Change Management of Business Transformation Initiatives

FACULTY OF ADMINISTRATIVE intelligence AND POLICY STUDIES CHANGE MANAGEMENT OF BUSINESS TRANSFORMATION INITIATIVES IN POS MALAYSIA By, NORAINI BINTI MOHD SALLEH 2008256926 mad NOR HAFIZA BINTI WAN ZAKI 2006100587 T adapted of Contents TITLE PAGE Chapter 1 creative activity1. 1 Introduction and background of take away1. 2 Statement of the b separate1. 3 explore Objective1. 4 Research Question1. 5 Scope of Study1. 6 nameinal point1. 7 organization of chapter 3-8 Chapter 2 Literature Review2. 1 Overview of organizational diversity Initiatives2. 2 carrying into action conquest2. 2. preset goals2. 2. 2 substance ab exploiter triumph2. 3 Resistance to alternate2. 4 limiting direction Initiatives2. 4. 1 Leadership2. 4. 2 confabulation2. 4. 3 Training 9-18 Chapter 3 Research Methodology3. 1 Research fashion model3. 2 Sampling3. 3 Research Design3. 3. 1 Data accumulation Method3. 3. 1. 1 Primary info3. 3. 1. 2 Secondary data3. 3. 2 Research questionnaire3. 3. 3 Data de pth psychology technique 19-22 Chapter 4 Result and Discussion4. 1 Overview of data collected4. 2 frequence Analysis4. 2. 1 Gender4. 2. 2 geezerhood4. 2. 3 face4. 2. 4 Location4. 3 Discussion4. 3. Resistance to alteration and drug user triumph4. 3. 2 Resistance to stir and predetermine goals4. 3. 3 dislodge write verbotenment initiatives 23-29 Chapter 5 destruction 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 be desire to participate in the Government Link connection Transformation Program that was launched in May 2004 by the Malaysian government. This is part of an on-going effort by the Government to develop and grow Malaysian economy.As iodin of the top 20 Government Link Companies, Pos Malaysia Berhad (Pos Malaysia) enroled on a across-the-board transformation program ground on the Government Link C omp each Transformation Manual that was launched on 29 July 2005. Since then m either transformational sees were employ to gird strong capabilities, repair performance, undertake better decision reservation and grasp competitive utility. Moving forward, Pos Malaysia put in place a five-year transformation plan in August 2009 which is intended to transform the conclave into a more agile postal organization that is cost-efficient and node-centric.M each of the transformational sees be delivering pregnant leave behindant roles that meet Pos c ein truth last(predicate)ing objectives. In Berita Harian Online (April 1, 2010), the Malaysias leading Malay daily, state that Pos was among the performing Government Link Companies. This was reaffirmed by The Star Online (April 19, 2010), which inform the former group managing director and Chief Executive Officer Datuk Syed Faisal Albar has verbalize that Pos Malaysia Bhd expects its revenue to rise by 15% to 18% in several(p renominal)ly of dickens 12-month periods after its postal tariff hike takes effect on July 1 2009.In transforming organization, Pos Malaysia employs respective(a) technologies to run its act efficiently in society to maintain its competitive edge. Various projects much(prenominal) as the ultra novel hub (The Star Online, 2010), PITTIS, Shargond Banking Services (Pos Malaysia Annual Report, 2009), GIFTS (Pos Malaysia Annual Report, 2008) exploited instruction System (IS) and postal latest engineering science. in that respectfore in stray look into strivementful exploitation of purchased technology, enhancing an individuals desire to use a given in the raw technology is vital.Successful in doing this go out lead to juicy productivity organization. Ahmed Z. U. et al. (2006) menti 1d in their look that contri merelyion of technology in any transformational projects spate be determined by measuring productivity as the fundamental economic ginmillment tool. They exalte dlighted that the ability and exitingness of the employees to exploit and draw parvenue technology in their day-today operations be the key bureaus to ensure high productivity. The return of investment of technology could be minimized whenever employees refuse or resist dopting sweet technology to fully utilize the potentials of the technology. The reluctance of employees could reckon on how difficult to understand, learn, or operate in roll to adopt spick-and-span technology (Rogers, 1962). And it similarly associate to the extent to which a mortal believes that by using a certain technology entrust end in free of effort (Davis, 1989). Therefore, vindication to pitch of employee could be one of the reasons murder failures in transforming the organizations. Malhotra (1998) estimated that 70% of the championship Process Reengineering (BPR) projects fail.He also stated that the to the highest degree important obstacles argon i. lose of sustained prudence paylo ad and leadership ii. un concreteistic scope and expectations, and iii. underground to commute. Therefore, the prime objective of this work is to try on the sexual intercourseship surrounded by bulwark to inter metamorphose and effectuation success of transformation initiatives, as tumefy as the moderate effect of stir practisement initiatives. 1. 2. Problem Statement Implementation success of transformational projects in any organization is very crucial.Many organizations atomic number 18 struggling in ensuring their organisational transformational initiatives much(prenominal) as Business Process Reengineering (BPR), go-ahead choice Planning (ERP), tippytoe Six-Sigma program etc. ar roaringly verbalize withed. It is known that 70% of the Business Process Reengineering projects had failed to deliver the intended terminus (Malhotra, 1998). The most important obstacles are 1) the lack of sustained worry commitment and leadership, 2) the unrealistic scope and expectations, and 3) the con causeation to alter.At Pos Malaysia, heterogeneous 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 advant fester as demanded by the stakeh gray-headeders. In implementing tot on the wholey the initiatives, Pos Malaysia also faces the same caper as overbold(prenominal) organization that embarked on organizational transformation efforts. Not all of the initiatives were successful enforced or progressing even-temperedly as per plan overdue to various factors.Factors such as lack of sustained solicitude commitment and leadership, unrealistic scope and expectations, and subway to counter heighten (Maholtra, 1998) exist in Pos Malaysia. Especially factors that related to human because the transformational initiatives involve umteen neuters on the way employees carry out their day-to-day operat ion. Many manual- vitrine operations are going to be replaced by outline or machineries. Employees are required to accept the transmits 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 writ of execution i. e. resistivity to mixture, dissolve become a biggest problem to Pos Malaysia in executing its transformational programs. In order to overcome this problem, field of view contemporary transmit perplexity initiatives utileness and turn out shield to transfer volition aid further Pos Malaysia in implementing transformational initiatives. 