Organizational development and_change_final-slideshare

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TABLE OF CONTENTS
PART A
What is major planned change?..................................................................................................1
What should the organisation do to ensure that the change process is managed effectively?...2
A schematic model of steps that contribute to effective change management...........................3
PART B
Organisation background...........................................................................................................4
The major change that has been undertaken..............................................................................6
The steps taken by the organisation in managing the change process.......................................8
PART C
The involvement and commitment of the staff to the change project.....................................11
The progress of implementing the change process .................................................................12
The effectiveness of the steps taken by the organisation in managing the change
process......................................................................................................................................13
Recommendations to overcome any of the shortcomings........................................................16
References................................................................................................................................17
PART A:

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A literature review on the following aspects of planned change:
a) What is a major planned change?
In the current climate of economic pressure and evolving political priorities,
organizational change within public bodies is becoming an increasing priority.
However, change is a complex process that can have negative as well as positive
outcomes and as such it is worth looking at the available evidence so that the process
is conducted as efficiently and effectively as possible.Organization Development
(OD) defines as "an effort, planned, organization-wide, and managed from the top, to
increase organization effectiveness and health through planned interventions in the
organizations processes, using behavioral-science knowledge."In essence, OD is a
planned system of change. OD takes a long-range approach to improving
organizational performance and efficiency. It avoids the (usual) "quick-fix".
Organization-wide. OD focuses on the total system.
b) What should the organization do to ensure that the change process is managed
effectively?
Fundamental to the success of organizational change is the acceptance of the change
by employees. Within this context, the work of Kubler-Ross (1973), who argued that
all humans go through 5 stages of ‘grief’ (denial, anger, bargaining, depression and
acceptance) when faced with a loss or change, has been seen as relevant and has been
applied to the management of organizational change. Wiggins (2009) uses the model
to help guide communication and support during the period of change, which she
suggests should be tailored to the stage of change that the employees have reached. In
order to respond to change, managers must have an in-depth understanding of the
organization, its structures, strategies, people and culture. Understanding these will
allow managers to choose the most appropriate approach to change and identify the
factors that might act as facilitators or barriers to the change (Burnes, 1996). This
focus on the organization as a whole entity when considering, change is in line with
the increasing prominence of organizational development (OD) as a framework for
thinking about change. Holbeche, an expert in the OD field, explains that this rapidly
developing discipline looks at “the total system and the linkage between all the parts
of the organization, and at how change in one part will affect the other
parts”(Holbeche, 2009). The emergent approach is itself not free from critics who

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question the usefulness of the broad-natured action sequences, and their application to
unique organizational contexts. Others have suggested a more “situational” or
“contingency” approach, arguing that the performance of an organization depends
heavily on situational variables. As these will vary from organization to organization,
managers’ responses and strategies for change will also have to vary (Dunphy and
Stace, 1993. The OD process also needs the buy-in and ownership of workers
throughout the organization. Increase organization effectiveness and health. OD is
tied to the bottom-line. Its goal is to improve the organization, to make it more
efficient and more competitive by aligning the organizations systems with its people.
For example, after the news of change is delivered, employees need to be given
information to tackle their denial. Once the information has sunk in and they
experience anger, bargaining and depression they require various kinds of support.
Once employees have begun accepting the situation they need a vision to put their
commitment into.
After a proper preparation, OD uses activities called interventions to make system
wide, permanent changes in the organization. OD is a discipline that combines
research and experience to understanding people, business systems, and their
interactions. The term Intervention refers to a set of sequenced, planned actions or
events intended to help an organization to increase its effectiveness. Interventions
purposely disrupt the status quo; they are deliberate attempts to change an
organization or sub-unit toward a different and more effective state. There are 3 major
criteria for effective Interventions in OD: firstly, the Extent to which it (the
Intervention) fits the needs of the organization. The 2nd
major, the degree to which it is
based on causal knowledge of intended outcomes. The 3rd
major is the extent to which
the OD intervention transfers change-management competence to organization
members. The factors relating to Change Situation is relating to the environment of
the organization and includes the physical and human environment. Intervention
success depends heavily on the organization being ready for planned change. The
capability of organization to change by managing planned change requires particular
knowledge and skills including the ability to motivate change, to lead change, to
develop political support, to manage transition, and to sustain momentum.
c) A schematic model of steps that contribute to effective change management.

