How Malaysia's Managers Manage Organizational Change

939 words - 4 pages

Common Change Management PracticesThe survey suggests that there are three types of change practices commonly implemented by overall respondents. They are "Business Expansion", "Work Process Change" and "Restructuring" - all over 50 per cent in frequency. The most common type of change was "Business Expansion," representing 72 per cent of the responses. Sixty-nine per cent of the respondents reported that they had implemented "Work Process Change" improvement projects in their organization, followed by "Restructuring" projects (54 per cent of responses). All respondents indicated that their organizational change efforts involved a combination of more than one type of change.This result indicates that most manufacturing organizations are now facing severe business competition for survival. Efforts are being focused on market development or sales development in order to grow or maintain survival of their business. As market competition is now basically customer-driven and price-driven, it is imperative for organizations to make changes involving system and work processes, such as total quality management (TQM) and business process reengineering (BPR), and adding new computer systems, such as Enterprise Resources Planning (ERP), in order to improve productivity and challenge competitors anywhere in the world.Initiators of ChangeRespondents reported the three most active officers who frequently took initiative in implementing change efforts. They are "Managing Director" (74 per cent), "Division or Department Manager" (36 per cent) and "Chief Executive Officer" (31 per cent). The findings revealed that the managing director (MD) is the key person who usually initiated organizational change. It is interesting to note that most projects were mainly initiated by the managing director rather than division or departmental managers. This may suggest that the majority of change practices in Malaysia are a result of top-down management leadership. Even though total quality management (TQM) has been introduced in the manufacturing industry for years, the anticipated results of TQM where the grassroots are empowered to take initiative for change and improvement were not shown. Companies need to quickly respond to changes; top-down management is not an approach that facilitates a quick response to changes in the industry (Crane, Dillard and Hamilton, 2003). This may also suggest that the respondents' organizations may lose their competitive advantage or be comparatively less effective if corrective actions are notbeing taken to improve the flexibility and speed of response to changes.Moreover, the low percentage of chief executive officers (31 per cent) may be inferred, as not all organizations in Malaysia are led by a CEO. Instead, the MD is normally the top position in most of these organizations and who leads change in organizations. A good leader is central to successful change management (Miller, 2002). One of the key drivers of successful execution of...

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