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Setyabudi Indartono, Ph.
D 2014
Manajemen Perubahan
by: Setyabudi Indartono, Ph.D @ 2014
Email: setyabudi_indartono@uny.c.id
Yogyakarta State University
Author: Setyabudi Indartono, Ph.D
i
Setyabudi Indartono, Ph.D 2014
DAFTAR ISI
PENGANTAR ..............................................................................................................................iv
Skema pembelajaran ................................................................................................................ v
The nature of dynamic behaviors* .......................................................................................... vii
Bab 1 Pedahuluan ..................................................................................................................... 1
Soal Latihan ........................................................................................................................... 6
bab 2 Manajemen dan perubahan ........................................................................................... 7
The nature of change ............................................................................................................ 7
Image of Managing change ................................................................................................... 8
Soal Latihan ......................................................................................................................... 10
bab 3 Perubahan dalam Organisasi ........................................................................................ 11
Why organizations change? ................................................................................................ 11
What changes in organizations ........................................................................................... 12
Soal Latihan ......................................................................................................................... 12
bab 4 Analisis perubahan ........................................................................................................ 14
Diagnosis for change ........................................................................................................... 14
Resistant to change ............................................................................................................. 17
Artikel pendukung analisa perubahan diantaranya adalah: ............................................... 19
Soal Latihan ......................................................................................................................... 20
bab 5 Implementasi Manajemen Perubahan ......................................................................... 21
Organizational Development .............................................................................................. 21
Appreciative Inquiry ............................................................................................................ 23
Positive organizational scholarship..................................................................................... 24
Sensemaking approach ....................................................................................................... 24
Mengelola Perubahan ......................................................................................................... 25
Pendekatan Kontinjensi dan proses.................................................................................... 27
Menghubungkan Visi dan Perubahan ................................................................................. 28
ii
Artikel pendukung implementasi perubahan diantaranya adalah: .................................... 28

Soal Latihan ......................................................................................................................... 30
bab 6 Komunikasi dalam Perubahan ...................................................................................... 31
Strategi Komunikasi ............................................................................................................ 31
Kemampuan komunikasi perubahan .................................................................................. 33
Perubahan berkelanjutan ................................................................................................... 34
Artikel pendukung Komunikasi perubahan diantaranya adalah: ....................................... 35
Soal Latihan ......................................................................................................................... 36
referensi .................................................................................................................................. 38
Silabi ........................................................................................................................................ 41
Curriculum Vitae ..................................................................................................................... 42
iii
PENGANTAR
Mata kuliah ini membahas tentang pentingnya manajemen

transformasi/perubahan baik struktural maupun perubahan budaya untuk
menjadi lebih baik dan dinamis. Topik yang dipelajari meliputi: filosofi, sejarah
dan konsep dasar perubahan, melihat dan mempercayai perubahan, memulai
perubahan, mengubah budaya korporat dan mengelola harapan. Mata kuliah
Manajemen Perubahan dirancang untuk memberikan pengetahuan dan
keahlian mahasiswa dalam memahami dampak perubahan dalam organisasi.
Dalam kehidupan nyata, proses perubahan sering tidak sesuai dengan yang
diharapkan. Mata kuliah ini diharapkan mampu memberikan dasar
pengetahuan kepada mahasiswa tentang pentingnya perubahan dalam
organisasi, faktor apa dalam organisasi yang perlu dirubah, bagaimana
perubahan perlu dilaksanakan, siapa orang-orang yang terlibat dalam proses
perubahan, kapan proses perubahan perlu dilakukan, dan aspek lain yang
berkaitan dengan pengelolaan perubahan dalam organisasi.
Setelah mengikuti perkuliahan ini, mahasiwa diharapkan memiliki
berbagai kompetensi. Diantaranya adalah mahasiswa mampu memahami
adanya proses perubahan dalam organisasi, memahami berbagai faktor
pendorong perubahan dalam organisasi, dan mampu membedakan tipe-tipe
perubahan dalam organisasi.
iv
SKEMA PEMBELAJARAN
Kompetensi Dasar Materi Pokok Sumber Bahan
1 Memahami proses pembelajaran Introduction Indartono (2014) #1

manajemen konfik
2 Memahami fenomena konfik di The nature of change Palmer (2009)
dunia kerja Indartono (2014) #2
Senior (2010)
Cumming (2006)
3 Memahami perilaku konflik dan Image of Managing Palmer (2009)
cara mengelolanya change Indartono (2014) #2
Senior (2010)
Cumming (2006)
4 Memahami tuntutan perubahan Why organizations Palmer (2009)
dalam orgaisasi change? Indartono (2014)#3
Senior (2010)
Cumming (2006)
5 Memahami berbagai peruahan What changes in Palmer (2009)
dalam organisasi organizations Indartono (2014) #3
Senior (2010)
Cumming (2006)
6 Memahami latarbelakang, proses Diagnosis for change Palmer (2009)
dan efek dari perubahan Indartono (2014) #4
Senior (2010)
Cumming (2006)
7 Memahami berbagai hambatan Resistant to change Palmer (2009)
dalam proses perubahan Indartono (2014) #4
Senior (2010)
Cumming (2006)
8 UJIAN TENGAH SEMSTER
9 Memahami berbagai praktek Implementing change Palmer (2009)
perubahan dalam organisasi case#1 Indartono (2014) #5
• Organizational
development
• Appreciative Inquiry
• Positive
organizational
scholarship
• Sensemaking approach
Senior (2010)
v
Kompetensi Dasar Materi Pokok Sumber Bahan
• Change management Cumming (2006)

• contingency and
processual approach
12 Memahami hubungan antara visi Linking vision and Palmer (2009)
dan perubahan change Indartono (2014) #5
13 Memahami pentingnya komunikasi Communication Palmer (2009)

dalam perubahan organisasi Strategies Indartono (2014) #6
Strategic Communication
1 Memahami dan mampu Skills for Communicating Palmer (2009)
mengaplikasikan komunikasi dalam Change Indartono (2014) #6
perubahan organisasional
15 Memahami pentingnya dan strategi Sustaining Change Palmer (2009)
perubahan yang berkelanjutan Indartono (2014) #6
16 UJIAN TENGAH SEMSTER
vi
THE NATURE OF DYNAMIC BEHAVIORS*
Researchers (Desarbo and Grewal, 2008; Schalk and Freese, 1997; White, 2008)
propose the dynamic viewpoint to analyze organizations and employees because they
tend to adjust their strategies and haviors at anytime to maximize their best interests.
At the organization level, firms try to apply unique rategic postures so as to reach a
better position in the market structure (Cool and Schendel, 1987). They change,
expand, and blend their strategies from more than one pure strategic group to gain
the competitive advantage (Desarbo and Grewal, 2008). For example, firms at the
beginning stage may apply the defensive strategy and then opt for the offensive
strategy as they move to the next stage (Land, 2004). Following Hunt’s (1972) theory
of firm strategies, Porter (1980) develops the concept and applies it to his overall
system of strategic analysis. Hodgkinson (1997) analyzes the intra-industry
variations in the competition and performance of firms. A firm switching its strategy
may cause business environment pressure or the demand of firm accelerations
because such change of policies could be rather dynamic.
At the individual level, the way employees change their behavior is contingent on the
short-term opportunities exposed in the environment (Perish et al., 2008). Employees
would look for fair treatment by comparing the compensation offered by their
organization and its competitors (Milcovich and Newman, 1999; Rhoades et al.,
2001). Being directed by their needs, they would respond to external offering
defensively, reactively, or protectively to avoid actions, blaming, or changes
(Ashforth and Lee, 1990). Thus, employees’ behavior might change accordingly when
they feel unfairly treated (Hochwarter et al., 2000; Valle and Perewe, 2000).
* Vivian Chen, Chun-Hsi and Indartono, Setyabudi, 2011, Study of commitment

antecedents: The dynamic point of view, Journal of Business Ethics, Vol. 103, No.4
, Pg.529-541
vii
BAB 1 PEDAHULUAN
Manajemen perubahan adalah sebuah pendekatan untuk transisi

individu, tim, dan organisasi ke keadaan masa depan yang diinginkan. Dalam
manajemen proyek konteks, manajemen perubahan dapat merujuk kepada
proses manajemen proyek dimana perubahan lingkup proyek secara resmi
diperkenalkan dan disetujui atau definisi manajemen perubahan yang
ditetapkan di halaman ini. Sejarah manajemen perubahan telah dimulai sejak
tahun 1960 dimana Everett Rogers menulis buku Difusi Inovasi pada tahun
1962. Akan ada lima edisi buku sampai 2003, selama waktu analisis statistik
tentang bagaimana orang mengadopsi ide-ide dan teknologi baru. Kemudian
tahun 1980 Konsultan McKinsey Julien Phillips pertama kali menerbitkan
model manajemen perubahan pada tahun 1982 dalam jurnal Manajemen
Sumber Daya Manusia, meskipun butuh satu dekade untuk rekan-rekan
manajemen perubahan untuk mengejarnya. Dan Robert Marshak
menciptakan industri manajemen perubahan ketika mereka dalam kelompok
jasa rekayasa ulang sebagai jasa manajemen perubahan di akhir 1980-an.
Tahun 1974, Daryl Conner mendirikan Conner Partners dan pada tahun
1993, ia menulis buku itu, Manajemen Perubahan. Conner memberikan
pengaruh yang besar selama tahun 80-an dan 90-an dalam memahami
kinerja dan teknik manusia dalam menyesuaikan teknologi inovasi baru
hingga mampu diserap dan diadopsi sebaik mungkin. Tahun 2000, Linda
Ackerman Anderson menyatakan tidak puas dengan kegagalan dan
menciptakan serta menerapkan model perubahan dalam secara top-down,
menciptakan peran pemimpin perubahan untuk mengambil tanggung jawab.
Sedang di tahun 2010-an berdasarkan buku Mengelola Perubahan Sukses,
Christina Manajemen Perubahan ditetapkan sebagai istilah resmi di Australia
dengan menulis Standar Kompetensi Nasional Australia di Organisasi dan
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Komunitas Manajemen Perubahan, yang menyebabkan pengembangan

Manajemen Perubahan organisasi, dan istilah tersebut merupakan kualifikasi
yang diakui secara internasional. Perubahan organisasi adalah pendekatan
terstruktur dalam sebuah organisasi untuk memastikan bahwa perubahan
lancar dan sukses diterapkan untuk mencapai manfaat abadi.
Dalam konsep transendeltal, menurut Faisal (2012), Tuhan

menjelaskan manajemen perubahan dengan “Demikian itu adalah karena
sesungguhnya Allah sekali - kali tidak akan merubah sesuatu nikmat yang
telah dianugerahkan – Nya kepada sesuatu kaum, hingga kaum itu merubah
apa yang ada pada diri mereka sendiri dan sesungguhnya Allah Maha
Mendengar lagi Maha Mengetahui.” Dan “Sesungguhnya Allah tidak
mengubah keadaan sesuatu kaum sehingga mereka mengubah keadaan
yang ada pada diri mereka sendiri. Dan apabila Allah menghendaki
keburukan terhadap sesuatu kaum, maka tak ada yang dapat menolaknya;
dan sekali - kali tak ada pelindung bagi mereka selain Dia.. Hal ini
mengisyaratkan engisyaratkan bahwa perubahan yang berdampak
membutuhkan gagasan atau pengetahuan (kompetensi dalam membuat
tujuan, target, rencana, manajemen dan standard) dan kemauan (komitmen)
untuk berubah. Gagasan atau pengetahuan yang benar, yang disertai
dengan kemauan satu kelompok masyarakat, dapat mengubah keadaan
masyarakat itu. Tetapi gagasan atau pengetahuan saja tanpa kemauan, atau
kemauan saja tanpa gagasan atau pengetahuan tidak akan menghasilkan
perubahan. (Dr. M. Quraish Shihab, M.A : mizan@ibm.net , 1). Perubahan
yang berdampak dan dituntut dalam konsep transcendental ini adalah
perubahan kolektif yang mencakup mayoritas lingkungan sosial, bukan
perubahan individual. Karena perubahan ini tidak cukup untuk mengubah
masyarakat secara menyeluruh, fundamental dan mencakup semua aspek
kehidupan sosial, politik, ekonomi, moral, hukum dan lain - lain.
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Perubahan yang dituntut adalah perubahan yang bersifat positif “

Tiadalah Allah meninggalkan engkau dan tidak pula merasa benci kepadamu.
Dan hari yang akan datang itu harus lebih baik dari hari yang sekarang. Dan
apabila Allah memberikan karunia kepadamu maka engkau akan ridho atas
jerih payahmu.” ”Hari ini harus lebih baik dari hari kemarin, hari esok harus
lebih baik dari hari ini”. Dr. Yusuf al - Qaradhawi mengatakan, “ Salah satu
tanda celaka adalah dengan menyia - nyiakan waktu. Siapa yang hari ini
masih seperti kemarin, maka ia menjadi orang merugi, sedangkan siapa yang
hari ini lebih buruk daripada kemarin, maka ia menjadi orang terlaknat. Siapa
yang melewatkan satu hari dari usianya bukan untuk menyelesaikan
kebenaran atau melaksanakan kewajiban atau kemuliaan yang ia wariskan
atau kebaikan yang ia wariskan atau kebaikan yang ia dapatkan atau
kemuliaan yang ia bangun atau ilmu yang ia raih, maka ia telah menyia-
nyiakan waktu dan menzalimi dirinya.”(M. AbdulJawwad, 2004 : 183-184).
Pengelolaan perubahan tidak bertentangan Al Hikmah atau Kebijaksanaan.
Pengelolaan perubahan tidak trial and error, Pengelolaan perubahan harus
adil atas Diri, Darah, Dekat, Duit, (M. Soebari, 1998).
Menurut Faisal (2002) beberapa Bukti-Bukti Empirik dari masa kini

diantaranya adalah Menurut George M Hill, keberhasilan proyek re-
engineeringharus mengkaitkan seluruh orang-orang, proses, strategi-strategi,
dan teknologi organisasi dengan keseluruhan tujuan bisnisnya. Jika satu
kaitan dalam rantai tersebut hilang (diabaikan), proses transformasi bisnis
akan gagal. Hill mengemukakan beberapa pointers yang menjadikan
keberhasilan dan kegagalan re-engineering(Hill, 1993: 8-9). Keberhasilan re-
engineering karena suatu kinerja tinggi organisasi, didorong (termotivasi) oleh
core processes (proses inti) yang unggul dalam quality service, customer
satisfaction, dan cost effectiveness. Fokus hanya pada satu kunci di atas
kemudian memperbaiki fungsi menjadi proses transformasi,
mengintegrasikan revisi proses ke dalam visi strategik organisasi agar para
3
karyawan memahami dan termotivasi untuk bergerak menuju arah baru. Re-
engineeringharus fokus pada cross functional untuk membentuk teams yang
terdiri dari representatif dari tiap bidang terlibat dalam proses. Pimpin teams
tersebut dengan change agents yang antusias, open minded ,dan
konsentrasi pada member motivasi proses. Re-engineering harus didorong
oleh apa keinginan customers dan bukan oleh perspektif -perspektif internal.
Oleh karena itu, salah satu kunci bagi keberhasilan re-engineeringadalah
untuk fokus pada proses - proses yang memiliki dampak tertinggi pada
customer service. Membangun kredibilitas secara internal dan eksternal
dengan mendemonstrasikan respon atau tanggapan awal yang substansial.
Mengembangkan teknologi untuk mempermudah. Teknologi baru seharusnya
tidak digunakan hanya untuk mekanisasi dan mempercepat cara -cara lama
melakukan bisnis. Keberhasilan re-engineering mempengaruhi teknologi
inovatif sebenarnya untuk memformulasikan kembali proses bisnis.
Pertahankan re-engineering. Visi re-engineeringharus datang dari

pimpinan–namun dukungan harus dibangun atau dikembangkan dari bawah.
Komitmen pimpinan adalah penting. Namun pekerjaan pimpinan bukan untuk
mendikte. Pekerjaan atau tugasnya adalah untuk menciptakan lingkungan
yang bebas dari ketakutan dan mendorong atau memotivasi partisipasi.
Banyak upaya-upaya re-engineering gagal karena kurangnya dukungan dari
bawahan ketimbang dari faktor-faktor lainnya. Untuk mengatasi tantangan ini,
perubahan harus dipromosikan pada seluruh level organisasi sejak dini.
Komunikasi harus jelas, kredibel, dan kontinu selama proses re-engineering.
Organisasi harus mengambil tindakan berarti, seperti memfokuskan teams
sekitar proses, bukan sekitar tugas-tugas, dan memberi mereka
tanggungjawab untuk memperbaiki kinerja. Ketimbang melihat akuntabilitas
tersebut sebagai beban yang tidak fair, karyawan merasa hal tersebut
memperkaya tugas atau pekerjaan mereka. Dan Re-engineeringyang
berhasil mensyaratkan pembebasan diri dari aturan-aturan dan operasi -
4
operasi tradisional. Satu -satunya cara untuk membuat lompatan jauh

(quantum leaps) dalam kinerja adalah untuk menolak asumsi -asumsi lama
dan menerima/menganut perubahan radikal. Tujuannya adalah untuk
menciptakan bisnis yang tanggap secara cepat dan efektif terhadap
perubahan-perubahan pasar.
Kegagalan Manajemen perubahan sebagaimana dicontohkan Faisal

(2002) diantaranya adalah Seperti dikatakan Victor Tan, bahwa banyak
organisasi yang tidak berhasil oleh karena salah dalam advokasinya.
Kesalahan ini disebabkan oleh karena menggunakannya sebagai alat yang
terisolasi untuk mencapai keunggulan bisnis (Victor Tan, 2002 : 81).
Kesalahan-kesalahan tersebut adalah Business Process Re-engineering
tidak dapat memberikan kontribusi pada keunggulan bisnis jika orang dalam
organisasi tidak kompeten atau jika karyawan tidak memiliki komitmen.
Business Process Re-engineeringtidak dapat memperbaiki masalah jika
organisasi menghasilkan dan memasarkan produk yang salah. Business
Process Re-engineering dapat menjadi alat yang sangat efektif untuk
menurunkan biaya dan meningkatkan daya saing organisasi apabila
digunakan dengan benar sebagai pelengkap dari alat lainnya untuk mencapai
keunggulan bisnis. Perubahan fundamental merupakan perubahan
mendasar yang menyangkut dampak yang sangat besar dan luas terhadap
organisasi. Untuk memimpin perubahan secara efektif, Hussey (2000 : 69-83)
menyarankan pendekatan langkah demi langkah yangdinamakan EASIER,
merupakan akronim yaitau Envisioning (Memimpikan), Activating
(Mengaktifkan), Supporting(Mendukung), Implementing(Melaksanakan), dan
Ensuring(Memastikan), serta Recognizing (Pengakuan positif dan negatif).
5
Soal Latihan
1. Sebutkan dan jelaskan contoh perubahan dalam kehidupan kita

sehari-hari
2. Dalam mengelola sebuah perubahan, Jelaskan kemungkinan efek

positif dan negative yang mungkin muncul
3. Sering seseorang mengalami kesulitandalam mengikuti tuntutan

perubahan dalam diri dan lingkungannya. Sebutkan alasannya
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BAB 2 MANAJEMEN DAN PERUBAHAN
The nature of change

Peneliti (Desarbo dan Grewal, 2008; Schalk dan Freese, 1997; Putih,
2008) mengusulkan sudut pandang dinamis untuk menganalisis organisasi
dan karyawan karena mereka cenderung untuk menyesuaikan strategi dan
haviors mereka kapan saja untuk memaksimalkan kepentingan terbaik
mereka. Pada tingkat organisasi, perusahaan-perusahaan mencoba
menerapkan postur rategic unik sehingga dapat mencapai posisi yang lebih
baik dalam struktur pasar (Cool dan Schendel, 1987). Mereka mengubah,
memperluas, dan campuran strategi mereka dari lebih dari satu kelompok
strategis murni untuk mendapatkan keunggulan kompetitif (Desarbo dan
Grewal, 2008). Sebagai contoh, perusahaan-perusahaan pada tahap awal
dapat menerapkan strategi defensif dan kemudian memilih strategi ofensif
ketika mereka bergerak ke tahap berikutnya (Tanah, 2004). Berikut (1972)
teori Hunt strategi firma, Porter (1980) mengembangkan konsep dan berlaku
untuk sistem secara keseluruhan analisis strategis. Hodgkinson (1997)
menganalisis variasi intra-industri dalam kompetisi dan kinerja perusahaan-
perusahaan. Sebuah perusahaan beralih strategi dapat menyebabkan
tekanan lingkungan bisnis atau permintaan percepatan fi rm karena
perubahan tersebut kebijakan bisa lebih dinamis.
Pada tingkat individu, cara karyawan mengubah perilaku mereka
bergantung pada peluang jangka pendek terpapar dalam lingkungan (Perish
et al., 2008). Karyawan akan mencari perlakuan yang adil dengan
membandingkan kompensasi yang ditawarkan oleh organisasi dan
pesaingnya (Milcovich dan Newman, 1999; Rhoades et al, 2001.). Diarahkan
oleh kebutuhan mereka, mereka akan menanggapi penawaran eksternal
membela diri, reaktif, atau protektif untuk menghindari tindakan,
menyalahkan, atau perubahan (Ashforth dan Lee, 1990). Dengan demikian,
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perilaku karyawan mungkin berubah sesuai ketika mereka merasa

diperlakukan tidak adil (Hochwarter et al, 2000;. Valle dan Perewe, 2000).
Image of Managing change
Manajemen perubahan sudah menjadi sebuah tuntutan di berbagai

dunia kerja dan interaksi manusia. Sari dan Ibrahim memberikan contoh
sebuah proses perubahan di perusahaan dan organisasi bisnis Koran Riau.
Menurut mereka ada dua pendekatan penanganan perubahan organisasi
yaitu Proses perubahan reaktif dinama Manajemen bereaksi atas tanda-
tanda bahwa perubahan dibutuhkan, pelaksanaan modifikasi sedikit demi
sedikit untuk menangani masalah tertentu yang timbul. Sebagai contoh, bila
peraturan baru dari pemerintah mensyaratkan perusahaan untuk mempunyai
perlindungan terhadap kebakaran, maka manajer mungkin akan membeli alat
pemadam kebakaran. Dan kedua adalah Program perubahan yang
direncanakan (planned change), disebut sebagai proses proaktif. Manajemen
melakukan berbagai investasi waktu dan sumberdaya lainnya yang berarti
untuk mengubah cara-cara operasi organisasi. Perubahan yang
direncanakan ini didefinisikan sebagai perancangan dan implementasi
inovasi struktural, kebijaksanaan atau tujuan baru, atau suatu perubahan
dalam filsafat, iklim dan gaya pengoperasian secara sengaja. Pendekatan ini
tepat bila keseluruhan organisasi, atau sebagian besar satuan organisasi,
harus menyiapkan diri untuk atau menyesuaikan dengan perubahan.
Dalam tulisannya Dibrata & Murahartawaty (2013) menyebutkan

bahwa Jeffrey M. Hiatt (2006) berpendapat bahwa terdapat lima elemen yang
mendorong suksesnya perubahan yaitu : awareness, desire,
knowledgeability, ability dan reinforcement (ADKAR). ADKAR adalah suatu
model untuk perubahan dalam bisnis, pemerintahan dan komunitas, yang
mempunyai lima elemen atau objek yang dibangun dalam sebuah kerangka
untuk mencapai perubahan. Kelima elemen ini dibangun dalam suatu
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kerangka dan berurutan dalam mengelola individu untuk melakukan

perubahan. Awareness adalah pemahaman seseorang terhadap sifat
perubahan, yaitu apa penyebab adanya perubahan, apa akibat tidak
mengikuti perubahan, faktor internal dan eksternal yang dibutuhkan untuk
perubahan, dan apa manfaatnya (Hiatt 2006). Desire adalah keinginan yang
mendorong dan terlibat dalam perubahan. Desire berhubungan dengan
pilihan individu, pengaruh dari sifat perubahan itu sendiri, situasi individu, dan
motivasi masing – masing individu (Hiatt 2006). Knowledge adalah informasi,
latihan dan edukasi yang diperlukan untuk mengetahui bagaimana cara untuk
perubahan. Knowledge meliputi kebiasaan, proses, perangkat, sistem,
keahlian, dan teknis yang dibutuhkan untuk perubahan. Ability adalah
kemampuan menerapkan pengetahuan menjadi terealisasi atau pelaksanaan
perubahan. Ability dicapai jika seseorang mempunyai kemampuan
mengimplementasikan perubahan pada level performa yang ditent ukan
(Hiatt 2006. Reinforcement adalah faktor internal dan eksternal yang
mendukung perubahan. Reinforcement eksternal meliputi recognition,
reward, dan celebration. Reinforcement internal bisa datang dari rasa puas
dengan pencapaian (achievement) atau manfaat lain yang diperoleh dari
perubahan (Hiatt 2006).
Menurut Dibrata & Murahartawati (2013), Manajemen perubahan

dalam Telkom University diukur dari beberapa indicator diantaranya adalah
indikator Tingkat kesiapan perubahan (change readiness) mencapai 60%,
tingkat resistensi terhadap perubahan menjadi Telkom University mencapai
<= 40%, Strategi komunikasi yang diterapkan dapat memberikan informasi
secara kesuluruhan civitas akademika Telkom University, dan Strategi
pelatihan dapat mengakomodir dan menguatkan perubahan menuju Telkom
University. Sehingga disimpulkan bahwa Strategi perubahan yang tepat
digunakan dalam menghadapi perubahan menuju Telkom University adalah
Empirical – rational
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Soal Latihan
1. Mengapa perubahan itu menjadi sebuah kepastian. Jelaskan
2. Buatlah sebuah contoh perubahan dan sebutkan indicator

keberhasilan perubahan tersebut.
3. Jelaskan perbedaan perubahan dalam perusahaan jasa dan

manufaktur
10
BAB 3 PERUBAHAN DALAM ORGANISASI
Why organizations change?

Globalisasi dan inovasi akan terjadi secara berkelanjutan. Hal ini adalah
hasil teknologi dalam lingkungan bisnis yang terus berkembang. Fenomena
seperti media sosial dan perkembangan tekonoogi ponsel telah merevolusi
bisnis. Saat ini kebutuhan tersebut semakin meningkat dan mendorong
perubahan yang pada akhirnya menuntut perubahan manajemen.
Pertumbuhan teknologi juga memiliki efek sekunder yaitu meningkatkan
ketersediaan dan akuntabilitas pengetahuan. Kemudahan akses informasi
telah mengakibatkan pengawasan pemegang saham dan media serta
memunculkan tekanan pada manajemen.
Dengan banyak perubahan dalam lingkungan bisnis yang dialami,
organisasi harus belajar untuk menjadi nyaman dengan adanya perubahan
ini. Oleh karena itu, kemampuan untuk mengelola dan beradaptasi dengan
perubahan organisasi adalah kemampuan penting yang diperlukan di tempat
kerja saat ini. Namun, perubahan organisasi yang besar dan cepat
menjadikan kesulitan tersendiri karena struktur, budaya, dan rutinitas
organisasi sering mencerminkan status quo sulit dari periode lalu sulit
dihapuskan. Oleh karena itu bagi yang mampu bertahan terhadap
perubahan yang radikal membutuhkan perubahan yang cepat.
Karena perkembangan teknologi, perubahan organisasi modern yang
sebagian besar didorong oleh inovasi eksternal daripada tuntutan internal.
Ketika perkembangan ini terjadi, organisasi yang cepat beradaptasi akan
menciptakan keunggulan kompetitif bagi diri mereka sendiri, sementara
perusahaan yang menolak untuk berubah akan tertinggal. Hal ini dapat
mengakibatkan kerugian yang drastis pada pangsa pasar. Perubahan
organisasi secara langsung mempengaruhi semua departemen dan semua
11
karyawan di semua tingkat manajemen. Seluruh perusahaan harus belajar

bagaimana menangani perubahan organisasi ini dengan baik.
What changes in organizations

Sebagaimana di gambarkan sebelumnya organisasi berubah bias
karena tekanan internal maupun ekseternal. Sehingga perlu ada penyesuaian
kondisi internal terhadap berbagai tuntutan tersebut. Secara umum
perubahan ditujukan pada perbaikan kinerja institusional. Oleh karena itu
perubahan yang memungkinkan terjadai pada perubahan orientasi berupa
visi dan target capaian kerja. Untuk menghasilkan target dan orientasi kerja
tersebut dibutuhkan system kerja yang sesuai dengan tuntutan yang
diantaranya adalah perubahan penggunaan sarana dan teknologi kerja.
Selain itu dibutuhkan penyesuaian kompetensi dan kapasitas pekerja agar
dapat menjalankan system kerja yang baru. Oleh karena itu ilmu, ketrampilan
dan sikap serta perilaku karyawan harus disesuaikan dengan tuntutan target
kerja dan cara kerja yang baru. Sering tuntutan perubahan baru ini
mendorong adanya perubahan anggaran dan pendanaan kerja, orientasi
pasar baru, serta system operasi kerja baru. Kompleksitas kemungkinan
tuntutan perubahan ini mendorong perusahaan untuk melakukan perubahan
yang integratif di semua lini manajerial yaitu, operasional, SDM, pemasaran,
komunikasi, dan keuangan.
Soal Latihan
1. Jika anda menjadi seorang manajer di sebuah perusahaan, Faktor apa

saja yang menyebabkan anda berfikir untuk melakuikan perubahan di
perusahaan anda
2. Jika ada sebuah teknologi baru yang berkaitan dengan perusahanan

anda, apakah anda akan membuat program perubahan manajerial
diperusahaan anda? Jelaskan alas an anda
12
3. Di dalam departemen keuangan, operasi, pemasaran dan SDM,

tuntutan perubahan apa saja yang sering muncul. Sebutkan dan
jelaskan alasan anda.
13
BAB 4 ANALISIS PERUBAHAN
Diagnosis for change

Manajemen perubahan diawali dengan penentuan kebutuhan untuk
perubahan, skala perubahan, segmentasi perubahan, metodologi perubahan,
pendekatan perubahan, komunikasi perubahan, teknik perubahan, dan
analisis antisipasi efek perubahan. Penentuan kebutuhan perubahan
dianalisa dengan adanya dinamika tuntutan internal dan eksternal organisasi
dalam merespon tingkat persaingan dengan para kompetitor dan perubahan
pasar. Perubahan bias dilakukan di skala strategis maupun skala teknis.
Siemen yang dikenal sebagai perusahan yang memproduksi alat komunikasi
menangkap tuntutan pasar di segmentasi transportasi. Sehingga mereka
melakuka diversifikasi produk dari alat komunikasi ke alat transportasi seperti
membuat gerbong MRT. Demikain juga dengan perusahaan Samsung yang
hanya dikenal sebagai innovator produk alat rumah tangga seperti TV,
mesing pendingin, merambah produknya kea lat komunikasi seperti
handphone dan alat transportasi seperti mobil.
Demikian juga dengan tuntutan perubahan yang muncul bisa
mendorong organisasi melakukan perubahan di skala yang berbeda seperti
perubahan depatemntal dan fungsi manajerial di berbagai bidang yang
berbeda di dalam perusahaan tersebut. Dalam perkembangan implementasi
konsep manajemen SDM misalnya. Pada awalnya fungsi SDM diberlakukan
dengan sangat sedderhana sebagai bagian administrasi kepegawaian,
kemudian berkembang menjadi bagian personalia, yang selanjutnya
mengikuti tuntutan menjadi bagian pelaksana fungsi SDM, dan kini telah
memasuki fungsi stratejik dan pendorong utama di sebuah perusahaan.
Perubahan ini mengikuti tuntutan perubahan dari skala teknis hingga skala
strategis. Demikian juga dengan perusahaan yang kadang dituntut untuk
melakukan perubahan di satu sisi produksi sja karena adanya tuntutan
14
hadirnya teknologi produksi baru. Atau perubahan di segmen system

teknologi informasi, karena muncul konsep dan sarana baru dalam
pengelolaan system teknologi informasi. Perubahan pasar sering menuntut
perubahan kerja dan cara karja di bagian pemasaran. Oleh karena itu analisis
yang lebih spesifik dibutuhkan untuk memastikan kebutuhan perubahan yang
dituntut baik oleh internal maupun oleh eksternal perusahaan.
Tuntutan globalisasi dan keterbukaan informasi juga memberikan
pengaruh terhadap metodologi dan pendekatan perubahan dalam sebuah
institusi. Kadang perubahan cukup diinformasikan dan menjadi bahan
koordinasi dikalangan top manajemen. Namun kondisi keterbukaan saat ini
sering memicu tuntutan perubahan yang berasal dari karyawan tingkat
bawah/bottom up. Dengan adanya dinamika bisnis dan tenologi yang begitu
cepat antisipasi terhadap sebuah orientasi perubahan perlu dilakukan. Hal ini
sering terjadi karena prediksi perubahan tidak secepat tuntutan perubahan
organisasi.
Kegagalan proses perubahan tidak hanya disebabkan oleh

perencanaan dan control yang kurang matang. Namun antisipasi dari kondisi
percepatan tuntutan perlu menjadi bahan analisa tersendiri. Sehingga bagi
15
organisasi yang menghadapi dinamika kompetisi yang tinggi, perubahan

yang ditargetkan harus mengikuti tren tuntutan perubahan eksternal. Oleh
karena itu capaian yang ditunjukkan dengan nilai nominal kadang tidak
presisi dengan tingkat persaingan yang dihadapi.
Dalam melakukan pengelolaan perubahan organisasi perlu
memperhatikan kesiapan internal dalam berubah. Oleh karenanya langkah
pertama yang perlu dilakukan adalah proses unfreezing yaitu tahapan
dimana menyiapkan system yang bisa menyesuaikan peluang perubahan.
Unfreezing ini ditujukan pada setiap pemangku kepentingan seperti owner,
top manajemen hingga karyawan non staf sekalipun. Kemudian setelah
system sudah cukup fleksibel, proses perubahan dapat dilakukan. Sehingga
agar perubahan bisa terkendali, proses re-frezing sebagai tahapan
pengetatan pada system baru harus segera diberlakukan. Sebagaimana
terlihat dalam bagan berikut ini.
Selain itu dalam proses mengelola perubahan organisasi ada sebuah

tuntutas etika yang bisa menjadi tantangan prosesn perubahan ini. Oleh
karena itu perubahan harus sesuai dengan nilai-nilai, norma dan keyakinan
16
yang ada dalam organisasi dan dimiliki oleh para anggota organisasi.
Sehingga kejelasan orientasi perlu dipersiapkan untuk mengantisipasi
berbagai persepsi yang berbeda dengan yang telah ditentukan. Demikian
pula perilaku politik organisasi menjadi bahan pertimbangan bagi institusi
yang rentan dengan berbagai perbedaan orientasi dan interes.
Resistant to change
Tidak semua rencana perubahan organisasi dapat berjalan dengan
baik. Sering terjadi proses pengelolaan perubahan organisasi terkendala
karena munculnya berbagai hambatan untuk berubah baik dari individu
anggota organisasi hingga system organisasi yang sedang berjalan.
Diantara hambatan yang sering muncul adalah karena ketidaktahuan dan
kekhawatiran tentang proses dari perubahan yang akan dan sedang
dilakukan sebagaimana tergambar dalam bagan dibawah. Sehingga agen
perubah perlu melakukan antisipasi dalam menghadapi resistensi yang
muncul dalam perubahan tersebut seperti perlunya dilakukan komunikasi
secara intensif ketika sedang dilakukan perencanaan perubahan, persiapan
perubahan, saat perubahaan hingga saat akhir proses perubahan. Hal ini
untuk mendukung proses unfreezing, proses perubahan, dan re-freezing.
Dengan adanya komunikasi yang intensif diharapkan berbagai kendala
17
psikologis, kognitif, dan kebutuhan peningkatan kapasitas dan kompetensi

dapat diidentifikasi dengan baik. Sehingga gap dan penghalang di level
psikologis, kognitif maupun ketrampilan bisa diantisipasi sejak dini, dengan
memberikan pelatihan dan pembekalan
.
Keterlibatan seluruh level karyawan sesuai persinya juga dibutuhkan
dalam mengelola sebuah perubahan organisasi, sehingga mampu
mengurangi ketegangan dalam pengelolaan perubahan ini. Jikapun terjadi
perbedaan yang lebih prinsipil proses negosiasi hingga paksaan bisa
dilakukan jika diperlukan.
18
Artikel pendukung analisa perubahan diantaranya adalah:

1. Parker, D., Verlinden, A., Nussey, R., Ford, M., & Pathak, R. D. (2013).
Critical evaluation of project-based performance management: Change
intervention integration. International Journal of Productivity and
Performance Management, 62(4), 407-419.
2. Karakas 2009 New Paradigms in Organizational Development in the 21st
Century: Positivity, Spirituality, and Complexity, Organization
Development Journal, Vol. 27, No. 1, pp. 11-27
3. Kramer, J., & Magee, J. (1990). The evolving philosophers problem:
Dynamic change management. Software Engineering, IEEE Transactions
on, 16(11), 1293-1306.
4. Osibanjo, O. A., Adeniji, A. A., & Abiodun, J. A. (2013). Organizational
Change and Human Resource Management Interventions: An
Investigation of the Nigerian Banking Industry. Serbian Journal of
Management, 8(2).
5. Khattak, A. M., Latif, K., & Lee, S. (2013). Change management in
evolving web ontologies. Knowledge-Based Systems, 37, 1-18.
6. Carpinetti, L. C., & Lima, R. H. (2013). Institutions for collaboration in
industrial clusters: proposal of a performance and change management
model. International Journal of Production Management and Engineering,
1(1), 13-26.
7. Samuel, K. (2013). THE EFFECTS OF CHANGE MANAGEMENT IN AN
ORGANISATION: A CASE STUDY OF NATIONAL UNIVERSITY OF
RWANDA (NUR).
8. Gandomani, T. J., Zulzalil, H., Ghani, A. A. A., & Sultan, A. B. M. (2013).
Towards comprehensive and disciplined change management strategy in
agile transformation process. Research Journal of Applied Sciences,
Engineering and Technology, 6, 2345-2351.
19
Soal Latihan
1. Sebutkan kendala investasi SDM yang sering dihadapai dalam sebuah

proses perubahan organisasi
2. Sebutkan dan jelaskan batasa etis apa saja yang perlu diperhatikan
dalam mengelola perubahan organisasi
3. Dalam menghadapi resistensi dalam perubahan, apa yang akan anda

lakukan sebagai seorang manajer SDM? Jelaskan
20
BAB 5 IMPLEMENTASI MANAJEMEN PERUBAHAN
Dengan memahami esensi kebutuhan dan keniscayaan perubahan

dalam sebuah organisasi, selanjutnya perlu difahami berbagai metodologi
yang menjadi sarana perubahan tersebut. Diantara model implementasi
perubahan organsasi adalah pengembangan organisasi (Organizational
development), Appreciative Inquiry, Positive organizational scholarship,
Sensemaking approach, Change management, dan Contingency and
processual approach. Dalam mengelola sebuah proses perubahan dalam
organisasi, hal yang terpenting dan perlu perhatian adalah hubungan visi
organisasi dengan kebutuhan, proses, dan metode perubahan dalam
organisai.
Organizational Development
Pengembangan organisasi (OD) adalah sebuah pendekatan untuk
perubahan organisasi dimana para pegawai menentukan sendiri sebuah
perubahan serta mengimplementasikannya yang biasanya dilakukan dengan
pelatihan dan arahan konsultan. Pengembangan organisasi (OD) adalah,
upaya organisasi yang direncanakan untuk meningkatkan efektivitas dan /
atau efisiensi organisasi dan / atau untuk memungkinkan organisasi untuk
mencapai tujuan strategisnya. Para ahli dan praktisi OD mendefinisikannya
dalam berbagai cara. Berbagai definisi OD mencerminkan kompleksitas
disiplin dan tanggung jawab pemahaman terhadap OD. Sebagai contoh,
Vasudevan menjadikan OD sebagai promosi kesiapan organisasi dalam
memenuhi tuntutan perubahan, dan OD disebut sebagai pembelajaran dan
pengembangan strategi yang sistemik untuk mengubah dasar-dasar
keyakinan, sikap dan nilai-nilai yang relevansi, dan mengubah struktur
organisasi agar lebih mampu menyerap teknologi,menangkap peluang pasar
dan tantangannya. OD bukanlah sebuah aktivitas pelatihan, pengembangan
21
pribadi, pengembangan tim, pengembangan sumber daya manusia (SDM),

pembelajaran dan pengembangan (Learning & Develoment) atau bagian dari
Manajemen SDM. Karena sesungguhnya OD adalah sebah perubahan yang
melibatkan orang, pegembangan proses, sistem dan struktur. Tujuan utama
OD adalah untuk mengembangkan organisasi, bukan untuk melatih atau
mengembangkan staf.
Tujuan OD adalah untuk meningkatkan tingkat kepercayaan antar
pribadi di antara karyawan, kepuasan dan komitmen karyawan, menghadapi
masalah bukan mengabaikan mereka, secara efektif mengelola konflik,
meningkatkan kerja sama dan kolaborasi di antara karyawan, meningkatkan
pemecahan masalah organisasi, dan untuk dimasukkan ke dalam proses
yang akan membantu meningkatkan operasi yang sedang berlangsung
organisasi secara terus menerus. Secara umum program OD betujuan untuk
membuat individu dalam organisasi menyadari visi organisasi. Karena
pengembangan organisasi membantu dalam membuat karyawan
menyelaraskan dengan visi organisasi, mendorong karyawan untuk
memecahkan masalah, bukan menghindarinya, penguatan kepercayaan
kerjasama, dan komunikasi antar karyawn untuk keberhasilan pencapaian
tujuan organisasi, mendorong setiap individu untuk berpartisipasi dalam
proses perencanaan, sehingga membuat mereka merasa bertanggung jawab
atas pelaksanaan rencana, menciptakan suasana kerja di mana karyawan
didorong untuk bekerja dan berpartisipasi dengan antusias, mengganti jalur
formal kewenangan dengan pengetahuan pribadi dan keterampilan, dan
menciptakan lingkungan kepercayaan sehingga karyawan rela menerima
perubahan.OD menjadikan manajer untuk memperkenalkan perubahan
secara sistematis dengan menerapkan pilihan yang luas sesuai teknik-teknik
manajemen. Hal ini, pada gilirannya, menyebabkan pribadi, kelompok yang
lebih berkualitas, dan organisasi yang lebih efektif.
22
Appreciative Inquiry
Albert Einstein pernah berkata:
“No problem can be solved from the same level of consciousness that
created it. We must learn to see the world anew.”
“There are only two ways to live your life. One is as though nothing is a
miracle. The other is as though everything is a miracle.”
Dalam proses Appreciative Inquiry dikenal beberapa alur tahapan seperti

tergambar dalam bagan berikut:
Prinsip-prinsip Appreciative Inquiry

• Constructionist Principle
• Principle of Simultaneity
• Open Book “Poetic Principle”
• Anticipatory Principle
• Positive Principle
• Principle of Wholeness
23
Positive organizational scholarship