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According to Doppelt (2003) environmental component of sustainability in the
organizations should be displayed as a model “borrow-use return” rather than
unsustainable scheme “take-make-waste”. Figure 1 the models of Planned Change.
Figure 1: The Models Of Planned Change
PART B:
a. Historical Background of KDU University College

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(Images retrieved from http://eduspiral.files.wordpress.com/2012/08/section-13-
campus.jpg and http://campuslife.kdu.edu.my on 22nd
July 2014)
KDU University College (KDU) is a subsidiary of Paramount Corporation Berhad
(Paramount), a property development company which has diversified from strong
property arm into education. KDU Education Division was the first in Malaysian
Private Education having more than 45,000 alumni graduates. It was established in
1983 offering wide range of tertiary programmes under “KDU College” which
provided approximately to 3000 local and international students. The primary vision of
KDU College is to be the premier learning organization that sparks curiosity inspires
success and promotes responsibility. In order to drive this vision, KDU inaugurated five
missions which include, but not limited to, nurturing individuals to be ethical and
responsible citizens.
KDU College is dedicated to offer broad spectrum of education programmes, from
primary and secondary education through to undergraduate and post-graduate level as
well as executive and professional development programmes. The major objective of
the establishment of KDU College is to provide additional tertiary education
opportunities in light due to the limited places in public universities in Malaysia. In

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addition to that, KDU College primary objective is to provide international education to
the local students whom are unable to study overseas due to the substantial increase in
tuition fees imposed by foreign universities. The occurrence of economic crisis in 1997,
further contribute to a significant growth of the international and twinning programme
offered at KDU College where the students are able to complete their studies locally.
Numbers of students enrolling at KDU College continue to escalate, but the
mushrooming of the private higher education institutions have nevertheless been a
constant threat to KDU. In order to remain competitive within the market of private
education institutions, the lecturers are encouraged to pursue their Doctor of Philosophy
to move KDU College to a higher level. The success of KDU Education Division was
accomplished whereby KDU College has been upgraded to University College status
by the Ministry of Higher Education, Malaysia in 2010. This recognition has opened a
new door for KDU University College (KDU UC) to initiate its own home-grown
degree programmes a year later. These home-grown programmes include business,
computing engineering, communications as well as culinary and hospitality
management, (KDU University College, 2014). As of November 2014, there are
altogether 165 academic staff and 184 administration staff in KDU University College,
which serve 2800 students with an annual intake of 500 students. KDU is clearly an
organization build by its people and to serve the people. With that, human relationship
is paramount for them as an educational serving industry.
KDU University College’s current position and performance
Even after the launching of KDU UC home-grown programmes, it is inevitable that
KDU UC to face an intense rivalry with other private education institutions offering
similar programmes. In order for KDU UC to strive in the education industry, KDU UC
will move to its new flagship campus at Paramount Utropolis in Glenmarie, Shah Alam
in early 2015. The move, even though risky, is progressing well in its efforts to cement
its reputation as an integrated, full-spectrum education services provider, whilst
diversifying its product offerings to better meet market needs, (Paramount Annual
Report, 2013).
The decision to move its campus to Glenmarie was based on the recent studies by
Parthenon that was commissioned by the parent company, Paramount Berhad. Its

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finding that the enrolment in the private higher education sector overall is expected to
have a compound annual growth rate (CAGR) of around 5 – 7% from 2012 – 2022.
For KDU and its nearest competitors, the CAGR is expected to be around 10 – 13%.
The high rate of the CAGR indicates that there is an opportunity for enrolment growth
at KDU UC. It is projected that the student enrolment will increase to 11,000 by 2022
bringing the ‘University College’ to full university status by 2016.
(Graph 1: The projected CAGR enrolment at KDU UC and other private education providers)
b. Major change at KDU.
In the effort to continue to stay relevant in the ever competitive private education
industry in Malaysia, KDU left with no other way then to reengineered the whole
traditional structural and operational concept, which they have practice for the past 30
years. This change is also vital as KDU are now embarking onto a journey to be a full
fledge university in Malaysia. KDU are also aiming to be among the top 3 best private
university in Malaysia in term of the highest employability graduates. Starts right is
very crucial for KDU. A clear master plan with a clear measurable and achievable goals
as well as its direction must be properly planned. This plan is not visible for KDU in
the past 30 years. As part of the 30 years anniversary master plan KDU have now
embarked onto a journey by taking a few major change initiatives, which start with a

