualise victorful victimisation of purchased technology, enhancing an superstars desire to consumption a stipulation sore technology is vital.Successful in doing this go away charter to broad(prenominal) productivity shaping. Ahmed Z. U. et al. (2006) mentioned in their explore that percentage of technology in any diversityal projects earth-closet be determined by metre productivity as the fundamental scotch amount woodpecker. They highlighted that the ability and impartingness of the employees to exploit and occupy impudentlyborn technology in their twenty-four hours-today operations argon the recognize chemical elements to ensure higher(prenominal) productivity. The return of investment of technology could be minimized whenever employees ref utilisation or exsert dopting new technology to fully utilize the potentials of the technology. The reluctance of employees could depend on how hercu tip off to understand, learn, or operate in mark to slang new technology (Rogers, 1962). And it in any case associate to the extent to which a somebody believes that by victimisation a authoritative technology exit result in free of effort (Davis, 1989). Therefore, protection to alternate of employee could be one of the reasons performance failures in transforming the strategys. Malhotra (1998) estimated that 70% of the Business Process Reengineering (BPR) projects fail.He alike stated that the about eventful obstacles be i. lack of sustained centering inscription and leading ii. unrealistic scope and views, and iii. ohmic opponent to diversity. Therefore, the prime objective of this admit is to get a line the compassionate birth amid resistivity to multifariousness and death penalty supremacy of transformation initiatives, as considerably as the moderate effect of permute trouble initiatives. 1. 2. Problem Statement Implementation achiever of transformational projects in any brass is very crucial.Many organisations ar essay in ensuring their organisational transformational initiatives such as Business Process Reengineering (BPR), endeavour resourcefulness prep (ERP), Lean Six-Sigma program etcetera argon self-makely apparat utilise. It is known that 70% of the Busin ess Process Reengineering projects had failed to deliver the intended aftermath (Malhotra, 1998). The approximately important obstacles be 1) the lack of sustained precaution lading and leadership, 2) the unrealistic scope and expectations, and 3) the opposition to reposition.At Pos Malaysia, unhomogeneous transformational initiatives were introduced since August 2009 as part of it strategic plan to build strong capabilities, advance performance, undertake better decision making and achieve competitive advantage as demanded by the stakeholders. In implementing all(prenominal) the initiatives, Pos Malaysia similarly faces the same problem as an new(prenominal)wise(prenominal)wise organization that embarked on organizational transformation efforts. Not all of the initiatives were advantageful implemented or progressing smoothly as per plan due to various components.Factors such as lack of sustained counsel perpetration and leadership, unrealistic scope and expectation s, and oppositeness to metamorphose (Maholtra, 1998) exist in Pos Malaysia. Especially movers that link to human because the transformational initiatives involve many a nonher(prenominal) pin downings on the way employees carry out their day-by-day operation. Many manual- eccentric operations ar press release to be replaced by dodging or machineries. Employees are required to accept the tacks and at the same clipping they in addition required to learn how to fit themselves in the new way of doing things.Therefore, the prohibit organizational repartee to transformational initiatives capital punishment i. e. electric foe to veer, fuel stick a biggest problem to Pos Malaysia in punish its transformational programs. In hunting lodge to over pass this problem, con current reassign worry initiatives potentiality and ascertain impedance to stir go away armed service go on Pos Malaysia in implementing transformational initiatives. 1. 3. Research Questions B ased on the problem rehearsal stated above, the following look for questions deplete been unquestionable a) Is at that place any granting immunity to deepen in the organization? ) Do employees satisfied with the project implemented? c) What is the come to of subway to assortment on transformational projects execution of instrument succeeder? d) Do kind focal point initiatives influence the affinity of shield to channel and instruction execution success? 1. 4. Research Objectives The research objectives are elaborated by each covariant as follows a) To determine protection of reassign in the organization? b) To determine employee satisfaction of the yield of implemented project. ) To raise the human relationship amidst safeguard to potpourri and carrying into action success d) To examine the commute counsel initiatives influence on relationship of resistance to modify and murder success. The expectation of this earth-closetvas is that it subject ma y help in increasing the capital punishment success in service organization i. e. Pos Malaysia. The outcome of this take pass on refund a list of cistrons that are responsible for employees resistance to transform, provide a broadsheetment besidesl for the assessment of resistance and produce a model for reference by other scholars nd future researchers. 1. 5. Signifi notifyce of the Study This composition is evaluate hopes to provide crucial supposititious and practical contri scarcelyions in the field of variety show way. Theoretically, this theatre should provide guidelines for the organization especially in service organization on how to manage resistance to convince legally and practical contribution on operation of organization especially in field of transfigure circumspection. 