Positive organizational scholarship (POS) berkaitan dengan berbagai
hasil studi proses, dan atribut organisasi serta anggota organisasi, yang
positif. POS tidak mewakili satu teori tertentu, namun berfokus pada dinamika
yang biasanya digambarkan dengan kata-kata seperti keunggulan,
berkembang, berkembang, ketahanan, atau kebajikan. POS merupakan
perspektif yang lebih luas, yang mencakup masalah pengukuran dan
menguatkan pada ide-ide "kebaikan" dan potensi kemanusiaan yang positif.
Ini meliputi perhatian pada potensi positif seseorang (misalnya, kemampuan
proses, kemampuan, struktur, metode), motivasi (misalnya, tidak egois,
perhatian, memberikan kontribusi tanpa kesombongan), dan hasil atau efek
(misalnya, vitalitas, kebermaknaan, kegembiraan, hubungan yang berkualitas
tinggi) yang berhubungan dengan fenomena positif. POS dibedakan dari
studi organisasi tradisional karena berusaha untuk memahami apa yang
mewakili dan pendekatan pada kondisi manusia yang baik. Fenomena
perilaku positif lainnya diantaranya adalah community psychology, humanistic
organizational behavior, organizational development, pro-social motivation
and citizenship behavior, and corporate social responsibility.
Sensemaking approach
Sensemaking organisasi adalah pertama dan terutama tentang
pertanyaan: Bagaimana sesuatu menjadi bagian dari agenda anggota
organisasi? Kedua, sensemaking adalah tentang pertanyaan: Apa sebauh
agenda memberi arti? Sensemaking dan organisasi merupakan upaya untuk
mengalirkan pesan intrinsik tindakan manusia, menghubungan kea rah
tertentu, memberikan bentuk tertentu, melalui pendekatan generalisasi dan
pelembagaan sebuah makna dan aturan tertentu. Dalam proses manajemen
perubahan perlu diketahuai sejauhmana sensemaking anggota organisasi
memberikan pengaruh terhadap capaian implementasi perubahan. Hal ini
24
dapat difahami karena perubahan menciptakan gangguan yang memicu

sensemaking (Weick, 1995), Karyawan memiliki keleluasaan untuk memaknai
suatu hal yang sama secara berbeda, dan karyawan dapat mengikuti
perubahan hanya karena didorong oleh manajer puncak.
Sensemaking adalah sebuah proses dialog dan narasi (Brown 2000;
Gephart 1993, 1997) termasuk didalamnya adalah berbagai bentuk
komunikasi (Watson and Bargiela-Chiappini 1998), secara lisan maupun
tulisan, forman dan non formal. Namun secara khusus, sensemaking adalah
praktek percakapan dan sosial (Gephart 1993: 1469) dalam arti verbal dan
non verbal (Gioia and Chittipeddi 1991; Gioia et al. 1994). Seseorang terlibat
melakukan gosip dan negosiasi, saling bertukar cerita, rumor, dan
pengalaman mereka, mendapatkan informasi, dan memberikan catatan pada
sebuah hal, atau mengenali sebuah tanda seperti perilaku dan aksi, untuk
memberikan kesimbulan dan memberikan sebuah makna (Isabella 1990;
Gioia dan Chittipeddi 1991; Gioia et al. 1994; Gioia dan Thomas 1996; Poole
et al. 1989; Labianca et al. 2000). Sehingga sebuah perubahan dapat muncul
dari pertukaran dalam sebuah percakapan dan bahasa (Barrett et al. 1995;
Brown dan Humphreys 2003; Ford dan Ford 1995; Heracleous dan Barrett
2001).
Mengelola Perubahan
Manajemen perubahan adalah sebuah perubahan organisasi
lingkungan, struktur, budaya, teknologi, atau orang-orang dalam menghadapi
sebuah tuntutan, realitas organisasi, dan kesempatan atau ancaman. Cara
pandang terhadap perubahan adalah misalnya dengan pendekatan metafora
air Tenang yaitu penjelasan praktek-praktek tradisional dan teori tentang
organisasi yang menyamakan organisasi pada sebuah kapal besar yang
berlayar di laut yang tenang yang kadang terkadang terkena badai, dan cara
pandang metafora Arung jeram yaitu menganggap bahwa organisasi sebagai
rakit kecil yang berjalan di sungai berarus deras. Perubahan organisasi di
25
aliran arus deras memiliki anggapan bahwa perubahan selalu terjadi di

lingkungan yang dinamis, bahwa kepastian itu adalah ketidak pastian,
sehingga seorang manajer harus cepat tanggap terhapad hal yang tidak
diperkirakan sebelumnya.
Proses perubahan organisasi menurut Kurt Lewin terdiri dari tiga
proses yaitu unfreezing, implementasi perubahan dan refreezing. Hal ini
untuk mengantisipasi berbaga hambatan perubahan seseorang yang terdiri
dari kekhawatiran seseorang akan kehilangan nilai, kekhawatiran
ketidaktahuan dan adanya keyakinan bahwa berubah tidak baik untuk
organisasi. Hal ini akan memunculkan halangan dalam proses
pemberdayaan.
Sebuah contoh model rencana perubahan organisasi sebagaimana di

adopsi dari Larry Short, “Planned Organizational Change,” MSU Business
Topics, Autumn 1973, pp. 53–61 ed. Theodore Herbert, Organizational
Behavior: Readings and Cases (New York: McMillan, 1976), p. 351.
26
Pendekatan Kontinjensi dan proses

Pendekatan kontinjensi adalah sebuah proses dalam manajemen
perubahan meyakini bahwa ada satu cara terbaik dalam melakukan
perubahan organisasi. Tipe perubahan atau cara perubahan dianggap
bervariasi tergantung pada tantangan yang dihadapi misalnya adalah skala
perubahan yang menjadi tujuan, tingkat penerimaan perubahan bagi anggota
organisasi, tipe manajemen perubahan, waktu yang dibutuhkan dan kinerja
organisasi. Pendekatan kontinjensi menurut Huy dikatagorikan menjadi
perintah intervensi seperti perubahan harus dilakukan dalam jangka pendek
dan cepat, dilakukan oleh eksekutif senior, dilakukan dengan
caraPerampingan, outsourcing, atau divestasi. Kategori kedua adalah
rekayasa intervensi seperti bahwa perubahan dilakukan dalam jangka
menengah dan relatif cepat, memerlukan analisa, dan bertujuan untuk
mengubah desain kerja dan sistem operasional. Sedangkan kategori ketiga
adalah pengajaran intervensi yaitu perubahan dilakukan dalam jangka
panjang dan bertahap, membutuhkan konsultan, dan merubah praktek kerja
dan perilaku. Kategori keempat adalah sosialisasi intervensi yaitu perubahan
jangka panjang dan bertahap, dilakukan dengan pelibatan pengalaman belaja
27
dan pemantauan diri, serta dilakukan dengan praktek organisasi yang

demokratis.
Sedangkan pendekatan proses adalah melihat perubahan sebagai
sebuah proses yang berkelanjutan bukan sekedar rangkaian aktivitas yang
linier dalam waktu tertentu. Pendekatan proses menganggap bahwa hasil
dari perubahan sebagai terjadi melalui interaksi yang rumit dari berbagai
kelompok kepentingan, tujuan, dan politik. Pendekatan ini mengingatkan
manajer perubahan ke berbagai pengaruh yang mereka akan hadapi dan
mengingatkan manajer perubahan bahwa cara di akan menyebabkan hasil
perubahan tertentu saja yang dapat dicapai. Pendekatan ini sering digunakan
untuk mendapatkan analisa dan pemahaman yang mendalam dari sebuah
perencanaan.
Menghubungkan Visi dan Perubahan

Memiliki visi sering dikaitkan mengapa perubahan organisasi berhasil
mencapai tujuannya. Sebaliknya, kehilangan visi sering dikaitkan dengan
kegagalan organisasi. Peran visi dalam memproduksi perubahan organisasi
ini terkait dengan citra seseorang mengelola perubahan. Visi umumnya
dianggap sebagai panduan bagi organisasi dalam mengidentifikasi kelayakan
perubahan tertentu yang ditargetkan.
Dalam proses perubahan ada beberapa perbedaan memandang
hubungan visi dan perubahan yaitu apalah visi akan mendorong perubahan
atau bermanfaat dalam perubahan? Apakah visi dapat membantu atau justru
menghalangi perubahan? Apakah visi digunakan sebagai atribut untuk
kegagahan bagi para pemimpin atau organisasi.
Artikel pendukung implementasi perubahan diantaranya adalah:

1. Parker, D., Charlton, J., Ribeiro, A., & Pathak, R. D. (2013). Integration of
project-based management and change management: Intervention
28
methodology. International Journal of Productivity and Performance

Management, 62(5), 534-544.
2. Parker, D., Verlinden, A., Nussey, R., Ford, M., & Pathak, R. D. (2013).
3. Osibanjo, O. A., Adeniji, A. A., & Abiodun, J. A. (2013). Organizational
Management, 8(2).
1(1), 13-26.
5. Fusilier, M., & Munro, D. (2013). Enterprising Versus Traditional Change
Management in a For-Profit University.
6. Samuel, K. (2013). THE EFFECTS OF CHANGE MANAGEMENT IN AN
RWANDA (NUR).
7. Gandomani, T. J., Zulzalil, H., Ghani, A. A. A., & Sultan, A. B. M. (2013).
Towards comprehensive and disciplined change management strategy in
agile transformation process. Research Journal of Applied Sciences,
8. S Basamh, S., Huq, M., Dahlan, A., & Rahman, A. (2013). Empirical
research on project implementation success and change management
practices in Malaysian Government-Linked Companies (GLCs).
International Journal of Information and Communication Technology
Research, 3(5), 714-180.
9. Slattery, J. (2013). Change Management. Journal of Strategic Leadership,
4(2), 1-5.
29
10. Naeem, A., Khan, M. F. A., Orakzai, H., Shah, D., & Hussain, S. T. (2013).
Change Management Process And Activities Impacts On Organizational
Performance: A Case In Perspective Of Organizational Culture. Far East
Journal of Psychology and Business, 10(2), 10-24.
11. Husain and Khan, 2010, Clarifying spiritual values among organizational
development personnel, African Journal of Business Management Vol.4
(2), pp. 278-281
12. Knoff, 2009, Best Practices in Strategic Planning, Organizational
Development, and School Effectiveness, pp 1-33
13. Hermundsgard and Hansson, 2010, Assessment of HSE aspects by
employees’ participation in organizational development processes:” What
you ask is what you get
14. Korsvold, Hansson, and Lauvness, 2010, Job satisfaction and extensive
participation processes in organizational development-A case study from
the Norwegian petroleum industry
Soal Latihan
1. Sebutkan dan jelaskan hal-hal yang sering dianggap sulit dalam

proses implementasi perubahan organisasi
2. Bagaimana anda menjelaskan hubungan visi organisasi dan proses

perubahan yang anda lakukan terhadap karyawan tingkat bawah?
3. Jika dalam organisasi anda ada seorang atau sekelompok karyawan

yang selalu berfikiran bertentangan dan negative terhadap anda, apa
sikap anda terhadap mereka dalam proses perubahan organisasi yang
anda lakukan.
30
BAB 6 KOMUNIKASI DALAM PERUBAHAN
Beragam tujuan dalam penitian bidang SDM menuntut peneliti untuk

menjelaskan hasil dari penelitiannya baik secara teoritis, empiris, maupun
praktis. Sehingga hasil dari analisis penelitian dapat difahami secara
deskriptif oleh pengguna. Secara umum peneliti berusaha untuk menjelaskan
mengapa hasil dari penelitiannya menunjukkan suatu nilai dan signifikansi
tertentu. Oleh karena itu peneliti perlu memperkuat hasil temuannya dengan
penjelasan penelitian sebelumnya sebagai dasar empiris, dan menjelaskan
fenomena lapangan dari obyek penelitian yang dilakukan.
Strategi Komunikasi
Dalam mengelola perubahan strategi mengelola komunikasi sangat
penting dalam rangka mencapai target perubahan. Manajemen komunikasi
adalah perencanaan yang sistematis, pelaksanaan, pemantauan, dan revisi
semua saluran komunikasi dalam sebuah organisasi, dan antara organisasi;
juga termasuk organisasi dan penyebaran arahan komunikasi baru yang
berhubungan dengan organisasi, jaringan, atau teknologi komunikasi. Aspek
manajemen komunikasi meliputi pengembangan strategi komunikasi
perusahaan, merancang arahan komunikasi internal dan eksternal, dan
mengelola arus informasi, termasuk komunikasi online. Teknologi baru
memaksa inovasi terus-menerus pada bagian dari manajer komunikasi.
Sebagai manajer, kita harus mengambil pendekatan kontingensi untuk
berkomunikasi dengan karyawan mereka dan berkomunikasi secara pribadi.
Itu tanggung jawab manajer untuk menentukan apakah kepribadian karyawan
mereka berada di bawah berikut: Reaktor, gila kerja, Persisters, Dreamers,
Pemberontak, atau Promotor
Strategi komunikasi merupakan salah satu cara untuk memastikan
bahwa proses komunikasi yang dilakukan sesuai dengan tujuan komunikasi
31
dan target obyek komunikasi. Dalam komunikasi sosial proses dialog ada
tuntutan bahwa masyarakat sendiri yang akan mendefinisikan siapa mereka,
apa yang mereka butuhkan, dan bagaimana mereka akan bekerja sama
untuk mendapatkan apa yang mereka inginkan dan butuhkan untuk
memperbaiki kehidupan mereka dan komunitas mereka. Oleh karena itu
keberhasilan dalam komunikasi dapat dicapai melalui keterlibatan yang
berarti dari para pemangku kepentingan utama suara begitu lokal didengar
dan ditindaklanjuti. Dalam strategi komunikasi, praktek taktik komunikasi
perlu dibedakan untuk tiap fase perubahan organisasi yang berbeda
sehingga akan memiliki dampak penting pada tingkat penerimaan dari
perubahan anggota organisasi. Dengan berpedoman pada prinsip-prinsip
komunikasi yang efektif , penerapan strategi komunikasi akan memberikan
efek yang tepat pada beberapa tahapan perubahan organisasi. Sehingga
pihak-pihak yang terlibat perlu memperhatikan strategi komunikasi dalam
tahap sosialisasi perubahan, dalam menciptakan keterlibatan anggota
organisasi, dan menghasilkan perbedaan dalam proses perubahan.
Dalam manajemen perubahan komunkasi dilakukan dan diawali dengan
perencanaan proyek perubahan, dilakukan diawal bukan diakhir, dan berisi
muatan anggaran. Proses komunikasi ini harus didasari oleh pemikiran
analisis, fokus pada gambaran besar perubahan, pelibatan berbagai saluran
komunikasi, dan menentukan pemangku kepentingan kunci. Beberapa
elemen kunci dari komunikasi dalam strategi komunikasi manajemen
perubahan adalah terkait dengan konteks perubahan dan komunikasinya,
pertimbangan strategis perubahan dan komunikasinya, tujuan perubahan dan
komunikasinya, sasaran perubahan dan obyek komunikasi, pesan perubahan
dan bahasa komunikasiny, taktik dan alat-alat manajemen perubahan, dan
evaluasi proses komunikasi perubahan yang dilakukan.
Cakupan komunikasi yang dilakukan dalam manajemen perubahan
diantaranya adalah terkait dengan konteks perubahan, kondisi ekonomi,
sosial, dan lingkungan politik, Media observasi, tren opini publik, konteks
32
historis, dan budaya dan tujuan perusahaan. Oleh karena itu dalam
komunikasi ini strategi yang dipertimbangkan diantaranya adalah
mengantisipasi perubahan yang akan dilakukan, analisa resiko dan
melakukan analisa SWOT. Misalnya dengan cara penentuan tujuan dengan
jelas, dan cerdas, realistis, dan berusaha tidak melakukan langkah mundur.
Perlu diperhatikan juga obyek komunikasi yang perlu menimbang target
peserta, dengan siapa kita perlu bicara, memulai dengan yang terbatas/lokal
kemudian dilanjutkan yang lebih luas/global, serta memahami siapa audience
yang diajak bicara. Untuk itu pesan yang disampaikan harus dikemas dengan
meninjau ulang tujuan, siapkan riga sampai lima pesan/kata kunci, ringkas
dan sederhana, dan pesan yang melengket. Taktik dan alat komunikasi yang
digunakan harus sesuai dengan tujuan, selaras dengan audience, dan
bersifat jangka pendek dan jangka panjang.
Kemampuan komunikasi perubahan

Seorang komunikator harus memiliki empat keterampilan kunci untuk
berkomunikasi antara lain memiliki kemampuan untuk:
• Mendengarkan: Ada empat jenis keterampilan mendengarkan yaitu
menangguhkan penilaian, mengidentifikasi asumsi, mendengarkan untuk
belajar, dan refleksi. (Gerard & Teurfs, 1997)
• Bercerita: Ini adalah cara yang efektif untuk membantu karyawan belajar
dari perubahan masa lalu & memberikan gambaran masa depan.
• Lebih busa menjual perubahan: menjual isu adalah cara untuk
mendapatkan perhatian dari manajemen senior bahwa perubahan harus
dimulai dari bawah.
• Penanganan masalah: beberapa orang dalam organisasi mengambil
peran menangani problem dari proses perubahan dan menyerap ini
33
sebagai cara untuk melindungi orang lain dari dampak negatif perubahan.
(Frost & Robinson, 1999)
Komunikasi perubahan harus dilakukan dengan cara yang berbeda

untuk berbagai tahap proses perubahan. Ada empat jenis percakapan
menurut Ford & Ford (1995)
• Percakapan Initiative: yaitu untuk menarik perhatian tentang perlunya
perubahan.
• Percakapan untuk memahami: ini mengkomunikasikan jenis perubahan
yang dibutuhkan dan memungkinkan untuk memberikan penghargaan
yang lebih besar atas perubahan.
• Percakapan untuk kinerja: ini berfokus pada perubahan yang diinginkan
dan bagaimana cara kemajuan perubahan dapat dipantau.
• Percakapan penutupan: ini sinyal akhir perubahan
Perubahan berkelanjutan
Setelah diimplementasikan, perubahan tidak selalu berjalan lancar
dalam sebuah organisasi. Kemampuan untuk membuat perubahan
menunjukkan keberhasilan jangka panjang dari perubahan. Sehingga ada
beberapa tindakan yang dapat membantu mempertahankan perubahan.
Untuk mempertahankan proses perubahan perlu dilakukan beberapa hal
seperti :
• Mendesain ulang peran: Ini adalah hasil yang umum dari sebuah
perubahan dan merupakan tanda bahwa perubahan adalah cukup
penting.
• Merancang ulang sistem penghargaan: sistem penghargaan merupakan
bagian dari budaya, dan mengubah sistem penghargaan adalah cara
yang secara langsung mempengaruhi nilai-nilai inti organisasi.
34
• Menghubungkan jaringan keputusan untuk mengubah tujuan: Kriteria

seleksi adalah simbol dari apakah hal ini mendorong ide-ide baru dan
perubahan
• Bertindak secara konsisten: Ini menunjukkan ketetapan perubahan
melalui praktik adopsi dan prioritas.
• Mendorong inisiatif tindakan sukarela yang merupakan akativitas yang
didorong oleh norma di semua tingkatan organisasi.
• Mengukur kemajuan: Tindakan yang digunakan sebagai alat untuk
mengukur kemajuan perubahan dan menunjukkan ketercapaian tujuan
perubaban.
• Rayakan keberhasilan yang dapat mendorong semua yang terlibat dalam
perubahan untuk meningkatkan kredibilitas program.
• Menyempurnakan: Program Perubahan harus terbuka untuk dimodifikasi
untuk meningkatkan hasil perubahan.
Artikel pendukung Komunikasi perubahan diantaranya adalah:

1(1), 13-26.
2. Khattak, A. M., Latif, K., & Lee, S. (2013). Change management in
evolving web ontologies. Knowledge-Based Systems, 37, 1-18.
3. Dunne, M. J., & Mujtaba, B. G. (2013). Employee Engagement and
Change Management Programmes: a Comparative Study of
Organisational Commitment between Thai and Irish Cultures. International
Affairs and Global Strategy, 9, 1-22.
4. Naeem, A., Khan, M. F. A., Orakzai, H., Shah, D., & Hussain, S. T. (2013).
35

5. Husain and Khan, 2010, Clarifying spiritual values among organizational
(2), pp. 278-281
6. Knoff, 2009, Best Practices in Strategic Planning, Organizational
7. Mereles, Montoya, Lane and Dandy, 2009, Customer service in
Organizational Development, Proceedings of the Academy of Marketing
Studies, Volume 14, Number 2
8. Hermundsgard and Hansson, 2010, Assessment of HSE aspects by
employees’ participation in organizational development processes:” What
you ask is what you get
9. Korsvold, Hansson, and Lauvness, 2010, Job satisfaction and extensive
participation processes in organizational development-A case study from
the Norwegian petroleum industry
10. Ramos and Chesler, 2010, Reflections on a Cross-Cultural Partnership in
Multicultural Organizational Development Efforts, OD PRACTITIONER
Vol. 42 No. 2, pp. 4-9
Soal Latihan
1. Jika anda seorang manajer SDM, Sebutkan dan jelaskan perbedaan

sarana yang paling efektif dalam mengkomunikasikan perubahan pada
staff top manajemen, middle manajemen, dan technical staff di
perusahaan anda.
2. Sebutkan faktor apa saja yang peling perbengaruh untuk menggaransi

prosea perubahan yang berkelanjutan di perusahaan yang anda
pimpin. Jelaskan dan sertakan contoh-contohnya
36
3. Kadang proses perubahan perlu manjadi rahasis perusahaan, namun

juga sering dituntut untuk diketahui oleh public. Sebutkan dan jelaskan
batasan-btasan informasi-informasi yang bisa diakses oleh public
dalam proses perubahan di perusahaan anda.
37
REFERENSI
Carpinetti, L. C., & Lima, R. H. (2013). Institutions for collaboration in

model. International Journal of Production Management and
Engineering, 1(1), 13-26.
Dibrata, W. D. J., & Murahartawaty, W. P. (2013). USULAN MANAJEMEN
PERUBAHAN PADA TELKOM UNIVERSITY DENGAN
MENGGUNAKAN MODEL PERUBAHAN ADKAR. USULAN
MANAJEMEN PERUBAHAN PADA TELKOM UNIVERSITY DENGAN
MENGGUNAKAN MODEL PERUBAHAN ADKAR.
Dunne, M. J., & Mujtaba, B. G. (2013). Employee Engagement and Change
Management Programmes: a Comparative Study of Organisational
Commitment between Thai and Irish Cultures. International Affairs and
Global Strategy, 9, 1-22.
Faisal, M. Evaluasi Kinerja Manajemen Perubahan (melalui breakthrough
innovation) Jasa Pendidikan Serta Pengaruhnya terhadap Stakeholders.
Fusilier, M., & Munro, D. (2013). Enterprising Versus Traditional Change
Management in a For-Profit University.
Gandomani, T. J., Zulzalil, H., Ghani, A. A. A., & Sultan, A. B. M. (2013).
Towards comprehensive and disciplined change management strategy
in agile transformation process. Research Journal of Applied Sciences,
Griffin, M. A., Neal, A., & Parker, S. K. (2007). The new model of work role
performance: Positive behavior in uncertain and interdependent
contexts. Academy ofManagement Journal,50, 327–347
Hermundsgard and Hansson, 2010, Assessment of HSE aspects by
employees’ participation in organizational development processes:”
What you ask is what you get
Husain and Khan, 2010, Clarifying spiritual values among organizational
(2), pp. 278-281
Karakas 2009 New Paradigms in Organizational Development in the 21st
Century: Positivity, Spirituality, and Complexity, Organization
Development Journal, Vol. 27, No. 1, pp. 11-27
Khattak, A. M., Latif, K., & Lee, S. (2013). Change management in evolving
web ontologies. Knowledge-Based Systems, 37, 1-18.
Knoff, 2009, Best Practices in Strategic Planning, Organizational
Korsvold, Hansson, and Lauvness, 2010, Job satisfaction and extensive
participation processes in organizational development-A case study
from the Norwegian petroleum industry
38
Kramer, J., & Magee, J. (1990). The evolving philosophers problem: Dynamic
change management. Software Engineering, IEEE Transactions on,
16(11), 1293-1306.
Mereles, Montoya, Lane and Dandy, 2009, Customer service in
Organizational Development, Proceedings of the Academy of Marketing
Studies, Volume 14, Number 2
Naeem, A., Khan, M. F. A., Orakzai, H., Shah, D., & Hussain, S. T. (2013).
Osibanjo, O. A., Adeniji, A. A., & Abiodun, J. A. (2013). Organizational
Management, 8(2).
Parish, J. T., Cadwallader, S., & Busch, P. (2008). Want to, need to, ought to:
employee commitment to organizational change. Journal of
Organizational Change Management, 21(1), 32-52.
Parker, D., Charlton, J., Ribeiro, A., & Pathak, R. D. (2013). Integration of
project-based management and change management: Intervention
methodology. International Journal of Productivity and Performance
Management, 62(5), 534-544.
Parker, D., Verlinden, A., Nussey, R., Ford, M., & Pathak, R. D. (2013).
Pearce, C. L., & Sims Jr, H. P. (2002). Vertical versus shared leadership as
predictors of the effectiveness of change management teams: An
examination of aversive, directive, transactional, transformational, and
empowering leader behaviors. Group dynamics: Theory, research, and
practice, 6(2), 172.
Ramos and Chesler, 2010, Reflections on a Cross-Cultural Partnership in
Multicultural Organizational Development Efforts, OD PRACTITIONER
Vol. 42 No. 2, pp. 4-9
S Basamh, S., Huq, M., Dahlan, A., & Rahman, A. (2013). Empirical research
on project implementation success and change management practices
in Malaysian Government-Linked Companies (GLCs). International
Journal of Information and Communication Technology Research, 3(5),
714-180.
Samuel, K. (2013). THE EFFECTS OF CHANGE MANAGEMENT IN AN
RWANDA (NUR).
Sari, F. M., & Ibrahim, M. (2013). PENERAPAN MANAJEMEN PERUBAHAN
DAN INOVASI. Jurnal Administrasi Pembangunan, 2(2), 161-164.
39
Shaw, G. B., Drucker, P. F., & Senge, P. M. (2013). Challenges in Change

Management in Central Banks. Journal of Central Banking Theory and
Practice, 1, 35-49.
Slattery, J. (2013). Change Management. Journal of Strategic Leadership,
4(2), 1-5.
Van der Voet, J. (2013). The effectiveness and specificity of change
management in a public organization: Transformational leadership and a
bureaucratic organizational structure. European Management Journal.
Wanberg, C. R., & Banas, J. T. (2000). Predictors and Outcomes of
Openness to Changes in a Reorganizing Workplace. Journal of Applied
Psychology, 85(1), 132-142.
40
SILABI
A. Wajib:
a. Palmer, I., Dunford, R dan Akin, G (2009), Managing organizational
change 2nd edition, McGrawHill
B. Pendukung:
a. Indartono (2014) Modul Mata Kuliah: Change Management
b. Senior and Swailes (2010), Organizational change 4th edition,
Prentice Hall
c. Cumming, T, 2006, Organizational Development and change, 8th
edition, Prentice Hall
EVALUASI
No Komponen Evaluasi Bobot (%)
1. Partisipasi Kuliah 20
2. Tugas-tugas 30
3. Ujian Tengah Semester 20
4. Ujian Akhir Semester 30
Jumlah 100
41
CURRICULUM VITAE
Setyabudi Indartono, Ph.D
Lahir di Purwokwero, 20 juli 1972. Menyelesaikan

studi SD hingga SMA di Banjarnegara Jawa Tengah.
Kemudian melanjutkan studi S1 di Teknis Sipil
Universitas Gadjahmada dan S2 di Magister
Manajemen di Universitas yang sama, Sedang S3 di
dapatkan dari National Central University Taiwan.
Pernah bekerja di PT Freeport Indonesia sebagai

senior fasilitator/trainer, kemudian Direktur Umum dan
Keuangan Rumah Sakit PKU Muhammadiyyah
Bantul. Menjadi Direktur Cabang LMT Trustco sejak
1998. Kemudian menjadi Staf Pengajar/Dosen
Manajeman di Universitas Negeri Yogyakarta.
Beberapa buku dan modul yang pernah ditulis adalah:

1. Steel Structure Design of PT FI apartments with Staad III Software
(1995),
2. Construction Management of PT FI (1997),
3. Justice Party direct Selling (2000),
4. Management Behavior : Mentoring as Solution (2000), Business
Research Method: Memory Research (2000),
5. Yogyakarta Islamic Hospital: Managing Performance (2000),
6. Yayasan Bina Sehat: Organization Change and Developmet as a
priority need (2000),
7. Human Resource Management: Sociaty central health Bantul
Yogyakarta (2000),
8. Organization Design of Region Directorate of Justice Party of
Yogyakarta (2000),
9. PT KPI Tembagapura Compensation applications (2000),
10. SWOT (2003),
11. Advance SWOT (2003),
12. Modul TFT Trustco (2004),
13. Leadership (2005),
14. Training For Beginer (2005),
15. Smart Trainer (2005),
16. Strategic trainer (2005),
17. Marketing Advance (UNY, 2005),
18. Lembaga Keuangan (UNY, 2005),
19. praktikum Perkuliahan Operation Research (UNY, 2009),
42
20. Bahan Ajar Perkuliahan Metode Penelitian Bisnis (2009)

21. Bahan Ajar Perkuliahan Perilaku Organisasi (2010)
22. Bahan Ajar Perkuliahan Teknik Proyeksi Bisnis (2010)
23. Bahan Ajar Perkuliahan Metodologi Riset SDM (2011)
24. Bahan Ajar Perkuliahan Manajemen Perubahan (2011)
25. Bahan Ajar Perkuliahan Pengantar Manajemen (2012)
26. Bahan Ajar Perkuliahan Strategic Human Resourches Management
(2012)
27. Bahan Ajar Perkuliahan Manajemen Konflik (2013)
28. Panduan praktikum Perkuliahan Operation Research (UNY, 2013),
29. Buku Teks Conflict management (2014)
30. Buku Teks Management: Character Inside
Journal Publication
1. Indartono & chen, 2008, Glocalization of Personal Ethical Threshold,
Journal of Education, Vol. 1. No. 1, pg. 39
2. Indartono & chen, 2008, Perception of direct and indirect compensations
fulfillment on hazardous work environment The relationship with age,
tenure, employee’s rank and work status, Jurnal Siasat Bisnis, Vol. 12
No.1, pg. 13
3. Indartono, Chou & chen, 2008, The Knowledge Characteriscs Work
Design Analysis of Job Fit Influence on Role Performance, Journal of
Human Capital, Vol 1 No 1 pg. 81
4. Indartono, 2008, Pengaruh personal job fit terhadap hubungan desain
kerja dan kinerja pengajar, Jurnal Humaniora, Vol. 13 no. 2, pg. 33
5. Indartono et al, 2009, The knowledge characteristics work design:
Analysis of job fit influence on role performance, Usahawan, No. 01 vol.
38, pg. 33
6. Indartono & chen, 2009, Articulating strategic human resources
management: Concept perspective to practice of managing human
resources, Journal of Human Capital, Vol 1 No 3., pg.227
7. Indartono , 2009, Contribution of different organizational politics
perceptions: Study on interaction among perception organizational
politics, performance and trust on the role of compensation, Integritas
Jurnal Manajemen Bisnis, Vol 2 no 1., pg 13
8. Indartono, 2009, Mediation effect of trust on the relationship between
perception of organization politics and commitment, Jurnal Administrasi
Bisnis, Vol. 5 no. 2., pg.160
9. Indartono, 2009, Different effect of Task Characteristics requirement on
Job satisfaction: Gender analysis of teacher occupation on WDQ, Jurnal
Ekonomika Madani,Vol 1, no. 2., pg.20
10. Indartono, Setyabudi and Vivian Chen, Chun-Hsi , 2010, Moderation of
Gender on the relationship between task characteristics and performance,
43
International Journal of Organizational Innovation (IJOI), Vol. 2, no 4, Pg.

195-223
11. Indartono, Setyabudi; Chiou, Hawjeng; Vivian Chen, Chun-Hsi, 2010 The
Joint Moderating Impact of Personal Job Fit and Servant Leadership on
the Relationship between the Task Characteristics of Job Design and
Performance, Interdisciplinary Journal of Contemporary Research in
Business,Vol 2, No 8, pg 42-61
12. Indartono, Setyabudi and Vivian Chen, Chun-Hsi , 2011, Moderating
Effects of Tenure and Gender on the Relationship between Perception of
Organizational Politics and Commitment and Trust, South Asian Journal of
Management, Vol18, no1. Pg.7-36
13. Vivian Chen, Chun-Hsi and Indartono, Setyabudi, 2011, Study of
commitment antecedents: The dynamic point of view, Journal of Business
Ethics, Vol. 103, No.4 , Pg.529-541 (IF2010: 1.125)
14. Indartono, Setyabudi, 2011, The Effect of E-Learning on Character
Building: Proposition for Organizational Behavior Course, Jurnal
Pendidikan Karakter, Vol 1, No. 1, pp.59-73
15. Indartono, Setyabudi; Nafiuddin, Yajid; Sakti K., Lingga; and Praja R. Ega,
2012, Different Perception of Gender on Workplace Spirituality: Case on
School Environment, Online Journal of Education Research, Volume 1,
Issue 4, Pages: 73-79
16. Indartono, Setyabudi, 2013, Strategic Thinking Concept among Middle
Manager, Jurnal Universitas Paramadina Vol. 10 No. 2, Pg 720-728
17. Indartono, Setyabudi and Zulaikhah, Siti, 2013, Moderation Effect of
Gender on Workplace Spirituality and Commitment Relationship, Asean
Journal of Business Ethics, Vol. 2 No. 3, Pg 1-17
18. Indartono, Setyabudi, 2013, reconsidering organizational commitment
construct: empirical test of acceptance band, Journal of Business,
Economics and Political Science, Vol.2, No.4, Pg. 57-74
Conference Proceeding
1. Indartono, Setyabudi, 2009, Measuring the behavior of individual and
group performance: Hierarchical linier modeling approach”, proceeding
“Doctoral Program National Qolloquium” Gadjahmada University
Indonesia
2. Indartono, Setyabudi, 2010, from statisc to dynamic perspective of
behavior: case of organizational commitment”, proceeding “the First
Annual Indonesia Scholars Conference in Taiwan: improving nation
competitiveness by strengthening and accelerating independent
reseearch”, Vol. 1 no. 1, Tainan Taiwan
3. Indartono, Setyabudi, 2011, “Effect of Servant Leadership on Knowledge
characteristics”, proceeding “the Second Annual Indonesia Scholars
Conference in Taiwan: Becoming “Asian Tiger” through modern
agriculture-based Industry : revitalization and modernization of education,
44
technology, economy, and investment climate in agricultural sector, Vol. 2.

no. 1, Taichung Taiwan
4. Indartono, Setyabudi, 2011, Acceptance and Tolerance Limit Phenomena:
an Empirical Approach, proceeding “International Sustainability Forum on
Islamic Economic and Business, Universitas Lambung Mangkurat
Indonesia
5. Indartono, Setyabudi, 2012, Reformatting Knowledge and Science Theory
Building: Transcendental Point of View, proceeding “the Third Annual
Indonesia Scholars Conference in Taiwan: Acceleration and Development
of Information and Communication Technology Research basd on
Demand: Improving Sustainable Synergy of Academycs, Industry, and
Government, Vol. 1.No. 1, Hsinchu Taiwan
6. Indartono, Setyabudi, 2012, Desain Kerja untuk Staf pengajar untuk
mencapai Kesesuaian dan Kepuasan Kerja, proceeding “ Konvensi
Nasional Pendidikan Indonesia VII 2012, Universitas Negeri Yogyakarta,
Indonesia
7. Indartono, Setyabudi, 2013, Empirical test of acceptance band and
tolerance limit of commitment, Proceeding “International Turgut Ozal
Congress on Business, Economics and Political Science”, Turgut Ozal
University, Ankara Turkey
8. Indartono, Setyabudi, 2014, Study of Commitment Antecedent, “ Seminar
Internasional: th”,a Indonesia Labor Ecoomic Development toward the
implementaion of AFTA and AEC 2015″ Yogyakarta State University
Membership and Activities

1. Member of Forum Dosen Ekonomi dan Bisnis Islam (FORDEBI) 2011-now
2. Secreatry of board, Indonesia Committee for Science and Technology
Transfer in Taiwan (IC3T), 2010-now
3. Member of Editorial Board of International Journal of Commerce &
Accounting Research (IJCAR), 2011-now
4. Member of Editorial Board of Journal of Arts Science & Commerce
Research (RW-JASCR) , 2011-now
5. Member of Editorial Board of Asian Journal of Business Ethics (AJBE) ,
2012-now
6. Member of Editorial Board of International Journal of Organizational
Analysis (IJOA) , 2012-now
7. Coordinator of Development Division of Economic Faculty, Yogyakarta
State University, 2011-now
8. Member of Research Devision of Economic Faculty, Yogyakarta State
University, 2011-now
Tinggal dengan seorang Istri, dr. Yayuk Soraya, AAK, dan tiga anak laki-
lakinya, Aiman Hilmi Asaduddin (1999), Rofiq Wafi’ Muhammad (2001), dan
45
Muhammad Kaisan Haedar (2004) di Jl Arwana No 7 Minomartani.