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few intervention that can be categorize as Techno-structural Interventions and Strategic
Interventions. “An organization development intervention is a sequence of activities,
actions, and events intended to help an organization improve its performance and
effectiveness”, (Cummings & Worley, 2014).
The above two intervention were needed to be put in place in order have a more
structural and effective internal workforce as well as a better business strategy to stay
relevant in the industry. The first intervention that took place within KDU for the major
change was the techno-structural intervention. “Techno-structural interventions
focusing on an organization’s technology (e.g. task methods and job design) and
structure (e.g. division of labor and hierarchy)”, (Cummings & Worley, 2014). KDU
started their intervention by looking into their structural design as part of their effort to
be recognised as a full fledge university. According to Cummings & Worley (2014),
structural design is a change process concerning the organization’s division of labor on
how tasks are subdivided into work units and how those units are coordinated for task
completion. Interventions aimed at structural design include moving from more
traditional ways of dividing the organization’s overall work (such as functional, self-
contained unit, and matrix structures) to more integrative and flexible forms (such as
process-based, customer-centric, and network-based structures) (p. 159). Traditionally,
KDU is based on the functional organization, which has disadvantages and advantages
of its own. According to Walonick (1993), functional organization has been divided to
put the specialists in the top position throughout the enterprise and this is an
organization in which we can define as a system in which functional department are
created to deal with the problems of business at various levels (p. 3). The disadvantages
of limitation in integrated work/task have slowed down the productivity of KDU as
well as the routine task by individual have lower down the motivation within the
organization. Therefore in order for KDU to further improve and push the limit to be
the best among the best, they have decided to take the opportunity to re-design their
structure and have it to be more customer oriented (in this case students). The CEO
office is now changed to the Chancellery Office as the highest authority within the
university. In the Chancellery office, will have Vice Chancellor supported by Deputy
Vice Chancellor who support by individual support department who led individual
manager, which were divided into customer focus specialisation such as Student &
Alumni Centre, Admission & Bursary Department, and International Office. This is an
effort to form a more customer/service oriented structure to better serve the

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customer/students also in return to have a better market advantages in term sustaining
the customer/students as well as attracting the new customer/students. “Firms with a
customer-centric structure, an organizational design that aligns each business unit with
a distinct customer group are expected to exhibit superior performance compared to
firms that are internally structured”, (Lee, 2014).
The next intervention that took place to further drive KDU change effort was the
Strategic Intervention. “Strategic Intervention is considers an interventions that link the
internal functioning of the organization to the larger environment and transform the
organization to keep pace with changing conditions”, (Cummings & Worley, 2014).
Prior to this change, KDU strategic or aim were not strong enough to make its presence
notice in the market. Due to this reason, eventhough KDU is one of the oldest in the
private education industry, KDU is not the leader in a higher private instution in
Malaysia. The new Vice Chancellor, Professor Dr Khong Yoon Loong, which has been
appointed 2 years ago, has put the change in motion by establishing a unique 5 years
strategic plan to replace the old plan. The main objective was to bring KDU the
institution to greater heights that provide the same standard as international education
to the local students. Therefore, educations fees offered are lower than overseas market.
At the same time, KDU created a golden opportunity to local student who are unable to
study overseas due to the substantial increase in tuition fees imposed by foreign
universities. With the appointment, of Prof. Dr Khong, he has shifted KDU aim to the
opposite direction, by starting to create designing home-grown programmes which have
the same quality as international standard. To ensure the success of plan, he set in
motion a 5 years strategic plan for growth with a unique 7 strategic block support by
objective and goals to achieve.
c. Steps taken in managing the change process
It started with a structure and inclusive methodology used starting from KDU’s vision
and working the way to the action plans. This is part of the Structure Intervention effort
of “organization design interventions address the different elements that comprise the
architecture of the organization, including structure, work design, human resources
practices, and management processes”, (Cummings & Worley, 2014). The flow below
indicated the process of the organization design/change. The action plans will be
allocated a specific timeline.