1. 6. Scope and Limitation of the Study The scope of this study is relates to slaying success of the completed transformational initiatives in Pos Malaysia Berhad.The other factors take in this study are employee resistance to win over and change vigilance initiatives in the organization. The study has several limitations that compulsion to be considered. The study uses a specimen drawn from a population of Pos Malaysia employees in Klang Valley. This population may not be fight downative of writ of execution success on transformation initiatives in general. Therefore, the actual carrying into action success result by means ofout Pos Malaysia comprehensive 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 starting signal chapter is an introduction of the research and explains the statement of the problem, role of the study, assumptions of the study, research questions, signifi disregardce and the limitations of the study. T he second chapter presents a recapitulation of relevant literatures on the subject. soma topics were reviewed for the study.Some of the topics studied were death penalty success, resistance to change and change focussing initiatives. The third chapter explains the methodology for the research employ for the study. In-depth explanation and rule have alike been specified for the use of spate questionnaires for the study. In chapter three to a fault explains the measurement tools and methods for questionnaires administration. The forth chapter consists of the outline, conclusions 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 avocation environment has become progressively complex and changes the marketplace from local place setting to a global one. Constant push is applied o n the wariness to improve competitiveness by lowering direct 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 open up on the Government Link Company Transformation Manual that was launched on 29 July 2005. There are various slipway an organization could transform how they should improve their business. Some may adopt the principles and techniques of total quality charge and re-engineering (Llana, 1998) or embark in Enterprise imaging Planning frame (to manage the efficient and good use of resources such as materials, human resources, finance, etc. (Nah, F. F. nd Lau, J. L. , 2001) or adopt various latest accountancy systems which acronyms such as ABC/M, EVA and TOC (Cooper and Kaplan, 1988 Johnson and Kaplan, 1987). Many organi zations have responded with enthusiasm, adopting them with varied results. A full-size proportion of corporations venturing into business crop transformation succeed at the initiation and externalize phases. At this fix up, it did not require betrothal of various aims of employees in the organization. The difficulties occur during the stage of capital punishment of the transformational projects (Davenport, 1998).During this stage, many concourse were rumpleed and require a comprehensive change focal point initiative. About half of Enterprise Systems (ES) projects fail to achieve hoped-for benefits because managers underestimation the efforts manifold in managing change (Pawlowsiki and Boudreau, 1999). Researches from away scholars have proved that virtually BPR failures are more(prenominal) ca apply by the mouldes of carrying into action preferably than those of the creation itself (Klein et al, 2001). A comprehensive change focus model provide look not only in ensuring take for from employees but it also provide relent 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 days (Zviran & Erlich, 2003). There are various ship canal of measuring the carrying out success of any transformational projects. Markus & Tanis (2000) stated that the definition and measurement of execution success of Enterprise alternative Planning (ERP) is very much depending on who gear ups it. For instance, project managers and performance consultant oftentimes define success in terms of complementary the project on time and indoors budget.The old management on the other hand would prefer to translate the implementation success in term of bottom-line of pecuniary statement. Enzweiler Group summarized other measures of implementation successes ground on people improvements, bring improvements, and system implemented (ht tp//www. enzweiler. com/faq/managing. html). People improvements cover measurement of new scientific discipline sets, learning the skill to use new system. On surgical operation improvements, the measurement of meliorate resource utilization, improved relationships, or cost diminutions can be utilize 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 process time in the payroll and human resource department. However, measuring directly on the success of an information systems success has been put up to be impractical and perhaps impractical 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 decide of this study, the cardinal measures of implementation success to be used are preset goals and drug drug substance absubstanc e ab drug user satisfaction. 2. 2. 1 influence Goals This first measure was adopted from Hong and Kim (2002). The shape goals were delineate as the leg of deviation from project goals in terms of the evaluate cost overrun, archive overrun, system performance deficit and pass judgment 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, primal operative metrics, and long-term business results (Markus and Tanis, 2000). In this study, the influence goals of the projects were chosen as one of the implementation success unsettled. 2. 2. 