1. 3. Research Questions Based on the problem rehearsal stated above, the following investigate questions apply been developed a) Is on that point any unsusceptibility to convince in the organization? ) Do employees fit with the project implemented? c) What is the concern of resistance to switc h on transformational projects writ of execution success? d) Do switch centering initiatives influence the relationship of resistance to transplant and performance success? 1. 4. Research Objectives The research objectives are dilate by each vari fit as follows a) To determine resistance of change in the organization? b) To determine employee delight of the payoff of implemented project. ) To examine the relationship among resistance to change and carrying into action success d) To examine the change considerment initiatives influence on relationship of resistance to change and carrying into action success. The expectation of this study is that it outcome may help in increasing the execution of instrument success in attend organization i. e. Pos Malaysia. The outcome of this study will nonplus a list of factors that are responsible for employees resistance to change, tush a measurement tool for the assessment of resistance and produce a model for reference by other scholars nd future researchers. 1. 5. Signifi put forwardce of the Study This study is expected hopes to fork over significant theoretical and practical contri scarceions in the area of change direction. 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 care. 1. 6. Scope and Limitation of the Study The scope of this study is relates to execution of instrument success of the completed transformational initiatives in Pos Malaysia Berhad.The other factors intromit in this study are employee resistance to change and change focal point initiatives in the organization. The study has several limitations that shoot to be considered. The study uses a sample drawn from a commonwealth of Pos Malaysia employees in Klang Valley. This population may non be representative of slaying success on tr ansformation initiatives in general. Therefore, the existent implementation success result without 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 setoff 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 guidance initiatives. The third chapter explains the systemology for the research apply for the study. In-depth explanation and rule have also been specified for the use o f keep abreast questionnaires for the study. In chapter common chord also explains the measurement tools and methods for questionnaires administration. The forth chapter consists of the analysis, purposes 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 crinkle environment has become increasingly complex and changes the marketplace from local linguistic context to a global one. Constant pressure is employ on the management to improve competitiveness by lowering operating cost and up(a) 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 Gove rnment Link Company Transformation Manual that was launched on 29 July 2005. There are various ways an organization could transform how they should improve their disdain. Some may adopt the principles and techniques of total quality management and re-engineering (Llana, 1998) or embark in attempt 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 system governances 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 macroscopical proportion of corporations venturing into business motion transformation succeed at the existence and design phases. At this phase angle, it did not require involvement of various levels of employees in the organization. The difficulties occur during the stage of implementatio n of the transformational projects (Davenport, 1998).During this stage, many mint were problematic 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 baffling in managing change (Pawlowsiki and Boudreau, 1999). Researches from past scholars have proved that most BPR failures are more caused by the bear ones of implementation rather than those of the innovation itself (Klein et al, 2001). A comprehensive change management model will assist not tho in ensuring view as 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 xxx 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 adviser 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 stocktaking from USD5 million to USD1. 5 million or reduction in customer service errors from 4% to 1%, or eliminate transaction treat time in the payroll and human resource department. However, measuring like a shot on the success of an information systems success has been rear to be crazy and perhaps impossible because of intangible costs, and benefits of it are difficult to recognize and switch 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 deflection 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 stance. Oliver, Whymark, & Romm, (2005) rationalized this type of measurement as distinguish 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 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 acquire 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) acknowledge that user satisfaction as one of the key factors thats bear on the success of implementation of management info rmation 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. spare-time activity this suggestion, successful organization transformation implementation success measurement should be evaluated based not yet on cost of possession and quantitative 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 kind Change has ever been plead to be the constant thing in life. Changes can be trigger ed 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 way 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) state 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 hinde ring its implementation, and also subjoin its costs (Ansoff, 1990). The employees arent really resisting the change, but rather they may be resisting the loss of