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The whole change process will be communicated to KDU community in 2 sessions;
the first session brought together a team of head of schools and heads of all support
departments. A total of about 15 people went through the vision, mission and values to
internalise them. In this session, the team revisited the 5 key elements that the
strategies must address required for growth and sustainability of KDU:
1. Stakeholders
2. Differentiation
3. Cost
4. Quality
5. Student Pipeline
From there they have also identified the 7 strategic blocks (or strategy focus i.e what
the strategy will focus on) that will address those growth elements:
1. People and Organization Development for Operations Excellence
2. Build and sustain student pipeline
3. Academic and Research Excellence
4. Infrastructure and Education Technology Development
5. Manage Quality and Cost
6. Create Clear Differentiation
7. Community Engagement for Brand Enhancement
The second session is for people to give ideas on what the strategic goals under each of
the 7 strategic blocks. The groups are encouraged to submit their ideas beforehand and
will be deliberated during the second session. From the inputs gathered from the second

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session, a set of strategic goals was prepared by the VC. A smaller team of senior
management comprising of VC, CEO Education, DVC (Acad), DVC (Operations) and
Registrar further discuss on the objective and its measureable outcome.
The next step after finalisation is to communicate to front line managers. The strategic
plans as well as the structure of leadership will be communicated; a leader will be
appointed for each strategic block. With the key leadership team in place, deputy
leaders will be chosen for each strategic goal and the team will be form. It is the
responsibility of the deputies and their team to communicate action and direction of the
plan clearly. Due to shortage of leaders, in some cases, deputies may have to take
additional strategic goals but each deputy will stake no more than two strategic goals
under his leadership. The high level plans will be communicated to the entire
organization through various town hall meeting. The plan is, every executive in the
organization will be a member in at least one and no more than two action planning and
execution team led by respective strategic goal deputies.
One of the weaknesses of the old strategic planning was the lack of leadership structure.
The new implementation, the oversight of the whole strategic plan comes under the
purview of the Chancellery Office, which are a senior leadership committee comprising
the VC (Chair), CEO Education, DVC (Operations), DVC (Academic) and Registrar.
The 7 Strategic Blocks are also assigned to individuals in the Chancellery Office to
provide management support and oversight to the respective Strategic Blocks. Their
role is to ensure the activities executed under their auspices are aligned with the intent
of the Strategic Blocks and are progressing towards desirable outcomes. The Strategic
Goals within each of the Blocks are assigned to deputies who are responsible to plan
and coordinate the activities within the Strategic Goals. The deputies are to ensure all
the activities are moving towards the measurable and “perceivable” agreed on.

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PART C:
EVALUATION AND RECOMMENDATION
a. Evaluation of the involvement and commitment of the staff to the change process
The clarifying process of the desired outcomes makes it much easier to evaluate the
success of the change process. From the consultant’s perspective based on the
implementation and evaluation feedback, the staffs of KDU from all levels have
accepted this change process which the staffs feel is appropriate for them. The change
is first implemented and while the change process in progress, and at the same time it
will be evaluated. Even after the implementation of the change process fully
implemented, it will be evaluated through staffs’ feedback. From the staffs’ feedback, it
can be concluded that the techno-structural and strategic interventions have clearly
defined the staff’s job scopes and these have enable them to contribute more effectively
and efficiently to the organization.
It is also observed a strong involvement and support of the top management in
successfully implementing the change process at KDU. This is demonstrated by
frequent updates from the person in charge and his team. The management also held
frequent dialogue session with their staffs to find out their staffs ‘opinion of the change
process. By having face to face dialogues, discussion and communication with all the
relevant staffs, it will also help to improve and improvise the implementation of the
change process to run smoothly.
From the observation, there is no resistance from the staffs on the change imposed on
KDU. According to Cummings and Worley (2008), people resist change because of the
following reasons:-
• Confusion
• Lack of Information
• Loss
• Fear or inadequacy
• Overwhelmed
The staffs of KDU are engaged effectively and focus toward change, no room for
resistance observed. Change is natural and even evolution itself is a response to

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change. Thus, no one can avoid change but one can learn to accept change for the own
good of one self (Weatherson, 2012). KDU staffs learn to accept and embrace change
and give their utmost cooperation to ensure change take place successfully.
b. Evaluation of the progress of implementing the change process
It is observed that the change process closely followed the milestones set by the
management. The management has set the milestones to five phases as stated
below:-
• Phase 1: Requirements: To define the technical and business
requirements for the project.
In this case, the management has defined the technical and business
requirements of the proposed change in the techno-structural and strategic
intervention at KDU.
• Phase 2: Design: To design the technical deliverables.
The management has monitored this phase by answering the questions
below:
Have all "design" tasks been completed?
Does the design meet the established requirements?
Are there any open design issues?
How will these issues be resolved?
Does the design function as expected?
Is the design ready to proceed to the next phase? If not, design related
problems must be resolved, mitigated or waived before progress can be
made.
• Phase 3: Development: To develop and test the technical solution.
below:
Have all "development and testing" tasks been completed?
Does the system perform as expected?