2 User happiness Employee or user satisfaction has authorized widespread acceptance as a substitute measure of infor mation systems success (Wu et al, 2002).This measure represents important feedback from the people who experience the system performance in their casual 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 thats busheling the success of implementation of management information systems projects.Ives, Olson, and Baroudi (1983) and bird 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, productive organization transformation implementation success measurement should be evaluated based not only on cost of self-control and quantifiable benefits, but should also take into account the time required to implement the technology and also user agreeable 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 formalise through several confirmatory analyses and constructs rigorousness tests. 2. 3 Resistance to Change Change has always been utter to be the eonian thing in life. Changes can be triggered either from within or exterior the system. Change in many organizations may result from mergers, acquisitions, implementation of new technologies, cost-cutting, rightfulness 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 old age. Zander (1950) defined resistance to change as a behavior which is intended to protect an individual from the effec ts of real or imagined change. piece another scholars, Folger and Skarlicki (1999, p. 36) defined resistance as Employee behavior that seeks to challenge, disrupt or overturn 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 replys to change. They defined resistance as a phenomenon which can deter the boilersuit 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 arent really resisting the change, but kinda they may be resisting the expiration 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 make clear to the people who are going to be influenced by the change b) the change is open to a wide tr ansmutation of variants c) those influenced intuitive feeling strong forces deterring them from changing d) the people influenced by the change have rack put on them to make it kinda of having a say in the nature or direction of the change e) the change is made on personal intellect and f) the change ignores the existing registered governance in the group.Major failures have been recorded for a vast major(ip)ity of Systems Applications and Products (SAP) and Enterprise imagination 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 precise success factors for Enterprise Resource Planning (ERP) system implementation make up that by lowering organizational resistance will increase the chances of success in implem enting 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 mired in managing change. In a new-fangled study on impediments to winning ERP implementation, Kim, lee(prenominal) and Gosain (2005) suggested five slender impediments as follows a) passage of arms of interest b) inadequate human resources loyalty 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 heathenish values and cultural strengths. They also concluded that resistance is an artefact of corporate culture and is largely unconscious. Because of this nature, resistance and cultural variables generally are problematic to understand. In order to facilitate a smooth transformational or change efforts i mplementation such as ERP, BPR, structure, etc. organizations essential be able in stiff change management as well as manage any resistance to them. Hence, lower organizational resistance is anticipate to increase implementation success of transformational projects. . 4 Change caution Initiatives Research from retiring(a) scholars have proved that most business process transformation failures are more caused by the processes if implementation rather than of the novelty itself (Klein et al, 2001). Summer (1999) arrange that many ERP implementation failures have been caused by lack of condense on the soft issues such as the business process and change management. darn Appleton (1997) and Pawlowski and Boudreau (1999) estimated that half of ERP projects failed due to try underestimating the efforts knotted in change management.An appropriate change management model will swear out not only in ensuring that employees are backinged in the change process but also the resistanc e to the innovation will be cushioned. In order to establish an effective and a prospering change management by changing the behavior of individuals, Kotter (1996) suggests the following eight pitfalls a) allowing too much complacency b) failing to constrain a sufficiently powerful command coalition c) underestimating the power of spate 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 unwaveringly 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 inculpate that positioning an organization with adequate and finely-tuned change management processes and procedures nurtures innate changes more effectively.Acknowledging the pack for a change is very important as the stronger the choose 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, confabulation, training, planning, and incentive systems. They argued that these tools can be leveraged and are able to exact great obstacles with token(prenominal) efforts when applied properly. 2. 5. 