Setyabudi_Indartono@uny.ac.id
46
Integration of project-based management and change management: Intervention methodology
1#
Parker, D.W., 1Charlton, J., 1Ribeiro, A., 2Pathak, R.D.
1
The University of Queensland Business School, Queensland 4072 Australia.
2
The Graduate School of Business, The University of the South Pacific, Suva, Fiji.
David Parker is a senior lecturer with a research focus in project-based management. He is a senior lecturer in
the Strategy Group at UQ Business School. He has taught and carried out research in India, PNG, Fiji, Cook
Islands, China and Europe. d.parker@business.uq.edu.au
Joshua Charlton is a postgraduate researcher in project management. Josh seeks to apply the skills and
knowledge gained through research as a professional project manager and consultant. joshcharlton@gmail.com
Ana Ribeiro is a postdoctoral student. She worked on change management in Brazil at Dataprev, a social
security company of Brazil Government; and did 6 months internship in planning and control at Vale Australia,
a mining company located in Brisbane, Australia. Ana.ribeiromvilar@uconnect.edu.au
Raghuvar D. Pathak is Head of the Graduate School of Business and Director of MBA programme at the
University of the South Pacific, Suva, Fiji. He has more than 25 years of postgraduate (MBA) teaching
experience and has published numerous research-based papers. Raghuvar.pathak@usp.ac.fj
1
Corresponding author: d.parker@business.uq.edu.au
Integration of project-based management and change management:
Intervention methodology
Abstract
The successful management of change using a project-based intervention is crucial for any
organization to succeed in the highly competitive and continuously evolving global business
environment. Whilst a number of theories of change management are widely accepted,
literature suggests they are falling short of their endeavors as a result of the theories lacking a
useful framework to successfully plan, implement and manage change. This article critically
argues the value of project-based management in the change management process with
particular focus on PRINCE2 and PMBoK. As such, change management can be considered
a project and utilize project-based processes to successfully implement change.
Keywords: Change management, project management, project processes, change models,
PMBoK, PRINCE2
1.0. Introduction
Demand from the business field for change management (CM) literature and techniques is
increasing as managers seek new processes and tools for implementing a perfect change
(Paton & McCalman, 2008). Many managers are in awe over the reported failure rates for
change initiatives as high as 70 per cent (Balogun and Hope Hailey, 2004).
CM is considered a broad theme encapsulating such terms as total quality management,
reengineering, rightsizing, restructuring, cultural change, and business turnaround; amongst
others. No matter what term is used to describe the management of the change, the
underlying objective is to make fundamental improvement in how business is undertaken in
order to meet the demands of a changing market environment (Kotter, 2007). Kotter (1990)
stresses the importance of change management as a process and not a single event, and that
change management emphasizes change advances through stages.
This concept of CM as a process is reinforced in a definition, describing it as “a process of
continually renewing organisations direction, structure, and capabilities to serve the ever
changing needs of external and internal customers” (Moran and Brightman, 2001, p. 111).
This view is shared across the majority of accepted CM models in use today, which identify
CM as either a process or set of steps. It should be noted however, the sequence of actions an
organisation should apply to accomplish change initiatives can be quite abstract and hard to
apply (Bridges, 1991). Below is a brief summary of key authors that explore CM and are able
to offer a “more practical guidance to managers” (Todnem, 2005, p. 375) in regards to
implementing change initiatives. These models will be utilized as a platform for
demonstrating the usefulness of integrating project-based processes into an organisational
change project.
Kanter (1992) proposes the Ten Commandments for Executing Change – see table 1. Kanter
argues that analyzing the organisation and its need for change is the first step in the change
process, followed by the creation of a common vision and direction. From this point,
separating the organisation from the past should be undertaken and to create a sense of
urgency. In this model, to establish strong leadership and political sponsorship are also
crucial steps prior to crafting the implementation plan. It is then important to develop
enabling structures, followed by communicating, involving people and being transparent. The
final step is to institutionalize change (Kanter, 1992).
The second notable CM model is Kotter`s Eight-Stage Process for Successful Organisational
Transformation (1996). This process commences with the need for stating a sense of urgency
and creating a guiding coalition. Communicating a vision and strategy is the next process
followed by developing a broad-based action plan to empower those involved. The next
process involves generating short-term wins which can be celebrated to enhance motivation.
In Kotter’s (1996) model, consolidating gains prior to progressing to produce more change is
required so the final process of anchoring new approaches in the culture can be achieved.
The third CM model is Luecke`s Seven Steps (2003) which commences by recommending
mobilizing energy and commitment through joint identification of business problems and
their solutions. Next is developing a shared vision of how to organize and manage for
competiveness. Leadership should be identified to guide teams towards results. This model
espouses starting change at the periphery and not letting it spread throughout the organisation
without it being directed from the top. Once results are achieved, changes should be
formalized into policies, systems and structures. Whilst the process of change is being
implemented, Luecke (2003) highlights the importance of monitoring and adapting strategies
to address any issues encountered in the change process.
It can therefore be argued that CM is the utilization of processes to control an organisational
change effort. Whilst the CM literature articulates processes for managing change, these are
largely focused on the people-issues (‘soft’) of change to achieve the required business
outcomes.
2.0. Managing Change in a Changing Environment
From a historic perspective, emphasis on CM has developed progressively over the last 50
years, after initially being mistrusted (Turner, 2009). The reasoning for this undervaluing has
been attributed to the necessity of stability and certainty for highly structured businesses to
operate. However, mass production in the 1960s followed by rapid changes in technology,
and the integration of global business, has demanded these highly-structured organisations
change or be left behind (Turner, 2009). It is argued that winners are the ones able to respond
better to “the conditions actually encountered” (Turner, 2009, p. 24). As external change is
not under control of the organisation, an understanding of the processes of change combined
with tools and techniques can be regarded as an approach to tackle changing business reality.
Hughes (2007) stresses that academics developing mainstream CM theory, have not
prioritized on adequate tools and techniques to apply in the dynamic business environment.
Such tools and techniques may vary, but there is a tendency to utilize models from (Kotter,
Kanter, Luecke, ibid). However, even these models fail to a degree in clearly interpreting the
techniques or tools to accomplish each step. One could argue this shortfall in appropriate
tools and techniques would be a significant challenge to implementing change initiatives, and
quite possibly is related to the significant failure rate of interventions to bring about change.
Hughes (2007) points out some possible reasons for the academic negligence towards CM
tools and techniques, starting from the lack of a common definition of what would be a CM
tool. Conversely, there appears to be a need for building a framework of what is meant by
CM practice. This could be achieved by developing a body of knowledge for the CM field
similar to that of the Project Management Body of Knowledge for professional project
managers. Furthermore, expanding the applicability of change management to improve its
effectiveness in implementation could strengthen the CM identity. Baca (2005, p.4), for
example, considers CM by its applicability: “change management is just that – a tool that you
use to manage change”. In addition, Baca (ibid, p. 4) associates CM to “an integral part of the
generally accepted principles covered in the PMBOK Guide (PMI, 2004)” and in this sense
she reduces CM to a practical tool.
3.0. Project-based Management

The desire and necessity to keep pace with the changing business environment has caused
many companies to shift from being operations-focused to being project-driven (Jarocki,
2011). Turner (2009) argues that continuous change in organisations nowadays requires
project-oriented management as the control and monitor model is no longer sufficient for
businesses to maintain a competitive framework. Instead of attempting to guarantee a stable
environment to operate, companies seek tools that enable them to maintain the required
flexibility and adaptability they need to answer in a timely manner to the market’s volatility
and changing environment.
Approximately thirty per cent of the global economy now utilizes project-based management
(Anbari et al, 2008), which underscores the continual creation of temporary project-based
endeavours that are becoming more common and valued by organisations. Whilst there are an
abundance of definitions of the term ‘project’, The Definition Guide to Project Management
by Sebastian Nokes (2007, p.17) defines a project as “a temporary endeavour, having a
defined beginning and end (usually constrained by date, but can be by funding or
deliverables) undertaken to meet unique goals and objectives, usually to bring about
beneficial change or added value”. Of particular interest within this definition is the
concluding statement: to bring about beneficial change or added value. Clearly, projects are
invariably initiated to bring about change.
The Project Management Institute describes a project within the Guide to Project
Management Body of Knowledge (PMI, 2008, p.26) as “a temporary endeavor undertaken to
create a unique product, service or result”.
The UK Government developed PRINCE2 (OGC, 2005, p.21) has two definitions of a project
which are largely aligned with the PMBoK definition, namely: “a management environment
that is created for the purpose of delivering one or more business products according to a
specified business case”; and “a temporary organisation that is needed to produce a unique
and pre-defined outcome or result at a pre-specified time using pre-determined resources”.
All these definitions identify a project as being temporary in nature, with the project structure
being established for the sole purpose of accomplishing some clearly defined changed
outcome. Resources are assembled and coordinated to achieve this new desired state. Once
the change outcome is accomplished, projects are disbanded. Therefore projects are a vehicle
of change to take the organisation from an existing state to a planned future state.
Whilst one cannot devalue the importance in appropriately defining what a project is, it is
essentially a vision to reach some desired future state. It is management of the project which
is critical above all (Kotter, 2011; Lewin, 1947). The management of the project converts the
project vision for change into a reality (Rankins, 2007). PM is the disciplined application of
knowledge, skills, tools and techniques to project activities to meet the project requirements
(PMI 2008; Turner & Muller, 2005). PM is accomplished through the application of
competencies, knowledge areas, and integration of PM processes - where a process is a series
of actions bringing about a defined result (PMI, 2008). Both the leading project management
structured methods, PMBoK and PRINCE2 consider processes vital to the project’s success.
PMBoK incorporates the five process groups of initiating, planning, executing, monitoring,
controlling, and closing of projects. These process groups encompass thirty seven other
processes (PMI, 2008). Each process involves detailing the inputs, outputs, tools and
techniques to meet the objective of the process. PRINCE2 is a process based methodology to
be applied to projects, and essentially gives guidance in the execution and monitoring of a
project. The processes of Prince2 define the management activities to be undertaken during
the project. PRINCE2 describes eight high-level management processes which are used for
managing the project from end to end, covering the activities from initiating a project,
through controlling and managing progress, through to project completion and closure. These
eight processes are: Starting Up a Project, Initiating a Project, Planning, Directing a Project,
Managing a Stage Boundary, Controlling a Stage, Managing Project Delivery and Closing a
Project.
4.0. Project Management Processes for Change Management
The literature highlights a scarcity of guidelines or frameworks for CM (Todnem, 2005).
However, Todnem (ibid) details three models which offer practical guidance to organisations
in terms of processes, tools and techniques for change implementation. It is suggested there
are some possibilities to improve CM practices as well as links with PM processes to build a
process for CM that is more comprehensive to the reality of continuing business change. In
order to demonstrate this, the CM process models proposed by Kotter (1996), Kanter et al.
(1992) and Luecke (2003) have been be reproduced in Table 1, with a fourth column
detailing possible contributions from PM which could add value to the CM process.
Insert about here
Table I – PM Methodologies and CM Models
4.1. Meeting Objectives
Todnem (2005), in his critical review of organisational CM, argues that there is a
fundamental lack of a valid framework for organisational CM. Whilst leading CM theorists
Kanter (ibid), Kotter (ibid), and Loecke (ibid) highlight the importance of creating a vision
and strategic intent for implementing change, Todnem (2005) argues that the literature lacks
sufficient methodology for measuring the success of organisational CM. PM processes could
be utilized in this instance should the CM be treated as a project. Both the PRINCE2 and
PMBoK resources have a process to capture the results of the project and confirm the desired
outcome. The PRINCE2 process “Closing a Project” ensures that all planned outcomes have
been delivered to the customer’s required parameters, as specified in the project brief and
business case contained within the ‘Starting up a Project’ process. In addition to the “Closing
a Project Stage,” an “End Project Report” is prepared to detail the outcome of the project.
PMBoK also has a specific process for measuring the success of a project which could be
implemented in the CM field. The PMBok “Closing Process” provides a formal process for
measuring success by evaluating the project against clearly defined goals. The process also
ensures acceptance by customers and stakeholders of the project (PMI, 2008). With the high
failure rate of change projects appearing to fail (Hughes, 2011), this closing process could be
incorporated into the CM project to review what has been delivered against what the
objective of the project was.
4.2. Capture Lessons Learned
Another important process that both PRINCE2 and PMBoK utilize is the capturing and
documenting of lessons learned over the duration of the project, including both positive and
negative experiences. PRINCE2 has a mechanism in the form of a ‘Lessons Log’ to capture
knowledge gained throughout the project (Pincemaille, 2008). Lessons are logged and then a
lessons report is compiled at the end of each stage to document and build a knowledge bank
of lessons. PMBoK also values the importance of lessons learned; with processes adopted for
identification, documentation, validation, and dissemination of lessons learned (PMI, 2008).
Also forming part of the lesson learned process is identification of actions taken as a result of
the lesson learned and subsequent follow-up to ensure the required action had been taken.
Whilst performance of any current project cannot be changed at the conclusion, the
performance of future projects can be improved by documenting lessons learned for future
review. Significantly, leading CM process models fail to appropriately consider lessons
learned from previous CM processes. In the rapidly changing business environment this
would appear to be a shortfall of CM. Capturing lessons learned, both positive and negative,
would assist in planning future change-projects and be a useful process to incorporate into the
CM framework.
4.3. Delegate Responsibility
Projects are often used to implement a strategy. The implementation of a strategy involves a
change process and this change process invokes uncertainty. Whilst the leading theorists on
change articulate communicating the change vision to all affected, Verwey and Comninos
(2002) recommend implementing a process called “Business Focused Project Management”
(BFPM) to deal with uncertainty and constant change through ‘progressive elaboration’ of a
project. In BFPM, each functional group in an organisation interprets a strategy and develops
a business plan independently, from which a portfolio of projects are reviewed and
subsequently resourced. This process is proposed to effectively manage the change associated
with business projects containing intangible characteristics; and empowers individual
functional units to be involved and be integral to the change. Such projects include business
process improvements, customer service improvements, or organisational restructure
(Verwey and Comninos, 2002), where there is a need to address changes in the organisational
culture and stakeholder perceptions. This process of empowering individual functional units
to embark on change by clearly delegating responsibilities for project activities is a PM
resource utilized in PRINCE2 which could be applied in CM. PRINCE2 utilizes work
packages which are performed by individuals or teams in the accomplishment of stage
objectives; and then accepted by the project manager once accomplished (OGC, 2005). This
process of delegation and subsequent acceptance of work packages could be utilized in the
CM arena to delegate tasks and responsibilities to individuals or business units. This would
improve the leading CM models which do not adequately address this concept of delegation
of project activities and responsibilities.
4.4. Staged Approach
There is a well-known phrase, “if you fail to plan, then plan to fail”. This phrase captures the
importance of having a clear framework to coordinate the resources required for
implementing the project, including the activities of the people involved or affected by the
change, stakeholders, the finances, and competencies applied in the project. PRINCE2
utilizes a process to effectively manage execution of the initial plan of the project which the
majority of the CM literature fails to discuss.
Whilst a project plan is prepared in the initial planning, which sets out how and when the
project will be delivered, the project is divided into a number of clearly defined and
controllable stages which PRINCE2 refers to as a the process of “Manage by Stages” (OCG,
2005). Utilizing this PM process, detailed planning of succeeding stages is only undertaken
upon nearing completion of the current stage. Once a stage is approaching completion, the
work for the succeeding stage is planned in detail by the Project Manager and then
subsequently approved by the authority for the project (Project Board in PRINCE2
terminology).
PRINCE2 also utilises the “Managing a Stage Boundary” which is a decision point in the
continuity of the project. This process provides a decision point on whether the project will
be continued as planned, adjusted or stopped. The process involves reviewing the current
stage and determining whether the business case is still valid, and if the project can proceed
to the next stage. The process is managed by the Project Manager, who informs the Project
Board of the likelihood of success in attaining the project business objectives, project plan,
together with associated risks and issues. If the Project Board is satisfied with the current
stage-end and the next stage plan, the project is permitted to continue. Therefore the
‘Managing a Stage Boundaries’ is a vital process in the management of the project.
This process is well suited to CM implementation. This process of separating the project into
stages and managing stage boundaries, is ideally suited to change-projects where there is a
likelihood of alteration to the initial plan upon implementation. Furthermore, it facilitates
ongoing review and justification for the change initiative.
The literature largely fails to consider the likelihood of changes to the plan. Resistance to
change is one scenario where the initial plan of the change-project needs to be altered
although there is an array of possibilities for deviation from the initial plan. Kanter (1992),
emphasises the need for “crafting an implementation plan”, although within his “Ten
Commandments for Executing Change” he fails to identify the need to monitor and adjust the
strategy in response to problems in the change process. Kotter (2003) discusses developing a
vision and strategy which identifies the desired outcome, however this does not lay out the
steps to achieving the objective. Utilising a stage approach and planning the detail of each
stage once progress of the current stage is accomplished would strengthen the CM process by
appropriately dealing with amendments. Kotter & Rathgeber (2006) argue that one clear
lesson learned from successful change initiatives is that change goes through a series of
phases. Therefore, phases are ideally suited to a staged approach. This is reinforced by “7
Steps to Change Management” (Luecke, 2003), which identifies the need to “monitor and
adjust strategies” in response to problems in the CM process. It appears that PM could
provide tools for what is already identified by CM theorists as a need to successfully
implement change initiatives.
4.5. Risk Management

Risk management, an important consideration of PM, could enhance CM initiatives. Within
PRINCE2, risk can be defined as uncertainty of outcome (Pincemaille, 2008). The goal of
risk management is to manage the exposure and militate against risks. The project leadership
or ‘Project Board’ in PRINCE2 has to promote risk management, build up adapted policies,
and assess projects status related to their risks. In the PRINCE2 processes, risk management
is addressed from the conceptual development of a project. Commencing with the ‘Initiating
a project’ process, there is a prevailing insistence on the importance to assess risks. Then, in
the project process ‘Planning’, risk management is utilized again. For each stage of the
project, risk analysis has to be undertaken, to determine whether or not the new plan is
compliant with project constraints, and identified risks; without changing the criticality, the
priority, importance, or the action plan taken to avoid the risk (Pincemaille, 2008). PMBoK
considers risk management integral to the project life cycle, with the six clearly defined
processes of: risk management planning, risk identification, qualitative risk analysis,
quantitative risk analysis, risk response planning, risk monitoring and control (PMI, 2008).
This consideration in PMBoK and PRINCE2 to identify and plan for risks is ideally suited to
the CM process where any number of risks could be encountered over the change process.
5.0. The Importance of Change Management to Project Management
Whilst it has been argued that many of the PM processes and techniques are well suited to
CM, the PM field has traditionally placed a strong emphasis on the management of tasks. The
PM methodologies largely avoid many of the softer issues related to projects: such as the
human, political and organisational change implications. Some of these issues which the PM
professional has traditionally unheeded could be translated into, but not limited to, company
politics and power struggles, stakeholder management, hidden agendas, cultural barriers,
motivation issues, lack of communication, conflict resolution, resistance to change,

ambiguous roles and responsibilities, poor project leadership, insufficient sponsorship
(Turner and Muller, 2005; Toor and Ogunlana, 2009; Levasseeur, 2001). This arguable
deficiency of the traditional PM professionals could be because of their technical
backgrounds, where focus has been enshrined in tactics and results; or even a gender issue
(Paton & Demster, 2002).
In contrast, CM professionals are traditionally from social sciences and humanities
backgrounds and have a tendency to avoid the task and process orientated approach by
placing a much stricter emphasis on the human, political and organisational change
considerations Kotter & Schlesinger, 2008). The CM professional has traditionally lacked the
technical know-how, and has a restricted focus on project objectives - whilst pursuing softer
objectives around those people affected by the change. It is a common theme throughout the
CM literature to adequately build an individual’s awareness and desire for change. However,
implementing and coordinating the logistics of a complex change project requires PM skills
to plan and execute the change initiative (Kotter & Cohne, 2002). Therefore, whilst PM
processes and techniques are ideally suited to CM, its techniques are also valuable to
effective PM. Therefore, it is considered that the two fields should not be viewed as mutually
exclusive. The goals and objectives of CM which are largely focused on organisational
support and adoption are also aligned with those of PM, since the objective of any project
requires the willingness of the organisation to implement; and both are aligned with the
organisational strategy.
A common practice of large organisations undergoing CM is to utilise the human resources
(HR) department for implementation; often with the assistance of third-party advisors. This is
because of the ongoing presumption that CM is about people and the associated soft skills;
and as such CM should be in the HR area of an organisation. Whilst it has been argued above
for the application of PM processes to improve CM outcomes, further research is

recommended into determining whether greater involvement from HR to a project/program
management area of the organisation could deliver better outcomes.
6.0. Conclusion
The rapidly changing business environment has required organisations to seek out effective
processes, tools and techniques to implement successful change. Whilst there is a significant
body of literature surrounding CM, the high failure rate of change interventions suggests
improvements could be made to its management, monitoring and control. The analytical
focus of this research was in how the common and most utilised CM models could be
improved with PM processes in order to appropriately deliver successful change. Using
PMBoK and PRINCE2 as a reference, a number of PM processes and techniques have been
detailed which demonstrate the applicability of project-based processes for implementation of
CM initiatives.
The lack of a suitable guiding framework for CM suggests the creation of a CM body of
knowledge and alignment of CM processes could enhance the field. Although CM
encompasses a broad range of possible change models, the attempts by CM theorists to apply
a formal structure to the change process have been scant. Treating change initiatives as a
temporary project and subsequently integrating CM with PM processes will capture synergies
between the two areas. The social science background of CM professionals and the tendency
for HR to deliver change initiatives has contributed to the lack of appreciation for formal
processes and technical contributions as offered by PM in delivering change. Likewise,
theorists developing CM from non-technical backgrounds tend to focus on the human
dimensions over all other issues. Further research into specific integrated techniques and
tools for delivering change would be valuable with particular focus on technical contributions
to CM. Moreover, the PM field could gain from utilizing CM processes in implementation of
projects. It was purported the technical background of traditional project managers has
resulted in a focus on tasks and results rather than the human aspects and softer skills of CM,
which are equally valuable to project success. Bridging these two gaps could increase the
success of CM initiatives and similarly enhance the success of projects-based interventions.

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Luecke, R. (2003). Managing Change and Transition. Boston, MA: Harvard Business School Press.
Moran, J. W. and Brightman, B. K. (2001) “Leading organisational change”. Career Development
International, 6(2), pp. 111–118.
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ed., London: The Stationery Office.
Paton, R.A. & MCCalman, J. (2008). “Change Management – A guide to effective implementation”.
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Paton, R. & Dempster, L. (2002). “Managing change from a gender perspective”, European
Management Journal, 20 (5), pp. 539–548.
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PMI Project Management Institute (2008) A guide to the project management body of knowledge
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Rankins,G. J. (2007). The Ying and Yang of Project Management AIPM.
Todnem, R. (2005). Organisational Change Management: a Critical Review. Journal of
Change Management. Vol. 5, No. 4, pp. 369–380, December.
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Table I – PM Methodologies and CM Models
10 Commandments for 8 Stage Process for 7 Steps - Luecke PMBOK Translation of

Executing Change Successful (2003) Steps into Project
Kanter et al. (1992) Organisational Methodology and
Transformation - Techniques
Kotter (1996)
1. Analyse the 1. Mobilise energy and
organisation and its need commitment through
for change joint
identification of business
problems and their
solutions
2. Create a vision and a 3. Developing a vision 2. Develop a shared Develop a vision and
common direction and vision of how to organise corresponding high level
strategy and plan; define stages for
manage for project implementation
competitiveness
3. Separate from the past Identify and develop plan
for risks
4. Create a sense of 1. Establishing a sense of
urgency urgency
5. Support a strong leader 3. Identify the leadership
role
6. Line up political 2. Creating a guiding
sponsorship coalition
7. Craft an Implement plan utilising
implementation plan a stage by stage approach
8. Develop enabling 5. Empowering broad- Define work packages
structures based and delegate
action responsibilities
9. Communicate, involve 4. Communicating the
people and be honest change vision
10. Reinforce and 8. Anchoring new 6. Institutionalise success
institutionalise change approaches through formal policies, Manage by stages -
in the culture systems and structures Review and adjust plan
where required at end of
each stage
6. Generating short-term
wins
7. Consolidating gains
and
producing more change
4. Focus on results, not
on activities
5. Start change at the Measure success of
periphery, then let it project
spread
to other units without
pushing it from the top
7. Monitor and adjust Capture and document
strategies in response to lessons learned for
problems in the change future projects
process
Taken from Todnem (2005: 376) and adapted to link to PM methodologies
Serbian
Serbian Journal of Management 8 (2) (2013) 139 - 154 Journal
of
Management
www.sjm06.com
ORGANIZATIONAL CHANGE AND HUMAN RESOURCE

MANAGEMENT INTERVENTIONS: AN INVESTIGATION OF THE
NIGERIAN BANKING INDUSTRY
Adenike Anthonia Adeniji*, Omotayo Adewale Osibanjo and

Abolaji Joachim Abiodun
Department of Business Management, School of Business, College of Development

Studies, Covenant University, Ota, Ogun State, Nigeria
(Received 15 Janauary 2013; accepted 10 June 2013)
Abstract
The objective of this paper was to study the relationship between human resource management
interventionist strategies and organizational change; and flexibility that can make employees more
adaptive and receptive to changes. Out of one hundred and sixty copies of questionnaire
administered, one hundred and twenty three (123) were collected and analyzed. Structural Equation
Modelling (SEM), a hypothesized relationship was tested using Amos 18 that allows test of complex
relationships between variables. Our model shows that relationship exists among human resource
management interventionist strategies and was consistent with organizational change in the studied
industry. However, the study can be extended to other industries, for example manufacturing industry
as well as industry within the merger and acquisition of companies.
Keywords: Organizational change, HR Interventionist strategies, Nigeria, Banking industry
1. INTRODUCTION of the modern age and the need for efficient

and effective services in this industry. The
Demands for greater efficiency, emergence of new banking management
accountability and value for money have led practices has been marked by the
to a re-evaluation of how banking industry proliferation of targets, meeting customers
services are resourced and delivered. and stakeholders’ expectations,
Traditional bureaucratic approaches are no measurement and compliance with
longer adequate to deal with the complexity regulatory standards. Attempt at ensuring
* Corresponding author: anthonia.adeniji@covenantuniversity.edu.ng
DOI: 10.5937/sjm8-3712
140 A.A. Adeniji / SJM 8 (2) (2013) 139 - 154
that banking industry are more responsive to this study views transformational
environmental factors and instilling organizational change regarding the recent
customer service cum commercially focused past acquisition of Intercontinental Bank by
ethos are characteristics of new approaches Access Bank Plc (Nigeria). This
to the banking sector of the Nigeria fundamental change tends to affect the
economy. With rapid changes in emphasis, organizational culture and its operations that
the banking sector is now examining its call for reengineering of processes,
internal structure and reviewing the roles and structures, roles and even underlying
responsibilities of employees and managers assumptions.
so as to deliver the top quality services
demanded by the stakeholders.
More than decades ago, mergers and 2. ACCESS BANK PLC
acquisitions in the banking industry have
become the dominant mode of growth The transformation of Access Bank Plc as
(Arquilera & Dencker, 2004). Human a small Nigerian Bank into an African
resource management has the potential to financial institution has made it to be listed
play important role in mergers and as one of the top 10 largest banks in Nigeria
acquisition integration by reinforcing the in terms of asset base. Access Bank was
new human resource management system issued a banking license in December, 1988
and corporate culture and providing and was incorporated as a privately owned
leadership and communication to reduce commercial bank in February, 1989. After
turnover. the commencement of operation, in March
When an organization is undergoing 1998 to be precised, Access Bank became a
change, what role does human resource Public Limited Liability Company; and
plays? Organizational changes are driven top listed on the Nigeria Stock Exchange same
down and initiated largely due to strategic year. In the year 2001, Access Bank obtained
business goals which the company needs to a Universal Banking License from the
achieve. The human resource function is to Central Bank of Nigeria, which made it
anchor the change management process and possible for the bank to operate in over 310
facilitate the transformation across all teams branches and service outlets located in major
and work dimensions. Each change throws cities and towns across Nigeria, Sub Saharan
up unique challenges and the details which Africa and the United Kingdom.In the year
need to be addressed are diverse in each 2012, Access Bank is said to be one of the
instance. The aim of this paper is to explore Africa’s most successful banks, and was
how human resource management could play ranked amongst Africa’s top
effective role in increasing individual and 20 banks by total assets
organizational effectiveness during (http://www.accessbankplc.com/pages/Page.
organizational change by implementing aspx?Value=3&ln=Gy7UlI4cSJE94Wa2qud
progressive human resource processes. The bFQ%3d%3d).
term “Organizational Change” connotes However, in 2009 the storm of global
significant change in the organization, which financial crisis affected the Nigerian banking
could either be reorganization; adding; or industry, which resulted into some banks
removing new product/service. However, merged and some acquired. In the year 2012,
A.A. Adeniji / SJM 8 (2) (2013) 139 - 154 141
the Group Managing Director/Chief organizational changes in an attempt to adapt
Executive Officer, Access Bank Plc and respond to the changing economic
announced the completion of its acquisition conditions, technological innovations,
of Intercontinental Bank, and stated that the customer and client expectations and a
transaction is significant in the Nigerian shifting workforce. It was estimated that
banking industry, because it preserves 56% of organizations are undergoing three or
hundreds of Nigerian jobs and protects the more complex changes at one time or
savings of millions of Nigerian citizens. another (Barell et al., 2007).
Organizations also, are changing the way
they implement and manage change. Change
management in organizations are now
3. THEORETICAL FRAMEWORK shifted from being the responsibility of an
internal or external change agent dedicated
3.1. Overview of Change Management to its implementation and management to
increasingly being identified as a core
Organizational change is seen as a competency for most organizational leaders
necessary concept for organizations to (Doyle, 2002). The human resource function
compete in the ever changing and in increasingly seen as one of the key
competitive business environment. The rapid functions in thedevelopment and
development of information and implementation of strategic responses to
communication technology have prompted increasing competitive pressure as both
many organizations to actively seek for new public and private organizations are forced to
ways, ideas and creative solutions in adapt to domestic and international
improving their current product, process, competition, technological advancements,
system and technology which is referred to slower growth and declining markets
as organizational change, and it had been (Buyens & DeVos, 2001). Such strategic
accepted widely that effective and efficient responses involve effective communication
human management resource practices are of the importance of human resource across
important in extracting positive work the organization and a reconsideration of the
behaviours among employees which role of line managers in human resource
invariably will lead to organization change delivery. As such, the skills required to lead,
(Tan & Nasurdin, 2010). No one would manage and implement change are being
dispute that every organization has incorporated into the existing expectations,
experienced change. Yet despite roles and responsibilities of human resource
organization’s familiarity with change, manager and other employees, (Doyle,
success in implementation is relatively rare. 2002).
It was estimated that 70% of organizational Therefore, it is not surprising that in an
change initiatives fail completely (Bear & environment where the magnitude of change,
Nohria, 2000). Among those deemed its complexity and its frequency are
successful, 75% of them fail to achieve their increasing, the human resource persons and
intended result (Nikolaou et al., 2007). leaders have begun to focus their attention on
Despite these low success rates, the adoption of change management best
organizations still continue with the practices.
142 A.A. Adeniji / SJM 8 (2) (2013) 139 - 154
Change management is an approach to barriers to successful implementation of

shifting or transitioning individuals, teams organizational changes, often perceived as
and organizations from a current state to a an expected, automatic response in
desired future state. It is an organizational employees that managers need to overcome.
process aimed at helping change Lewin (1951) was one of the first researchers
stakeholders to accept and embrace changes to consider the notion of employee resistance
in their business environment. to organizational change in the management
Organizational change involves both field. His conception of the term was drawn
managing the change processes and handling from the physical sciences and considers
human issues at the local level, (Kanter & resistance to be a restraining force
Dretler, 1998). For example, research has attempting to maintain the status quo,
often time focused on the competitive (Piderit, 2000). Resistance is viewed as an
landscape, strategic leadership and inevitable situation that managers must face
organizational learning; a neglected area is when planning to introduce or implement an
that of conceptualizing change from the organizational change (Piderit, 2000). It is
employee’s viewpoints (Hitt et al.,1998; often said that some people have a natural
Ireland & Hitt, 1999). predisposition to resist change which is most
Organizational change has become an times termed “an individual’s tendency to
increasingly pervasive phenomenon in both resist or avoid making changes” (Oreg,
business and human service organizations 2003). Authors of change management see
due to forces such as globalization and resistance as a conditioned reflex and
political shifts to neoliberalism (Piderit, something that will occur regardless of how
2000; Baines, 2007). Despite the increase in positive organizational members feel about
the perceived necessity of change and the organization (Lamm & Gordon, 2010).
attempts at implementing organizational Organizational change is a deliberately
change initiatives, it has been estimated that planned change in an organization’s formal
at least two-third (2/3) of organizational structure, systems, processes or product-
change efforts do not result in their intended market domain intended to improve the
aims nor do they foster sustained change attainment of one or more organizational
(Choi & Ruana, 2011). Employee resistance objectives, (Lines, 2005).
is the most often cited problem encountered Dopson and Newmann (1998) have
by management when trying to implement perceived change as a necessary evil for
change, yet for an organization to change, it survival in the context of uncertainty.
is essential that the employees of that Organizational change has been as an
organization also change (Bovey & Hede, individual-level phenomenon because it
2001). Therefore, employee cooperation occurs only when the majority of individuals
with organizational change efforts is change their behavior or attitudes (Whelan-
indisputably connected and related to either Berry). Multiple- interacting changes in a
the ultimate success or failure of a change global environment have led to a highly
initiative. complex, confusing and unpredictable state.
Moreover, the concept of resistance has a This led to a shift in focus of the change
long history in business management. process from product innovation and
Resistance is considered one of the biggest technological change to behavioural aspects
A.A. Adeniji / SJM 8 (2) (2013) 139 - 154 143
of change and to attitudes about change, Basically, the term organizational change
(Bergquist, 1993). is about significant change in the
Usually, scholars analyze such features of organization which could either be
organizational change as content, type, reorganization or adding or removing new
structure and process. Armanakis and product or service. Organizational change
Bedeian (1999) divided research on can seem like a vague phenomenon that it is
organizational change into: a) Content helpful if one can think of change in terms of
research, b) Contextual research, c) Process various dimensions including; unplanned
research and d) Criterion research. Nutt versus planned change, transformational
(2003) combines structure and process. The versus incremental change, remedial versus
structural research by Nutt (2003) is similar developmental change and organization-
to content research (Armenakis & Bedeian, wide versus subsystem change.
1999) and process research was presented in Unplanned change is the change that
both typologies. Examples of organizational occurs when there is a major, sudden surprise
change include: (1) Mission changes; (2) to the organization which causes its members
Strategic changes; (3) Operational changes to respond in a highly reactive and
(including structural change); (4) disorganized fashion, like when a Chief
Technological changes; (5) Changing the Executive suddenly resigns from the
attitudes and behaviours of personnel; (6) organization, whereas, planned change is
Counter resistance from the employees of when leaders in the organization recognize
companies and align them to overall strategic the need for a major change and proactively
direction of the organization. organize a plan to accomplish the change. It
Although the type of change and the is a change that occurs with successful
process of change are both important implementation or a strategic plan for
building blocks in any model for dealing reorganization or other implementation of a
with change, there is a crucial factor which is change of magnitude.
the readiness to change in the particular Transformational change is much broader
organization. The readiness factors act like a and as a result the organization will more
bridge between identifying what needs to fundamentallychange its culture or the way it
happen and the activity of implementing the operates, e.g. complete reengineering of
change. Struckman and Yammarino (2003) processes, structures or underlying
combine types of change with the readiness assumptions while, incremental change is the
to change, but not the process of change. type of change which involves doing
However, Alas (2007) composed the model something better without necessarily
connecting types of changes, process of changing the underlying beliefs and values
change, readiness to change and the of the organization.
institutional environment as the context of However, remedial change is the one
change. A very important factor is intended to remedy current situation, e.g. to
leadership- that the top management team improve the poor performance of a product
has impact on post-acquisition performance or service or the entire organization; or to
of the company and that they effectively reduce burnout in the workplace.
influence the organizational culture Developmental change on the other hand
(Kiessling & Harvey, 2006). occurs in order to make a successful situation
144 A.A. Adeniji / SJM 8 (2) (2013) 139 - 154
more successful, for instance, expanding the effective and efficient use of human talent
number of customers served or duplicating a for achieving goals of organization (Mathis
successful product or service. & Jackson, 2002). The concept of human
Worthy of mention again is the fact that resource management goes beyond
organizational change ranges from problem employment relations or industrial relations.
identification to consultation with behavioralIt includes employees identifying the
science to data gathering and preliminary interests and goals of the organization, and
diagnosis to communicating the vision down be aligned and committed in achieving these
to removing obstacles, creating short term goals. It involves employees adapting
wins and building on the change to anchor willingly to change within the organizational
the changes in corporate culture. structure without any strife or prejudice.
Not only that the acceptance of change The concept emphasizes that high level
and joining the actual process of change performance attainment of organization
starts from within the people themselves. It is
depends on the quality of members of staff
possible to learn how to cope with change and management of such organization cum
and the likelihood of success is relatively matching of human resource strategies to the
greater if people realize the need for needs of the business strategy.Furthermore,
flexibility and have the ability to act fast. human resource management includes:
Nothing changes for the better until people - Encourage the commitment of
have a positive attitude. Thus, in any processemployees to increase their performance and
of change, it is essential to know what is also be loyal to the organization as a whole;
going on in people’s minds and what - Emphasis on the quality of
emotions they are going through. Successful employees engaged in organizations goes a
management of change is based on taking long way in producing quality goods and
action according to uniform principles i.e. services, which is of great benefit both to the
everyone involved moves in the same customers and the organization;
direction. Internal communication can assist - Ensuring flexibility plays an
members of the organization at all levels important part in the way employees are
with setting up a uniform plan of organized, this makes them to be adaptive
communication and the ability to monitor the and receptive to all forms of changes in all
process from distance. The different phases aspects of their jobs such as work hours;
of change (i.e. from problem identification toworking methods and;
anchoring the changes in corporate culture) - Integrating organizational goals into
require different approaches and emphasis. If strategic planning in order to make these
the people involved in the process of change policies cut across ranks and files of
are able to contribute to the process, they will
organization and ensuring that they are
accept the new situation more easily. gladly accepted and implemented on daily
routine by line managers.
3.2. What about human resource Thus, managing the human resource has
management? become one of the critical success factors in
organizations. Both the existence of proper
The term refers to design and applications personnel and the ways people are managed
of formal system in an organization to ensure are the basis for achieving the competitive
A.A. Adeniji / SJM 8 (2) (2013) 139 - 154 145
advantage. In this study, authors analyze the Minbaeva, (2005) viewed the human
role and practices of human resource resource management practices as a set of
personnel in successful change management. practices used by organization to manage
For instance, when firms develop and human resources through facilitating the
introduce new processes and new development of competencies that are firm,
administrative practices, they will require specific, produce complex social relations
dynamic and creative employees who are and generate organization knowledge to
flexible, risk takers, tolerant of uncertainty sustain competitive advantage. Human
and ambiguity and been able to contribute to resource management practices can generate
producing quality goods and services which increased knowledge, motivation, synergy
will benefit both the customers and the and commitment of a firm’s employees,
organization. Essentially, human capital is resulting in a source of sustained competitive
one of the four types of assets managed in advantage for the firm (Hilsop, 2003). As a
organizations (Adeniji & Osibanjo, 2012); multidisciplinary practice that has evolved as
other assets include physical assets; financial a result of scholarly research, organizational
asset; and intangible assets. These assets are change management should begin with a
essential and vital at varying degrees in the systematic diagnosis of the current situation
operations of any organization; however, in order to determine both the need for
human assets operate at the pivot of the change and the capability to change. The
operations. objectives, content and process of change
should all be specified as part of a change
3.3. HRM Interventionist Strategies in management plan.
Change Management Change management processes may
include creative marketing to enable
As the world is becoming more and more communication between change audiences,
competitive, volatile than we could ever but also deep social understanding about
imagined, organizations either leadership’s styles and group dynamics. As a
manufacturing or service based are seeking viable track on transformation projects,
to gain competitive advantage and turning to organizational change management aligns
more innovative change sources through groups’ expectations, communicates,
human resource management interventionist integrates teams and manages people
strategies. These strategies have been training. It makes use of performance
defined as systems that attract, develop, metrics such as, financial results, operational
motivate and retain employees to ensure the efficiency, leadership commitment,
effective implementation of necessary communication effectiveness, and the
changes and the survival of the organization perceived need for change to design
and the members. These interventionist appropriate strategies, in order to avoid
strategies are also referred to as set of change failures or solve troubled change
internally consistent policies and practices projects.
designed and implemented to ensure that a All change involves the adoption of new
firm’s human capital contribute to the behaviours that need to be accepted and
achievement of its business objectives enforced. It should be noted that where quick
(Delery & Doty, 1996). In the same vein, radical change is required for organizational
146 A.A. Adeniji / SJM 8 (2) (2013) 139 - 154
survival, a dictatorial, coercive management - Formation of strategic partnerships.

style may be appropriate. Extensive The followings are the interventionist
collaboration and consultation is associated strategies and roles of human resource
with a more leisurely form of change that management in successful change
may be termed as fine tuning. Dunphy and management.
Stace (1990) clearly regard HRM at the 1) Staffing: Organizational change can
forefront of planning and implementing create the need for the human resource
organizational change. Thus, successful department to focus on staffing issues.
implementation of change is a major Organizations undergoing rapid growth may
challenge for HRM which will encourage need to add more employees, so human
managers or human resource practitioners to resource may have to focus on expanding its
actively address issues of resistance, recruiting base or restructure compensation
behavior change and participation. programme to attract more talented workers.
Maxwell and Watson (2006), argue that A company in decline may require human
business partnership between human resource to develop severance packages and
resource specialists and the employees have carry out employee terminations. Also,
emerged as the dominant model for human human resource workers may have to alter
resource operations within organizations. job descriptions for the remaining workers if
They outline the role of human resource the layoffs result in a change in job
experts as working alongside other members functions.
of the organization to help them reach their 2) Alleviating Fears: Organizational
goals by crafting strategies to maximize change often creates fear and uncertainty for
productivity through alignment of corporate workers, thus, human resource may need to
resources to these goals. Moreover, the take steps to alleviate these fears. For
human resource experts’ involvements in example, when a smaller business is
successful change management offer a purchased by a large company, the process
number of benefits to organizations –it can create apprehension for workers
enables them forge closer relationships with regarding their ability to adapt to new
other managers in the organization which processes and procedures, even whether their
promotes a partnership model towards jobs may be in jeopardy. This may require
managing employees. It encourages gifted the human resource department to assume a
managers to use their initiative and become public relations role by pointing out the
more involved in day-to-day workplace potential benefits of the new arrangement,
management decisions and problems or such as enhanced fringe benefits programme,
issues that can be resolved speedily before and providing reassurance that jobs are safe,
they escalate. Enablers of human resource as long as this is the case.
experts’ involvement in change management 3) Effective Communication:
include: Organizational change is often a time of
- Greater degrees of responsibility and widespread confusion, resulting in the need
task variation. for the human resource department to open
- Human resource information the channels of communication with
systems. employees. Not only that, keeping
- Close relationships with employees. employees informed about what to expect
A.A. Adeniji / SJM 8 (2) (2013) 139 - 154 147
during each step of the change process include policies on work systems, business
through methods such as written conduct guidelines, office timings, leave,
communications and possibly travel, benefits, exit, e.t.c.
groupmeetings is necessary. The feedback 6) Creation of job descriptions: Detailed
can let human resource know how well job descriptions need be developed for
changes are being received and whether unique roles in the organization across
adjustments may be necessary. Also, departments for employees in the new
effective communications that informs dispensation to understand the nature of their
various stakeholders of the reason for the roles and the responsibilities that they will be
change, the benefits of successful accountable for in order to ensure the smooth
implementation as well as the details of the operations of the business. The job
change will aid successful change descriptions could be prepared by
management. conducting job interviews with specific job
4) Developing Plan: When upper incumbents with respect to their primary and
management makes human resource aware secondary responsibilities including actions
of a pending change, such as a business that they are directly responsible for. Thus,
expansion requiring the need to hire more data generated are then used to develop the
workers, the human resource department role and responsibilities document.
needs to work with management to develop a
plan to implement the change effectively.
For example, it can be difficult to effectively 3.4. Research Questions
recruit and train a large number of workers at
one time. Instead, management and human The following research questions are
resource can work toward a solution where formulated for this study in order to identify
workers are hired at intervals to ensure a the contributions of Human Resource
comprehensive vetting process and thorough specialists in organizational change:
training. 1) Is there any relationship between the
5) Integrating the existing human level of human resource management
resource systems: There is the need to create interventionist strategies in change
a corporate human resource function that management and commitment of
will allow a common human resource employees?
framework and ensure uniform 2) Does the level of human
implementation of the same across the resourcemanagement interventionist
organization. The period of integration will strategies contribute to producing quality
include activities such as, planning, goods?
designing and communicating the human 3) Does the level of human
resource programmes and practices to be resourcemanagement interventionist
implemented across the organization and strategies in change management ensure
ensuring their implementation at all levels in flexibility that makes employees more
the organization. Again, integrating the adaptive and receptive to changes in
existing systems include developing a organization? and;
common human resource policy manual that 4) Will human resourcemanagement
will work for the new entity. The manual interventionist strategies influence the
148 A.A. Adeniji / SJM 8 (2) (2013) 139 - 154
integration of organizational goals into systems) is related to achieve flexibility
strategic planning? andmakes employees more adaptive and
receptive to changes.
3.5. Research Hypotheses H4: The human resourcemanagement
interventionist strategies management
From the argument above, the following (staffing, fear alleviation, effective
hypotheses were formulated, which is also communication, developing plan and
illustrated in figure 1: integrating the existing human resource
H1: The human resourcemanagement systems) is related to integrating
interventionist strategies in change organizational goals into strategic planning.
management (staffing, fear alleviation,
effective communication, developing plan
and integrating the existing human resource 4. METHODOLOGY
systems) will be related to commitment of
employees. 4.1. Materials and Methods
H2: The human resourcemanagement
interventionist strategies (staffing, fear The adopted research design for this
alleviation, effective communication, survey was a methodological approach that
developing plan and integrating the existing allows the use of primary data gathered from
human resource systems) is related to quality the studied respondents on the effect of
in operations. organizational change on the human resource
H3: The human resourcemanagement management interventions in the Nigerian
interventionist strategies management banking industry. The choice of the Nigerian
(staffing, fear alleviation, effective banking industry for our study rest on the
communication, developing plan and changes experienced through mergers and
integrating the existing human resource acquisitions in the recent past. Therefore,
Source: Survey 2012
Figure 1. Theoretical Model & Research Hypotheses