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Are there any open development issues?
Is the system ready to proceed to the next phase?
If not, development related problems must be resolved, mitigated or
waived before progress can be made.
• Phase 4: Implementation: To deploy and support the roll-out of the
technical deliverables.
below:
Have all "implementation" tasks been completed?
Are there any open issues?
Is the project ready to proceed to the next phase? If not, implementation
related problems must be resolved, mitigated or waived before progress
can be made.
• Phase 5: Closure: To transition the project and deliverables from project
status to operational status.
below:
Have all "closure and transition" tasks been completed?
Are there any open issues?
Have all necessary "closure and acceptance" approvals been obtained.
Has the lessons learned review been completed?
Can the project be closed? If not, closure related issues must be resolved
mitigated or waived before the project can be closed.
From the observation, it can be stated that the implementation process set by the
management of KDU has followed the formulated change plan and properly

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communicated to all stake holders. This is evident from the non-resistances
offered by the staffs and timely completion of the change period.
c. Evaluation of the effectiveness of the steps taken by the organization in
managing the change process.
Figure 2: Effective Change Management model
Figure above illustrates the Effective Change Management model which was deployed
by the KDU management to keep track with their change process. As can be seen from
the proposed model, the management of KDU first motivated the change process in
their staffs’ mind by creating readiness for the change and overcoming any possible
resistance from their staffs. Then the organization would create a vision for their staffs.
In other word, the organization has constructed an envisioned future their staffs which
is discovering and describing the organization’s core ideology. After that, the
organization developed political support which will assess their change power agent to
influence others to change their perception. Then the management managed the change
transition process as illustrated in the figure below:-

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Figure 3: The change transition period
The current state is the state before the interventions took place in KDU. The transition
state is the state whereby the change are being implemented at KDU and the Desired
Future state are the state whereby KDU’s desired change plan which involves the
techno-structural and strategic interventions. Finally the management managed to
sustain the momentum by providing resources for change process, develop new
competencies and skills and reinforce new behaviors.
The organization created readiness to accept the change in their staffs by revealing
discrepancies between the current and the desired states. In KDU’s case, the
organization’s change plan is more on the techno-structural and strategic interventions.
It is noted that the desired state has reduced the job load of the staffs tremendously and
thus the method deployed by the organization is effective. In the case of KDU, no
resistances were encountered from their staffs as the change deployed was
communicated thoroughly and regularly to their staffs. The organization also involved
many of their staffs in important decision making in pertaining the change process. By
doing so, the management had no resistance for the change process and it was effective.
The organization did develop political support for the change process.
Even though, there is no resistance from the staffs on the change process, the
organization decided to further enlighten their staffs on the change process through the
change agents such as the project leaders who are able to influence their subordinates
through their personalities which comprises charisma, reputation and creditability.
The organization did provide adequate and appropriate resources to their change agents
to implement the change at KDU. For instances, the management imposed power and
close monitoring on their change agents to carry out the proposed change. The

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management also provided necessary trainings to their staffs that have new job
responsibilities. The organization involved in developing new skills and competencies
for their staffs as well. The organization provided frequent trainings to their staffs and
also implemented job rotation to promote experience and task variety in their staffs.
The management reinforced the new behaviors through frequent dialogues session with
their employees. The management has face to face and group dialogue session with
their employees to gain feedback from their staffs and to reinforce their employees’
positive behavior on the change process.
Recommendations to overcome any shortcomings
As observed by the consultant, in the case of KDU’s proposed interventions on techno-
structural and strategic, there are no resistances from the employees on the change
process. Many organizations may receive resistance from their employees in going
through change, however KDU is an n excellent example of the success of the change
process to survive in the competitive industry, where the organization has closely
followed the Effective change management model, any organization can overcome any
change resistance easily. Investment in human intelligent in change process such as a
proper training (example, communication skill), frequent meeting and proper define of
job scope may further assist the change process to take place more effectively and
within the timeline. The consultant feels that the organization can also use reward
based compensation system to get more support from the employees on the change
process.
(Total of Words 4315)

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Thomas G. Cummings and Christopher G. Worley, Organization Development & Change,
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