status, pay or encourage (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 anatomy of interpretings 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 do on personal grounds and f) the change ignores the existing established origin 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 frame that by lowering organizational resistance will increase the chances of success in implementing system.According to Pawlowsiki and Boudreau (1999), active half of Enterprise System (ES) projects failed to achieve its business objectives because of underestimation the efforts involved in managing change. In a young 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 mustiness 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) ready that many ERP implementation failures have been caused by lack of focu s 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 octonary pitfalls a) allowing too much complacency b) failing to create a sufficiently powerful guiding coalition c) underestimating the power of plenty 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 sand 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, dialogue, 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 LeadershipLorenzi et a l (1999) writes that no matter how exaggerated a technical implementation can be, an absence of effective leadership can actually deteriorate all efforts. Clarke et al (1996) discovers that an individuals resistance to change maybe made perfects if his interest is being threatened in the aim 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 confer regula rly with the employee to make change happen. Communication during change is often a bigger task than can be imagined.Stuart (1996) draws that there are communication principles that can be adopted such as message surfeit (the more it is repeated, the less credibly employees can forget), use of variety of media, personal preferred, opinion leaders and personal relevant information rather than an abstraction. any 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 companys productivity. The report explains that employees who are ingenious more often are better able to sue resources at their disposal more effectively. The team t hat 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 political science 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 markd 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 good example.This is also consistent with other researchers (e. g. , Al-Mashari and Zairi, 2000 Aladwani, 1999) that reactivity to i nternal 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 theoretical account This research explores and examines the relationship resistance to change and implementation success, and how change management initiatives act in the efficiency of a moderate role. The theoretical framework for this study is presented in Figure 3. . The in strung-out 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 looking at using system, user satisfaction gain, and user satisfaction on the output signal 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 hierarchical throwback analysis. The change management initiatives such as getting the employee involved, attending to employee concerns, and making available support group will alleviate th e 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 initiati ves 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 stairs 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 neighborly research. The unit of analysis is individual, which mean the eligible employee of Pos Malaysia. 3. 4. 1 Sampling community The selected respondents represent a balanced mix of employees from various level that modify by the organizational transformation project in terms of they c arry 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- discussion 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 th e 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 lapse analysis. absolute frequency tables were generated to provide relative 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 Malaysias 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 indite was also analyzed in order to examine the pattern of employees preferences and their interpretation of implementation succes s according to the variables. 4. 2 relative 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(predicate) from that, 53 respondents were female or 42. 7% of the whole respondents. Table 4. 1 Frequency Output of respondents Gender Gender Frequency per centum Valid part Cumulative part Valid potent 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 Respondents 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 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 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 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. Various transformational initiatives were deployed such as BPR, ERP, Lean Six-Sigma, tot up 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 w as 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 sternly 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 oblige on them. This situa tion 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 bear on 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 empha size of it 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 abnormal 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 resist ance 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 ou t 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 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 determi ne 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 naughty 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 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 moderatin g 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 organization has different demographic profile that affects implementation success. boilersuit of the study revealed that the human factor such as employees acceptance of the changes enforce 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 anticipate 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 wa ys able to wince 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 lead 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. capital of the United Kingdom 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, last 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, 2027 Cooper, R. B. and Zmud, R. W. , (1990). Information Technology Implementation Research A Technological Diffusion Approach, Management Science, 36(2), 123-139