A.A. Adeniji / SJM 8 (2) (2013) 139 - 154 149
the survey’ data were obtained from both collecting data was a structured
primary source through a questionnaire questionnaire, which the items focused on
survey and personal interviews involving the research variables used in the survey
respondents from Access Bank Plc, which such as quality, commitment, flexibility,
was chosen based on its “remarkable story of integration, staffing, fear alleviation,
the transformation of a small obscure effective communication, and plan
Nigerian Bank into an African financial development. The questionnaire items for all
institution of note; with emerging footprints the variables tested in the study were derived
on the International banking landscape” from literatures, especially from the works of
(http://www.accessbankplc.com/pages/Page. Arguilera and Dencker (2004) and Husain
aspx?Value=3&ln=Gy7UlI4cSJE94Wa2qud and Farooq (2013). The questionnaire is
bFQ%3d%3d); and its recent acquisition of segmented into two; the first part deals with
Intercontinental Bank. Convenience and the respondents’ demographic data; while in
purposeful sampling methods were utilized the second part they were to supply answers
in order to derive the needed data for the to the relationship between the level of
study. Access Bank Plc operates many human resource management interventionist
branches located in major towns and cities in strategies in change management and
Nigeria with its headquarters situated in commitment of employees, the level of
Lagos Southwest Nigeria in which the human resource management interventionist
survey was conducted. Structured strategies in change management ensures
questionnaire was used to collect data and flexibility that makes employees more
this was found appropriate because the views adaptive and receptive to changes in
of the respondents were obtained. A hundred organization. Respondents are expected to
and sixty (160) questionnaires were choose one number on a five-point Likert
administered within the scope of the selected scale of 1- 5 (5 – Strongly agree; 4 – Agree;
location, however, due to elimination of 3 – Undecided; 2 – Disagree; and 1 –
incomplete responses that were classified as Strongly disagree) that best describes the
invalid; the final sample size for the survey extent to which they support each statement
analysis was one hundred and twenty three stated in the questionnaire. The hypothesized
(123) which translate to a response rate of model in figure 1 wastested using Amos 18,
76.8%. The study attempts to add to because of the complex attributes of the
literature on organizational change and HR observed variables and their underlying
interventions in a developing economy such strong constructs (Suhr, 2006). Structural
as Nigeria. Equation Modelling (SEM) represents a
The respondents for this survey possess number of statistical models used to evaluate
adequate knowledge and experience about the validity of substantive theories with
the Banks regarding their merger and empirical data. This statistical tool was
acquisition. Further, they witnessed the adopted for this study because of its
merger and acquisition processes and the generality and flexibility.
role played by the HR department in
ensuring that personnel involved did not
experience emotional and psychological
trauma. The research instrument utilized in
150 A.A. Adeniji / SJM 8 (2) (2013) 139 - 154
5. RESULTS AND DISCUSSIONS 1994) or .95 (Schumacker & Lomax, 2004),
and the Comparative Fit Index (CFI) exceeds
In terms of model fit, the works of Bentler .93 (Byrne, 1994). However, as obtained
and Wu (2002), Kaplan (2000) and Hair, from Model Fit summary; under the Baseline
Anderson, Tathan and Black (1998) argue Comparisons, the Normed Fit Index (NFI)
that various goodness-of-fit indicators are value for this model is .956, which indicates
used to evaluate research models. In similar the model of interest improves the fit by 90%
direction, Schreiber, Stage, King, Nora and relative to the independence model; and CFI
Barlow (2006), argue that if the greater is .970, which is an indication that the model
number of the indices shows a good fit, then is accepted. As obtained in the literature,
the probability of a good fit is assured. A using The Root Mean Square Error of
model is regarded as acceptable if the Approximation (RMSEA) in determining the
Normed Fit Index (NFI) exceeds .90 (Byrne, model fit, the range of 0.08 to 0.10 provides
Table 1. Overall Model Fit
Source: Survey, 2012
Figure 2. Results of Model Fit for Organizational Change & HR Interventions

A.A. Adeniji / SJM 8 (2) (2013) 139 - 154 151
an acceptable fit (Hair et al., 2006; 6. CONCLUSION
MacCallum, 1996; Steiger, 2007). The
RMSEA value for this model is .098, which A model fit was developed to examine the
makes the study an acceptable model fit, the role Human Resource Management
overall Model Fit is illustrated in table 1. Interventionist strategies play in
organizational change. However, this was
5.1. Hypotheses Testing Results done by relating study variables such as
staffing, fear alleviation, effective
The results of the path analysis, presented communication, developing plan and
in table 2, indicate that integrating the integrating the existing human resource
existing human resources appear to affect systems to commitment of employees when
flexibility more than any other factors tested change is experienced in organizations.
with a significant relationship (Hypothesis Adequate and rich empirical studies were
1). In addition, it is evident that staffing utilized to support our proposition;
influences flexibility that makes employees essentially we observed that variations exist
more adaptive and receptive to changes in when change occurs in organizations across
organization with direct positive relationship country or in different economy/industry.
(Hypothesis 2).With respect to effective Specifically, as often practiced,
communication and commitment, result interventionist strategies such as staffing,
points to a positive significant correlation alleviation of fear, etc are universally
between the constructs when changes occur accepted and common among companies
in organization. In same direction, there operating within the same economy or
exists significant positive relationship industry. However, Access Bank Plc
between integration of human resources and (Nigeria), though operate in the same
employees’ commitment. These results industry with Intercontinental Bank, having
suggest that a strong commitment can be been acquired had to alter its HRM processes
expected when employees are effectively in order to create new job structure to
integrated thereby aiding successful change accommodate employees from both
management. companies. In addition, Access Bank Plc
(Nigeria) had to adjust HRM policies so as to
achieve the strategic goals of the
organization. Our model demonstrates that
Table 2. Hypotheses Testing Results
Note: All path coefficients are significant at the p<0.001

Rejected – Path coefficients were positive but insignificant
152 A.A. Adeniji / SJM 8 (2) (2013) 139 - 154
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ОРГАНИЗАЦИОНЕ ПРОМЕНЕ И ИНТЕРВЕНЦИЈЕ У
УПРАВЉАЊУ ЉУДСКИМ РЕСУРСИМА: ИСТРАЖИВАЊЕ У
БАНКАРСКОМ СЕКТОРУ НИГЕРИЈЕ
Anthonia Adeniji Adenike, Omotayo Osibanjo Adewale and

Joachim Abiodun Abolaji
Извод
Циљ овог рада је да се изуче односи између интервенционистичких стратегија менаџмента

људских ресурса и организационих промена, као и њиховог утицаја на флексибилност која
може учинити запошљене прилагодљивијим и склонијим прихватању промена. Сакупљен је и
анализиран одговор 123 испитаника од полазних 160 послатих упитника. Хипотезе
међусобних оноса су испитиване путем моделовања структурним једначинама (СЕМ),
софтвером Амос 18, који омогућује тестирање комплексних односа између промењивих.
Добијени модел показује да постоје релације између стратегија интервенције код људских
ресурса и да је у конзистенцији са организационим променама у испитиваном сектору. Ипак,
студије може бити примењена и на друге пословне секторе, нпр. производњу као и на сектор
укрупњавања и преузимања компанија..
Кључне речи: Организациона промена, Стратегије интервенција у људским ресурсима,

Нигерија, Банкарски сектор
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I International Journal of
J Production Management http://dx.doi.org/10.4995/ijpme.2013.1502
PME and Engineering Received: 2013-04-29 Accepted: 2013-05-20
Institutions for collaboration in industrial clusters: proposal of a

performance and change management model
Carpinetti, Luiz C. R., & Lima, Rafael H. P.

Department of Production Engineering – University of Sao Paulo (USP).
Av. Trabalhador São-carlense, 400, São Carlos-SP – Brazil.
carpinet@sc.usp.br
rhlima@sc.usp.br
Abstract: This paper proposes a performance and change management model for institutions for collaboration (IFCs) in
industrial clusters to assist them while planning, conducting and evaluating joint actions. A three-stage implementation
scheme and a self-assessment tool that helps an IFC determine its compliance with the proposed model are also introduced.
The self-assessment tool was applied in three Brazilian IFCs from different clusters. It was found that the IFCs researched face
major difficulties in designing and implementing performance measures to evaluate the results and impacts of joint actions.
However, IFCs have been successful in identifying local infrastructure and devising informal strategic plans.
Key words: industrial clusters, performance management, collaborative networks, institutions for collaboration.
1. Introduction supply chain, but are fundamental for the cluster

activities (Porter, 1998). Examples of such institutions
Geographic agglomerations of firms have been are universities, research centres, training centres
widely studied in the literature and are often and specialized service providers. Karaev et al.
referred to as industrial clusters. The topic has (2007) highlights the existence of local supporting
become top priority in the agenda of many regional institutions that are oriented to the particular needs
development agencies and national governments, of the cluster participants. In Brazil it is common to
especially due to the competitive advantages and observe local associations that promote initiatives
economic development they enable to firms and to
that seek to satisfy some needs common to a subset
the regions they are located (Porter, 1998; Mytelka
of the local firms. Some authors have reported on
and Farinelli, 2000; Sölvell et al., 2003). Companies
cases of such institutions, such as Schmitz (1998),
located in these regions can benefit greatly from
Sölvell et al. (2003) and Gerolamo et al. (2008). The
external economies, collaboration, and exchange
term institution for collaboration (IFC) is used in this
of knowledge between organizations (Unido, 2001;
Karaev et al., 2007; Capo-Vicedo et al., 2008). Such paper to refer to such supporting associations.
benefits may be extended if firms act together through This paper studies how IFCs manage joint actions in
joint actions that stimulate them to collaborate for industrial clusters. For this purpose, a performance
the common good (Bititci et al., 2004). However, and change management model is proposed to guide
some authors argue that the execution of joint actions such institutions in the conduction of joint actions.
requires some sort of local coordination, whose role The model is strongly influenced by the PDCA
is to intermediate the interests of companies and cycle and continuous improvement principles. The
coordinate the execution of activities related to the model outlines a series of performance and change
joint action (Schmitz and Nadvi, 1999; Sölvell et al, management practices to assist IFCs in the planning,
2003; Gerolamo et al., 2008). implementation and assessment of joint actions.
The definitions found in the literature for industrial Therefore, the model stresses the importance of
clusters often emphasize the importance of related performance measurement systems as a way of
institutions that do not participate directly in the demonstrating the benefits gained through joint
Creative Commons Attribution-NonCommercial 3.0 Spain Int. J. Prod. Manag. Eng. (2013) 1(1), 13-26 13
https://ojs.upv.es/index.php/IJPME
Carpinetti, Luiz C.R., & Lima, Rafael H.P.
actions. Later on the model is organized in three

implementation stages and a self-assessment tool
is devised to evaluate the institution’s management
practices. The self-assessment tool was used
to evaluate the management practices of three
Brazilian IFCs from different industrial clusters –
Sertaozinho (metal-mechanic cluster), Arapongas
(furniture cluster) and Londrina (information and
communication technology cluster).
The article is organized as follows: Section 2
describes the research method and Section 3
presents the theoretical background used to support
the management model. Section 4 introduces the
performance and change management model, the
implementation stages and the self-assessment
tool. Section 5 describes the application of the self-
assessment tool in the three IFCs, whilst Section
6 discusses the data collected. Finally, Section 7
concludes the paper by summarizing the findings and
suggesting topics for future research.
Figure 1. Research method.

2. Research method
Figure 1 shows the procedure adopted in this
research. Given the objective of this paper, it with the coordinators of each institution. One of the
was deemed necessary to review the literature on authors acted as a facilitator during the application
industrial clusters, performance management in of the self-assessment tool and in the determination
industrial clusters, and institutions for collaboration. of the scores to each requirement. The answers given
The knowledge gained during this activity served as by the coordinator were transcribed and qualitatively
background for the proposition of the performance evaluated to determine such scores. The scores were
and change management model. After that, three then arranged in a table, in such a way to enable a
implementation stages and a self-assessment tool cross-case analysis. The findings were based upon
were derived from the management model. This tool the comparison of similarities and differences
aims to quantify the extent to which an IFC complies between the cases.
with the model, that is, it points what management
practices outlined in the model the institution has
or has not implemented. The self-assessment tool, 3. Literature review
which is described in detail in Section 4, consists
of 18 requirements derived from the management 3.1. Industrial clusters
model. A supporting question was associated to each
The term industrial cluster was made popular in
of the requirements, so that the person conducting
the late nineties by Porter (1998), who defined it
the assessment understands what should be assessed
as geographic concentrations of interconnected
in a given requirement. During the self-assessment,
companies and institutions in a particular field.
a score ranging from 0 to 10 is associated to each
His definition also encompasses other entities that
requirement indicating the level of compliance of the
are important to competition, such as suppliers of
IFC with the management model. The scores obtained
specialized inputs, service providers, specialized
are then grouped according to the implementation
infrastructure, and governmental and private
stages to which they are associated to determine
institutions as universities, training providers
the areas that need improvement with respect to the
or trade associations. In Brazil the government,
institution’s management practices.
funding institutions and some research centres refer
The items listed in the theoretical contribution served to industrial clusters by the acronym APL, which
as guidance during the self-assessment carried out stands for local productive arrangements, as defined
in the three cases, which were based on interviews
14 Int. J. Prod. Manag. Eng. (2013) 1(1), 13-26 Creative Commons Attribution-NonCommercial 3.0 Spain
Institutions for collaboration in industrial clusters:
proposal of a performance and change management model
by the Brazilian Ministry for Development, Industry their performance measurement systems (PMS)
and Foreign Trade (MDIC, 2010). (Neely, 1995; 2005; Kaplan, 1996; Kennerley, 2002;
Radnor and Barnes, 2007). As pointed out by Neely
The fundamentals that seek to explain the competitive
(1998), a PMS can be used to four purposes: check
advantages of industrial clusters were set out in
current position, communicate performance, confirm
the 19th century by Alfred Marshal, who noted
priorities and compel progress. This reinforce the role
that geographical agglomerations of firms might
of performance management in strategic issues, such
ultimately result in three types of externalities – pool
as setting priorities, targets and deploying strategies
of specialized workers, specialized providers of
by cascading down actions that will ultimately make
inputs and services, and the technological spillovers
the company achieve its planned objectives. Due to the
that flow easily among co-located firms (Krugman,
apparent importance of performance management to
1991; Plummer and Taylor, 2001; Cortright, 2006).
individual organizations, many authors have tried to
These externalities are called by Marshal as external
apply this theory to measure multi-firm relationships
economies. Schmitz and Nadvi (1999) added
as supply chains (Chow et al., 1994), organizational
that, aside of the unplanned benefits of external
networks (Camarinha-Matos and Affsarmanesh,
economies, companies in industrial clusters may gain
2007) and industrial clusters (Carpinetti et al., 2008).
competitive advantage through planned joint actions,
which are enabled by cooperation and collaboration Indeed, performance management in industrial
among firms. Two topics are often associated with clusters has drawn considerable attention from
collaboration in industrial clusters: several authors and has been viewed as a basis for
the management of a cluster (Sölvell et al. 2003;
-- Social capital: refers to the set of intangible
DTI, 2005; Gerolamo et al., 2008; Carpinetti et al.,
factors that exist in a community, such as values,
2008). Furthermore, the use of numerical means
norms, attitudes, trust and networks that facilitate
to demonstrate the benefits of collaboration in
coordination and collaboration for the common
organizational networks would motivate companies
good (Cohen and Prusak, 2001);
to collaborate more and establish new partnerships
-- Collective efficiency: competitive advantage
(Camarinha-Matos and Affsarmanesh, 2007).
gained through external economies and joint
According to a report written to the English
actions (Schmitz, 1995).
Department of Trade and Industry, measuring a
Some authors contend that concentrations of firms cluster’s performance may be useful to evaluate
foster network formation, since companies can take the appropriateness, effectiveness and efficiency
advantage of the proximity to strengthen the bonds of interventions (DTI, 2005). Collaboration, on
with local firms and establish new partnerships its turn, can be viewed as a metric composed of
(Camarinha-Matos and Affsarmanesh, 2005). There three measurable dimensions: information sharing,
is some empirical evidence in the literature linking decision synchronization and incentive alignment
social networks and the knowledge exchange (Simatupang and Sridharan, 2005). It is thus clear
among co-located firms, which in turn may facilitate that, for companies to collaborate with each other in
innovation among companies (Morosini, 2004; joint initiatives, it becomes necessary a coordination
Steiner and Hartmann, 2006). For example, Baptista mechanism that balances the interests and serves as a
and Swann (1998) found that the concentration communication channel among the parties involved.
of specialized workers of a given sector facilitate This means communicating the status of ongoing
knowledge spillovers, which in turn may lead to activities and the impacts of joint initiatives, which
increased levels of innovation. Steinle and Schiele should be done by means of performance measures.
(2002) argue that companies must interact with each
There does not seem to be a sound approach or
other in order to benefit from locating within a cluster,
framework in the literature that fulfils the need
which in turn requires a climate that stimulates
of a performance management model to facilitate
cooperation and intensive knowledge exchange.
the conduction and assessment of collaborative
initiatives in industrial clusters. There are though
3.2. Performance management in industrial some contributions that try to fill this gap. Sölvell
clusters et al. (2003) developed the Cluster Initiative
Performance Model (CIPM), in which the
Performance management has been a central topic
performance of a cluster initiative is measured in
in organizational and operations management
terms of innovation, international competitiveness,
(Neely, 2005). This has led many authors to develop
cluster growth, and achievement of goals. According
frameworks that assist companies in designing
to the authors, cluster’s performance is ultimately -- Step 2 – Strategic orientation and definition of
affected by three elements: the social, political and objectives: formulation of a strategic plan that
economic setting within the nation; the objectives balances the interests of local companies as
of the cluster initiative; and the processes by well as other interested parties, such as local
which the cluster initiative develops. Carpinetti authorities and the community.
et al. (2008) proposed a framework to design -- Step 3 – Implementation of improvement and
performance measurement systems for industrial innovation projects: based on the elements
clusters. The authors divided performance measures formulated in Steps 1 and 2, a series of joint
into four perspectives: economic and social results; initiatives should be developed to take advantage
company’s performance; collective efficiency; and each partner’s capabilities as well as to increase
social capital. A similar contribution was made by trust among companies;
Bortolotti and Amato Neto (2006), who developed a -- Step 4 – Performance evaluation and
6-dimension framework to characterize and evaluate measurement: definition of a process to measure
industrial clusters. The six dimensions included and evaluate the performance and impact of joint
in the framework were related to geographic, actions;
economic, institutional, social, technological and -- Step 5 – Supporting infrastructure for the
environmental aspects of the industrial cluster as a management process: establishment of the
whole. The European Commission carried out seven infrastructure necessary to support cooperation
case studies in networks from the automotive sector projects, such as a regional office or a regional
and proposed a five-step method to the management development agency.
of networks (EC, 2001):
-- Step 1 – Goal, potential and strategy: consists
3.3. Institutions for collaboration
of drawing together the key stakeholders of the Besides the external economies that naturally emerge
network; in agglomerations, companies my benefit greatly
-- Step 2 – Starting the network: setting of from local supporting institutions oriented towards
rules between partners and preparation of the satisfying specific needs of the cluster participants
operational background; (Karaev et al., 2007). As pointed by Seliger et al.
-- Step 3 – Implementation of the network: (2008), such institutions are vital for the coordination
establishment of an appropriate information and of joint actions and diffusion of specific knowledge
communication platform to connect all network inside the cluster. Schmitz and Nadvi (1999) contend
participants; that local agencies should mediate conflicts of
-- Step 4 – Management of the network: interest that may arise between companies within
management of the network activities by focusing the cluster. The existence of local coordination may
on information and communication, training, differentiate a mere agglomeration of companies
innovative projects, internationalization, and from a comprehensive local innovation system that
marketing and advertising; aims to improve local competitiveness through joint
-- Step 5 – Evaluation of the network: consists actions and network formation (Gerolamo et al.,
of auditing the network actions and gathering 2008).
feedback from network members to continuously
Several terms can be found in the literature to refer
improve the management of the network;
to these supporting institutions, such as cluster
An analogous contribution was made by Gerolamo initiatives (Sölvell et al., 2003; Ketels and Sölvell,
et al. (2008), who developed a performance 2006), institutions for collaboration (Sölvell et al.,
management model for industrial clusters and 2003; 2008), industry associations (ITD, 2009),
cooperation networks. Their model is divided into regional development agencies (Seliger et al., 2008)
five steps: or institutional thickening (Andriani et al., 2005). In
this paper we refer to local supporting institutions in
-- Step 1 – Identification of the stakeholders: the
clusters as institutions for collaboration (IFC).
first step is to identify the stakeholders directly
or indirectly related to the cluster activities These institutions may assume a variety of forms,
(large enterprises, SMEs, local partners, local such as private organizations, public agencies or
associations, the local chamber of commerce and industry associations. The literature reports a number
industry, universities, public authorities, financial of cases concerning institutions for collaboration
institutions and so forth; (see some examples in Schmitz, 1998; Sölvell et al.,
2003; Gerolamo et al., 2008). It seems that cultural
issues, the type of business, the economic setting, three dimensions – infrastructure, strategic planning
and the existing social capital may influence the and implementation and assessment. The model
form of local IFCs. In spite of that, it seems to be emphasizes the implementation of joint actions
consensus in the literature that regardless of the way that seek to improve some aspect of the industrial
the IFC comes about in a cluster, it plays a vital role cluster’s performance. It does not necessarily mean
in managing interactions, sharing of knowledge and that all companies in the cluster should be involved
in providing a cognitive framework for transforming in every joint action supported by the institution, but
information into useful knowledge (Audretsch and rather that each joint action should benefit at least a
Lehmann, 2006; Steiner and Ploder, 2008). subset of the local companies. The execution of these
actions requires strong coordination, especially due
As to the emergence of these institutions, Sölvell
to their collective nature. At this point, the support
et al. (2003) argue that after a cluster’s formation,
provided by institutions becomes crucial, since they
the region tends to accumulate resources and
can serve as mediators between the several parties
commitment of its participants, which may culminate
involved in the joint action.
in the establishment of local IFCs. The authors
describe IFCs as formal institutions maintained
with fees paid by local firms that seek to balance 4.1. Infrastructure
the interests of the different actors involved with the
The model in Figure 2 suggests that the IFC
industrial cluster. IFCs may act upon several issues
should identify the existing infrastructure prior to
by coordinating joint actions concerning quality of
the definition and execution of joint actions. By
life, education, infrastructure (transportation, energy,
identifying the local infrastructure, the institution
and communication), tax regulation, export strategy,
will be able to put forth joint actions that optimize
quality standards, research and training, and so forth
infrastructure utilization and improve existing
(Sölvell, 2008; ITD, 2009).
facilities.
Local infrastructure can be analyzed at two major
4. The performance and change levels – institutional and regional. At the institutional
management model level, the model points to the establishment of a statute
to formalize its management hierarchy and the roles
The model described in this section aims to help IFCs
assigned to each member. A local office should also
in industrial clusters in the planning, implementation
be set up with the management tools and information
and evaluation of joint actions. One such institution
systems necessary for the institution to conduct its
may encompass representatives from the various
activities and manage joint actions. Additionally, a
cluster actors, such as the companies, the government,
coordinator or a coordination team should be chosen
research centres, universities and so forth. Figure 2
to act directly upon the joint actions and innovation
shows the proposed model, which is divided into
programs supported by the institutions. The role of
Figure 2. The three dimensions of the proposed model.
this coordination body is to mediate the interests of local firms about them. On the other hand,
and assignments between the parties involved with the institution may act as a representative of
a given joint action. companies before the governmental agencies to
suggest policies that would incentive the local
The infrastructure elements at the regional level refer
economic activities;
to cluster actors and facilities that can contribute to
-- Existing infrastructure: the diagnosis conducted
the execution of joint actions. For example, cluster
in the first dimension of the model can
actors such as technical schools, specialized service
reveal opportunities with respect to the use
providers and universities can provide specific
and improvement of the local infrastructure.
knowledge to the coordination team and to the
Moreover, joint actions may combine the skills
companies involved in a joint action. Besides these
of a subset of the actors in the cluster to promote
actors, the institution should identify the local
innovation among businesses.
facilities that could be exploited by local companies.
Examples of such infrastructure elements are In order to formulate the strategic planning, the
roads, railroads, warehouses, intermodal ports, model also suggests that the institution should
communication lines, power supplies, sources of raw characterize the local productive system and identify
material and so forth. These need to be mapped by ongoing joint actions, so that their goals can be
the institution so that actions can be taken, both to reassessed for the next management cycle. With all
use and to improve the existing infrastructure. this information in hand, the institution will be able
to determine more appropriate short and long term
goals and set out the joint actions to help achieve
4.2. Strategic planning
these goals. Later on, these actions will have to be
From the standpoint of individual firms, strategic deployed to all the parties involved to determine
planning is the process by which leaders formulate their roles and activities. The institution can refer to
their vision of future and develop the procedures the hoshin kanri technique to this end (Akao, 2004).
and operations to achieve such vision (Goodstein Finally, three additional aspects should be taken into
et al, 1993). In this sense, strategic planning can be account when formulating the institution’s strategic
viewed as a tool to help organizations set priorities planning:
and allocate resources to achieve them (Allison and
-- The sources of funding for implementing joint
Kaye, 2006). From the perspective of an institution
actions;
promoting joint actions in industrial clusters, the main
-- The means by which the results of actions
strategic objectives differ from the traditional profit
will be communicated to businesses and other
and productivity objectives of regular organizations.
stakeholders;
The strategic objectives of an IFC should be related
-- The performance measures that need to be
to the improvement of the various performance
implemented to evaluate the results of actions in
dimensions of the industrial cluster.
numerical terms.
Hence, the objective of the second dimension of the
model is to motivate the institution to formulate its 4.3. Implementation and assessment
strategic planning. However, the plurality of actors
The third dimension of the model consists of
involved with the cluster raises several challenges
implementing the items designed in the strategic plan.
to the formulation of short and long term goals that
balance the desires of local businesses that often
compete with each other. For that reason, joint
actions need not necessarily involve all firms, but
rather those whose goals match the purpose of the
initiative being planned. The following sources can
be used to inspire the formulation of joint actions:
-- Needs of businesses: the institution may conduct
a diagnosis of local businesses needs and devise
joint actions based upon the needs common to
certain groups of firms;
-- Public policies: On the one hand, the institution
may search for public policies that favour local
economic activities and increase awareness Figure 3. The proposed model and the PDCA cycle.
In other words, the institution should execute the it into four stages, by which the institution should
joint actions foreseen in the strategic plan and gather gradually implement and improve its management
data to calculate performance measures as a means practices. The dynamics proposed in Figure 4
of assessing the impacts of such actions. It becomes enables the institution to learn from experience and
now clear that the model is strongly influenced by encourages continuous improvement of its planning,
continuous improvement principles and the PDCA execution and assessment capabilities.
(Plan, Do, Check and Act) cycle. Figure 3 illustrates
The stages in Figure 4 are associated with the
this by associating the dimensions of the model with
operation of each dimension of the management
the phases of the PDCA cycle.
model. Stage zero (S-0) is the initial stage of
As depicted in Figure 3, the first two dimensions of implementation and corresponds to an IFC that
the model correspond to the Plan phase of the PDCA has no formal planning and control capabilities
cycle, during which the institution should characterize in place to manage joint actions. The first stage
the local infrastructure, set short and long term (S-1) encompasses the characterization of the
objectives, devise the joint actions to be implemented regional infrastructure and the establishment of
and define the performance measurement system the management tools, information systems and
to be used in the remainder of the cycle. The third supporting facilities to coordinate joint actions. The
dimension of the model stretches across the Do, second stage (S-2) covers the strategic planning and
Check and Act phases of the PDCA cycle. During the implementation and assessment dimensions.
the Do phase, joint actions should be implemented as It does not regard both dimensions separately, but
planned and data for performance measures should rather the closed planning, execution and assessment
be collected. During the Check phase, performance loop, which was depicted in Figure 3. Thus, when the
measures and the results of joint actions need to be institution reaches this stage, it will have successfully
assessed in order to determine the degree to which developed practices to formulate strategic plans,
the objectives have been achieved. The last phase of design performance measures, execute joint actions
the PDCA cycle corresponds to the communication and assess its results and outcomes. Stage three (S-3)
of performance and action results, benchmarking is achieved when the IFC has put in place a mature
with other clusters and the identification of further management system that fully covers the practices
opportunities for improvement. from the three dimensions of the model. At this stage
the institution will have learned from experience
4.4. Model implementation and improved its managerial capabilities in a way
that future joint actions will be better coordinated
The implementation of the proposed model will hardly
between the companies, the institution and other
occur at once. Instead, it is expected that institutions
cluster actors. Additionally, the experience gained
will develop some of the practices concurrently,
after several management cycles may teach the
regardless of the dimension to which they belong.
institution how to better choose and formulate joint
It is thus pointless to devise a series of steps to
actions that will ultimately meet the real needs of
implement the model, because each institution will
local companies and actors. These aspects together
choose different paths to implement it. It is however
may increase the success rate of actions and hence
necessary to understand the dynamics of the model,
increase trust between companies and the institution.
that is the structure required so that continuous
improvement may flow throughout the model. Figure
4.5. Self-assessment tool
4 illustrates the dynamics of the model by dividing
As mentioned earlier, it is very unlikely that an IFC
will implement the management model at once.
Moreover, even though institutions may not be aware
of the model proposed in this paper, many of them
have already implemented managerial practices that
satisfy some of the model requirements. It becomes
thus necessary a tool to help such institutions
evaluate their management practices in relation to
those required by the model as a way to determine
what areas need improvement. To this end, a set
of requirements were devised to characterize each
Figure 4. Dynamics between the dimensions of the model stage of the management model and organized as a
diagnostic tool. Tables 1, 2 and 3 list the requirements 5. Application of the self-assessment
and questions to evaluate each of the requirements
from the stages S-1, S-2 and S-3, respectively. tool
Consistent with the stages in Figure 4, the questions The tool described in the previous section was
in Table 1 are related to the characterization of the used to evaluate the management practices of three
infrastructure at the regional and institutional levels. Brazilian industrial clusters against the proposed
Table 2 puts forth questions to evaluate how the model. Table 4 lists the three clusters researched and
institution plans, executes and assesses joint actions, the institutions in which the self-assessment tool was
which is done by verifying the existence of strategic applied. The prevalent economic activity in the city
plans, performance measures, communication with of Sertaozinho (C1) is the production of equipment
stakeholders and benchmarking mechanisms. Finally, to the ethanol industry. There is in the city an above
the questions in Table 3 address the effectiveness of average concentration of metal-mechanic firms plus
the institution’s management practices and the joint a number of companies that provide supporting
actions it has carried out. services, such as automation and maintenance
(SEBRAE, 2007). The self-assessment tool was
The requirements and questions from Tables 1, 2 applied in the APL Metaltec, which is an institution
and 3 can be used as a self-assessment tool so that supported by the local association of entrepreneurs
institutions can evaluate their management practices (CEISE) that aims to foster cooperation and
and determine to which extent they comply with the improvement among local firms. The acronym APL
management model. This can be helpful in pointing is commonly used in Brazil to refer to industrial
areas for improvement in the management of IFCs. clusters. APL Metaltec was founded in 2008 and
To this end, the institution should assign scores using since then it has been promoting joint actions,
integral numbers ranging from 0 to 10 to indicate the especially among small and medium-sized firms, to
extent to which the requirement is met. The following promote continuous improvement and innovation.
reference scale can be used to help determine scores: Examples of such initiatives are the free consulting
-- 0 to 3 points: indicate that the institution has no services provided to SMEs to teach entrepreneurs
adherence to the requirement or at best it has about best management practices and the creation of
plans of meeting the requirement, but no effective a local seal of quality. Coordination of joint actions
results have been achieved yet; is done by a SEBRAE (Brazilian Micro and Small
-- 4 to 6 points: the institution has conducted Business Support Service) consultant fully devoted
activities that indicate partial compliance with to the promotion and management of joint actions.
the requirement, that is the activities have been The city of Arapongas (C2) is renowned by its high
reasonably effective but still can be performed concentration of furniture producers. The cluster
better; covers also the surrounding cities of Apucarana,
-- 7 to 10 points: the practices being carried out Cambe, Rolandia and Sabaudia, totalling 545 firms
by the institution demonstrate high or total and about 12,000 employees (IPARDES, 2006a). The
adherence to the requirement. Furniture Industry Association of Arapongas (SIMA)
started off in 2005 the Furniture APL of Arapongas
as a side project to support and coordinate some joint
actions that were being conducted at that time. The
Table 1. Requirements for Stage 1.
Requirement Question
R1 – Establishment of the local office Does the institution have a local office that allows its operation?
R2 – Management tools and Are there appropriate management tools and information systems in place to
information systems assist the institution in its operation and in the coordination of joint actions?
R3 – Coordination Does the institution have a coordinator or a coordination team to manage joint
actions and innovation programs?
R4 – Identification of the local Has the local infrastructure (facilities, communication, transportation and so
infrastructure forth) been formally identified?
R5 – Identification of the cluster actors Have the actors involved with the cluster been formally identified?
R6 – Characterization of the local Has the institution carried out a diagnosis of the local productive system?
productive system
R7 – Awareness of local companies How effective has the work of the institution been towards the awareness of
and other local actors companies and other local actors with respect to collaboration as a means of
improvement and innovation?
R8 – Formulation of the strategic plan Does the institution periodically formulate its strategic plan with short and long
term objectives that aim to improve the cluster’s performance as a whole?
R9 – Formulation of joint actions Are joint actions derived from the strategic plan and appropriately formulated?
(that is with an execution team, determination of responsibilities, associated
performance measures, sources of funding and the like)
R10 – Existence of a PMS Is there a PMS in place that covers all the performance dimensions of the
cluster and that enables the institution to assess the impacts of joint actions?
R11 – Assessment of joint actions Does the institution periodically assess the results of joint actions as a way to:
(i) determine the level of compliance with predetermined goals, (ii) readjust the
plan if necessary or (iii) identify new opportunities for improvement?
R12 – Performance communication Are the results of joint actions and performance measures communicated to all
cluster stakeholders?
R13 – Benchmarking Has the institution implemented mechanisms to benchmark its performance
measures and practices against those from other industrial clusters?
coordinator and vice coordinator of the initiatives are software developers, automation firms and a range
local entrepreneurs who dedicate part of their time to of other ICT service providers. According to the
the management of the cluster’s joint actions. They coordinator of the ICT APL of Londrina, the city
operate from within SIMA by using its infrastructure has approximately 140 ICT companies, among
to promote meetings among companies and seminars which 60 have signed the participation agreement
about subjects of interest to local firms. Among the so far. The ICT APL of Londrina was started off in
ongoing joint actions are the annual furniture trade 2006 as a joint initiative of local entrepreneurs and
fair, business missions to international fairs as a the state government. Joint actions are managed by
way of bringing new ideas to local designers, the a coordinator, a vice coordinator and a secretary,
construction of a quality lab to measure the quality who are also company owners in the city. They
of local products as well as courses to improve local dedicate part of their time to hold meetings with
managers’ capabilities. local companies in order to identify their needs and
suggest actions that should be taken to improve
The information and communication technology
competitiveness and performance of local firms.
(ICT) cluster found in the city of Londrina (C3)
Noteworthy joint actions are the identification of
was identified by IPARDES (2006b) and comprises
R14 – Existence of a mature PMS Is there a stable and mature PMS with historical data stored for at least two
years?
R15 – Learning from experience Has the institution learned from experience with past joint actions so that the
formulation and implementation of new actions that involve local companies
and actors is facilitated?
R16 – Long term initiatives Has the institution formulated and conducted long term initiatives that aim to
improve local infrastructure, both at the regional and institutional levels?
R17 – Involvement of small, medium Have the initiatives started off by the institution drawn interest from small,
and large firms medium and large firms?
R18 – Impact on performance Have the joint actions conducted by the institution been successful in improving
the overall cluster’s performance?
Table 4. Description of the industrial clusters researched.
Industrial cluster Economic sector Institution re-searched Type of coordination

Sertaozinho Metal-mechanic industry CEISE and APL The coordinator is a full-time SEBRAE
(C1) Metaltec consultant
Arapongas Furniture producers SIMA and Furniture APL The coordinator and the vice-coordinator
(C2) of Arapongas are company owners in the city
Londrina Information and ICT APL of Londrina The coordinator and the vice-coordinator
(C3) communication technology are company owners in the city
common training needs to specialize local workforce intermediate classification of variability when the
and the establishment of a local business centre that range is equal to 3. By using these criteria, the
can be used both for joint purchasing and for selling requirements R5, R6, R9, R10, R11, R12, R13 and
local products and services to private and public R18 showed low variation, whereas the requirements
organizations. R4, R8, R15, R16 and R17 showed high variation
between the cases. Requirements R1, R2, R3 and R7
The self-assessment was conducted with assistance
fell in the intermediate group.
of the researchers, who used the questions from
Table 1, 2 and 3 to interview the coordinators of each The observation of the means obtained for each
institution. The responses given to each question were requirement allows the determination of the overall
transcribed to determine the level of compliance to level of compliance with the practices specified in the
each of the requirements. Table 5 presents the scores management model. The scale described in Section
obtained after the interviews. 4.5 was used to classify and discuss the means
observed. However, relying solely on the means or
The scores in each requirement, as shown in Table
on the ranges may lead to wrong conclusions. For
5, were grouped to determine the average score in
example, if a given requirement showed a low mean,
relation to the three implementation stages. These
it does not necessarily mean that all the three clusters
results are shown in Table 6.
did not perform the practices specified for that
requirement, because there may be high variability
between the cases, which is indicated by the range.
6. Discussion
In order to reach more precise conclusions with
The use of three cases of industrial clusters enabled respect to each requirement, it is necessary to analyze
not only an evaluation of the management practices at
the cluster level, but also a cross-case investigation of Table 5. Scores obtained in eah cluster.
the practices to establish similarities and differences
Scores (0 to 10)
between them. The line graph in Figure 5 shows the
scores for each of the 18 requirements in the three Req. C1 C2 C3 Avg. Range
clusters researched and the mean score for each R1 7 10 7 8,0 3
requirement. R2 5 5 2 4,0 3
R3 10 7 7 8,0 3
It is visually noticeable in the line graph that the lines R4 5 9 6 6,7 4
for each cluster tend to follow the mean line, which R5 9 9 10 9,3 1
indicates little variation in many of the requirements. R6 6 5 7 6,0 2
There is though great variety between the scores of R7 6 9 6 7,0 3
some other requirements. A better measure to quantify R8 3 6 10 6,3 7
this variation is the column Range in Table 5. A great R9 6 7 6 6,3 1
range between the scores of a certain requirement R10 1 3 2 2,0 2
indicates that there is significant difference between R11 4 4 5 4,3 1
the management practices adopted in the three cases. R12 5 6 5 5,3 1
The average range observed is 2,67. We will thus R13 1 1 3 1,7 2
consider that a requirement has little variation in the R14 0 0 0 0,0 0
cross-case analysis if its range is lower or equal to R15 3 6 7 5,3 4
2. Great variation in a requirement is characterized R16 3 6 7 5,3 4
by a range equal or greater than 4. Because scores R17 3 5 8 5,3 5
were defined in integer numbers, we defined an R18 3 5 5 4,3 2
low scores in all clusters because there were no

benchmarking mechanisms in place to assist the
institution in comparing the cluster’s performance
with that of other clusters. The ICT cluster of
Londrina was the only one that was planning to take
part in a SEBRAE benchmarking initiative that seeks
to compare the performance of companies according
to the criteria from the Brazilian national quality
award. Such initiative, however, is still at an early
stage of implementation and concrete results have

Figure
Figure 5 . 5.
L ine
Lineg raph
graph w ith scores
with scores
in ieach casecase
n e ach not been observed as of the time of this research.
The establishment of a local office (R1), the existence
of a coordination team (R3) and the awareness of
both their means and ranges. Table 7 classifies the companies (R7) also seem to be common practices,
requirements according to their means and ranges, though the observed range for these requirements
in which the rows represent the categories for the was equal to 3. In fact, the scores to R1 and R3 were
mean adapted to real numbers (see Section 4.5) and equal or greater than 7 in the three clusters, and the
the columns represent the three classifications for the range equalled 3 because one of the clusters scored
range, as previously described in this section. 10 in these requirements. As for R7, Londrina and
One important conclusion that can be drawn from Sertaozinho scored below 7 because they were facing
Table 7 is that the scores did not differ significantly difficulties in formulating joint actions that draw the
in 9 out of the 18 requirements (see first column in attention from small and large companies at the same
Table 7). Nevertheless, only R5 had a mean score time. In the case of Londrina, the cluster coordinator
above 7, which indicates that the identification of the reported that many companies have not realized
actors involved with the cluster is a common practice the benefits of taking part in the cluster initiatives
in the three clusters researched. The diagnosis of the regardless of their size, which partly explains why so
local productive system (R6), the formulation (R9) many companies do not participate in the meetings
and evaluation (R11) of joint actions, performance periodically held in the institution.
communication (R12) and the impact of joint actions Among the requirements with range greater than
(R18) achieved a partial level of compliance. In such 3, the formulation of strategic plans (R8) and the
cases, either the management practices were still involvement of small and large companies (R17) were
being implemented or they still needed improvement. the ones that most differed in the cross-case analysis.
For example, all the clusters had some qualitative The cluster of Londrina has steadily formulated
mechanism to evaluate the results of joint actions strategic plans since 2006, whilst in Sertaozinho
(R11), which was done mainly in meetings with a formal strategic plan has never been written.
the institution staff and companies’ representatives, Arapongas obtained an intermediate score because
but none had performance measures to quantify the the practice was discontinued in 2009 to be resumed
efficiency and effectiveness of the joint action. only in 2011. As for the requirement R17, Londrina
It is seemingly a consequence of the inexistence achieved the highest score because the institution
of a formal PMS in the three clusters, which is has successfully carried out initiatives that benefit
demonstrated by the low scores recorded in R10 companies regardless of their sizes, even though
and R14. Besides, the requirement R13 achieved many of the local companies have not participated
in these initiatives. The cluster of Arapongas, on its
Table 6. Scores grouped according to the implementation

stages. Table 7. Requirements classified according to the means
and ranges observed.
C1 C2 C3
R≤2 R=3 R≥4
Stage Score Avg. Score Avg. Score Avg.
Mean ≤ 3 R10, R13, R14 - -
S-1 36 7,20 40 8,00 32 6,40
S-2 32 4,00 41 5,13 41 5,13 3 < Mean < 7 R6, R9, R11, R2 R4, R8, R15,
R12, R18 R16, R17
S-3 12 2,40 22 4,40 27 5,40
Overall 80 4,44 103 5,72 103 5,72 Mean ≥ 7 R5 R1, R3, R7 -
turn, reported that large companies are participating

in the initiatives and meetings, though they act as
observers rather than proactive agents.
Another important analysis that can be made
concerns the average scores obtained by grouping
the requirements according to the implementation
stages. The line graph in Figure 6 was based on
the data from Table 6. It is apparent in this line
graph that the best scores were obtained in the first Figure 6. Compliance to the requirements according to
implementation stage. This is an indication that the implementation stages.
the clusters researched have established their local
offices, coordination teams, and have identified the
implementation stages were identified, which served
local infrastructure. A considerable drop can be
as ground to the formulation of a self-assessment tool
noted in the second stage, which is caused mainly
that help the cluster determine its level of compliance
by the requirements R10, R11 and R13. This shows
with the proposed management model.
that designing performance measures, assessing the
results of joint actions and establishing benchmarking The tool was used in three industrial clusters to
mechanisms are still challenges in all the clusters. evaluate their management practices according to the
model, which led to important insights and findings.
With exception of Londrina, the lowest scores were
First, the highest scores were observed in the first
observed in the third implementation stage. It is
implementation stage (S-1), which is strongly
apparently a consequence of the nature of this stage,
related to the infrastructure dimension of the model.
whose requirements demand that the management
This is an indication that the clusters have not faced
practices implemented in S-1 and S-2 become more
great barriers in establishing the infrastructure
mature and effective. Moreover, in order to achieve
at the institutional level and identifying the local
the third stage the cluster needs to learn from
infrastructure and actors at the regional level. As for
experience with past initiatives. This means that new
the strategic planning, some positive practices could
joint actions should not only be well managed, but
be found in all the three clusters, though they have
also that they should encompass the real interests
not been able to design performance measures to
of the parties involved so that their performance is
assess the results of joint actions in numerical terms.
impacted positively. A hypothesis derived from this
This may prevent future joint actions from drawing
reasoning is that an industrial cluster can achieve
more interest of local companies, mainly because
high scores in S-3 only after several iterations of
companies will not be able to measure precisely the
S-2, which is the continuous improvement cycle
benefits of taking part in such actions. Additionally,
from Figure 3.
the inexistence of a performance measurement
system hinders the benchmarking with other
7. Conclusions industrial clusters. Based on the scores obtained by
each cluster, it becomes apparent that issues related
Institutions for collaboration in industrial clusters to performance measurement prevented them from
have played a vital role in improving the capabilities scoring better in S-3, since this stage requires that
of local companies and in carrying out joint actions the institution establishes more mature management
that extend the benefits of agglomeration beyond practices to plan, implement and assess joint actions.
external economies. This was the motivation of this Although the findings of this paper cannot be
research, which aimed to contribute to the body of extended to all industrial clusters, they serve as
knowledge on industrial clusters by putting forth empirical evidence that, in general, measuring the
a performance and change management model to benefits of joint actions numerically is not a common
guide IFCs in the planning, implementation and practice yet. Future research on IFCs should seek
assessment of joint actions. The model was divided ways to overcome the barriers to performance
into three dimensions – infrastructure; strategic measurement, strategic planning, and the assessment
planning; and implementation and assessment. To of joint actions, since no widely accepted solutions
each of these dimensions, a number of management for these issues have been proposed so far.
practices were associated. Based on this model, three
Acknowledgements: This should always be a run-in heading and not a section or subsection heading. It should not be
assigned a number. The acknowledgements may include reference to grants or supports received in relation to the work
presented in the paper.
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Wyno Journal of Management & Business Studies
Vol. 1(1), PP. 1-18 April, 2013
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THE EFFECTS OF CHANGE MANAGEMENT IN AN ORGANISATION:

A CASE STUDY OF NATIONAL UNIVERSITY OF RWANDA (NUR)
Kamugisha Samuel
MBA Coordinating Secretary
National University of Rwanda, Faculty of Economics and Management
P.O Box 117 Butare, Rwanda. Email: samkamugisha@gmail.com
Tel: +250788845648 Rwanda
Accepted Date: 30th January 2013
ABSTRACT
Change has become a constant phenomenon which must be managed properly for an organization to survive. Knowledge
and awareness about many of the critical issues involved in the management of such change is often lacking.
This study sought to find out the effects of change management in National University of Rwanda. It was guided by the
following specific objectives: to analyze the effect of change management on organization culture at National University
of Rwanda; to determine the effect of change management on Organization structure at National University of Rwanda;
and to investigate the effect of change management on leadership at National University of Rwanda. This study used a
descriptive case study approach.
A purposive sample of 57 senior staff members directly involved in managing organizational change participated. Data
collection was based on secondary and primary sources. The data collected from questionnaires and secondary sources
was summarized according to the study themes; being change management and its effects on organizational structure,
culture and leadership. Quantitative data was analyzed using descriptive statistics like mean, mode, median and
frequencies.
Results were presented inform of charts and tables for quantitative data and in prose for qualitative data. This study found
that there are changes in the management of faculties. There are also changes in the requirements and performance of the
staff, where administrative staffs are now to have at least a bachelor’s degree in relation to the positions they occupy.
Previously, there were no such restrictions and conditions to occupy such slots. The University Administration has
introduced the idea of performance contracting; where employees are required to set targets from which they are
evaluated. Module system was introduced to replace classical way of teaching. These changes were found to affect the
organization human resources in terms of downsizing, outsourcing and recruiting more staff to fill some new posts.
Technological changes in terms of enhanced internet bandwidth in the university have considerably had a significant
impact on the operations of the university both in Academic and administration.
1.1 INTRODUCTION
Many organizations are occasionally faced with challenges that force them to adjust or change (Burnes, 2004).
Development organizations, in particular, regularly have to go through change processes when having to respond to new
development scenarios or simply as part of their expansion or restructuring processes. The implications of change
processes are regularly under-estimated by senior management and not managed adequately. Ansoff (1987) asserts that
it’s known that leadership can make a great difference, and that its importance for organizational success is intensifying.
Yet we still know too little about the qualities and practice of effective organizational leadership and change management.
Universities are a major sector which has significant contribution to socio-economic development. The external changes
that have been facing the organizations provide an avenue for thinking. Managers have adopted change practices with
varying levels of success. While studies on change have been done on manufacturing, (Shem, 2005) public sector
(Nyamache, 2003) International Development organizations (Muturi, 2006) and in other corporations, none has been done
on the education sector and Public Universities as well in Rwanda. This study will therefore provide insights on change
practices in these organizations.
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Most organizational managers today would agree that change has become a constant phenomenon which must be attended
to and managed properly if an organization is to survive. Changes in technology, the marketplace, information systems,
the global economy, social values, workforce demographics, and the political environment all have a significant effect on
the processes, products and services produced. The culmination of these forces has resulted in an external environment
that is dynamic, unpredictable, demanding and often devastating to those organizations which are unprepared or unable to
respond (Burnes, 2004).
According to Schaffer (1992), those organizations which do survive are often relegated to the role of playing “catch up” to
their competitors, while others are either absorbed into larger entities via mergers or acquisitions or simply dissolved into
a collection of corporate assets and liabilities. In fact, many of the popular trends in management and organizational
consulting such as business process re-engineering, total quality management and the learning organization, represent
systematic methods for responding to and channeling effectively the forces of change. Unfortunately, the vast majority of
improvement initiatives undertaken by organizations, even with the best of intentions, are destined to have little impact.
While organizational change is a constant experience, knowledge and awareness about many of the critical issues
involved in the management of such change is often lacking in those responsible for its progress. Clearly, if organizations
are ever to experience a greater level of success in their development efforts, managers and executives need to have a
better framework for thinking about change and an understanding of the key issues which accompany change
management. Change management has been linked to the organization's competitiveness and response to changes in the
environment. Ansoff and McDonnell (1990), state that changes arise out of the need for organizations to exploit existing
or emerging opportunities and deal with threats in the market. It is crucial that organizations seek to create a competitive
advantage and wherever possible innovate to improve their competitive positions. This implies the readiness to change
within the organization and the ability to implement the proposed change.
A host of external factors influence an organization's choice of direction and action and ultimately, its organizational
structure and internal processes. These factors, which constitute the external environment, can be divided into three
interrelated Strategy categories; that is factors in the remote environment, factors in the industry environment and factors
in the operating environment (Pearce and Robinson, 1991). Organizations manage change directly. Balogun and Hailey
(1999) identify important contextual features that should be taken into account when designing change programs. These
include the scope, institutional memory, diversity of experience within an organization, the capability of managing change
and the readiness for change throughout the different levels in the organization.
There are different approaches to managing change; some are sudden, planned and incremental. Kazmi (2002) says that
change is not linear and therefore cannot be worked on a mathematical formula basis with a set of variables that will yield
a fixed answer for their combination. Aosa (1996) points out the necessity of carrying out change within the context of
unique environmental challenges within Africa. Therefore change is context and environmental dependent, and there is no
one best way.
1.1.1 Public Universities in Rwanda

According to the National Council of Higher Education (NCHE), there are 17 Public Higher Learning Institutions in
Rwanda. The Public Higher Learning Institutions are National University of Rwanda, Kigali Institute of Science and
Technology, Kigali Institute of Education, School of Finance and Banking, Higher Institute of Agriculture and Animal
Husbandry, Umutara Polytechnic, Institute of Legal Practice and Development, Kabgayi School of Nursing and
Midwifery, Rwamagana School of Nursing and Midwifery, Byumba School of Nursing and Midwifery, Kavumu College
of Education, Rukara College of Education, Kibungo School of Nursing and Midwifery, Kicukiro College of Technology,
Tumba College of Technology, Kigali Health Institute, and Nyagatare School of Nursing and Midwifery. By
categorization, they are 10 Colleges, 1 Polytechnic, 5 Institutes and 1 University (National Council of Higher Education
website http://www.highereducationcouncil.org).
1.1.2 The National University of Rwanda (NUR)

The National University of Rwanda (NUR) is a Rwanda’s state university, founded in November 1963 as an institution of
higher learning, with a mission to provide higher education, conduct research, and offer services to the community. It is
the oldest and largest University in the country. The University is located in the Southern Province, 150 km south of the
capital city of Kigali. It was the only publicly funded university until the 1990’s. Before the 1994 war and genocide, it had
three campuses in Butare, Kigali and Ruhengeri. After 1994, because of resource constraints, the three campuses merged
into one campus in Butare. Since the reopening of NUR in 1995, 8,747 students have graduated from NUR. With over 10,
000 students registered this year. NUR has over one third (1/3) of the total student population in all the higher education
institutions in Rwanda. NUR is currently having 7 Faculties, 2 Schools and 6 Centers. NUR has also 10 Postgraduate
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Programs. The medium of teaching and learning is English. The current staff is around 1035 including Academic,
Administrative and Technical.
Between April and July 1994, the University community lost a good number of its staff and students who were killed
during the genocide. The University suffered a great loss; laboratory equipment, the computer equipment and academic
infrastructure were destroyed or taken away. NUR was closed because of the prevailing war in the country, those who
were not killed had to hide themselves, and others fled in exile. In 1995 the university reopened. The campus of
Ruhengeri and the Kigali Faculty of Law shifted and became part of the campus of Butare. The main change was that all
the faculties and schools were regrouped in Butare Campus for security and administrative reasons. The beginning was
not easy but the government decided the smooth running of NUR at all costs. The Campus that was supposed to cater for
1,600 students now lodged more than 4,500. NUR took off smoothly but surely despite the wounds to dress, the buildings
to repair and English became a new language of teaching (National University of Rwanda website: http://www.nur.ac.rw).
The National University of Rwanda is committed to building an institution whose motto is ‘Excellence in Education and
Service to the People.’ As it is vivid no country can develop without adequate knowledge institutions supplying relevant
expertise and skills for social and economic transformation. In all successful nations, the role of the university has gone
beyond the traditional missions of teaching and research. NUR is as a matter of fact the “engine of social and economic
development” in terms of innovations and the commercialization of ideas that lead to entrepreneurial activities and the
formation of business enterprises. The university, above all, provides the bulk of the required skills and knowledge for the
national labour market to meet both public as well as private sector demands. In Rwanda, Vision 2020 recognizes the
need for a critical mass of skills in all areas of national life. As the premier knowledge institution in Rwanda, the National
University of Rwanda is repositioning itself so that it can play a developmental role and thereby assist the country to
realize its vision (National University of Rwanda website: http://www.nur.ac.rw).
According to Aosa (1998), organizations being environmental dependent have to constantly adapt their activities and
internal configurations to reflect the new external realities and failure to do so may put the future success of an
organization in jeopardy. Rwandan environment is not isolated from happenings on the global scene. National University
of Rwanda is facing several challenges and how to manage their effects, including inadequate resources, rapid
technological changes, growing number of students as a result of increasing demand for higher education, the changing of
the medium of instruction from French to English, and the introduction of the Bologna system of education based on
student centered learning (National University of Rwanda: Strategic Plan 2008-2012).
Change has become a constant phenomenon which must be attended to and managed properly if an organization is to
survive. Changes in technology, the marketplace, information systems, the global economy, social values, workforce
demographics and the political environment have a significant effect on the processes, products and services produced.
The culmination of these forces has resulted in an external environment that is dynamic, unpredictable, demanding and
often devastating to those organizations which are unprepared or unable to respond (Burnes 2000). While organizational
change is a constant experience, knowledge and awareness about many of the critical issues involved in the management
of such change is often lacking in those responsible for its progress. Clearly if organizations are ever to experience a
greater level of success in their development efforts, managers and program officers need to have a better framework for
thinking about change and an understanding of the key issues which accompany change management. Change
management has been linked to the organization’s competitiveness and response to changes in the environment (Ansoff
and McDonnell, 1990). This implies the readiness to change within an organization and the ability to implement the
proposed changes.
According to Pearce and Robinson (1991) a host of external factors influence an organization’s choice of direction, action
and ultimately, its organizational structures and internal processes. These factors, which constitute the external
environment, can be divided into three interrelated strategy categories that are factors in the remote, industry and
operating environment. National University of Rwanda is one of the institutions that has tried to implement changes over
a number of years in order to deliver its services to the ever growing population of students.
Though change management is a subject studied extensively in Kenya, the subject is least if not at all studied in Rwanda.
Most studies in this area have embarked on the process of change management. Rukunga (2003), studied strategic change
management at the Nairobi Bottlers Ltd and found out that Nairobi Bottlers Ltd had successfully embraced change
management as a strategy and that it had positively affected their operations. Ongaro (2004), conducted a study on
strategic change management practices at Kenyatta National Hospital (KNH), he concluded that change management
were needed in service industries and that implementation of reforms was successful at KNH. These studies have all been
carried out in Kenya and none has crossed or tackled a Rwandan context. It is therefore imperative to note that there is a
need for this research to be undertaken to investigate and establish the effects of change management in organizations in
Rwanda. The problem of this study therefore was to find out the effects of change management in National University of
Rwanda.
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1.2 Organizational Change and the Effects on its Management

Generally, it is assumed that managers are in favour for or against a (new) strategy “neither as a habit nor as a mindless
repertoire.” (Stubbart, 1989, p.330) but for rational reasons and on the basis of objective facts. And one can hear a lot
about the official reasons for managerialistic change; to increase efficiency and reduce costs, to increase profits and
growth, to become more business-like and to secure the survival of the organization – you name it. All these claims might
be true, many managers may really believe in what they say and work very hard to achieve the changes and results
proclaimed. However, behind such claims there can be also reasons and drivers which are being mentioned less often, if at
all. Despite all assurances by the proponents of new public management that the new agenda is solely about rational
strategic responses and “technical” aspects, organizational politics imply otherwise. Strategic change initiatives, their
formulation and implementation are much about influence, power and control (Diefenbach 2006).
Walsh (1995) (similar Humphrey (2005)) draws the attention to the fact “that the struggle for power in an organization is
often a struggle to impose and legitimize a self-serving construction of meaning for others”. Managers want to get “their”
version through, their interpretation of how the world “is” and what the organization should be doing – because they know
very well that getting ones “meaning” through will generate further chances and possibilities. Organizational change is a
socially constructed reality with negotiated meaning as outcomes of power relationships and struggles for supremacy
(Grant et al., 2005). “Between the lines” a particular strategy is primarily about power and control, dominance and
supremacy, whose access to resources will be enlarged or reduced, who can stay and who has to go.
Managers might have to deliver “results” and therefore are not absolutely free in their choices. But they make decisions
on quite a rational basis – seen from their perspective. Hence, many managers – like many other people – make decisions
first with regard to their personal interests (in the West, at least), to their own position and career aspirations, to their
families and social affairs and the like (Willmott, 1997, p. 1335). These personal interests usually fit to group interests, i.e.
to strengthen the roles, position and influence of managers (in comparison and against other professions, lower ranks or
external stakeholders). Strategic change initiatives, discourses about strategy, change, and other management issues
provide excellent opportunities for senior and middle managers to set the agenda, to get their ideology through as the
organization’s primary strategic objectives, to strengthen their role and position, to keep, gain or increase internal
influence. Managerialistic strategies and change management are “the modernist project which has as its heart the
transcendence of professional management as a means of achieving control in organizations” (McAuley et al., 2000): For
those who believe in the principles that underlie it, managerialism as a philosophy legitimize ‘the interests of management
in how organisations are managed, stressing the role and accountability of individual managers and their positions as
managers’ (Lawler and Hearn, 1996; McAuley et al., 2000). By pursuing their personal interests they also pursue group
interests. New public management change initiative is an odd combination of managerialistic ideology, personal and
group interests.
1.3 Conceptions of Change and Strategic Management

The strategic management model assumes that the changes in the organization can be captured by one or a few objectives
(Thompson and McEwen, 1958). But what if the change-process involves multiple changes simultaneously? This question
leads the discussion into a path discussing hierarchies of objectives or complexity. Therefore, it is often assumed that the
strategic management effort solves a single business problem or situational challenge. In most modern theories of
managing change, the goal-setting and objectives have been substituted by the vision as a driver for planned change. The
vision plays a central role in modern change management as an abstract organizing and driving force creating meaning
and motivation in the change process (Kotter, 1990, 1995, 1996; Beer et al., 1990; Li, 2005; Kaplan and Norton, 2007).
There is a generic difference between incremental changes on the one hand and major or radical changes on the other
hand. There are four basic ways of understanding change. If these four basic ways of understanding organizational change
are looked at, then the practical paradox challenge to the strategic balance assumption and planning when the demand for
strategic change is more frequent than the strategic ability to plan and implement change strategy can be seen. The faster
the change cycle runs and the frequency raises, the more paradoxical strategic planning and managing intentional change
processes becomes, since vision, mission, and strategies cannot be changed too often without making the strategic efforts
meaningless. There is some inspiration towards dissolving or coping with the practical paradox of keeping up with
strategy in reference to the theory of evolution.
Change may be understood relative to its’ frequency (how often does change occur), and its’ intensity (is it minor,
incremental, stepwise, or major, radical). The intensity may be subdivided into whether the change is continuous,
evolutionary, developmental, or is discontinuous, revolutionary, or transformational. But change should also be
understood relative to its’ degree of successfulness – how much time does it contribute to survival and sustainability by
creating periods of relative stability.
1.4 Employees Resistance to Change

People do not like change, any change. A “strong preference for stability and continuity” (Brooks and Bate, 1994, p. 181)
might be in the human nature. People only want to change when both the pull- and push-forces are that strong that people
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themselves see no other solution anymore than to change. An allegedly “much more challenging business environment”
and a “vision” of a “more business-like” organization are definitely not enough to convince employees to change their
daily routines at their desks.
Another issue people are quite sensitive about is the “technical” aspects of change initiatives, i.e. how change is
introduced, communicated and discussed, if and how their viewpoints are not only being heard but seriously taking into
account. Many people are (still) of the opinion that an organization is or should be much more than a profit-generating,
efficiency-improving machinery. Such values and convictions can be quite deeply embedded in an organization’s culture
and people’s attitudes (Kirkpatrick and Ackroyd, 2000). Any change initiative has to take this into account: There is a
significant body of literature that draws attention to the difficulty of changing organizational culture on the grounds of that
culture is deeply ingrained in the underlying norms and values of an organization and cannot be imposed from above
(Parker and Bradley, 2000).
In this sense, many people seem to be against top-down and paternalistic approaches of leadership and centralization of
power and control (Diefenbach, 2006). But what many people perhaps resist the most is the cynical use and misuse of
“grand” ideas for personal and group interests. People resist ambitious senior managers who join organizations they do
not know, who are only interested in furthering their own career and market-value, mess with several change management
initiatives, and then leave the organization in a state worse than before for good and with a golden handshake. People
resist managers who have only little understanding of the business, who do not care for the ideas and needs of their
employees, and the organizational necessities and opportunities, with managers who pretend to be busy and important,
even crucial for the sake and survival of the unit but at the end of the day are only interested in their career and the
increase in their market value, in strengthening their position and securing their pension scheme. Therefore, people are not
against change per se, but these specific tendencies. Managerialism produces resistance (Kirkpatrick and Ackroyd, 2000)
– and other negative outcomes. It is often the cause of the problem and not the cure.
1.5 Change Management and the Challenge to Rationality

Those charged with bringing about changes in organizations have a myriad of challenges to deal with. There is evidence
to suggest that the universal, prescriptive model of change management is inadequate to describe the diversity of
approaches actually used by organizations (Dunphy and Stace, 1993). Some seek to restrict the meaning of change
management to the felt need to improve organizational performance and members’ own position within the organization
(Goodstein and Burke, 1991). Dawson (1996) has discussed the limitations of adopting such a simple definition of
change. She sees conflicting interests and resistance as some of the barriers to achieving the desired results in the felt need
for change. Other researchers (Tichy, 1983) acknowledge the frustration that manager’s feel when their organizations do
not respond to elaborately analyzed plans, where there is a lack of interaction between decision and action.
There are those who perceive change management as a systemic process incorporating systems of interpretation and
meaning (Hassard, 1991; Knights and Willmott, 1995). This view is particularly important, as it emphasizes the social
aspects of exchange through which the locus of knowledge and the understanding of “real” things is subjectively shared
and shaped by individuals through conversation and dialogue. What is seen as real is made real through sense-making
processes (Weick, 1995), and “the social world is best understood from the viewpoint of the participant-in-action”
(Hassard (1991, p. 277). In an empirical sense, this perception of change management reflects the management of
processes through liberal exchange of knowledge, building of trust and acknowledgement of the heterogeneity in values,
preferences and interests. In spite of the attention that the management of change has received, organizations continue to
have problems in managing organizational change and “the search for generalized laws of change still pervades the
discipline” (Wilson, 1992). There is a gap between what the rational-linear change management approach prescribes and
what change agents do.
1.6 Change Management and the Rational-Linear View of Change

In line with the classic argument on “environmental determinism” (Burns and Stalker, 1961), change in organizations is
perceived by internal change agents in this study as being triggered by change in environmental conditions such as
competitive pressures, legislation, environmental and safety regulations, world-wide economic threats, key stakeholders
and leadership preferences and technological advancements. However, the wider political struggles to gain control over
scarce resources emerge as the most powerful stimulator of change. As far as the cases are concerned, considerable time is
invested into building relationships to this end.
Unity in goals and full participation in change efforts, despite the fact that such participation may not generate a complete
agreement on various aspects of the change process, are seen as desirable conditions for effective implementation of
organizational change. These espoused values reflect a “‘unitary’ frame of reference which emphasizes the philosophy
that organizations have goals to which all organizational members subscribe, with all working towards their attainment”
(Senior, 1997, p. 167). The need for united efforts is exemplified by the need for integrated systems and change
initiatives.
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It is claimed that change regarding a tangible output, such as a capital investment or a new building, is easier to bring
about than change concerning an intangible output, such as the degree of learning. This is because procedures that guide
actions in the case of tangible product changes are seen as more codifiable than those for tangible outputs (Nonaka and
Takeuchi, 1995). There is an extensive difference in the way change management is perceived between managers having
administrator roles and engineers reflecting the non-linear, quasi-rational nature of change. Administrators are seen by
some of the engineers as heavily embedded in politics and detached from actual change.
1.7 Discourse-Based Theory of Organizational Change

A number of studies have suggested that discourse theory and the analysis of organizational discourse offer considerable
potential for understanding the nature and complexity of organizational change. However, while these studies demonstrate
some of the potential contributions that a discourse based theory of organizational change might make, they also exhibit
two inter-related problems. First independently or in combination, none of the studies attempts to provide a
comprehensive or integrated discourse theory of change. The discursive change model, if one exists, is implicit, but not
fully articulated. Second, by virtue of the model being underspecified, the value of the observations and results of studies
of organizational discourse and change are potentially open to question or even undermined (Ford, 2008).
In reference to level of change related to discourses, it operates at several different levels. It is possible to identify five
that merit attention in relation to organizational change – the intrapsychic, the Micro, the Meso, the macro and the Meta.
At the intrapsychic level a discourse might manifest itself in the form of internalized stories and introjected beliefs that an
individual tells them self. It can also refer to cognitive frames and schemas (Ford, 2008). Analyses of discourses at the
micro level focus on the detail of language in use by individuals. Beyond the individual focus of the micro-level, it is
possible to consider discourse at the meso-level to explore the interpersonal. At this level discursive interactions will
impact on the actions and behavior of individuals within a localized context, e.g. a department or among a specific group
of actors who socially interact on a regular basis (Mumby, 2004).
Macro level discourses can be viewed as an aggregation and accumulation of an amalgam of meso-level discursive
interactions in organizations. Here, interactions such as conversations and texts coalesce to form the dominant thinking,
institutional practices and collective social perspectives within an organization. Meta level discourses have been described
as discourses that are recognized and espoused at the broader societal level and across institutional domains. As such they
might address “more or less standard ways of referring to/constituting a certain type of phenomenon” (Alvesson &
Kärreman, 2000: 1133). The texts within any level of discourse are linked to, and informed by discourses and the texts
that operate from other levels. This inter-textuality means that it is important to identify and analyze specific, micro-level
discourses pertaining to change, within say a conversation, and to then place them in the context of other meso, macro or
even meta discourses (Boje, 2001).
1.8 Three-Step Change Theory

Kurt Lewin (1951) introduced the three-step change model. This social scientist views behavior as a dynamic balance of
forces working in opposing directions. Driving forces facilitate change because they push employees in the desired
direction. Restraining forces hinder change because they push employees in the opposite direction. Therefore, these forces
must be analyzed and Lewin’s three-step model can help shift the balance in the direction of the planned change.
According to Lewin, the first step in the process of changing behavior is to unfreeze the existing situation or status quo.
The status quo is considered the equilibrium state. Unfreezing is necessary to overcome the strains of individual resistance
and group conformity. Unfreezing can be achieved by the use of three methods. First, increase the driving forces that
direct behavior away from the existing situation or status quo. Second, decrease the restraining forces that negatively
affect the movement from the existing equilibrium. Third, find a combination of the two methods listed above. Some
activities that can assist in the unfreezing step include: motivate participants by preparing them for change, build trust and
recognition for the need to change, and actively participate in recognizing problems and brainstorming solutions within a
group
(Robbins 564-65).
Lewin’s second step in the process of changing behavior is movement. In this step, it is necessary to move the target
system to a new level of equilibrium. Three actions that can assist in the movement step include: persuading employees to
agree that the status quo is not beneficial to them and encouraging them to view the problem from a fresh perspective,
work together on a quest for new, relevant information, and connect the views of the group to well-respected, powerful
leaders that also support the change.
The third step of Lewin’s three-step change model is refreezing. This step needs to take place after the change has been
implemented in order for it to be sustained or “stick” over time. It is highly likely that the change will be short lived and
the employees will revert to their old equilibrium (behaviors) if this step is not taken. It is the actual integration of the new
values into the community values and traditions. The purpose of refreezing is to stabilize the new equilibrium resulting
from the change by balancing both the driving and restraining forces. One action that can be used to implement Lewin’s
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third step is to reinforce new patterns and institutionalize them through formal and informal mechanisms including
policies and procedures (Robbins 564-65). Therefore, Lewin’s model illustrates the effects of forces that either promote or
inhibit change. Specifically, driving forces promote change while restraining forces oppose change. Hence, change will
occur when the combined strength of one force is greater than the combined strength of the opposing set of forces
(Robbins 564-65).
1.9 Phases of Change Theory

Lippitt, Watson, and Westley (1958) extend Lewin’s Three-Step Change Theory. Lippitt, Watson, and Westley created a
seven-step theory that focuses more on the role and responsibility of the change agent than on the evolution of the change
itself. Information is continuously exchanged throughout the process. The seven steps involve diagnosis of the problem;
assessing the motivation and capacity for change; assessing the resources and motivation of the change agent; choosing
progressive change objects; selecting and clearly understanding role of change agents by all parties so that expectations
are clear; maintaining the change; communication, feedback, and group coordination are also essential elements in this
step of the change process; finally, the change agent should gradually withdraw from their role over time. This will occur
when the change becomes part of the organizational culture (Lippitt, Watson and Westley 58-59).
Lippitt, Watson, and Westley point out that changes are more likely to be stable if they spread to neighboring systems or
to subparts of the system immediately affected. Changes are better rooted. Two examples are: the individual meets other
problems in a similar way, several businesses adopt the same innovation, or the problem spreads to other departments of
the same business. The more widespread imitation becomes, the more the behavior is regarded as normal (Lippitt, Watson
and Westley 58-59).
2.1 METHODOLOGY
This is a case study that has utilized a descriptive case study approach to achieve the set objectives. According to Yazici
(2009), a case study places more emphasis on a full contextual analysis of fewer events or conditions and their
interrelations. This design was suitable because the study requires an accurate examination of the effects of change
management; whereby in-depth, insightful and unique information on the effect of change management at National
University of Rwanda can be obtained best through a descriptive case study method.
2.2 The Population and Sample Design

The study population was staff of National University of Rwanda who has experienced various forms of organizational
change. The population targeted for the study must have been involved in organizational change both directly and
indirectly impacted upon by the new administrative systems. The total population of staff at the National University of
Rwanda is 1035 out of which the researcher targeted 57 staff members involved in making decisions and are the top of
management in the institution.
A purposive sample of 57 staff members who were senior staff and are directly involved in managing organizational
change were involved in the study. According to Winter et al. (2009), a purposive sample is a non-probability sample that
conforms to a certain criteria. The research took purposively 57 staff members who are at the top management of the
University.
2.3 Data Collection

Data collection is the process of gathering information about a phenomenon using data collection instruments (Sekaran,
2000). Data collection was based on secondary and primary sources where primary data was obtained through the use of
questionnaires as the main data collection instrument while secondary data was obtained from journals and books in the
library and the University’s annual reports. Questionnaires was both open ended and closed and were also both qualitative
and quantitative in nature to capture all the aspects of the effects of change management in an organization. A total of 57
questionnaires were developed which were then be administered through drop and pick method.
2.4 Data Analysis
Data was analyzed using content analysis of written materials drawn from personal expressions of participants. The data
collected from questionnaires, interviews and secondary sources was summarized according to the study themes being
change management and its impact on organizational structure, culture and leadership. Data was then analyzed to
determine its accuracy, credibility, usefulness and consistency. According to Cooper and Schindler (2011), content
analysis measures the semantic content or the “what” aspect of the message. Its breadth makes it flexible and wide-
ranging tool that is used as a methodology or as a problem-specific technique. Quantitative data was analyzed through
coding in SPSS version data editor where inferences were drawn and descriptive statistics like mean, mode, median and
frequencies of responses were used to give the results of the analysis which were then presented inform of charts and
tables and prose for qualitative data.
7
8. Mgt. & Bus. Stu.
3.1 DATA ANALYSIS AND INTERPRETATION OF FINDINGS

This section discusses the interpretation and presentation of the findings. The purpose of the study was to examine the
effects of change management in an organization; taking a case of National University of Rwanda. The objectives of this
study were to analyze the effect of change management on organization culture at National University of Rwanda; to
determine the effect of change management on Organization structure at National University of Rwanda; and to
investigate the effect of change management on leadership at National University of Rwanda. This chapter focused on
data analysis, interpretation and presentation. The researcher made use of frequency tables and percentages to present
data.
The researcher targeted a sample of 57 staff members who are at the top management of the University out of which 49
responses were obtained. This represented an 85.96% response rate. According to Babbie (2002) any response of 50% and
above is adequate for analysis thus 85.96% is even better.
3.2 General Information

As part of their general information the researcher requested the respondents to indicate their gender. The results are
shown in figure 3.1 below:
Figure 3.1: Gender of the Respondents
It was realised that 56.25% of the respondents in this study were male while 43.75% were female. This clearly shows that
majority of the respondents in this study were male.
Figure 3.2: Respondents’ Age Bracket
On the respondents age bracket, the study found that majority of the respondents (50.02%) were aged between 31 and 45
years, 28.57% were aged between 46 and 60 years and 20.40% were aged between 18 and 30 years. This shows that
majority of the respondents were aged between 31 and 45 years.
8
9. Samuel
Figure 3.3: Respondents Education Level
On their level of education, 46.94% of the respondents indicated that they had masters’ degree, 38.78% had postgraduate
diploma and 14.29% had PhDs. This shows that majority of the respondents had masters degree.
Figure 3. 4: Work Experience
In an effort to determine the respondents work experience the researcher requested them to indicate the number of years
they had been working at National University of Rwanda. From the findings 35% of the respondents indicated that they
had been working in the university of Rwanda for between 5 and 10 years, 24% had been working there for between 10
and 20 years, 16% had been working there for between 3 and 5 years, 14% had been working there for more than 20 years
and 11% had been working there for between 1 and 3 years. This clearly shows that majority of the respondents had a
working experience of between 5 and 10 years.
9
10. Mgt. & Bus. Stu.
Figure 3.5: Number of Staff Supervised
On the number of staffs the respondents were supervising, 44% indicated that they were supervising more than 20 staffs,
21% were supervising 10 to 20 staffs, 19% were supervising 5 to 10staffs, 11% were supervising 4 to 5 staffs and 5%
were supervising 1 to 3 staffs. From these findings we can deduce that majority of the respondents were supervising more
than 20 staffs.
3.3 Effect Of Change Management On Organization Culture

3.3.1 Changes in Line with Responsibilities
On the changes the respondents were overseeing in line with their responsibilities the respondents indicated that they were
overseeing changes in Academics, Administration and Management of the Faculty.
Regarding administration, there are changes in the requirements and performance of the staff. Administrative staffs are
now to have at least a bachelor’s degree in relation to the positions they occupy, this affects the existing culture, where for
administrative staff there were no such restrictions and conditions to occupy such slots. Module system was introduced
and it replaced the classical way of teaching by course units, now similar/related units are grouped into one module and
taught one after the other, in a logical and chronological order.
The University Administration has introduced the idea of performance contracting. Here all employees are required to set
targets from which they are evaluated and/or appraised. The influence of culture is an impediment since it affects a lot the
implementation of performance contracting. This is because, employees are required to deliver and perform effectively
compared to the previous way of how things were done.
3.3.2 Impact of Change in an Organisation

The study established that the changes have a significant impact on the whole institution. Such changes include: Human
resources; downsizing, outsourcing and recruiting more staff to fill some new posts. Technological changes; the increase
of the internet bandwidth in the university has considerably had a significant impact on the operations of the university
both in Academic and administration. These changes mostly have a fundamental impact on the University.
The study also sought to determine the changes that were essential. From the findings the respondents indicated that the
fundamental changes are essential; this is because they have a paramount impact on the whole institution. However, even
other changes depending on where they are initiated and implemented are also very essential in the University. This is due
to the fact that such changes in different units add up to organizational change, for example, changes in the academia
especially the language of instruction, changes in administration and the increased use of IT in the University.
3.3.3 How Changes Arise

The study also sought to know how the changes arised. The respondents indicated that most of these changes were
planned and come or take place in an incremental form. However, some of these changes came in abruptly. On the ideal
procedure for making changes upon request the respondents indicated that the ideal procedure is that the idea has to be
endorsed by all the University organs especially top management and the University board.
3.3.4 Change Management Procedure

On the change management procedure applied the respondents indicated that the university was applying planned change
management process procedure. Change requests are made by the units with change initiative and they are endorsed by
the top management.
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11. Samuel
3.3.5 Situations that Interfere with the Change Management Procedure

The study sought to determine the situations that interfere with the change management procedure. From the findings the
respondents indicated that it is too tedious to get all the university management organs to approve change initiatives. They
further added that the process is too bureaucratic and many change initiators find it as stumbling block to their
development ideas.
3.3.6 Monitoring the Change Management

The study also sought to know who monitored the change. The respondents indicated that the Directorate of Monitoring
and Evaluation was established to oversee and monitor the decisions taken by the top management of the University.
On how and where the change documentation was stored the respondent indicated that the Directorate of Monitoring and
Evaluation and the Unit(s) which initiate the idea keep and mostly make a follow up of the change initiatives and
therefore, keep all the necessary documentation on change management.
On whether there were alterations that needed to be made to the change management system the respondents indicated
that a proper change management procedure should be established in order to track well the effects of change
management.
The study found that the types of emergency changes that have been experienced included change of the Language of
Instruction; from French and English to English only and the introduction of the Module system (Bologna System of
Education) in the University and the whole country was too abrupt. Others changes have also occurred in a reactive
manner. For example, after Rwanda joined the East African Community, it has embarked on harmonizing its operations to
the rest of the community, though such initiatives come in a reactive and abrupt manner. On how the emergencies were
dealt with, the respondents indicated that in case of emergencies the university management introduces and induces the
staff to adopt such changes. However, in some cases when such emergencies are initiated at a higher level, for example
from the Ministry of Education and the Cabinet, the University just implements the decision.
3.3.7 Approval of Various Changes

On approval of various changes that were to be made the study found that most changes are approved by the University
Management. Some are approved by the Management Committee, the Executive Committee and the Academic Senate.
However, the overall body that oversees and approves all the University change ideas and activities is the Board of
Directors which is the highest decision-making organ of the NUR, appointed by the Cabinet. On the level of management
that was involved in the change process the respondents indicated that mostly the middle level managers are more
involved in the management of change at NUR. On the process of approval the respondents indicated that after all the
necessary organs or levels have approved and/or endorsed the idea, the University Board of Directors then finally adopts
the idea which is then implemented thereafter.
The respondents indicated that the change approval was not easily obtained. This is because the process of approval is too
bureaucratic and centralized in the Board of Directors. The Board of Directors is the only body or level mandated to
oversee and endorse all the university activities.
3.3.8 Main Challenge Facing Change Management

The respondents indicated that the main challenge facing the management was inadequate resources, lack of enough
skilled and experienced staff due to low motivation in terms of salaries and wages, inadequate infrastructure, and strong
resistance from the staff due to the organizational culture.
On how the change was dealt with the respondents indicated that a consultative way of handling and implementing change
should be adopted in the University, otherwise there will always be resistance to change initiatives by some members of
the staff who also would like to be part and parcel of the change initiators and implementers.
3.4 Effect of Change Management on the Organization Structure

The study sought to determine the kind of impact change had on an organization’s structure. From the findings the study
found that one of the greatest challenges the University faces today is helping their workers deal with change. It is
important that you are prepared to help your workers navigate this complex and often emotional process. Understanding
how people deal with change will help you manage a successful transition. Change affects workers in different ways.
Some common responses that observed are: conflict, confusion and loss of confidence. Other kind of impact that change
has on the University are; university restructuring, expansion and introduction of new programs especially at post
graduate level. The study depicted that there was no approved organization structure (organization chart) of the
University.
11
3.4.1 Organizational Change

The respondents also agreed that organizational change was experienced. They further added that there have been several
changes all over the institution which amounts to organizational change. Most of the changes have had a fundamental
impact on the whole University.
From the respondents who indicated that organizational change was being experienced, the study also sought to know
there was a need for organizational change to be frequently experienced. The respondents indicated that there was need
for frequent organizational change to be able to cope up with the ever/turbulent environment in which the University
operates. Failure to adapt and adopt change in the organization would lead to stagnation and therefore unfit to compete
favorably with other actors in the industry.
Figure 3.6: Those Directly Impacted by Change
The study sought to determine who in the University was directly impacted by the change. From the findings as shown by
figure 3.6 above the study found that senior employees were impacted most (32%). These were followed by junior
employees (31%), managers (20%) and senior mangers (17%). This clear shows that the change was directly impacting
the low level management most.
Figure 3.7: Sole Responsibility to Monitor the Impact of Change
On whether there was a dedicated team of members that were having the sole responsibility to monitor the impact of the
change, 71.43% of the respondents indicated there was while 28.57% indicated that there wasn’t. This clearly shows that
there was a dedicated team of members that were having the sole responsibility to monitor the impact of the change.
The respondents further added that the university Management through Board of Directors has established a new
Directorate of Monitoring and Evaluation. It’s headed by a director with 4 other staff members. The Directorate is
responsible for following up, monitoring and evaluating the University decisions, resolutions and projects. This
Directorate gathers information from departments, centers, schools and other units which are then evaluated to advice on
the implementation of different projects in those units.
12
13. Samuel
Table 3.1: Main Important Problems during Change Implementation Phase

Problem Mean Std. Deviation
Barriers between departments 4.23 .725
Not enough support from senior management 4.00 1.080
Resistance of middle management to change 4.00 .739
Focus too much on technological aspects, too less on people 3.92 .760
Scope not well defined, project is oversized 3.85 .555

Resistance of users to change 3.92 .641
Project does not have appropriate priority 3.85 .899
Not enough resources available 3.77 .599
Budget needed, higher than expected 3.54 .967
Organisation and procedures are not adapted to the new situation 3.92 1.115
(technological and organisational integration on different levels)
No transparent goals/objectives 3.85 .689
Time for implementation needed, longer than expected 3.73 .599
Goals are to aggressive, organization is not capable to cope 3.59 .961
Availability of people from implementation team 4.64 .519
Technological limitations (performance/missing functionality) 4.58 .506
Barriers to external stakeholders (customers/supplier...) 3.72 .768
Intercultural problems (i.e. language barriers) 3.58 .519
Table 3.1 shows the findings on the main important problem during change implementation phase. A five point Likert
scale was used to interpret the respondent’s responses. According to the scale, those problems which were considered
very important were awarded 1 while those which were considered not important were awarded 5. Within the continuum
are 2 for less important, 3 for not sure and 4 for less important. Mean (weighted average) and standard deviation were
used to analyze the data.
According to the researcher those problems with a mean less than 3.5 were rated as important while those with a mean
less than 3.5 were rated as not important. On the same note the higher the standard deviation the higher the level of
dispersion among the respondents.
From the findings, the study found that all the listed problems were important problem during change implementation
phase. The problems that were rated as important include Barriers between departments (M=4.23, SD=0.725), Not enough
support from senior management (M=4.00, 1.080), Resistance of middle management to change (M=4.00, SD=.739),
Focus too much on technological aspects, too less on people (M=3.92, .760), Scope not well defined, project is oversized
(M=3.85 .555), resistance of users to change (M=3.92, SD=.641), Project does not have appropriate priority (M=3.85,
SD=.899), Not enough resources available (M=3.77, SD=.599), Budget needed, higher than expected (M=3.54, .967),
Organization and procedures are not adapted to the new situation (technological and organizational integration on
different levels) (M=3.92, SD=1.15), No transparent goals/objectives (M=3.85, SD=.689), Time for implementation
needed, longer than expected (M=3.73 SD=.599), Goals are to aggressive, organization is not capable to cope (M=3.59,
SD=.961), Availability of people from implementation team (M=4.64, SD=.519), Technological limitations
(performance/missing functionality) (M=4.58, SD=.506), Barriers to external stakeholders (customers/supplier...)
(M=3.72, SD=.768) and Intercultural problems (i.e. language barriers (M=3.58, SD=.519).
13
Figure 3. 8: Implementation Approach
On whether the implementation approach depended on the organization culture, 41% of the respondents indicated that it
sometimes depended on the organizational culture, 23% indicated that it depended on organizational culture and 12%
indicated that it did not depend on organizational culture.
3.5 THE EFFECT OF CHANGE MANAGEMENT ON LEADERSHIP
Table 3.2: Leading and Managing Change