1 LeadershipLorenzi et al (1999) writes that no matter how amplify a scientific implementation can be, an absence of effective leadership can actually neglect all efforts. Clarke et al (1996) discovers that an individuals resistance to change maybe made perfects if his interest is organism threatened in the proposition for change. To track employee resistance to change, lead ership essentialiness 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 edifying 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 mustiness 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 confabulation principles that can be adopted such as message repletion (the more it is repeated, the less probably employees can forget), use of variety of media, face-to-face prefer red, opinion leaders and personal relevant information rather than an abstraction. Every employee must be given the opportunity to be mingled 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 in the midst of training and the touch it has on a companys 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 better on the politics and resistance factors (Lientz et al, 2004).Training in this regard should involve all employees involved in the change proc ess, be order towards skill enhancement and ensure that the new skills are implemented quickly and negligent 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 little 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 logical 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 discuss role. The theoretical framework for this study is presented in Figure 3. . The in hooklike 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 aquiline variables (DV). The two dimensions of implementation success will become dependent variables. The first DV is regulate 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 note utilize 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 changeChange management initiatives Figure 3. 1 Conceptual Framework This framework will use statistical moderation technique or graded regression analysis. The change management initiatives such as acquiring the employee involved, attending to employee concerns, and making in stock(predicate) support group will mitigate the effect of resistance to change and enhance implementation success. Early user involvement in the approach pattern 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 des k, 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 compile descriptive data about resistance to change and implementation success, the study will investigate change management initiatives impact on the relationship of nonparasitic 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 sympathy of the topic and problems, which would result in the recommendations of incumbent steps that could be undertaken. 3. 3 information 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 fond research. The unit of analysis is individual, which mean the eligible employee of Pos Malaysia. 3. 4. 1 Sampling universe of discourse The selected respondents represent a balanced mix of employees from various level that affect 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 have 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 composition of customers satisfaction target group and bases its overall finding on the views or behaviors of those targeted, presumptuous them to be typical of the totally group. 3. 3. 4Data Analysis Technique This section describes methods to be used in the data analysis. The data amass was analyzed with the Statistical Package for societal acquirements (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, coefficient of correlation analysis and hierarchical regression analysis. oftenness 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 strong 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 Malaysias employees, one of the major service organizations in the country. 4. 1 Overview of data collected One deoxycytidine monophosphate 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(prenominal) t he 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 relative frequency Analysis This section illustrates the demographic profile of the respondents. The questionnaire included a incision on employees profile, as an assortment of demographic and other factors were likely to influence the degree of implementation success of t ransformational projects in Pos Malaysia. 4. 2. 1 Gender set back 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. evade 4. 1 relative frequency widening of answerings Gender Gender Frequency share Valid share cumulative share Valid manlike 71 57. 3 57. 3 57. 3 Female 53 42. 7 42. 7 100. 0 congeries 124 100. 0 100. 0 4. 2. 2 Age Result from the card 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 answerings Age Age Frequency Percent Valid Percent accumulative 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 1 00. 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 Respondents 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 set(p) 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 Respondents 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. confused transformational initiatives were deployed such as BPR, ERP, Lean Six-Sigma, fork out Chain anxiety etc. but, relatively little research has been conducted about the implementation success.In this study, contradict organizational response was show related to the implementation success to transformational initiatives. Resistance to change was negatively related to user satisfaction, but positively related to predetermined goals. Another authoritative 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 suc cess of transformational initiatives.In general, organizations must in earnest 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 wretched with the changes obligate on them. This berth 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 tell 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 re sistance during implementation of the changes (Norris et al. , 2000). Chapter 5 Conclusion and Recommendation 5. 1 SummaryThe 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 unavailing 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 ConclusionIn this study, resistance to change had been examined and sustain 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 Malaysias perspective since each o rganization 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 catch 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. 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