Task Mean Std. Deviation
I create a sense of urgency to reinforce the need for change 3.53 0.897
I provide people with facts, figures and evidence to persuade them for change 4.03 0.895
I select the right people to form the guiding coalition 4.21 0.976
I get the guiding coalition to work together as a team 4.23 0.765
I create clear and tangible vision for change 4.01 0.956
I construct effective strategies to deliver the vision 3.98 1.02
I change systems that get on the way of the changed vision 3.89 1.11
I recruit promote and develop the right people to promote change 3.97 1.07
I ensure the right people are chosen for the role of change development 3.78 0.967
Table 3.2 shows the findings on the extent to which they practiced the stated practices. A five point Likert scale was used
to interpret the respondent’s responses. According to the scale, those practices which the respondents were practicing
(always) were awarded 5 while those which they were not practicing (never) were awarded 1. Within the continuum are 2
for rarely, 3 for sometimes and 4 for mostly. Mean (weighted average) and standard deviation were used to analyze the
data.
According to the researcher those practices with a mean less than 3.5 were rated as practiced while those with a mean less
than 3.5 were rated as not practiced. On the same note the higher the standard deviation the higher the level of dispersion
among the respondents.
From the findings the respondents indicated that when they were leading and managing change they were creating a sense
of urgency to reinforce the need for change (M=3.53, SD=0.897), they were providing people with facts, figures and
evidence to persuade them for change (M=4.03, SD=0.895), they were selecting the right people to form the guiding
coalition (M=4.21, SD=0.976), they were getting the guiding coalition to work together as a team (M=4.23, SD=0.765),
they were creating clear and tangible vision for change (M=4.01, SD=0.956), they were constructing effective strategies
to deliver the vision (3.98, SD=1.02), they were changing systems that get on the way of the changed vision (M=3.89,
SD=1.11), they were recruiting promote and develop the right people to promote change (M=3.97, SD=1.07) and they
were ensuring the right people are chosen for the role of change development (M=3.78, SD=0.967).
4.1 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

This section presented the discussion of key data findings, conclusion drawn from the findings highlighted and
recommendation made there-to. The conclusions and recommendations drawn were focused on addressing the purpose of
the study which was to examine the effects of change management in an organization; taking a case of National
University of Rwanda. The objectives of this study were to analyze the effect of change management on organization
culture at National University of Rwanda; to determine the effect of change management on Organization structure at
National University of Rwanda; and to investigate the effect of change management on leadership at National University
of Rwanda
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15. Samuel
4.2 SUMMARY OF KEY FINDINGS

This research study found that the respondents were overseeing changes in Academics, Administration and Management
of the Faculties. Regarding administration, there are changes in the requirements and performance of the staff.
Administrative staffs are now to have at least a bachelor’s degree in relation to the positions they occupy, this affects the
existing culture where for administrative staff there were no such restrictions and conditions to occupy such slots. Module
system was introduced and it replaced the classical way of teaching by course units, now similar/related units are grouped
into one module and taught one after the other, in a logical and chronological order. The University Administration has
introduced the idea of performance contracting. Here all employees are required to set targets from which they are
evaluated and/or appraised. The influence of culture is an impediment since it affects a lot the implementation of
performance contracting. This is because, employees are required to deliver and perform effectively compared to the
previous way of how things were done.
The study established that the changes have a significant effect on the whole institution. Such changes include: Human
resources; downsizing, outsourcing and recruiting more staff to fill some new posts. Technological changes; the increase
of the internet bandwidth in the university has considerably had a significant impact on the operations of the university
both in Academic and administration. These changes mostly have a fundamental effect on the University.
The study also sought to determine the changes that were essential. From the findings the respondents indicated that the
fundamental changes are essential; this is because they have a paramount effect on the whole institution. However, even
other changes depending on where they are initiated and implemented are also very essential in the University. This is due
to the fact that such changes in different units add up to organizational change for example, changes in the academia
especially the language of instruction, changes in administration and the increased use of IT in the University. The study
also sought to know how the changes were arising. The respondents indicated that most of these changes were planned
and come or take place in an incremental form. However, some of these changes came in abruptly.
On the ideal procedure for making changes upon request the respondents indicated that the ideal procedure is that the idea
has to be endorsed by all the University organs especially top management and the University board. On the change
management procedure applied the respondents indicated that the university was applying planned change management
process procedure. Change requests are made by the units with change initiative and they are endorsed by the top
management.
The study sought to determine the situations that interfere with the change management procedure. From the findings the
respondents indicated that it is too tedious to get all the university management organs to approve change initiatives. They
further added that the process is too bureaucratic and many change initiators find it as stumbling block to their
development ideas. On how and where the change documentation was stored the respondent indicated that the Directorate
of Monitoring and Evaluation and the Unit(s) which initiate the idea keep and mostly make a follow up of the change
initiatives and therefore, keep all the necessary documentation on change management.
The study also sought to know who monitored the change. The respondents indicated that the Directorate of Monitoring
and Evaluation was established to oversee and monitor the decisions taken by the top management of the University. On
whether there were alterations that needed to be made to the change management system the respondents indicated that a
proper change management procedure should be established in order to track well the effects of change management.
The study found that the types of emergency changes that have been experienced included change of the Language of
Instruction; from French and English to English only and the introduction of the Module system (Bologna System of
Education) in the University and the whole country was too abrupt. Others changes have also occurred in a reactive
manner. For example, after Rwanda joined the East African Community, it has embarked on harmonizing its operations to
the rest of the community, though such initiatives come in a reactive and abrupt manner.
On how the emergencies were dealt with, the respondents indicated that in case of emergencies the university
management introduces and induces the staff to adopt such changes. However, in some cases when such emergencies are
initiated at a higher level, for example from the Ministry of Education and the Cabinet, the University just implements the
decision.
On approval of various changes that were to be made, the study found that most changes are approved by the University
Management. Some are approved by the Management Committee, the Executive Committee and the Academic Senate.
However, the overall body that oversees and approves all the University change ideas and activities is the Board of
Directors which is the highest decision-making organ of the NUR, appointed by the Cabinet.
On the level of management that was involved in the change process the respondents indicated that mostly the middle
level managers are more involved in the management of change at NUR. On the process of approval the respondents
indicated that after all the necessary organs or levels have approved and/or endorsed the idea, the University Board of
Directors then finally adopts the idea which is then implemented thereafter.
The respondents indicated that the change approval was not easily obtained. This is because the process of approval is too
bureaucratic and centralized in the Board of Directors. The Board of Directors is the only body or level mandated to
oversee and endorse all the university activities. The respondents indicated that the main challenge facing the
management was inadequate resources, lack of enough skilled and experienced staff due to low motivation in terms of
15
salaries and wages, inadequate infrastructure, and strong resistance from the staff due to the organizational culture. On
how the change was dealt with the respondents indicated that a consultative way of handling and implementing change
should be adopted in the University, otherwise there will always be resistance to change initiatives by some members of
the staff who also would like to be part and parcel of the change initiators and implementers.
The study also sought to determine the kind of effect change had on an organization. From the findings the study found
that one of the greatest challenges the University faces today is helping their workers deal with change. It is important that
you are prepared to help your workers navigate this complex and often emotional process. Understanding how people deal
with change will help you manage a successful transition. Change affects workers in different ways. Some common
responses that were observed are: conflict, confusion and loss of confidence. Other kind of impact that change has on the
University are; university restructuring, expansion and introduction of new programs especially at post graduate level.
The respondents also agreed that organizational change was experienced. They further added that there have been several
changes all over the institution which amounts to organizational change. Most of the changes have had a fundamental
impact on the whole University. From the respondents who indicated that organizational change was being experienced,
the study also sought to know there was a need for organizational change to be frequently experienced. The respondents
indicated that there was need for frequent organizational change to be able to cope with the ever turbulent environment in
which the University operates. Failure to adapt and adopt change in the organization would lead to stagnation and
therefore unfit to compete favorably with other actors in the industry.
The study also realized that change was directly impacting the low level management most and there were dedicated team
of members that were having the sole responsibility to monitor the impact of the change. The respondents further added
that the university Management through Board of Directors has established a new Directorate of Monitoring and
Evaluation. It’s headed by a director with 4 other staff members. The Directorate is responsible for following up,
monitoring and evaluating the University decisions, resolutions and projects. This Directorate gathers information from
departments, centers, schools and other units which are then evaluated to advice on the implementation of different
projects in those units.
On the main important problem during change implementation phase, the study found that all the listed problems were
important problem during change implementation phase. The problems that were rated as important include Barriers
between departments, Not enough support from senior management, Resistance of middle management to change, Focus
too much on technological aspects, too less on people, Scope not well defined, project is oversized, resistance of users to
change, Project does not have appropriate priority, Not enough resources available, Budget needed, higher than expected,
Organization and procedures are not adapted to the new situation (technological and organizational integration on
different levels), No transparent goals/objectives, Time for implementation needed, longer than expected, Goals are too
aggressive, organization is not capable to cope, Availability of people from implementation team, Technological
limitations (performance/missing functionality), Barriers to external stakeholders (customers/supplier) and Intercultural
problems (i.e. language barriers).
The study also found that when they were leading and managing change they were creating a sense of urgency to
reinforce the need for change, providing people with facts, figures and evidence to persuade them for change, selecting
the right people to form the guiding coalition, getting the guiding coalition to work together as a team, creating clear and
tangible vision for change, constructing effective strategies to deliver the vision, changing systems that get on the way of
the changed vision, recruiting, promote and develop the right people to promote change and ensuring the right people are
chosen for the role of change development.
4.3 CONCLUSIONS
On the effects of change management on organization culture at National University of Rwanda the study concludes that
the staffs were overseeing change in line with their responsibilities in Academics, Administration and Management of the
Faculty. Regarding administration, there are changes in the requirements and performance of the staff. Administrative
staffs are now supposed to have at least a bachelor’s degree in relation to the positions they occupy, this affects the
existing culture where for administrative staff there were no such restrictions and conditions to occupy such slots. Module
system was introduced and it replaced the classical way of teaching by course units, now similar/related units are grouped
into one module and taught one after the other, in a logical and chronological order. The University Administration has
introduced the idea of performance contracting. Here all employees are required to set targets from which they are
evaluated and/or appraised. The influence of culture is an impediment since it affects a lot the implementation of
performance contracting. This is because, employees are required to deliver and perform effectively compared to the
previous way of how things were done. The study also concludes that there was need for frequent organizational change
to cope with the ever turbulent environment in which the University operates. Failure to adapt and adopt change in the
organization would lead to stagnation and therefore unfit to compete favorably with other actors in the industry.
The study also concludes that when they were leading and managing change they were creating a sense of urgency to
reinforce the need for change, providing people with facts, figures and evidence to persuade them for change, selecting
the right people to form the guiding coalition, getting the guiding coalition to work together as a team, creating clear and
16
17. Samuel
tangible vision for change, constructing effective strategies to deliver the vision, changing systems that get on the way of
the changed vision, recruiting promote and develop the right people to promote change and ensuring the right people are
chosen for the role of change development.
4.4 RECOMMENDATIONS
The study found that one of the main problems the University was facing in the implementation of change was barriers
between departments. This study therefore recommends that the management should ensure that teamwork is enhanced in
order to get rid of conflict of interest between departments. This will also help to curb resistance of middle level
management to change.
The study also found that there were no transparent goals/objectives. The study therefore recommends that the university
management should ensure that organizational goals, objectives, vision and mission are clear. From the study and related
conclusions, the researcher recommends further research in the area of the role of organizational culture in strategic
change implementation.
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18
Challenges in Change Management in Central Banks 35
Journal of Central Banking Theory and Practice, 2013, 1, pp. 35-49 UDK: 336.71:005.6
Received: 28 March 2013; accepted: 19 April 2013
Radoica Luburić * * Executive Director

of the Central Bank of
Montenegro
Challenges in Change Email:
radoica.luburic@cbcg.me
Management in Central Banks
(Based on the Systemic and Process Approach to Total
Quality Management and Operational Risk Management)
Progress is impossible without change, and those who

cannot change their minds cannot change anything.
George Bernard Shaw
The best way to predict future is to create it.

Peter F. Drucker
People don’t resist change. They resist being changed.

Peter Michael Senge
Abstract: Someone said long time ago that everything is subject to

change and that change is the only constant. If changes, as occur-
rences of long duration, are viewed through their temporal dimen-
sion, we will see that they are unstoppable. This is how it has always
been and how it will always be. What is a novelty, however, is that
changes have accelerated over the recent years and this trend could
continue in the future. Scientists have been warning that this accel-
eration of changes should be taken very seriously because these are
not some kind of sporadic and accompanying occurrences of limited
effects and duration but ongoing and dynamic processes taking place
in every sphere of social life to varying degrees. Successful change
management, therefore, has been increasingly gaining importance
and becoming the conditio sine qua non for a sustainable develop-
ment of organisations and, therefore, of financial and banking insti-
tutions. Although I tried to focus on central banking here, it could be
said that the key challenges in change management in central banks
are much alike challenges that arise throughout the financial and
banking system from which they are inseparable. Certain specific
36 Journal of Central Banking Theory and Practice
features that are characteristic of a central bank are primarily determined with the importance
this supreme monetary authority has not only in the financial system of a country, but also in
the entire society. The main task of a central bank is the preservation of price and financial
stability, and indirectly and keeping in mind the global interconnections, even broader than
that. Acceleration of changes in all spheres of social life calls for not only the need to question
the traditional understanding of change management in central banks, but also to redesign and
innovate the existing models thereof. If central banks change following the principles of qual-
ity management and if they successfully manage risks and become more committed, powerful
and transparent in strengthened their role in the area of social
responsibility, they will have the
opportunity to go down the road of success, regardless of all temptations that will be waiting
for them on this road.
Key words: change management, systemic approach, process approach, total quality manage-
ment, operational risk management, financial and banking system, central banks
JEL classification: E58, M00
1. Introduction
In order for institutions in the financial and banking systems to successfully

manage changes, they must create an environment that will allow the application
of the systemic and process approaches to management. These approaches pro-
mote full customer orientation, continuous improvement and innovation, team
leadership and teamwork, and in particular, full involvement of employees in all
work processes and, as required, in decision-making. However, this is easy to
say but not that easy to implement because the systemic and process approaches
to organisation management are very complex and demanding tasks. These ap-
proaches inevitably require certain changes in order to create awareness in or-
ganizations, not only of those who manage and work in these organisations but
also of their customers and stakeholders. These approaches allow for effective
and efficient achievement of sustainable success because they are beneficial to
the organisation and its overall improvement. It is very important that people
who manage organizations realise on time that it is much better to meet ever ac-
celerating changes than to lag behind them because changes are inevitable and
everyone will face them, sooner or later.
Although central banks are conservative institutions by nature and not prone
to rapid changes, we cannot say that these are not dynamic systems that do not
change to the extent inherent to their purpose of existence. Those who work in
these institutions for a long time consider this to be an advantage not a handi-
cap because they have seen in practice that any accelerated change, and in par-
ticular radical ones in conservative organisations such as a central bank entail a
big risk. Fast-paced and extensive changes can cause functional disturbances in
its numerous and diversified subsystems that would not change synchronously.
Practice has shown that too rapid changes greatly reduce the possibility of syn-
chronous effectiveness and efficiency. All this could lead to some disintegration
of the system, and this means many different problems and conflicts. This, how-
ever, should not be an excuse to the financial and banking sectors to fail in timely
anticipation of changes, their creation, improvement of their work processes; in
other words, failure to give full and ongoing attention to changes. This sector, as
one of the most important subsystems in the social and governmental system and
its bloodstream, should have to be more aware and up to date with changes in
the environment, and in certain segments to be changing faster than the system
itself.
Let us remember the financial crisis that erupted in late 2008 and is still ongoing,
and which consequences will be long felt. The financial, and especially the bank-
ing sector, have been blinded by enormous profits and failed to timely anticipate,
create and innovate; simply put, they did not adequately manage changes. When
the crisis already emerged, stereotypical contingency plans were being prepared
but without any significant results. Many early warning mechanisms that had
already been in place failed to detect danger in timely manner. Moreover, they
proved to be insufficiently functional and ineffective, which means that change
management was unsuccessful. Joseph Stiglitz links the causes of the crisis to
untimely and inadequate change management, defining them as follows: “Sins of
both commission and omission – most notably, excessive deregulation, a failure
to effectively enforce the regulations that existed, and the failure to adopt new
regulations reflecting changes in financial markets – made the economies of the
United States and, to some extent, Europe vulnerable to collapse. These failures
led to the crisis and have continued in its wake” (Blanchard, Romer, Spence &
Stiglitz 2012, p. 31).
Although the creators of the financial boom at the beginning of this century have
been identified as the main culprits of the current economic and financial crisis,
its severe consequences have been suffered by everybody else other than those
who caused it. Paul Krugman believes that “the fundamentals of the world econ-
omy aren’t, in themselves, all that scary; it’s the almost universal abdication of
responsibility that fills me, and many other economists, with a growing sense of
dread” (Krugman, 2012). Such an approach to the rapidly changing world should
be changed everywhere, even in these institutions, but this will not be easy be-
cause it is necessary to change the awareness and it is most difficult to change. All
the aforesaid could apply to any organisation, but here we focus on the financial
and banking sector, including central banks, as in these turbulent times of crisis,
much greater social responsibility for overcoming the crisis is expected from cen-
tral banks as well as financially (and not just financially) powerful institutions
than from other institutions. We have often witnessed that these institutions are
the ones that are often the target of numerous discontent people worldwide. And
if life problems of people are not quickly and adequately addressed, such occur-
rences may be more frequent and more dramatic as time goes on and people find
it increasingly difficult to get by. But `profit and profit only` are the words that
are often heard in the business world. Ichak Adizes worryingly notes: “Profits
should not be the goal. They should be the constraint: Of course we do not want
to go bankrupt, but the goal should be to make a better world. The benefit must
be higher than the cost –– and I’m talking about the cost not just to the company
but also to the world, to society, to our children” (Adižes 2011a, p. 155).
Accelerating changes and the current economic and financial crisis have made all
advantages and disadvantages of the global society whose backbone is the “digital
world” come to surface more clearly than ever. Another issue has also emerged
here and it is not exactly encouraging: How come that in the informational, tech-
nological and in every other sense we are more developed than we have ever been,
yet we are not able to successfully cope with many nowadays problems? Many
have lived in the illusion that the “digital world” can solve everything quickly
and efficiently. Such thinking is very dangerous for young people but also to all
others who think alike and are addicted to it. The virtual world can be intoxicat-
ingly imaginary, yet the life is inevitably realistic. Economic problems will not be
solved either by the “virtual consciousness” dictated by the information capital
or by economic theories offered by “virtual economy”. People need fast, clear and
concrete solutions from a real human and not from some “virtual” character.
Something they will truly believe.
Someone has wittily said that there is no difference between theory and practice
- except in practice. Theory is necessary, but it predominantly remains in the
sphere of imagination. If it were only to theory and theoretical considerations,
there would never be a crisis because everything is mostly thought out in theory.
Life, however, is different. We should learn lessons from life, and not just those
of yesterday but those experienced by many generations before us and which we
call historical lessons. Have the institutions in the financial and banking sector,
including central banks, drawn lessons from the recent crisis? Even in the full
swing of the crisis, Krugman viewed this through the prism of preventive ac-
tions “Everything that needs to be regulated in a financial crisis, because it plays
the key role in financial mechanisms, should be subject to regulations in normal
times with a view to preventing excessive risk-taking” (Krugman 2010, p. 200).
The philosophy of change management, as well as risk management, should pri-
marily aim at preventive acting. In order to successfully manage both changes
and risks in crisis times, these should be much better managed in normal times.
As vividly noted by R. S. Kaplan and A. Mikes, “A firm’s ability to weather storms
depends on how seriously executives take risk management when the sun is shin-
ing and no clouds are on the horizon” (Kaplan & Mikes 2012, p. 58).
2. Systemic and process approaches to change management in

central banks
Everything in this world is a system. The Earth is a system as well - it is divided

internally, but externally it is round and complete. And each system, by its na-
ture, is composed of subsystems. The Earth, as a perfect system, consists of nu-
merous and various subsystems such as continents, countries and cities. The rule,
therefore, is universal and applies to every system, every organisation regardless
of the business it pursues, including financial and banking institutions and cen-
tral banks as well. Since anything that consists of subsystems at different levels
is considered a system, everything is subject to change. When a change occurs,
however, subsystems do not change synchronously. A lack of synchronization
creates gaps that manifest themselves through what are initially called problems,
and later a crisis, if the problems are not tackled in timely and appropriate fash-
ion but are left to expand and erupt.
It may sound paradoxical, but while on one hand we develop owing to changes,
on the other hand, the very same or new changes will make us stagnate sooner
or later. And so this goes on forever because this is the road that has no end.
John Harold Johnson was obviously right when he said: “Whatever has made you
successful in the past, won’t in the future”1.While it is necessary and cannot be
stopped, any change ultimately leads to both integration and disintegration as
the respective roots of every success and every failure. Why is this so? Because a
lot of things change before people realize that benefits brought by the old changes
have well worn. And despite all kinds of progress, not only that the problems
have not disappeared but they have merely changed appearance, becoming more
complicated to deal with and expanding their range substantially.
From one reason or the other, neither people nor organisations are eager to make
changes. Why is the resistance to change so deeply rooted in people’s minds so
they feign them rather than truly implement them? A funny yet insightful answer
to this question was given by Peter Michael Senge: “People don’t resist change.
1
John Harold Johnson is an American business and publicist.
They resist being changed!”(Sengi, 2003). However, if they must change, people
rather choose small over big changes. Small changes require less effort, entail
fewer problems, speed of change is less conspicuous, expectations are low, and
everything is much easier to be “put under control”, including trials and surpris-
es. Big changes, however, represent big challenges to any system, its management
and employees. Nevertheless, they also represent a great opportunity and entail
a big risk.
Why is this so?
Because there has to be a good judgment of timing the changes, it must be de-
termined in advance who is going to lead and carry them out at each level, sup-
port forces, and what is more important - how and at what pace they should
be implemented (extremely carefully, thought out, programmed and controlled
and not without a “brake”, without synchronization, “mindlessly”; organically
rather than mechanically). Bearing in mind that changes are constant, the foun-
dations have to be extremely strong so that they could stabilize, build into the
system and their infrastructure consolidated, as well as make them functional
and effective. All this, in one way or the other, is necessary to repeat the entire
life. Adizes advises that whenever we are faced with a change that requires us
to behave differently, we ask ourselves these questions: “Who needs to change?
(and here you start from yourself ). How big is the change? Is the commitment to
change proportional to the size of the change? Is the price you are willing to pay
proportional to the size of the changes you want to make? Are you launching big
ships in shallow waters or in sufficiently deep waters?” (Adižes 2011a, p. 128).
Peter Drucker warned that before you go on with a change you take a good look at
the steps you can take “in order to change and to stabilize the change.” When you
make a decision or implement the change, ask yourself “Who should be informed
about it?” He says: “For me the tension between the need for continuity and the
need for innovation and change was central to society and civilization” (Draker
2006, p. 40, 45). What does this mean? It means that there is no point in starting
everything all over again like nothing has existed or has been good before you,
which, unfortunately, often happens in this region. Where executives are alter-
nating per political or any other directive, discontinuing practices of the previous
management in all aspects and at all costs can be detrimental to successful man-
agement of changes. Precious time can be wasted on experimenting with what in
general should not have been experimented with. It is necessary to change only
what is not good and continuously improve and innovate everything else. And
not to forget that after the occurrence of the change it has to be incorporated into
the system to avoid system disintegration process instead of integration.
It is the nature of people to feel safest in a familiar and stable environment, which
is not characteristic of changes since they bring along uncertainty and unease, as
well as numerous problems. People, as we have already said, do not bother about
changes that happen to others, but they reluctantly accept and implement them if
they refer to themselves, especially if they are to interfere with the privileges they
have acquired. Simply put, both people and organisations would like to live and
work peacefully and avoid problems. But this is not possible, and even if it were, it
would not be good for neither of them. People and organisations could temporar-
ily avoid problems if, temporarily, they would be able to stop changes - but their
systems would inevitably die out. For changes, in fact, make life. Where there is
no life, there is no change. The same applies to organisations of any profile, so in
that sense, central banks as well.
In order for both people and organisations to become more sustainably success-
ful, they must build their own system of success and continuously improve and
innovate it, especially its weakest parts because the system is only as strong as its
weakest link. Brian Tracy believes that you cannot reach the results you want if
you think like a layman so he says: ”You must have a system. Without a system
that will enable you to integrate ideas that you’ve learned, you are like a person
trying to put together a jigsaw puzzle without having seen the picture of what it
represents. Any system or blueprint for success is better than none at all” (Trejsi
2005, p. 36).
People need to be meticulous in developing and preparing their plans of changes

since changes do not include only progress but also problems that need to be ad-
dressed. Many problems arise from our failure to adapt to changes. If managed
timely and adequately, there is no need to fear changes and problems they entail.
Ichak Adizes claims that problems induced by changes can be proactively tackled
because their causes are predictable, which means that every phase in the change
management has a predictable chain of events as well as predictable problems
(Adižes 2011b, p. 237).
In addition to this, there are no changes that are linear and that progress in a
straight line, especially those that are rapid and radical. Even if they are skilfully
managed, you cannot go only straight forward, but you must also go backwards.
Usually you must take a few steps forward and at least one step back. As time
passes by, the distance between these steps reduces, leading to the escalation of
problems as well as conflicts. Constructive conflicts do not represent problems
because they are unavoidable in the process of change management and can often
be beneficial, unlike destructive conflicts that may occur if there is insufficient
mutual trust and respect for proper conflict resolution in an organisation. Full
significance of the human factor – both of the management and employees – is

best recognized in change management. It is unreasonable to expect that organi-
sations can perform better if people who manage them fail to change for the bet-
ter. On the other hand, employees can give a full swing to an organisation with
their latent creative abilities and energy, balance the systems and processes, and
effectively work on continuous improvements.
Decision-making should be based on the principles of quality management and

risk management, paying particular attention to their synergistic effects as the
key segments (Luburić, 2012). If central bank employees successfully manage op-
erational risks whilst managing processes based on total quality principles, they
will also be able to manage changes.
As a paradigm of business excellence, total quality management has the ability

to stabilise and strengthen the key prerequisites for development and sustainable
success of central banks, regardless of all limitations. Operational risk manage-
ment, on the other hand, is predetermined to be an indispensible managerial
tool that allows central banks to survive in all circumstances. The focus is on a
comprehensive and continuous improvement and innovation of the system and
processes, with the participation of all employees and their full commitment to
preventive actions in emergency and unforeseen situations such as natural disas-
ters and the like (Claudio, 2011; Woods, 2011).
Total quality management represents a philosophy that is based on continuous

improvements and efforts by all employees in the organisation aimed at under-
standing, meeting and exceeding requests, needs and expectations of users. It
also represents a learning system and a collection of several methods, techniques
and tools needed to meet the needs of users, employees, business partners and
stakeholders. Quality acts as a pillar that supports this corpus of approaches and
participants in the system, and in addition to other management systems, it is
especially complemented by risk management. Total quality management relies
on several approaches, but essentially depends on efficiency of implementation of
the process approach and involvement of employees (Hubert, 2010). As pointed
out by O. Rentzhog (2000, p. 17-18, 42) “the result never gets better than the pro-
cess that forms it, and therefore, working with process is a key principle.”
3. Leadership and change management in central banks
Talented persons, that is, leaders of changes are crucial for the successful changes
in all organizations, in particular in central banks (Peter F. Drucker). They have a
chance to survive in times of fast structural changes, precisely due to their capa-
bility to see the chances and possibilities and not only threats and danger. To the
leaders of changes, as well as to those who are not leaders, Peter F. Drucker sent
the following message: “Do not “master” people. People should be guided. The
goal is to make special virtues and knowledge of each individual productive”. In
particular, Peter F. Drucker thought that managers, in general, make bad deci-
sions related to the promotion of employees: “Percentage of good decisions does
not exceed one-third. In the best case, one-third of decisions turn to be good,
one-third is very efficient while one third is completely wrong. Other manage-
ment areas do not have that bad result”. In addition, Drucker claims that the most
important decision is in relation to the top position, which is the most difficult
decision to be cancelled: “If we do not spend four hours on appointing a person,
we will spend four hundred hours on correcting our own mistake”. Drucker was
amazed how “completely innocent” people, become bosses: “The largest waste of
resources I have ever seen in all organizations was wrong decision on promotion”
(Draker 2003, p. 68).
If management wants to be successful, it has to take proper decisions as well as

to implement them. This is not an easy task, since each management consists of
people with different personalities, which means different management styles.
In order to bring proper decisions, in addition to competences and moral quali-
ties, managers have to work as a team, to cooperate and be devoted to reaching
goals. However, this is not always the case, since all managers do not share same
interests. Maybe the goal is the same in the beginning, but as time goes by and
changes speed up, different interests emerge not only among managers, but also
among employees. Therefore, mutual trust and respect are the keys for a suc-
cessful change management and for the success of every organisation, including
banking and financial institutions as well as central banks. Faster and more radi-
cal changes generate more complex problems, which calls for mutual trust and
respect.
Team work and team leadership play special roles in change management in cen-
tral banks. Top management has critical responsibility, while activities of middle
and lower management, including all employees, play very important roles. Team
work in change management in central banks is not only a precondition for its
establishment and development but also for its survival. Managers and people
we work with represent the key to our success or our failure. According to many
management theoreticians, the most important decision is the decision on staff
selection, which is confirmed in practice. Management is a very complicated pro-
cess – it represents skills, science, privilege, profession, knowledge and talent. In
reality, it represents managerial skills. Ability to engage staff for different tasks
represents the base of the management. For example, if a governor and his/her
team in a central bank do not emphasise the importance of change management
and processes improvement, no one will pay any special attention to this. Bad
examples are followed primarily by those who are closest to them despite the ef-
fort not to do so.
The first responsibility of the management is to show results, thus, imputation

of guilt to others is not a good choice. Thereby, this is not an easy task. On the
contrary, “a manager must, so to speak, keep his nose to the grindstone, while
lifting his eyes to the hills – quite an acrobatic feat”, as Peter F. Drucker once ex-
plained. Managers should be at a high enough level to have the authority to make
a decision and on sufficiently low level to know the details. Finally, a success-
ful management requires competences rather than formal positioning. In many
organizations, especially in central banks, a typical hierarchical and functional
approach is still dominant and this creates difficulties in focusing on main tasks,
creation of values for beneficiaries. Thus, it is necessary to focus more on benefi-
ciaries than on hierarchical structures, although this is much easier to say than
to implement in a traditional (and still transitional) society.
Success in central bank operations depends mostly on its managers. Thus, it is

very important for them to be honest, competent and responsible. Employees
should contribute to success as well by working hard, by being loyal to the institu-
tion in which they earn much more than employees in other institutions, and by
loving their job. Anyhow, we should be realistic – few organizations were closed
down due to incompetent employees, but many of them collapsed due to incom-
petent managers! For those who are just initiating changes aimed at successful
management and those who already reached success and want to maintain this
level as much as possible, I tried to create twenty guidelines towards this goal
based on discoveries and life experience of many eminent scientists, philoso-
phers, traditional wisdom, as well as on my own research and life experience,
convinced of their efficiency in organisations such as central bank. However, feel
free to judge for yourself ... (Luburić, 2010).
1. Focus should always be on people. Search for the best among them, which
primarily refers to honest, competent and hard working ones. Haters
and schemers are not welcome especially as associates or, even worse, as
friends.
2. Make an effort to make good decisions regarding staff, otherwise you will
take risk of generating worse results. You are risking your reputation as
well as the reputation of your institution.
3. Be open-minded and do not stop the process of hiring young, competent

and talented people. You cannot have too much of such people. Neverthe-
less, do not estimate life experience – experience is everlasting life coach.
4. Support women in organizations, you will not regret. Foster adventur-
ous spirit as it stimulates changes, and considers enthusiasm as a driving
force of your organization. Do not hobble imagination. Your future will
be limited only by limits of your own imagination!
5. If you haven’t done this already, introduce team work, do not suffocate
creativity and individuality. Create opportunities for leadership on every
level. The one who tries to do all work by himself and to take all credits
for it will never be a good leader. A good leader is the one who works on
making himself replaceable.
6. Lead by trying to win people over and command them only if necessary.
Manage facts. You should know this as well – keep your friends close but
your enemies even closer, if you can recognize them for who they are. But
don’t despair. Greatness of the many was paved by their enemies…
7. Keep an open dialogue with your associates and subordinates and point
to the importance of respect and trust. Try to help them whenever you
can. To have is to give – the hand that gives is above the hand that takes,
and life gives you back only what we give to others. Communication is
one of the most important elements of success.
8. You have to set up goals because if you do not have your own you will be
forced to work on achieving the goals of others. Goals are not destiny;
they represent directions and a road. Live in harmony with nature and
ethic principles, and let your inner peace become your ultimate objective.
9. Always welcome changes, choose priorities, and delete the unnecessary
from your life. There is nothing so useless as doing efficiently something
that should not be done at all.
10. Never ignore your “inner voice” and intuition. They transcend knowl-
edge.
11. Follow business trends and be forward-looking. Business, as any other
game, has its players, language, rules, controversies and rhythm. The best
thing is when money works for you and not when you work for money!
And remember: the one who knows when enough is enough, will always
have enough.
12. Praise and encourage people skills, especially innovation and innovators.
Innovations should be assessed according to their contribution to the
market and buyers. Thus, make an effort to make sufficient investment
in innovations in order to be prepared for the day when you profitable
business becomes outdated.
13. Set very high standards and introduce a quality system. Cheap quality is
expensive, good quality is cheap.
14. Improvement, improvement, improvement (this refers to the entire or-
ganization). You cannot improve your products if you do not improve
yourself.
15. Use benefits of the digital technology – but keep your soul. In the digital
world, information flow is your bloodstream. Not only that the big eat the
small, but in many cases, the fast eat the slow.
16. Always have time for your family, especially for your children. They rep-
resent the measure of your success and they will be your future judges.
17. Preserve health. A healthy person has thousand wishes, and a sick person
only one – to get well. Therefore, keep smiling – smile heals soul and fol-
lows success.
18. Whenever you reach success celebrate it with your family, co-workers
and friends.
19. Find the measure of perfection if you can as nobody has found it yet. If
you don’t succeed, always strive for perfection. This means you should
make and effort to be as perfect as possible. Perfection represents an at-
tempt to be better than others. Therefore, in order to become successful,
work hard and in order to stay successful, work even harder!
20. Finally, try not to miss the goal when you get so close to it; so, be as careful
at the end as at the beginning. Don’t forget your failures in the moments
of success or your benefactors. And pray that success does not come be-
fore you are ready to deal with it.
Conclusion
This paper has focused on challenges in change management in central banks

in times of accelerated political, economic and technological changes, more fre-
quent natural disasters, terrorist attacks, and other external events. Our analysis
is focused on systemic and process approach to total quality management and
operational risk management, since these are two very compatible and comple-
mentary approaches which synergic effects may substantially contribute to a
more successful change management in central banks. Comprehensive but grad-
ual and continuous changes designed as small steps in which all employees are
participating and which are based on continuous improvements may give better
results than when they are fast and radical, and they are much more applicable in
institutions such as central banks, even if they are very limited in coverage and
time.
For change management to be adequately implemented in the financial and

banking sector, specialised knowledge in finance, banking and central banking
is not sufficient any more. This also requires many other interdisciplinary knowl-
edge, experiences and skills. The world in which we live and work is more ad-
vanced than it has ever been, and at the same time it is becoming more and more
complicated, complex and unsafe place for living and changing much faster than
we could have imagined it. Looking at the big picture, the world is a large and
complex system consisting of many subsystems. When subsystems do not change
simultaneously and do not coexist for the sake of the entire system, disturbances
occur that lead to disintegration and problems. If these problems compound and
are not resolved in timely manner, various turbulences and crisis are bound to
occur. Why do we link all this to the financial and banking sector when it has
“survived” the crisis, continues to make profit, and even follows the same old pat-
terns of behaviour? Because risk and change management in these sectors have
proved to be unsustainable and unacceptable in many aspects, especially observ-
ing from the aspect of social responsibility. These institutions should anticipate
changes in timely fashion, create and manage them properly, which is, de facto,
the most complex part of this task.
If financial and banking institutions, in particular central banks as the regula-

tors and supervisors act as self-sufficient isolated islands lagging behind changes
instead of anticipating, creating and managing them in a proper manner, if they
fail to work on fast-paced introduction and implementation of the systemic and
process approaches to management, especially change and risk management, if
they do not realize that accelerating changes also change our environment and
that external events may have disastrous effects if they fail to ensure timely and
proper response, they will find themselves on a slippery and foggy road – with
much more severe consequences than in the case of the existing crisis. The sooner
they realize this the sooner they will be facing numerous challenges arising from
the accelerating changes. However, we should have in mind that starting with
timely changes does not represent any reliable guarantee of success, even if they
are properly managed. But, this is certainly one of the key and inevitable precon-
ditions for reaching success. In simple words, if organizations do not manage
changes successfully, they will not be able to manage anything with success, even
if these are central banks.
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International Affairs and Global Strategy www.iiste.org
ISSN 2224-574X (Paper) ISSN 2224-8951 (Online)
Vol.9, 2013
Employee Engagement and Change Management Programmes:

a Comparative Study of Organisational Commitment between
Thai and Irish Cultures
Mark J. Dunne
Ramkhamhaeng University, Institute of International Studies,
Ramkhamhaeng Road, Huamark, Bangkok 10240, Thailand
Email: mjadunne@yahoo.com
Bahaudin G. Mujtaba (correspondent author)

Nova Southeastern University
H. Wayne Huizenga School of Business and Entrepreneurship,
3301 College Avenue, Fort Lauderdale, FL. 33314-7796, USA
Email: mujtaba@nova.edu
ABSTRACT:
The objective of this research was to explore the nature of employee commitment and to determine if this
commitment is enhanced if the company encourages a climate of inclusive change and whether there is a
difference in the nature of this relationship based on nationality. The survey was conducted amongst 121
respondents in full-time employment in Thailand and Ireland. The findings indicate that change management
styles in both countries show some statistically significant changes along with room for improvement and
that the appetite for more active participation in change management programmes does exist. Limitations
and implications for management and future research are presented.
Key Words: Change climate, change management, commitment, Ireland, Thailand.
INTRODUCTION
Change is an inevitable and constant feature of modern corporate life. Whether the process is called
‘re-engineering’, ‘downsizing’, ‘rightsizing’ or ‘strategising for efficiencies’ it can be a very expensive
undertaking, and not only in monetary terms: traumatic for employees, demanding and difficult for
management and disruptive to company productivity. Most employees tend to react with resistance rather
than seeing change as an opportunity to initiate improvements. The legacy of a difficult Change Management
process can linger long after the actual programme has been completed and can adversely affect employees’
sense of job security, satisfaction, trust and can lead to issues with staff retention. However, change
processes conducted in an open and inclusive manner can facilitate new thinking, enhance efficiencies,
improve innovation, inspire all employees to work at higher levels of self-awareness and should lead to a
greater degree of commitment to the organisation.
This study investigates the relationship between the level of an employee’s commitment to his/her
employer organisation and the environment in which change management programmes are implemented
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within that organisation. Does an open and inclusive change management climate engender greater
commitment from employees? ‘Commitment’ is seen according to Allen and Meyer’s (1991)
three-component model: Affective, Continuance and Normative.
Furthermore, it attempts to identify if there is a significant difference in the nature of this
relationship between European and South-East Asian work cultures, specifically Ireland in the former
category and Thailand in the latter category.
LITERATURE REVIEW
In today’s fast-moving and increasingly globalised business world ‘change’ is not the exception but rather a
steady, relentless process. This is evident in the inexorable move from legacy, top-down, value creation
models to more horizontal models that necessitate collaboration across different work groups, departments,
companies, cultures and even countries. The cultural and business revolution initiated by invention of the
Internet, the creation of the World Wide Web and the mass availability of open source software to leverage
the power of both has had profound effects on companies and countries. An increasingly interconnected,
multi-cultural, multi-ethnic society is in evidence all across the developing and developed worlds. To operate
in this new world and profitably engage with it organisations require confidence, structural agility, flexibility
of thought and, critically, an ability to welcome change and see the opportunities it presents. Change is an
unavoidable process in modern business life and, if handled insensitively, it can have an insidious effect on
the level of employee commitment to his/her company. On the other hand it can provide benefits for all
stakeholders if the ‘Change Management’ process is transparent and inclusive.
Change requires the continuous adaption of corporate strategies, and consequent changes in
company structures, as well as innovation in business processes to respond to changes in the external and
internal environments. In this context change may be concerned with a wide variety of issues, from
introducing a new product line to implementing a completely new corporate strategy. Organisational change
can be described as a way of altering the structure and/or processes of an existing company in order to
increase its effectiveness in pursuit of its strategic objectives.
Change management means to plan, initiate, realise, control, and finally stabilise change processes
on a corporate and personal level. Change management comprises both, revolutionary one-off projects and
evolutionary transformations (Frans, 2010).
In a business environment where change is unrelenting, and its rate increasing, organisational
structures must be nimble enough to support change and empower their people, not only embrace change but,
to drive it also. Burke and Cooper (2009, p.XXI) state that there is increasing evidence that people, their
management and their organisational culture are the only really unique source of competitive advantage
available to companies today.
It has been widely known that high levels of organisational commitment from employees lead to
higher productivity, reduced levels of staff turnover, lower rates of absenteeism and the urge to ‘go the extra
mile’ in seeing a job done well. How is it possible to maintain such high levels of commitment from people in
the face of constant change and uncertainties about their futures? Worley and Lawler (2006, p.4) contend
“built-to-change firms are anxious about being caught off-guard, so they place everyone close to customers
and the environment…That way, when the time comes to alter the direction of the organisation, everyone
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moves together based on a common understanding and felt need for the change.” Additionally they state
that ‘shared leadership’ facilitates effective change management but requires constant input from
employees to develop business strategy (p.7).
Conger and Pearce (2003, p.1) offer the following definition of ‘shared leadership’: “A dynamic,
interactive influence process among individuals in groups for which the objective is to lead one another to
the achievement of group or organisational goals or both”. They continue, “This influence process often
involves peer, or lateral, influence and at other times involves upward or downward hierarchical influence”.
According to Duck (2001), the four main reasons for people’s resistance to change are as follows:
• Parochial self-interest – people are fearful of the potential losses as a result of the change,
organisational objectives are given secondary consideration;
• Misunderstanding and lack of trust – people misunderstand the drivers and objectives of the
changes, this attitude is hardened if there is a high degree of organisational distrust;
• Different assessments – people’s (managers and employees) decision-making abilities are based on
different knowledge sets, even within these groups there can be a broad spectrum of opinion;
• Low tolerance for change – people may be fearful that their present skills and competencies do not
equip them to perform well when the changes are implemented, others may be reluctant to expend
the additional effort required to gain new skills.
The difficulty lies in motivating people to accept change, embrace it and leverage it to produce new
opportunities for growth for themselves and for their organisations. People typically perceive change in
seven stages (Recklies, 2001):
(1) Shock – faced with an unexpected situation people can suffer a loss of self-confidence;
(2) Denial – people believe change is unnecessary, ‘if it’s not broken don’t fix it’;
(3) Rational Understanding – realise that change is necessary but personal behaviour patterns remain
embedded;
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(4) Emotional Acceptance – management need to influence people to change personal habits, beliefs
and values fundamentally;
(5) Exercising and Learning – change champion needs to implement new processes and encourage new
behaviours;
(6) Realisation – positive feedback from new behaviours encourages new thinking patterns;
(7) Integration – new behaviours and beliefs are completely assimilated.
Lewin (1947) contended that most people are fearful of change and are more confortable in a stable,
unchanging environment. In order to overcome this fear-driven mindset he proposed a three stage model
involving (1) ‘unfreezing’ old ways and attitudes, (2) establishing a new vision and learning through
inclusion, training and empowerment, and (3) ‘refreezing’ this new behaviour, through support,
reinforcement and feedback, so that it becomes the new norm. This process was to be repeated each time a
new change is required.
Burke and Fiksenbaum (2009, p.23) states “emotions that work against change include anxiety, fear,
insecurity, fatigue, cynicism, pessimism, arrogance and anger. Emotions that support change include
optimism, urgency, trust, passions, hope enthusiasm and excitement”. Senge (2006, p.18) observes that
many see themselves as working in a system over which they have no control. They do what is expected of
them and go home – their responsibilities end at the boundaries of their roles. So it is essential that people
are motivated to act for the right reasons; the ability to tap into the emotions associated with
employee-supported change are powerful enablers towards enhanced performance at a personal and
organisational level.
For managers to perform this task they must have finely honed ‘soft skills’, excellent interpersonal
communication, empathy and political skills, as well as more traditional management skills such as business
and analytical skills. Fullan (2002, p.8) states that,
Leaders must be consummate relationship builders with diverse people and groups —
especially with people different than themselves. This is why emotional intelligence is
equal to or more important than having the best ideas. In complex times, emotional
intelligence is a must.
Managers must get the ‘buy-in’ of all stakeholders involved in the change in order for that change to be
successful. Employees, particularly, need to understand the objective of the change, must see the benefit for
them and must be active in the implementation, if not the development, of the change so that they can bring
all their skills, experience and enthusiasm to bear to change ingrained habits and work towards new goals.
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Organisational managers with responsibility for implementing change need to create an open,
accommodating and inclusive climate in which to engage with their employees. Clear communication is
critical to all such undertakings. Managers need to employ a number of influencing techniques to establish a
trusting environment, throughout the organisation, within which to elicit the best from their staff. For
example, Vengel (2000) identified two types of energy that can be used to influence people: ‘push’ energy
which is forceful, persuasive and ‘pull’ energy which is involving, inclusive (Mujtaba, 2014). Other
techniques include building rapport, consultation and, importantly, appeals based on friendship. All these
techniques illustrate that building and maintaining relationships are the keys to successful change
management. Employees need to believe that they are included in the process, their opinions have value and
their voices are heard.
The organisational structure must facilitate unleashing the creative forces within employees to
harness and direct those energies towards achieving corporate objectives. Senge (2006, p. 7) describes the
concept of ‘personal mastery’ as “the discipline of continually clarifying and deepening our personal vision,
of focusing our energies, of developing patience and of seeing reality objectively”. He says that this is a
cornerstone of a learning organisation but that few such organisations exist and the vast majority of
organisations do not encourage the personal growth of their staff. Senge goes on to state that employees
with high levels of mastery are highly committed, learn fast, take responsibility and work under their own
initiative (p.133). Bill O’Brien (as cited in Senge 2006, p.134) said “to seek personal fulfilment only outside
of work and to ignore the significant portion of our lives which we spend working, would be to limit our
opportunities to be happy and complete human beings.”
If the premise is accepted that, in response to the increasing pace of globalisation and business
innovation, all organisations’ new modus operandi in dealing with a never-ending series of change processes
then it is essential to include employees in the shared leadership process, motivate them towards continued
self-development and leverage their intellectual capital in responding to developing business challenges.
Senior management need to demonstrate that tacit knowledge is valued for the asset it really is and
organisational memory is recognised and utilised for its ability for comparing past outcomes and making
inferences about what actions will improve future results.
Mahler and Casamayou state “it is not enough that information exists somewhere in the
organization. It must be shared, interpreted, argued over, and reinterpreted to tease out trends and understand
the link between actions and results” (2009, p.203).
This concept is of such critical importance that the US Army even has an office called the ‘Center
for Army Lessons Learned’ located in Fort Leavenworth, Kansas. Here the Army tries to learn from
encounters with the enemy and then incorporate these lessons into its training manoeuvres (Ricks, 2006,
p.193). Kanter (1979, p.72) argues that,
Powerless people are usually the last ones to whom anyone wants to entrust more power,
for fear of its dissipation or abuse. But those people are precisely the ones who might
benefit most from an injection of power and whose behaviour is likely to change as new
options open up to them.
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He goes on to explain that the reasons that most organisation’s are not inclusive and do not empower
employees are mundane: current managers will feel threatened, the existing hierarchy will not be respected,
less skilled people should not be opining on management issues, and that predictability is rated more highly
than flexibility(p.74).
Conger and Kanungo (1988, p.476) believe that “empowerment processes may allow leaders to
lessen the emotional impact of demoralising change or to mobilise organisational members in the face of
difficult competitive challenges”.
Eisenberger et al. (1986, p.501) defined an employee concept of ‘perceived organisational support’
and noted that employees “develop global beliefs concerning the extent to which organisations value their
contributions and cares about their well-being”. Furthermore they state that, assuming expectations for praise
and reward for extra effort are met, employees would identify themselves with the organisation and develop a
positive affective attachment. Thus there would be an increase in the employee’s efforts to achieve
organisational objectives.
The concept of ‘organisational commitment’ and its relationship to job satisfaction, innate employee
beliefs and behaviours has been widely researched and documented in the public, private and not-for-profit
sectors (Porter et al., 1974, 1976; Mowday et al., 1979; Vandenberg and Lance, 1992; Haluk, 2008).
Organisational commitment is defined as acceptance as well as a strong belief in the organisation’s
goals and values, a willingness to exert considerable effort on behalf of the organisation, and a desire to
maintain organisational membership (Mowday et al., 1979).
Furthermore, Allen and Meyer (1990, p.1) defined three distinct components of organisational
commitment as:
• Affective commitment – ‘employees’ emotional attachment to, identification with, and
involvement in, the organisation’;
• Continuance commitment – ‘based on the costs the employee associates with leaving the
organisation’;
• Normative commitment – ‘employees’ feelings of obligation to remain with the organisation’.
In addition, research (Allen & Meyer, 1990) has also investigated the antecedents of commitment, including
work experience (affective commitment), perceived lack of alternatives & magnitude of side-bets
(continuance commitment) and family and cultural socialisation experiences (normative commitment).
The rise of interest in this concept is due to the increased dislocation of the world of work and its
perceived effects on the output and efficiency of employees. Due to the rapid changes in business over the
last thirty years employees in modern organisations are expected to be more proactive than ever before. The
expectation from management is for employees to show more flexibility, initiative, motivation, and
commitment while the employees may be inclined to display less of these qualities due to a perceived lack
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of reciprocal commitment from their managers. The success of any organisation depends, not only on how
it leverages its human capital and organisational memory but also, on how it encourages further
commitment and innovation from its employees in the face of market pressures, rapid market changes and
increased pressure on existing corporate structures and processes.
Organisational leaders need to create a coherent overview of the change they are seeking,
communicate this vision to all employees and invest resources into building and maintaining the processes
required to embed these practices and engage their staff in a consistent, meaningful and rewarding manner.
Real inclusion must mean more than rhetoric.
Ackoff (2006) defined two types of mistakes that organisations could and should learn from: (1)
errors of commission – something that should not have been done, (2) errors of omission – something that
should have been done. According to Ackoff, the latter are not recorded, are unacknowledged and there is
no accountability for them. He states,
In such a situation a manager who wants to invoke as little disapproval as possible must
try either to minimize errors of commission or transfer to others responsibility for those
he or she makes. The best way to do this is to do nothing, or as little as one can get away
with. This is a major reason that organizations do not make radical changes (2006, p.4).
Many studies have been undertaken to investigate the relationship between job satisfaction and
organisational commitment, and these have shown that there is a positive correlation between the two. The
focus of this study is on the influence of change management culture on all three elements of organisational
commitment. However, if we assume that if an organisation fosters a more open and inclusive change
management policy, and this leads to increased levels of job satisfaction for employees, then we would
expect such a policy to also lead to greater levels of commitment to one’s organisation.
HYPOTHESES
This study focuses on the potential relationships between an organisation’s change management philosophy
or climate and the degree of commitment to that organisation experienced by its employees. As stated
previously today’s increasingly globalised business world is characterised by ‘change’ being the norm rather
than the exception. If it could be demonstrated that an inclusive company-wide change management climate
leads to higher levels of employee engagement and commitment then there are significant implications for
senior management teams regarding organisational strategy, and therefore structure, as well as middle
managers, coaches and mentors.
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Figure 1: Model of hypotheses
This is a quantitative study where the data was gathered by using a Web-based questionnaire survey
instrument. The unit of analysis is the individual respondent who completed the survey. The six hypotheses
that were tested are:
1. Irish employee’s organisational commitment (affective, continuance and normative) will be higher
if the organisation in which he/she works employs a more inclusive type of change management
style.
2. Irish employees with longer company service have a greater degree of continuance commitment.
3. Irish employees with higher educational qualifications have a greater degree of affective
commitment.
4. Thai employee’s organisational commitment (affective, continuance and normative) is unaffected
by the climate for change applied in his/her company.
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5. Thai employees with longer company service have a greater degree of normative commitment.
6. Thai employees with higher educational qualifications have a greater degree of affective
commitment.
METHODOLOGY
The dependent variables are ‘Organisational Climate for Change’ and ‘Organisational Commitment’. The
latter is sub-divided into ‘Affective Commitment’, ‘Continuance Commitment’ and ‘Normative
Commitment’, as identified by Allen and Meyer (1991). The independent variables are the demographic
information comprising the respondents’ nationality, gender, age, education, number of service years, and
occupation grade.
The survey was targeted at a population sample of two hundred (200) Irish nationals working
mainly, but not exclusively in the Republic of Ireland, and two hundred (200) Thai nationals working mainly,
but not exclusively in Thailand. The population was aimed at employees working in full-time employment in
companies, from small- to large-scale enterprises. No industries were deemed as excludable.
In actuality 131 responses were collected, of which 121 were valid for the purposes of this project.
Fifty-three (53) were from Irish respondents (43.8% of total) and sixty-eight (68) were from Thai respondents
(56.2% of total). In addition six (6) responses were collected from nationals outside these target populations.
This latter category was not considered for data analysis.
The survey instrument used in the collection of data for this research consists of forty (40)
statements divided into four sections:
• Section 1 - consists of seventeen (17) statements that comprise the ‘Survey of Organisational
Climate for Change’ questionnaire (Mujtaba and McCartney, 2010);
• Section 2 - consists of eight (8) statements that comprise the ‘Affective Commitment’ component
of Allen and Meyer’s organisational commitment questionnaire;
• Section 3 - consists of nine (9) statements that comprise the ‘Continuance Commitment’
component of Allen and Meyer’s organisational commitment questionnaire;
• Section 4 - consists of six (6) statements that comprise the ‘Normative Commitment’ component
of Allen and Meyer’s organisational commitment questionnaire.
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The final section consists of the six (6) categories that describe the demographic data of the sampled
population.
The respondents were asked to consider each statement in turn and indicate their level of agreement
by placing a checkmark on a five-level Likert scale: (1) Strongly Disagreeing, (2) Disagreeing, (3) Neutral,
(4) Agreeing, (5) Strongly Agreeing.
The survey was prepared in English, however considerable efforts were made to ensure the survey
introductory statement, instructions and research statements were accurately translated into Thai and
back-translated into English language by another person who spoke both languages fluently to make sure
there is equivalency in the meaning. As a result, minor adjustments were made prior to implementation.
The decision to expend efforts in translation was driven by the need to make the survey instrument
as accessible as possible to potential Thai respondents. The aim is that the survey would be answered by
Thais not normally exposed to non-Thai nationals or non-Thai work cultures. The survey instrument was
bi-lingual (English and Thai).
The survey was initially sent to Thai students of the part-time MBA programme at the Institute of
International Studies, Ramkhamhaeng University who were engaged in full-time employment, as well as
professional contacts in Thailand’s telecommunications industry.
Similarly, the survey was initially sent to friends, former colleagues and professional contacts in
Ireland’s telecommunications industry. In both cases it was requested of the initial respondents that they
forward the survey to friends and colleagues employed full-time in as wide a spectrum of industries as
possible in order to obtain a more representative population sample. The survey instrument was distributed as
a unique weblink through e-mail.
Data analysis
Frequency analysis was used to indicate the respondent’s opinions on each of the survey statements. Then,
as the aim of the study was to determine the relationship between employees’ organisational commitment
and their perception of change management climate, Analysis of Variance (ANOVA) was used. The
hypotheses were tested using one-way ANOVA, mean, standard deviation, t-test and F-test.
Using the online survey collection method a total of 131 responses were collected, of which 121
were deemed valid for the purposes of this project. 53 were from Irish respondents (43.8% of total) and 68
were from Thai respondents (56.2% of total).
Reliability analysis was conducted using SPSS for Windows Version 16 statistical analysis
programme and this resulted in the calculation of an overall Cronbach's α co-efficient of 0.902 for the 46
items that constituted the survey instrument.
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Demographic characteristics of respondents

Gender. Of the total number of responses 40.5% were from females and 59.5% were from
males, however there was quite an imbalance between the sexes if viewed across the nationality
category. Irish responses were decidedly male, 92.4%, versus 33.82% for Thai respondents. Females
only accounted for 7.55% of Irish respondents whereas they accounted for almost two-thirds of Thai
respondents, 66.18%.
This can probably be attributed to the way in which the survey instrument was initially distributed.
For Irish respondents the survey was sent to friends and former work colleagues of the first author who
used to be employed in the telecommunications industry. In Ireland this has traditionally been a
male-dominated profession, although this is changing in recent years. One consequence of this is very few
women have yet to reach middle- and upper-management grades. However, this is changing, and will
continue to change, as more women are entering tertiary level education in general and engineering in
particular. Due to the low numbers of total responses received and the small representation of females in
the sample, one can surmise that the survey instrument was not circulated much beyond the initial
recipients and, therefore, was primarily answered by male telecommunication engineers and managers.
Over 60% of the Thai respondents were female, and this is due to the fact that the initial circulation
for the survey was amongst colleagues who worked in a diverse range of business sectors. In addition,
many of them passed on the survey to their friends, mostly female, in full-time employment. This was
confirmed by follow-up discussions with respondents.
Age. There were also significant differences in the age profile between Irish and Thai
respondents. Half of the Thai respondents were between 21-35 years of age, but only 25% of the
Irish respondents were in this category. The 36-50 age category accounted for 44% of Thai, versus
66% of Irish, respondents. This disparity may again be explained by
• the age profile of the first author’s peer group in Ireland’s telecommunication industry;
• the suspected lack of success in circulating the survey instrument beyond the initial target group;
• the significant age spectrum that existed in the researcher’s MBA programme class;
• the age profile of the peer group of the MBA programme respondents who participated in the
survey.
Table 1: Respondents by Age
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Education. One very noticeable feature of the education profile is that all Thai respondents
were qualified to a minimum of Bachelor’s degree level and about 46% had attained a Master’s
degree or above.
In stark contrast 45% of Irish respondents had attained a Bachelor’s qualification and only 26% had
a Master’s degree or above. A further 9.4% had a diploma. Surprisingly, nearly 19% had no qualification
beyond a high school education. Without having specific knowledge of the industry background of the
respondents it is impossible to draw any kind of conclusion from this statistic, beyond stating that it does
seem high given the profile of the population sample.
A discussion with one Thai respondent on this issue prompted them to say that a minimum of a
Bachelor’s degree qualification was required to secure any kind of decent job, regardless of its specification
or responsibilities, in the Thai labour market. This seems to result in academic inflation but, as a result,
Thai society places great store on achievement of a tertiary level qualification.
Table 2: Respondents by Education
Service Years. In this category the results showed similar percentages for Thai and Irish in
each of the four categories. The majority of respondents of both nationalities were in the sub-10 year,
at over 60%. There were three Irish respondents in the 31-40 year service category and two Thais,
accounting for 4% of the total.
Table 3: Respondents by Service Years
The large number of Irish respondents in the sub-10 year category may be accounted for by the economic
boom that occurred in that country between 1998 and 2007. Many new technology companies, in particular,
were established during that period, the labour market was very vibrant and the economy effectively had
full employment. There was much fluidity in the job market for suitably qualified personnel, leading to
frequent job changes, increased salaries and accelerated advancement up the managerial ladder. It is
interesting to note that, although 66% of total Irish respondents were between 36-50 years old, 62% of total
respondents had less than 10 years service in their present companies. One would normally expect
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employees in an older age group to change jobs less frequently.

Compare this to the Thai nationality, where a much smaller percentage of total respondents (44%)
were between 36-50 years old, but 66% of total respondents had less than 10 years service in their present
companies.
If causation could be proven we would expect this trend to be reversed as Ireland is now in the early
stages of a prolonged recession and, conversely, Thailand is entering a period of sustained economic
prosperity as they prepare to take full advantage of the opportunities offered by the ASEAN trade
agreement initiating in the coming two years. This environment should facilitate greater fluidity in the job
market with consequent rises in salaries and accelerated career development, but there may be
socio-cultural aspects that come into play. This topic is worthy of further research.
Occupation Grade. Nearly 65% of Thai respondents were in the ‘Staff’ occupation grade
versus 34% of Irish respondents. This may be explained by the fact that Thais accounted for nearly
twice the percentage of Irish respondents in the 21-35 age group, 64.7% and 33.96% respectively.
One would normally expect that younger staff would occupy a proportionate amount of junior
positions.
Table 4: Respondents by Occupation Grade
The first-line management grade shows comparable percentages between the two nationalities, 20.59% and
20.75% respectively.
The mid-level management category accounts for 13% of Thais but 30% of Irish respondents. This
may be explained by the different age profiles discussed previously, as could the percentages in the senior
management categories.
Hypotheses Testing
The hypotheses were tested using one-way ANOVA, mean, standard deviation, t-test and F-test. A
significance level of 0.05 was selected to determine if a hypothesis was supported by the collected data or
not.
Hypothesis 1. Irish employee’s organisational commitment (affective, continuance and
normative) will be higher if the organisation in which he/she works employs a more inclusive type of
change management style.
One-way ANOVA was used to test this hypothesis, with the dependent variable being the degree of
organisational commitment (affective, continuance and normative). This resulted in a calculated
significance level or p-value = 0.527. As this number is greater than 0.05 it means that there is a 'difference'
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but this difference is 'Not Significant', therefore the research hypothesis is not supported. The measured
value obtained in the sample is not consistent with that implied in the hypothesis.
This implies that an organisation with a more inclusive type of change management style does not
cause an Irish employee's organisational commitment (OC) to be higher. The ‘mean’ data does show that
Irish employees that work in organisations with more inclusive style of change management will have a
higher level of organisational commitment, however the difference across the five groups of the Likert
scale is such that this ‘difference’ is not deemed to be statistically significant. There is a steady rise
visible in the mean commitment level until that category of employee who perceives that that change
management climate was most inclusive (group 5), where a drop in commitment was recorded.
This is an interesting result – intuitively one would have expected the hypothesis to hold true. Any
organisation that actively engages its employees in decision-making, shared leadership and empowerment
should engender greater levels of commitment. It is possible the result for group 5 is an anomaly since the
number of respondents in this group is quite small and other, more transitory or superficial (for example a
negative performance review), factors may be involved that served to reduce overall commitment level at
the time of the survey. Maybe a larger sample would provide more conclusive evidence in this regard.
It is interesting to note that no Irish respondents chose Option 1 (Strongly Disagree) for the
statements relating to change management style and only one Thai respondent chose this option. The three
middle options (Disagree, Neutral and Agree) accounted for 96% of Irish respondents’ and 94% of Thai
respondents’ opinion.
Hypothesis 2. Irish employees with longer company service have a greater degree of
continuance commitment.
The dependent variable is the degree of organisational continuance commitment. This resulted in a
calculated significance level or p-value = 0.078. As this number is greater than 0.05 it means that the
research hypothesis is not supported. The measured value obtained in the sample is not consistent with that
implied in the hypothesis.
This implies that, overall, Irish employees with longer company service do not have a greater
degree of continuance commitment, i.e. employees will not stay with the organisation just because they feel
they have to. Closer examination of the ‘mean’ data does show that employees with 21-30 years service
show an increased level of continuance commitment but this is at odds with reduced level of commitment
in the 11-20 years service category. It is interesting that the mean continuance commitment should reduce
after the first decade in an organisation increase and then fall off in the 31-40 years service category.
There are so many factors that may play a role in this, such as cultural, societal and economic. As
discussed previously the dramatic change in Ireland’s economic fortunes, and hence its labour market and
work attitudes, over the last 30 years may help explain this. For example, because of the world economic
crash in 2008 and its consequences for the Irish economy, those employees with relatively short service
who retained their jobs were probably more inclined to feel that they had to stay in their jobs as they
provided a degree of financial security. Those with 11-20 years service, having lived through a period of
unprecedented growth and prosperity, may have felt that opportunities would always exist for people (like
them) of talent and experience. Employees with 21-30 years service would have lived through a period of
economic stagnation and mass unemployment so they would place great store on a job, continuance
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commitment and the security they provided. It is difficult to explain the mean in the last service year
category with only three respondents. It is possible that employees so close to retirement may have other
priorities that impact negatively on their continuance commitment.
Hypothesis 3. Irish employees with higher educational qualifications have a greater degree
of affective commitment.
The dependent variable is the degree of organisational affective commitment. This resulted in a calculated
significance level or p-value = 0.05. In itself this result is insufficient to prove that the data supports the
hypothesis or not. By using Scheffe’s Theory (as the samples are of unequal sizes) as a secondary test, the
p-values calculated range from 0.085 to 0.973. As these numbers are greater than 0.05, therefore the
research hypothesis is not supported. The measured value obtained in the sample is not consistent with that
implied in the hypothesis.
This implies that, overall, Irish employees with higher educational qualifications do not have a
greater degree of affective commitment, i.e. employees will not stay with the organisation just because they
want to continue work there – they could be easily tempted by other offers of higher salaries or better working
conditions. This indicates that the social aspect of work, for example esprit de corps, workplace friendships
and a mutually supportive and comfortable environment, become less important as employees attain higher
levels of education. Maybe this is because, with better education, career advancement and managerial
aspirations become more important than the social aspect of the workplace. A senior manager interviewed
remarked, “I didn’t earn an MBA and become a manager to make friends” (John Cusack, personal
communications, 17th March 2012).
Additionally, during the boom years in Ireland there were significant shifts in societal priorities and
a boom in the middle-class (and the extent of their aspirations). Greater emphasis was placed on attaining
higher levels of education and post-graduate degrees as these were seen as the way to corporate respectability
and managerial (and therefore financial) success. As a result there was fluid labour market for qualified staff
and opportunities for advancement were in abundance. This led to wage inflation and an increased emphasis
on financial incentives as the main arbiter of job satisfaction and commitment, with a reduced emphasis on
the, heretofore, valued social aspects of work and the workplace.
Hypothesis 4. Thai employee’s organisational commitment (affective, continuance and
normative) is unaffected by the climate for change applied in his/her company.
The dependent variable is the degree of organisational commitment (affective, continuance and normative).
This resulted in a calculated significance level or p-value = 0.92. As this number is greater than 0.05,
therefore the research hypothesis is not supported. The measured value obtained in the sample is not
consistent with that implied in the hypothesis.
This implies that an organisation with a more inclusive type of change management style does
cause a change in Thai employee's organisational commitment (OC). The ‘mean’ data seems to show that
Thai employees that work in organisations with more inclusive style of change management will have a
higher level of organisational commitment up to a certain point, however the difference is not deemed to be
statistically significant.
What is interesting is that there seems to be a positive correlation between an open change climate
and organisational commitment and then a decrease in the level of the latter before it rises again as the
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change management climate tends towards the most inclusive. The mean result for category 5 may be an
anomaly as a result of the small number of respondents (there were only 3 in this category). A larger
sample would probably provide more conclusive evidence in this regard.
In the cases of both Hypotheses 1 and 4 there does seem to be a positive correlation at the lower
end of the change management climate scale but the higher end of the scale produced contrary results. In
both cases the number of respondents was quite small and therefore may provide false readings.
The intention of Hypothesis 4 was to see if Thai employees were ‘immune’ to change management
climate as a result of inherent cultural mores and the data seems to show that this is not the case. Has this
always been the case or is a result of attitudinal shifts in the workplace amongst the younger generation of
Thai employees? This is an area ripe for further research.
Another observation is that in both Thailand and Ireland the change management climate is
unremarkable, i.e. opinion of the vast majority of both nationalities was that their respective companies’
practices were average. This would indicate that there is much room for improvement in the need for
perception-shift on the part of senior managers to fully appreciate the value of organisational memory and
employee empowerment.
Hypothesis 5. Thai employees with longer company service have a greater degree of
normative commitment.
The dependent variable is the degree of organisational normative commitment. This resulted in a calculated
significance level or p-value = 0.007. As this number is less than 0.05 it means that there is a 'significant
difference', therefore the research hypothesis is supported. The measured value obtained in the sample is
consistent with that implied in the hypothesis.
Thai employees with higher educational qualifications have a greater degree of normative
commitment. The increase in the value of the 'mean' from the <10 years service group 1 (2.7889) to the
31-40 year service group (3.9167) shows a large increase in normative commitment in the groups with
more years of service. However, as commented on previously, with the small number of respondents in the
latter group this high ‘mean’ level could be anomalous – a re-test with a larger sample would probably
provide more conclusive evidence in this regard.
This result complies with earlier studies and highlights the importance of loyalty to older
employees with long service to one company. This is also probably true in Ireland but there are also
specific cultural dimensions to be considered in Thailand. Relationships and hierarchy are fundamentally
important concepts in Thai culture and they both take time to build. In Thailand, there are some norms
which can be said to exist:
• Thais work hard to build and maintain relationships among a wide and complex network of people;
• Thais’ interactions are more or less controlled within the context of a strong hierarchical system
(Holmes & Tantongtavy, 2000, p. 17).
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It would seem logical that to function effectively in an organisation is predicated on one’s success in building
and developing personal networks throughout the organisation. Once an employee leaves the organisation the
network ceases to provide the advantage it once did. In addition older people generally feel more loyalty to
their employers, particularly if they have long service.
In more developed Western countries, this sentiment has changed amongst the younger generation as
a result of the restructuring of labour markets and increased globalisation over the last twenty years. It will be
interesting to see if similar cultural changes occur amongst Thailand’s educated younger population in light
of the country’s flourishing economy and advent of the ASEAN Free Trade Area in 2015.
Hypothesis 6. Thai employees with higher educational qualifications have a greater degree of
affective commitment.
The dependent variable is the degree of organisational affective commitment. This resulted in a calculated
significance level or p-value = 0.306. As this number is greater than 0.05 it means that the research
hypothesis is not supported. The measured value obtained in the sample is not consistent with that implied
in the hypothesis.
This indicates that Thai employees with higher educational qualifications do not have a greater
degree of affective commitment, i.e. employees will not stay with the organisation just because they want to
continue work there – they could be easily tempted by other offers of higher salaries or better working
conditions. This indicates that the social aspect of work has become less important. This is an interesting
finding, as it seems to be contrary to the value that most Thai’s find in workplace relationships. According to
Holmes and Tantongtavy (2000, p.76), Thais feel that the ultimate workplace is where he or she feels at
home. For most Thais the workplace should have ‘gan eng’, a pleasant and friendly atmosphere.
Another perspective on this issue is that maybe modern day workplaces in Thailand no longer have
these attributes due, as in the Irish case (Hypothesis 3), to a burgeoning economy, fluid labour market and a
cultural shift (however slight) away from group orientation towards individual self-realisation.
There are an increasing number of Thais who are receiving tertiary, and some receiving secondary
and tertiary, education in the US, UK, Australia, and New Zealand over the last 10 – 20 years. This must be
having an effect on their career expectations and managerial performance on returning to Thailand. This
‘Westernisation’ of work attitudes, in conjunction with an increasingly globalised business environment, may
have an effect on the traditional social norms of individual and group behaviour.
DISCUSSION
The purpose of this research project was to investigate if there was a positive correlation between an open and
inclusive change management climate and an increased level of organisational commitment from employees.
Furthermore, a nationality dimension was added to see if there was any difference in the nature of this
relationship between Irish and Thai employees.
The data showed there was a positive correlation between change management style and levels of
organisational commitments for both Thais and Irish employees, however at the more inclusive end of the
change management scale the survey showed contrary results. The Irish respondents’ commitment dropped
sharply while the Thais’ commitment rose. What caused this?
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It may be an error due to the small sample sizes for both nationalities in this category. It would seem
that few companies in either country provide truly open and inclusive change management climates. For
Hypothesis 1 (Irish) and Hypothesis 4 (Thai) over 90% of all respondents selected statements characterising
their change management climate in the ‘Disagree’, ‘Neutral’ or ‘Agree’ categories. This indicates that the
majority of organisations are still being driven in a top-down style of management. In light of the
fundamental changes in the business environment over the last 15 years it is questionable as to where this
style of management in still appropriate for companies as the 21st century lies ahead of them.
In the case of Hypothesis 1 (Irish), it is surprising that there were not more instances of higher
ratings for open change management climate. The Irish economic boom of the last 15 years certainly
improved salaries, facilitated accelerated career mobility but, on the basis of this research data, has done little
to improve the application and practice of advanced management techniques such as empowerment,
distributed leadership and the learning organisation. Anecdotal evidence points to an increase in the
availability and uptake of post-graduate management studies and yet there seems to be little evidence of the
active application of these management theories in the workplaces of those surveyed.
It is possible that it will take time for such practices to ‘trickle up’, either by the senior management
teams being convinced of their merits or by the promotion of the technique practitioners into influential
positions such that they are able to implement new policies, change structures and evolve strategy in a
direction more congruent with the requirements for business survival and prosperity in the globalised
business world.
In the case of Hypothesis 4 (Thai), we found the results were also surprising but for a different
reason. Thai cultural traits are generally believed to include risk avoidance, an ingrained respect for
hierarchy, non-questioning of the ‘normal’ way of doing things and a generally conservative outlook. All of
which leave employees with little chance to try new ideas or questions old ways. Knowledge of these traits
informed the construction of Hypothesis 4. The data did not support this hypothesis – there does seem to be
evidence of a positive correlation between the two. Why is this the case as it seems to contradict accepted
Thai traits?
It is difficult to provide a definitive answer. Also more detailed enquiries need to be made into the
backgrounds of the Thai respondents to determine if the results are related to:
1. age;
2. education received in an international school in Thailand;
3. education in a foreign university (UK, Australia, USA, Canada, India, New Zealand etc.);
4. international work experience;
5. work experience in a Thai-based multinational or multi-domestic company.
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Are these changes a result of direct foreign education and/or work experience? Are they locally-driven
changes as a result of years of Western teaching methods and textbooks filtered through the prism of local
cultural sensibilities and nuances? This is a topic that invites further research. The findings indicate that,
1. practised change management styles show room for improvement in both countries;
2. Thai respondents are open to fuller engagement with inclusive change management styles if given
the opportunity;
3. Irish respondents are in a similar position, but it is surprising that inclusive change management
styles are not more widespread given the recent period of unprecedented economic growth, labour
market development and ubiquity of professional management education.
In the cases of Hypotheses 3 and 6 the findings indicate that personal motivation and the desire for
self-realisation might become more important in both Thai and Irish society – the root causes are unknown
and would provide another interesting topic for research.
LIMITATIONS AND IMPLICATIONS FOR PRACTICE

The study was limited by the small sample size, the imbalance in respondents’ gender and the non-uniform
size of each age category. All of these factors have the potential to provide greater insight into the issues
investigated. Attempting to identify the real driver for increased appetite for participation amongst Thai
employees, for example, could provide a very interesting topic for further research.
The implication for managers and organisations in both countries is that the appetite for more active
participation in change management programmes exists and will be embraced if employees are provided with
the appropriate support and structures. However, it is important to note that policies must be taken at senior
management level and must be identified and prioritised as strategic goals of the organisation. Deeds must
follow words.
The difficulty for many organisations is that there can be a gulf between the inclusive policies
espoused by the management and what is actually practiced. The first author worked for a large US
multinational for six years. This company invested heavily in corporate training and orientation programmes,
but to little effect. From the employees’ point of view it just seemed as if there was a new programme every
quarter with accompanying inspirational posters and coffee mugs. The employees became cynical of these
efforts, as there were no real structural changes to facilitate programme implementation and subsequent
monitoring of progress. They became increasingly frustrated as there was a disconnect between what
management said and actually did. The moral is that real inclusion must mean more than rhetoric.
Senior management needs to create a coherent overview of the change they are seeking, invest
resources into building and maintain the structures required to embed these changes and engage their staff in
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a consistent, meaningful and rewarding manner: reward success and tolerate failure. There has to be goal
congruence, follow-through and a willingness to amend or scrap change programmes that are judged to be
defective or unworkable. Openness, mutual respect and communication are critical to greater openness:
clarify expectations, dispel rumours, harness creativity and focus enthusiasm towards realising corporate
objectives.
Among the recommendations for organisations and managers are the needs to facilitate job
enrichment, empower employees, optimise knowledge management and harness organisational memory.
Charles Handy said “trust, like learning, requires unconditional support, and forgiveness for mistakes,
provided always that the mistakes are learnt from” (1997, p.190).
Retention of qualified and experienced staff needs to become a strategic goal of the organisation.
Only by valuing employees, promoting their self-development, actively seeking their opinions and
facilitating them in participating in developing and achieving strategic goals can an organisation hope to
maintain competitive edge in the 21st century business world.
Thomas Friedman in his award-winning book, ‘The World Is Flat’, which examined the
implications of the globalised world for people and businesses in the 21st century, states that “the great
challenge for our time will be to absorb these changes in ways that do not overwhelm people or leave them
behind. None of this will be easy...It is inevitable and unavoidable” (2006, p.49).
CONCLUSIONS
Charles Franklin Kettering, inventor and businessman, said “the world hates change, yet it is the only thing
that has brought progress” (as cited in Bateman and Snell, 2010, p.321).
Too often change is presented in a negative light and, for many employees, experience has taught
them to engage with it in a circumspect manner due to the dichotomy between the words and deeds of their
company’s management with respect to planning and implementing it.
Amongst the findings the data indicates that change management styles in use in both countries
show room for improvement. The implication for managers in both countries is that the appetite for more
active participation in change management programmes exists and will be embraced if employees are
provided with the appropriate support and structures.
Senior management need to create a coherent overview of the change they are seeking and engage
their staff in a consistent, meaningful and rewarding manner: reward success and tolerate failure. Jack Welch,
former CEO of General Electric, said “I’ve learned that mistakes can often be as good a teacher as success”
(as cited in Bateman and Snell, 2010, p.313).
Change is unavoidable in the modern business world and needs to be embraced fully and
implemented inclusively for all its benefits to be realised. Ricks (2006, p. 194) states that “…all big
organisations tend to do what they know how to do, rather than what they need to do differently to address the
situation they face.” This strategy is no longer commensurate with survival, never mind success, in the
globalised world in which we now live. The key to understanding the ‘situation’ is to engage fully with the
people who deal with the daily realities of the business, the employees.
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AUTHOR BIOGRAPHY:
Mark J. Dunne is a project manager, telecommunications consultant and an MBA graduate from
the Institute of International Studies, Ramkhamhaeng University in Bangkok, Thailand. His areas of business
research interests include leadership, change management, motivation, and cross-cultural management.
Mark can be reached through e-mail at: mjadunne@yahoo.com
Bahaudin G. Mujtaba is Professor of Management and Human Resources at the Huizenga School
of Business and Entrepreneurship; Nova Southeastern University, Florida, U.S.A. Bahaudin has worked as an
internal consultant, trainer, and teacher. His areas of research include business ethics, diversity management,
change management, and cross-cultural management. Bahaudin can be reached through e-mail at:
mujtaba@nova.edu
22
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JOURNAL OF STRATEGIC LEADERSHIP 1
Change Management
Change Management
Jeff Slattery
Azusa Pacific Online University
The ubiquitous nature of change seems to imply that change comes easily, but this is certainly not the
case in most instances. The world of business and information technology requires frequent, and at times
significant, change initiatives. Successful change appears even more elusive, and thus, the following
information strives to address the major factors that aid in change management. The paper describes the
technical and human elements of change and includes components of change management that relate to
the field of information system management. The results provide guidelines and processes for
successfully implementing change initiatives.
The level of global competition, corporate scandals, and continually changing governmental
regulations and standards requires that firms of all sizes implement change initiatives in order to
survive, remain competitive, and be in compliance with laws and standards. The changes range
from minute to enterprise-wide and bring many challenges and benefits. Firms that embrace
change and utilize it to their advantage receive a comparative advantage that increases their
ability to compete and remain efficient in the marketplace. Due to the critical nature of change,
the following information describes the role of change management in organizations, discusses
the key factors of change, the potential impact, leadership characteristics, common barriers to
change, and offers guidelines to aid in the successful implementation of change initiatives.
Gans (2011) states that 80% of firms polled reported experiencing “some” confusion with the
concept of change management and another 57% indicated that they “often” experienced
confusion during the process of change. These statistics clearly indicate the necessity to
implement a clear, consistent, and comprehensive change management strategy (p. 48).
Information technology projects are not devoid of change issues, as well. In fact, as Flynn, Pan,
Keil, and Mahring (2009) state, IT projects at times “grossly exceed their planned budget and
schedules, often by a factor of 2-3 fold or greater”; again these instances emphasize the need to
focus on key initiatives and the process of change management (p. 131). The stakes are simply
Journal of Strategic Leadership, Vol. 4 Iss. 2, Spring 2013, pp. 1-5

© 2013 Regent University School of Leadership & Business
ISSN 1941-4668

Change Management

too high; firms must take change management seriously and dedicate the time and resources
necessary to effectively implement the initiates. The very survival of a firm often depends on
their ability to adapt and effectively change with the quickly adapting global business
marketplace.
As stated prior, change in business remains a constant and continual process. Firms need to
manage changes and, at times, seek to limit the degree of change while at the same time
aggressively forging forward with changes, prioritizing becomes a key point.
Change creates a sense of uncertainty, stress, and anxiety for employees, which is often
interpreted as resistance by change agents who are already aware of the change and the end
results or ramifications. The change agents have spent countless hours developing, revising, and
strategizing about how the change will improve business operations or advance the firm, but
when the information is presented to frontline employees, they are often surprised and upset by
the suggested or required changes. Balestracci (2003) states that firms and individuals in our
technological age are “ expected to absorb in 10 years what used to be assimilated in two or three
generations,” which creates untold stress and has been identified as “ corporate craziness” (p.
39). This same author goes on to cite the 85/15 rule: 85% of the problems in an organization
derive from faulty process while only 15% or fewer are related to employees, and thus,
management should take the stance to “ blame the process, not the person” (Balestracci, 2003, p.
40). For some firms this may be a major cultural shift, but doing so decreases defensiveness,
makes the actual problem the problem, and enables employees to unite against the problem in
creating a solution. Depersonalizing the problem decreases the emotional reactivity to the
situation, which allows for, and even encourages, change. Once the emotional reactivity has
dissipated, the firm and employees are able to move into the change mode. The ability to
respond appropriately requires five essential skills:
1. Self-awareness
2. Emotional maturity
3. Self-motivation
4. The ability to show empathy
5. The ability to develop and maintain positive relationships (Balestracci, 2003 p. 42)
Displaying these skills and abilities makes the change process much easier and flow more
smoothly, but there are leadership and corporate cultural characteristics and factors that are also
essential for a success change process.
Bejestani (2011) states that, “management is partly science and partly art” (p. 302). The human-
side or soft-skills account for a major element of change, even with regard to the technical
aspects of change. IT systems or applications do not develop, install, and maintain themselves.
People are at the center of change, and the successful implementation of change requires
leadership and management acumen. Great leaders and managers are able to overcome
ISSN 1941-4668

Change Management

resistance, unite employees, create a shared vision, and motivate employees or a team to
implement change and accomplish tasks. Bejestani (2011) lists the following leadership
characteristics:
• Consistency—to build confidence in the people who work for you
• Observation—to observe team members and their behaviors in a positive light
• Problem solving—to make right decisions and solve problems, especially in critical
situations
• Training friendly—to believe in the necessity of training and provide resources for
training
• Humor—to build happiness without non-logical stress
• Communication—to have face-to-face interactions
• Responsibility—to be responsible for completing objectives (p. 303)
In addition, Bluestone (2011) notes the difficulties associated with change and states that leaders
should work to create a culture where mistakes are allowed and discussed in a positive light,
using the mistakes and failures as learning opportunity. Employees should not be afraid to report
mistakes and failures. The corporate culture should encourage a sense of forgiveness and
restoration; employees should not obsess on making the right and perfect decision at the expense
of actually implementing a decision and experiencing an error or setback. Bluestone (2011) ends
by stating that “cultural change is evolution, not revolution”; this speaks to the continual process
of organizational change and change management (p. 21).
Gee and Gee (2011) continue with the same line of thinking by stating the firms should work to “
create a culture of change and innovation…which is one the best ways to build organizations that
can respond to change in a positive and proactive manner” (p. 31). The actions and behaviors of
managers account for up to 50% of how employees view a firm. Managers who encourage the
following behaviors and attitudes are working to instill a culture of creativity, innovation, and
change, which again provides a competitive advantage for their firm:
• Encourage new and creative idea sharing
• Promote diversity of thinking
• Support conflicting or opposing points of view
• Allow time for innovation and provide resources
• Allow people the freedom to make decisions with parameters
• Nurture risk taking as opposed to being risky (Gee & Gee, 2011, p. 31)

ISSN 1941-4668

Change Management

Similarly, firms that primarily operate from a top-down mentality are punitive, allow silos to
exist, fail to communicate decisions, are overly controlling and fail to see the value of their
employees, severely limit or hinder their ability to react quickly to market trends and implement
creative and innovative change initiates. Although the soft-side of change requires extensive
management and interaction, the technical aspects remain and are vital to the process.
Hayes (2010) notes that IT projects are vital for all firms but the role of many IT professionals
has changed. IT managers and even frontline staff are not simply able to maintain and interact
with IT systems; they are being required more and more to collaborate and negotiate with other
functional areas of the business. Hayes (2010) goes on to state that, “the change from
provisioning physical IT assets and virtual IT assets is changing the relationship between IT and
business units inside and organization” (p. 54). IT professionals are being pushed to not only
upgrade existing skills and competencies but to learn, acquire, and utilize a whole new set of
skills beyond specific IT skills (Hayes, 2010).
Firms must move beyond utilizing standard management and IT-related change management
software and applications, such as SWOT analysis or Balanced Scorecards (Barraso, 2011).
Firms that embrace and utilize project management techniques in addition to the standard
techniques in developing and designing change management systems and protocols will become
much more efficient and innovative in implementing changes that will serve to advance their
firms. The time of being able to set back and rely upon prior successful change initiatives and
practices has past. Firms must take advanced of their employees’ enthusiasm, creativity, and
innovative spirit when diving into major change initiates. The results will be astonishing;
successful, innovative, and creative change projects will become the norm as opposed to the
dreaded.
About the Author
Jeff Slattery, MA., DBA., is the discipline chair for management at Azusa Pacific Online
University. He can be reached for questions regarding this article at jslattery@apou.net.
References
Balestracci, D. (2003). Handling the human side of change. Quality Progress, 36(11), 38-45.
Barroso, B., H. (2011). The balanced scorecard: The evolution of the concept and its effects on
change in organizational management. EBS Review, 28, 53-66.
Bejestani, H. (2011). Improving project change management using leadership spirit. iBusiness, 3,
302-306.
Bluestone, A. (2003, July). Process of change: What it really takes. Practice Management
Solutions, 21.
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Change Management

Flynn, D., Pan, G., Keil, M., & Mahring, M. (2009). De-escalating IT projects: The DMM
model. Communications of the ACM, 52(10), 131-134.
Gans, K. (2011, October). Should you change your thinking about change management?
Strategic Finance 48-50.
Gee, V., & Gee, S. (2011, October). Business improve creates a culture of change and
innovation. The Journal for Quality & Participation, 30-33.
Hayes, J. (2010, September 24). Virtual impacts. Engineering & Technology, 54-55.

ISSN 1941-4668

IEEE TRANSACTIONS ON SOFTWARE ENGINEERING, VOL. 16, NO. 11, NOVEMBER 1990 1293
The Evolving Philosophers Problem:

Dynamic Change Management
Jeff Kramer and Jeff Magee
Abstract-One of the major challenges in the provision of distributed Distributed systems potentially offer a flexible environment for
systems is the accommodation of evolutionary change. This may involve dynamic modification and extension [4], [151. The underlying
modifications or extensions to the system which were not envisaged
at design time. Furthermore, in many application domains there is
support mechanisms for change (software component creation,
a requirement that the system accommodate such change dynamically, binding, and deletion) are readily available. However, there has
without stopping or disturbing the operation of those parts of the system been little suggestion as to how such dynamic change should
unaffected by the change. Since the description of software structure be specified, managed, and controlled. This paper describes an
(components and interconnections) provides a clear means for both sys- approach based on a separation of concerns: functional concerns
tem comprehension and construction, it seems appropriate that changes
should also be specified as structural change, in terms of component of the application processing components which can be pro-
creation /deletion and connection/disconnection.These changes are then vided with a general capability for change independent of what
applied to the operational system itself to produce the modified system. structural changes are introduced, and structural configuration
This paper presents a model for dynamic change management which concerns for specifying structural change without the need to
separates structural concerns from component application concerns. This
separation of concerns permits the formulation of general structural
consider application state,
rules for change at the configuration level without the need to consider Recent work on distributed software specification and con-
application state, and the specification of application component actions struction confirms the benefits of separating the software compo-
without prior knowledge of the actual structural changes which may be nent programming concerns from those of system configuration
introduced. In addition, the changes can be applied in such a way as to [3], [15], [17]. A separate configuration specification is useful
leave the modified system in a consistent state, and cause no disturbance
to the unaffected part of the operational system. The model is applied to both as a description of the system structure and to generate
an example problem, “evolving philosophers.” The principles described in the actual system. As for software construction, we believe that
this model have been implemented and tested in the Conic environment change is well handled at the configuration level in terms of
for distributed systems. software components and their interconnections [lo], [14]. Fig. 1
Index Terms-Change management, distributed systems, dynamic con- identifies the central role of configuration management which is
figuration, system evolution. required to interface between the functional view of application
programming and the structural view of system configuration.
Changes are specified declaratively in terms of system structure
I. INTRODUCTION only. The system itself is modified by the application of proce-
dural change transactions, which include ordered sets of structural
D ISTRIBUTED computing systems are in widespread use in
commercial, industrial, and research establishments. One of
the major difficulties in the development and maintenance of
and control actions. These change transactions are derived by
management from the change specifications. Hence, the system
such systems is that of systems management, particularly with evolves incrementally by the application of change specifications
respect to the management of change. Distributed systems need as shown in Fig. 2. Alternatively, a change specification could
to evolve as human needs change, technology changes, and the be derived by comparing the desired configuration specification
application environment changes. It has been argued [18) that with that of the current system.
the introduction of the computing system is itself a stimulus for In addition to the means for specifying and performing change,
change. These changes may require modification of a function it is also necessary to provide facilities for controlling change
already provided by the system, or extension by the introduction such that application consistency is preserved both while the
of new functions. In general, these changes, termed evolutionary, change is applied and subsequent to the change. This is the role
are difficult to accommodate as they cannot be predicted at of change management.
the time the system is designed. Consequently, we would like What exactly are the required characteristics of a configuration
systems to be sufficiently flexible to permit arbitrary, incremental management system for managing dynamic change? Section I1
change. In addition, we believe that systems should be capable identifies the objectives of change management, and defines more
of supporting such change dynamically, without interrupting the precisely the distributed system environment in which it is ex-
processing of those parts of the system which are not directly pected to operate. The form of interaction between management
affected. Hence, it should be possible to direct changes at the and the application nodes (software components) is presented in
operational system itself. Section 111, defining the management view of node states and the
desirable properties which this provides. This leads to the devel-
opment of a management protocol in Section IV which describes
Manuscript received July 6, 1989; revised May 8, 1990. Recommended by how change management is applied, illustrating the process with
N. Schneidewind. This work was supported by the SERC ACME Directorate some simple examples. It also briefly discusses the required
under Grant GEE62394 and by the CEC under the REX Project (2080). application contribution to the change process. This is followed
The authors are with the Department of Computing, Imperial College of in Section V by a detailed example, the Evolving Philosophers.
Science, Technology, and Medicine, University of London, 180 Queen’s Gate,
London SW7 2B2, England. Section VI extends the work to cover systems with more interde-
IEEE Log Number 9038334. pendence, and illustrates the principles for the evolving philoso-
0098-5589/90/1100-1293$01.00 0 1990 IEEE

1294 IEEE TRANS;ACTIONS ON SOFTWARE ENGINEERING, VOL. 16, NO. 1 1 , NOVEMBER 1YYO
c o n f i g u r a t i o n / change uration management can exploit parallelism for implementing

smecification
changes. Declarative specifications leave such decisions to the
implementation mechanisms.
Change specifications should be independent of the algorithms,
protocols, and states of the application.
In order to provide generic configuration management, the
configuration management system which carries out the changes
should be independent of the application. Since changes are to
be specified in terms of the configuration structure, the paper
will demonstrate that dependence on aspects such as application
state can be abstracted to a general requirement for application
quiescence, and dependence on application algorithm to a need
for component connection initialization/finalization actions.
Fig. 1 . System configuration and change management. Changes should leave the system in a consistent state.
Informally, a consistent application state is one from which the
system can continue processing normally rather than progressing
configuration towards an error state. It is usually expressed in terms of some
changes
global system invariant. A system is viewed as moving from
one consistent state to the next. In fact, application transactions
configuration configuration modify the state of the application, and, while in progress, have
specification specification
Configuration transient state distributed in the system. While transactions are
Management in progress the internal states of nodes may be mutually incon-
sistent. In order to avoid the loss of application transactions and
achieve a consistent state after change, a consistent application
state is required in the affected part of the system before the
change.
Changes should minimize the disruption to the application
system.
Fig. 2. Evolution of a system by incremental changes.
It should not be necessary to stop the whole of a running
application system to modify part of it. The management system
phers problem. The concluding section of the paper discusses should, from the change specification, be able to determine a
minimal set of nodes which are affected by the change. The rest
other approaches to dynamic change management which range
of the system should be able to continue its execution normally.
from pragmatic support for procedure replacement to the more
These objectives have a number of consequences for both
formal transformational approach. The conclusions also examine
the application and the configuration management system. In
the adequacy of our approach and discuss its implications.
particular, the management system must give the affected part
of a system the opportunity to reach a consistent state before
11. DYNAMIC CHANGE MANAGEMENT
a change is performed. The management system does not force
This section identifies the objectives of change management, changes but waits for the application to reach a consistent state.
and defines more precisely the distributed system environment This consistent state requires that there is no communication in
in which it is expected to operate. These objectives represent an progress between the affected nodes nor with their environment.
approach which clearly separates application specific functions Each node is said to be in a quiescent state. Further, the nodes
from structural configuration functions. As mentioned, the must remain quiescent while the change is executed. This gives
intention is to provide an application independent configuration newly created nodes the opportunity to be initialized in a state
management facility. which is consistent with the rest of the system and nodes which
are being removed the opportunity to leave the system in a
A. Objectives consistent state. Later sections will describe how the affected
Changes should be specified in terms of the system structure. nodes are identified and controlled by management, and discuss
Systems, and in particular distributed systems, are constructed the application level responsibilities.
in a modular way consisting of a configuration of software nodes.
We propose that system evolution at the level of programming
B. Distributed System Model
in the small [6] is at too low a level, being both too detailed
and impractical due to the tight coupling of program elements. In order to provide a sound basis for a discussion on change
Instead, change should be supported at a component node level management, we first describe the environment and the assump-
(or levels) where the possibility exists for understanding the tions made. We also briefly define the terms used.
effects of change and where the internode coupling is such that System: A system is assumed to consist of a set of processing
change is both possible and pragmatic. nodes with directed connections indicating the communica-
Change specifications should be declarative. tion paths between the nodes.
By this we mean that it should be the responsibility of the Node: A node is a processing entity which can initiate and
configuration management system, not the user, to determine service transactions.
the specific ordering of actual change operations applied to the Connection: A connection is a directed communication path
system. This clearly separates the change required (which is from the initiator of the communication exchange to the
application specific) from how it is to be executed. Config- recipient (Fig. 3).
KRAMER AND MAGEE: EVOLVING PHILOSOPHERS PROBLEM 1295
-
Initiator Recipient
connection (a)b- -
complete
Fig. 3. A connection. (b) b
A system may thus be represented as a directed graph .... E

(Fig. 1 ) . The edges in the figure indicate that node N1 may complete
initiate and receive transactions with both of N2 and N4. Fig. 4. Examples of (two-party) transactions.
N 2 may only initiate transactions with N1, but may receive
transactions from nodes N1 and N3. The next section describes the interface between management
Transaction: A transaction is an exchange of information and the application nodes and refines the notion of quiescence.
between two and only two nodes, initiated by one of the
nodes. Transactions are the means by which the state of a 111. APPLICATION-MANAGEMENT
INTERACTION
node is affected by other connected nodes in the system.
When performing configuration changes it is important that
Transactions consist of a sequence of one or more message
application information is not lost and that the application is left
exchanges between the two connected nodes. It is assumed
in a consistent state. To do this, the management system should
that transactions complete in bounded time and that the
have an interface with the application which allows it to direct
initiator of a transaction is aware of its completion.
the application towards an appropriate state for reconfiguration.
Fig. 4 illustrates valid examples of transactions. In prac-
Further, the management system must be able to confirm that
tice they may consist of a remote procedure call (rpc) or
the application has reached this state. The interface between
request-reply message exchange as in (a), or some sequence
application and management system must be a generic one which
or combination of rpc’s or message passing as shown in
makes management independent of the particular application. To
(b). The only requirement is that one of the two parties
meet this objective, application state is abstracted into a set of
is identifiable as the initiator of the transaction and is
configuration management states for each node. This set of states
informed of the completion of the transaction. Completion
provides sufficient information about application state to allow
of transactions at the initiator is required to ensure correct
the management system to perform changes which leave the
termination of the management protocol described later. We
application in a consistent state. These configuration states and
assume only independent transactions, where completion of
the transitions between them are outlined below.
a transaction does not depend on any other (possibly nested)
transactions with other nodes. Section VI discusses the A . Node Configuration States and Transitions
implication of relaxing this restriction to permit dependent
transactions, where completion is dependent on consequent The state transition diagram of Fig. 5 specifies the possible
transactions with other nodes. states for an application node from the configuration viewpoint
Change: A change is described in terms of modifications (cf. process states from an operating system viewpoint). The
to the structure (configuration) of the application system. interaction between configuration management and the node
Changes take the form of node creation and deletion, and are indicated as transitions. These transitions are instigated by
connection establishment and removal. Changes are effected configuration management (cf. “control actions” [8]) and should
by a Configuration Manager. Previous work [14], [19] has be distinguished from the normal application level transactions
identified a set of management primitives for both specifying (“basic communications”).
and modifying the structure of systems. In abstract form
B. Transitions
these are:
create N:T [at L ] Each transition depicted in Fig. 5 represents the management
Create node N of type T, optionally specify at action which initiates the transition. Node application actions are
physical location L. required to reach the destination management state (Fig. 6).
The name N must be unique within the system. The temporary state involved in each transition gives a node
(For simplicity, T is omitted in later examples where the opportunity to perform the initialization and finalization
the type is obvious.) actions necessary to preserve application consistency when it is
remove N createdlremoved and when connections are linkedlunlinked.
Remove node N The application indicates that these actions are complete by
link N1 to N 2 asserting the destination state of the transition to the change
Create a connection from node N1 to node N2. management system. Activate and passivate (Fig. 5) are the
(For simplicity, we omit the detail of multiple con- transitions between the active and passive states described below.
nections between nodes since this does not alter the
algorithms presented in the following.) C . States
unlink N1 from N2 A node in the active state can initiate, accept, and service
Remove a connection between node N1 and node N2. transactions.
Consistency: This is determined by the re!ationship between A node in the passive state must continue to accept and
node application states and is usually described by some service transactions, but
global invariant (constraint) which must be preserved. For 1) it is not currently engaged in a transaction that it
local consistency of a node, it is necessary that there are no initiated, and
partially complete transactions at the node. 2) it will not initiate new transactions.
1296 IEEE TRANSACTIONS ON SOFTWARE ENGINEERING, VOL. 16, NO. 11, NOVEMBER 1990
y n
link produce further output. Our notion is stronger in the sense that
the trace produced by a quiescent node will not be extended by
activate any further output.
ACTIVE
E. Resultant Properties for Systems Using
Independent Transactions
Given that the passive and quiescent states are desirable node
2\ I
remove
unlink
passivate
management states, we now show how they can be achieved
for systems constructed from independent transactions. From
Section 11, an independent transaction is a two party transaction
Fig. 5. Node state transitions. whose completion does not depend on any other transaction. In
these systems, a transaction serviced by a node may cause that
management node to initiate transactions to other nodes, however, completion
-- .
action perform assert(state) of the service may not depend on completion of any transaction
which the node may initiate. Section VI discusses the extensions
actions required for dependent transactions.
Fig. 6. Node transitions. The following propositions and justifications demonstrate the
reachability of the passive state, the relationship between passive
and quiescent states and the reachability of the quiescent state.
The particular state identified as necessary for reconfiguration Proposition 1: Reachability of the Passive state.
is the passive state. A node in the passive state must continue to In independent systems, a node can move from the active to the
accept and service transactions while it is in the passive state, but passive state in bounded time, irrespective of the configuration
it must not initiate any new transactions as a result of accepting state (active or passive) of the nodes to which it is connected.
or servicing transactions. This passive state is so defined as to Justification I :
permit connected nodes to progress towards a passive state by To be passive, the node must satisfy two conditions:
completing outstanding transactions. In addition it contributes i) it is not currently engaged in a transaction that it initiated:
to system consistency by completing transactions. However, the A node will complete in bounded time any transaction
passive state is not sufficient for reconfiguration as it may still which it initiated since transactions complete in bounded
be processing transactions initiated by other nodes.
time and completion is independent of the completion
D. Node Quiescence of transactions at other nodes. Transactions complete in
bounded time even if the recipient node is in the passive
For consistency during change we require, a stronger property, state since passive nodes accept and service transactions.
viz. that the node is not within a transaction and will neither ii) it will not initiate new transactions.
receive nor initiate any new transactions. This property is called This property can be immediately satisfied by the ap-
quiescence of a node and is that state in which the node is both plication.
passive and has no outstanding transactions which it must accept
For systems using independent transactions, we define the
and service. Such a state depends not only on the node itself, but
passive set PS of a node Q, denoted PS(Q), to consist o f
on the connected nodes.
Consequently, a node is quiescent i f 1) the node Q
2) all nodes which can directly initiate transactions on Q, i.e.,
1) it is not currently engaged in a transaction
all nodes with connection arcs directed towards Q.
’ that it initiated, }passive
Proposition 2: Passive requirements for the Quiescent state.
2) it will not initiate new transactions, }properties
3) it is not currently engaged in servicing a transaction, and In systems using independent transactions, Q is quiescent if
4) no transactions have been or will be initiated by other nodes all nodes in PS(Q) are in the passive state.
which require service from this node. Justification 2:
A node is quiescent if
In the quiescent configuration state, the application state of
a node is both consistent and frozen. It is consistent in that i) it is not currently engaged in a transaction that it initiated,
the application state does not contain the results of partially ii) it will not initiate new transactions,
completed transactions, and is frozen in that the application state iii) it is not currently engaged in servicing a transaction, and
will not change as a result of new transactions. Quiescence is iv) no transactions have been or will be initiated by other
significant for dynamic configuration changes since, in cases nodes which require service from this node.
such as unlinking, it permits a node to make decisions based Conditions i) and ii) follow from the passive state of Q, i.e.,
on a stable and consistent state regarding the particular actions Q is in PS(Q).
it should take before it is unlinked. For instance, the node may Conditions iii) and iv) follow from the passive states of the
pass a consistent uptodate version of its application state to its nodes in PS(Q), i.e., if all nodes which can initiate transactions on
environment before it is unlinked. Q are also passive, then all transactions involving Q are complete
Our notion of quiescence is loosely based on earlier work and no new ones will be initiated.
[131 which specified node behavior using a “quiescent invariant”: Hence Q is in a quiescent state.
the stable, steady properties of a node characterized by a local Proposition 3: Reachability of the Quiescent state.
invariant preserved by the node. Quiescence is also related to that In systems using independent transactions, a node Q can move
defined by Misra [20], except that the discussion there focuses from the active to the quiescent state in bounded time if all the
on traces and termination, whereas we focus on node state and nodes in PS(Q) are directed to move into the passive state.
consistency. Misra defines a node as quiescent if it may not Justification 3:
Since all nodes will achieve the passive state in bounded this can be achieved by requiring that all nodes in PS(N) are in
time (Proposition l), and the passive state of all nodes in PS(Q) the passive state.)
imply quiescence of Q (Proposition 2), then Q will achieve the Justification: Quiescence of the initiator node ensures that its
quiescent state in bounded time. state is consistent and frozen with respect to that connection,
This section has defined an interface through which a config- thereby enabling connection initialization/finalization to occur in
uration manager communicates with and controls an application a stable environment.
node. Communication between configuration maqagement and iii) Node C r e a t i o n 4 r e a t e .
the node is synchronous in the sense that a management action is Rule: The precondition is trivially true.
always confirmed by the node. (For pragmatic reasons, it may be Justification: When a node is created it is initially isolated and
necessary to support the forced removal of “rogue” nodes which consequently must be in the quiescent state since it can neither
do not obey or react correctly to configuration commands. These respond to nor initiate transactions on other nodes.
can be added as remove transitions from the active state.) Note 2) Change Transactions: A change transaction consists of a
that the node configuration state is the only way that configuration set of partially ordered configuration actions (or commands),
management can affect the application state. The passive state which is derived from the structural change so as to satisfy the
has been carefully defined to be readily achievable by a node preconditions outlined above. One possible algorithm for deriving
by completion of any transactions which it initiated. Since change transactions is outlined below.
transactions complete in bounded time, the passive state can Step 1: Determine the set of connections CS which must be
be achieved in bounded time. Similarly, since the passive state unlinked to isolate nodes to be removed [to satisfy i)]. From this,
permits servicing of transactions initiated by connected nodes, together with the set of connections LS directly specified in link
they too will be permitted to progress to a passive state. However, or unlink directives, determine the set of nodes QS (quiescent
for the configuration manager to achieve quiescence of some set) which must be made quiescent to satisfy i) and ii) above,
target node, it is necessary to make the target node passive and i.e.,
also to create a region of passive nodes (the passive set) around it. CS = {connections c I c is a connection to/from a node to be
This will achieve a stable situation where there are no incomplete removed}
or active transactions. This together with the abstraction of LS = {connections 1 I 1 is a connection in a link/unlink
application state into configuration management states forms the directive}
basis of the change protocol outlined in the next section. QS = {nodes n 1 n is the initiator node on a connection in
(CS U LS) or n is to be removed}.
Step 2: Form the change passive set CPS as the union of
MANAGEMENT
IV. CHANGE PROTOCOL passive sets PS of each node in QS, i.e.,
A . Management View
CPS = U P S ( i ) forall i in QS.
In this section we outline a change protocol for systems
constructed from independent transactions. This protocol meets Step 3: Perform the configuration actions in the following order:
the change management objectives of Section 11. In particular, passivate <all nodes in the change passive set CPS>
the objective of a declarative, as opposed to imperative, change unlink
specification means that changes are specified using only struc- remove
tural actions create, remove, link, and unlink (see Section 11). create (could be performed at any time before link)
The activate and passivate actions on nodes are essentially an link
implementation device which should not be visible to a user. activate <CPS - removed nodes + created nodes>
The following outlines a change protocol in which the change It should be noted that if the change management system
transactions, including activate and passivate actions and the permits multiple change transactions to be performed in parallel
ordering of execution, can be automatically derived from the then the set of nodes which must be locked for a change is a
change specification (see Fig. 1). superset of the change passive set. In detail, the lock set is
1) Change Rules: The change protocol involves establishing
a region of quiescence, specified as the set of nodes required LockSct = CPS U {nodes n I n is a recipient node on a
to be passive, where the change is to occur. As mentioned connection in (CS U LS)}.
in Section 11, changes involve node creation and deletion, and
connection establishment and removal. We now examine each of
the possible changes in turn and present the rules for contributing The lock set includes nodes to which connections are directed
nodes to the passive set. so that a change transaction does not attempt to make a con-
i) Node deletion -remove. nection to a node which has been deleted by another concurrent
Rule: The precondition for removing a node N is that it is transaction.
quiescent and isolated. By isolated, we mean that it has no 3) A Simple Example: In order to illustrate the management
connections directed to it from other nodes or from it to other view of the change protocol, we briefly describe some possible
nodes. changes for a simple client-server system. The system graph for
Justification: An isolated node cannot affect the system and the client-server system is shown in Fig. 7.
so can be independently removed. i) Adding a client: Change Passive Set = { }
ii) Connection-link and unlink. ii) Unlinking or
Rule: The precondition for either linking or unlinking is Removing a client C1: Change Passive Set = {Cl}
that the node N from which the connection is directed must iii) Removing the server S : Change Passive Set = {Cl, C2,
be in the quiescent state. (From Proposition 2, we know that c3,S } .
1298 IEEE TRANSACTIONS ON SOFIWARE ENGINEERING, VOL. 16, NO. 11, NOVEMBER 1990
i+
the connection initialization/finalization actions are likely to be
correspondingly complex.
The application contribution is illustrated in the detailed ex-
ample in the next section.
V. EVOLVING
PHILOSOPHERS
c3
To illustrate the management scheme developed in the
Fig. 7. A simple client-server system. preceding sections, it is applied to the Dining Philosopher’s
(Diners) problem [7]. Philosophers are arranged in a ring with
neighboring philosophers sharing a fork. A philosopher is either
S is passive when all client transactions have completed. In thinking, hungry, or eating. To move from the hungry to the
order to replace the server S with a modified server S’, the
eating state a philosopher must acquire both his left-hand and
following change specification is provided: right-hand fork. The solution presented below is a modification to
remove S <and unlink dangling connections> the fully distributed diners solution due to Chandy and Misra [5]
to permit dynamic change. First, we outline Chandy and Misra’s
create S’ solution for a static number of philosophers and then describe the
link C1 to S’, C2 to S’, C3 to S’ modifications necessary to permit arbitrary changes to a dining
philosopher system such as the addition/deletion (birth/death)
and the derived change transaction is as follows: of philosophers and the merging/splitting of communities of
passivate C1, C2, C3, S & create S‘ philosophers. Coping with these dynamic changes is the evolving
philosophers problem. Based on the change model, a solution is
unlink C1 from S, C2 from S , C3 from S
described below. This solution has been implemented and tested
<unlink dangling connections> in the Conic environment for distributed programming [ 141, [15],
remove S ~91.
link C1 to S’,C2 to S’,C3 to S’
A. Chandy and Misra’s Hygienic Solution to the Diners Problem
activate C1, C2, C3,S’
Each philosopher P, is implemented as a process which
communicates with its left- and right-hand neighbors by asyn-
B. Application Contribution
chronous message passing. The system structure is depicted in
The description so far has concentrated on the management Fig. 8.
view of change. System consistency is an application dependent Chandy and Misra describe their solution informally as fol-
notion and in general requires nodes to contribute to its preserva- lows: “A fork is either clean or dirty. A fork being used to eat
tion. One of the main contributions that an application node must with is dirty and remains dirty until it is cleaned. A clean fork
make is preservation of the passive state, i.e., the application remains clean until it is used for eating. A philosopher cleans a
must not initiate any new transactions, but must be prepared to fork when mailing it (he is hygienic). An eating philosopher does
service transactions from other nodes. The change from active io not satisfy requests for forks until he has finished eating.” When
passive state is implemented in a node by converting the general not eating, philosophers defer requests for forks that are clean
description of the passive state into an invariant constraint in and satisfy requests for forks that are dirty. This solution can be
application terms (i.e., referring to local node variables) that considered to implement a precedence graph such that an edge
must be preserved by the node. When in the passive state, the directed from a node U to v indicates that U has precedence over
node confirms this by responding assert(passive) (Fig. 6) to v (Fig. 9).
management. In the diners solution a philosopher node U has precedence
Furthermore, in order for a newly connected application node over its neighbor v if and only if 1) U holds the fork and it is
to preserve consistency, it must be given the opportunity to clean, or 2) v holds the fork and it is dirty, or 3) the fork is in
initialize itself so as to be consistent with its new environment. transit from v to U . Chandy and Misra showed that if initially
Similarly a node which is about to be disconnected must be given all forks are dirty and located at philosophers such that the
the opportunity to clean up in order to leave its environment precedence graph is acyclic it will remain acyclic since 1) the
in some consistent state. These opportunities are provided for direction of an edge (from U to v) can only change when U starts
in the management protocol by the link and unlink transitions eating and 2) both edges on a philosopher are simultaneously
(Fig. 5) where the node can, if necessary, execute such actions as directed towards him when he starts eating. Chandy and Misra
necessary. These actions may include communication with other prove that since immediately on finishing eating a philosopher
nodes. Again, completion of these actions is confirmed by an yields precedence to his neighbors, all hungry philosophers will
assert(passive) response to management. commence eating in finite time, i.e., no philosopher remains
Obviously the actual actions which need to be executed hungry forever.
at these times are application dependent. However, these are More precisely the algorithm is described as follows:
simplified by the fact that, by the change rules described above, Messages:
there is no transient information in the node. In general, these forktokenl Passes fork f to neighbor which shares f ( f can
actions may include the initiation of queries on connected take the value left or right).
nodes. The complexity depends on the complexity of the reqtoken, Passes request token for fork f to neighbor.
application and the autonomy of the node. This confirms Boolean Variables:
our intuition that, if a system is designed such that its fowl) Philosopher holds fork f .
constituent nodes are tightly coupled and interdependent, then Wf(f1 Philosopher holds the request token
(R6) Philosopher eating to thinking transition:
cating,eating time expired => thinking := true;

eating := false
(R7) Philosopher thinking to hungry transition:
thinking,thinking time expired => hiirigry := triic;

thinking := false
Fig. 8. Schematic and structure of the diners system.
B. An Evolving Community of Dining Philosophers

In the following we consider the creation of a ring (com-
munity) of philosophers, addition of a new philosopher (birth).
and deletion of an existing philosopher (death). Major changes
in the community are performed as the merging’splitting of
P4----t8-P3 P4------scP3 communities of philosophers.
(a) (b) I ) Application Contribution for Dynamic Change: To permit
Fig. 9 Precedence graph. (a) P1 hungry. (b) P1 eating. philosopher nodes to be subject to change we must extend the
above algorithm to support the management/application inter-
face described in Section 111. In particular, the algorithm must
for fork f. support the passive state and provide initialization (finalization)
dirty(f 1 Fork f is at philosopher and is dirty. actions when a philosopher is linked (unlinked) to (from) another
thinking/hungry/eating: State of philosopher. philosopher. The consistency requirements in the system are:
Initialization:
i) that a fork is always shared between two adjacent, con-
1) All forks are dirty. nected philosophers, and
2) Forks distributed among philosophers such that the prece- ii) that the precedence graph remains acyclic.
dence graph is acyclic.
The base case of a single philosopher node is taken care of by
3) If U and v are neighbors then either U holds the fork and v
connecting it to itself, thereby permitting it to possess two forks.
the request token or vice versa.
a) Philosopher Passive State: From the definition of passive
The algorithm for each philosopher is described as a set of (Section 111) a philosopher is in the passive state if firstly, it is
rules guard=>action which form a single guarded command. not currently engaged in a transaction which it has initiated (i.e.,
(Rl) Requesting a fork f: it has not sent a reqtoken which has not yet been answered by
a forktoken) and secondly, it will not initiate new transactions,
hungry,reqf( f ) , N fork( f ) => send(reqtokcnf); i.e., it is not hungry and it will not become hungry.
active True when this philosopher is in the active man-
reqf(f) := false agement state.
passive True when this philosopher is in the passive state.
(R2) Releasing a fork f: activate Management request to make philosopher active.
passivate Management request to make philosopher passive.
- eating, reqf(f),dirty( f ) => scnd(forktokenf);

dirty(f) := false; fork(f) := false
(R7)* Philosopher thinking to hungry transition:
active,thinking,thinI;ing time expired =>

hungry := true; thinking := false
(R3) Receiving a request token for f: (R8) Passive to active transition:
a c t i v a t e => assert(active)
receive(reqtokenf) => reqf(f) := true
(R9) Active to passive management transition:
(R4) Receiving a fork token for f: - hungry.passivate => assert (passive)
hungry. Since a philosopher can only initiate and be engaged in

(R5) Philosopher hungry to eating transition:
transactions when it is in the hungry state, the above rules satisfy
the management requirements for active and passive states. Note
hungry, fork(left), fork(right) => that, when neighboring philosophers are both passive, neither
is hungry. In this case, the shared fork will be dirty and the
eating := true; hungry := false; dirty(lcft) := trur;
precedence edge will be directed towards the holder of the dirty
dirty(rig1it) := true; fork.
1300 IEEE TRANSACTIONS O N SOFTWARE ENGINEERING, VOL. 16, NO. 11, NOVEMBER 1990
b) Philosopher Link and Unlink Actions: The following rules When two philosophers are connected together, we can satisfy
deal with the actions required to unlink and link a connection fork sharing by ensuring that only one fork is allocated between
between philosophers. them. To achieve this, we assume that each philosopher has a
Messages: unique identity and that these identities have a total ordering.
new-forlttoken, Passes new fork f to neighbor which shares The philosopher which precedes its neighbor in the total ordering
f for connection initialization. decides where a fork is to be allocated. Consequently only one
new-reqtoken, Passes new request token for fork f to fork is allocated. To satisfy preservation of the acyclic precedence
neighbor. graph, allocation must be such that at least one philosopher
link@,) Management request to initialize a connec- ends up having two dirty forks or none. In the following, we
tion to philosopher which shares fork f with demonstrate that rules (R12) and (R13) maintain an acyclic
this philosopher. precedence graph for arbitrary changes.
unlink@,) Management request to finalize a connection 2) Creating a Community ofPhilosophers: The following con-
to philosopher which shares fork f with this figuration specification describes a ring of N philosopher pro-
philosopher. cesses:
thisp The unique identity of this philosopher. RING(p, N ) ::
other(f) The other fork from f that a philosopher uses
(e.g., other(1eft) = right). forall i : l..Ncreate p [ i ] ;
(R10) Connection finalization: forall i : 1..N
unlink(p,) => link p[i] to p [ ( i mod N) 11, +
fork(f) := false; reqf(f) := false; dirty(f) := false +
p [ ( i mod N) 11 to p [ i ] ;
assert (passive) The corresponding change transaction in this case is simply the
specification with the added activate actions as follows:
(R11) Initializing a connection top, where p, = thisp (i.e., this
philosopher) forall i : 1..N activate p [ i ] .
link(p,),pf = thisp => To preserve the precedence graph invariant, the forks must be
fork(f) := true; reqf(f) := false; dirty(f) := true distributed asymmetrically such that at least one philosopher has
no forks and correspondingly one has two forks (see initialization
assert (passive)
conditions for the original algorithm). Rules (R12) and (R13)
(R12) Initializing a connection to p, where p, > thisp (i.e., this achieve this since the identity of one philosopher must precede all
philosopher allocates fork) others in the total ordering. This philosopher will allocate forks
to both its neighbors (R12) and consequently have no forks itself.
link(pf),pf > thisp => 3) Birth of a New Philosopher: The following configuration
if fork (other(f)) then {if the philosopher has specification adds a new philosopher x between existing neigh-
the other fork} bors U and v, where the other neighbors of U and v are t and w,
respectively:
fork(f) := true; dirty(f) := true;
unlink U from w ; unlink w from U
send (new-reqtoken,)
create x
else
link x to w; link x to U; link U to 2; link w to x
reqf(f) := true; send(new-forktokenf)
assert (passive) Applying the change algorithm of the previous section to
the above change specification produces the following change
(R13) Initializing a connection to p f where pf < thisp (i.e., the transaction. From both the preconditions of unlink and link, the
other philosopher allocates fork) quiescent set QS is determined as the two neighbors U, v of
link(pf),pf < thisp => the node to be created x. The change passive set is t, U , v, and
w. Since neither t nor w will initiate transactions on U or v to
receive( new-reqtoken,) => reqf(f) := true request forks, U and v can make decisions based on the state of
or receive(new_forktoken,) => fork(f) := true; their forks which will not change. For example, to insert a new
philosopher P6 between P5 and P1 in the system depicted in
dirty(f) := true Fig. 8, P5 and P1 must be quiescent since they are both linked
assert (passive) to each other and will be linked to the new philosopher. The
change passive set includes P2 and P4 as well. Note that, in the
Rule (R10) ensures that when a connection between two change transaction outlined below, actions on the same line may
philosophers is unlinked, the shared fork is removed. Rules (R11, be executed in parallel.
R,12, R13) are responsible for the allocation of forks when
connections are linked.
Rule (R11) deals with the trivial case where there is only passivate t , U , w,w; create x
one philosopher which is connected to itself. In this case the unlink U from U; unlink w from U
philosopher is allocated two dirty forks so that it can eat. Rules
(R12) and (R13) ensure that the global consistency requirements link 2 to w; link x to U; link U to x; link w to 2
of a system with two or more philosophers are not violated. activate t , U , w,w ,x
The fork shared by U and v will be discarded when they are

unlinked. On linking the pairs U and x, and x and v, the allocation
of the shared fork in each case will be made by one of the pair
P5 P2 P2
such that one of each pair will end up with either two forks or
no forks..For instance, in the example above of the addition of
P6, P1 and P 5 will perform the allocation as they precede P 6 in Ph--LP3
\ I '
P 4 d P 3
the total ordering. If the fork shared by P2 and P1 is currently

(a) (b)
held by P1, then P1 will retain the dirty fork shared with P6;
and if P 5 does not have the fork shared with P4, then it will Fig. 10. Addition of a philosopher. (a) Before addition. (b) After addition
of P6.
allocate the other shared dirty fork to P6 (Fig. 10). This clearly
preserves the acyclic graph.
4 ) Death o f a Philosopher: Removal of a philosopher x with
neighbors U and v (where the opposite neighbors of U and v are
f and w, respectively) is specified by the following program:
remove x
link 'U to U; link U to v (a) (b)
Fig. 1 1 . Removal of a philosopher. (a) Before removal. (b) P1 removed.
This results in the following change transaction:
passivate t , U , v, w, x
unlink U from z; unlink PI from 5
remove x
link v to U; link U to 'U
--I
activate t , U , v, w
This transaction ensures that U,v, and x will be in the quiescent Fig. 12. Merging philosopher rings.
state before x is unlinked and removed. Consequently, on linking,
U and v can make decisions based on the state of their forks which
will not change. As before, allocation will ensure that one of the
pair ends up with two or no forks. For example, if in Fig. 11 we
removed philosopher P1, P2 would retain the dirty fork shared
with P 5 as it has the fork shared with P3, thereby preserving
acyclic precedence.
5) Merging Two Communities of Philosophers: Given two
communities (rings) of philosophers, called pa of size N and pb To justify that this change maintains an acyclic precedence
of size M , respectively, Fig. 12 shows which connections mustgraph we need only be concerned with the connection between
be unlinked and which must be linked to merge the two rings ofphilosophers which completes the ring. In Fig. 12, this is per-
philosophers. The shaded nodes indicate the change passive set.
formed between p a [ l ] and pb[l] or between pa[2] and pb[2].
The change is specified as follows: Rules (R12) and (R13), defined for the linking and unlinking
of philosophers, ensure that the philosopher which allocates the
fork on that connection retains the fork if it has the other shared
fork, otherwise it allocates the fork to its neighbor. In the former
f r o m pa [ 11, case, the allocating philosopher will have two dirty forks, in the
latter no forks. In fact, in the situation where neither the allocating
+
$411 f r o m p b [ ( l mod M ) ) l],pb[(l mod M ) ) 11 +
philosopher nor its newly connected neighbor has another fork, it
f r o m pb[l]; does not matter where the new fork is allocated since some other
philosopher must have two forks. This can be easily argued as
link p 4 1 to pb[q,Pb[ll to pa[lI; follows:
+
pa[(l mod N ) ) 11 t o pb[(l mod M ) ) 11, +
There are n philosophers and n forks; the two philosophers
+
pb[(l mod M ) ) I] to pa[(l mod M ) ) 11; being +connected have 1 fork, consequently the remaining n-2
philosophers have n-1 forks. Therefore, one of these n-2 philoso-
The corresponding change transaction is: phers must have 2 forks. The original algorithm ensures that a
philosopher cannot hold a clean and a dirty fork simultaneously;
MERGE-TRANSACTION :: consequently, the precedence graph must be acyclic.
Note that inserting a new philosopher into an existing ring of
passivate~a[~i,~a~li,~a[2il ~ ~ ~ 3 1 , ~ ~ ~ ~ 1philosophers
1 ~ ~ ~ is~equivalent
1 1 ~ ~to merging
~ 2 1 a, ring of one philosopher.
Pb 131; RING(newphil,l), with an existing ring. Splitting a ring into two
smaller rings requires a change specification opposite to that of
unlink p a [11 f r o m pa[2],pa[2] f r o m pa[l],
MERGE. As before, the connection which completes each ring
p b [11frornpb[2],pb[2] frompb[I]; preserves the global invariant.
This section has shown how the management protocol is

applied to a specific application. Only those philosophers in the
change passive set are affected by the change allowing the rest r21p
of the system to proceed with its normal execution. Changes

can be carried out in parallel as the stable states ensured by node
quiescence permits consistent decisions to be made during linking
and unlinking. The different cases described in this example Fig. 13. Client-agent-manager interaction using dependent transactions.
have been prototyped and validated in the Conic environment
for distributed programming [14], [15], [19]. Further work is
required to integrate the change management states into the ing transactions. There are two main approaches to providing
current environment. quiescence in such systems with dependent transactions:
1)Require that consequent transactions are recognized in the
application.
VI. DEPENDENT
TRANSACTIONS
M must recognize that the transactions with S are part of and
In the discussions above, we have considered only two party a consequence of a wider transaction, and that the passive state
independent transactions. We now relax the restriction of in- can only be reached when that client transaction completes (i.e.,
dependence and discuss systems using dependent transactions, M must wait for completion of the client use of the printer before
which involve one or more consequent transactions. In general, it can become passive). This approach has the disadvantage of
systems include both independent and dependent two party having to embed, in the application, knowledge of all the transac-
transactions. tion dependencies. In addition, this information would be hidden
A dependent transaction is a two-party transaction whose from the configuration view. Transactions would implicitly ripple
completion may depend on the completion of other conse- back and require some time to complete, although we would still
quent transactions. require that they do so in bounded time. Another possibility is
This is described more precisely as follows: f, is a dependent to abort transactions with consequents when in the passive state.
transaction if there exists a chain of transactions t,, t,, . . . t , in For example, M could abort the client transaction with C . This
which each, with the exception of t,, may depend for completion carries the overhead of complicating C such that it must regain
on the completion of its (consequent) successor transaction. We consistency after transaction abortion (cf. recovery). Aborting
do not forbid cycles in this chain, but require that: reduces dependent transactions to independent transactions at the
1) progress is made to ensure that the transaction is still expense of complicating the application code.
bounded, 2) Expand the passive set to include all nodes initiating depen-
2) that deadlock is avoided (for example, that it is not a cycle dent transactions which result in transactions on the link or node
of nested transactions). targeted for change.
This requires that transaction dependencies are reflected up to
We require that the initiator of a dependent transaction is and taken account of at the configuration level. Since it is at the
informed of the completion of consequent transactions. This configuration level that we wish to manage changes, this is the
enables a node to determine when transactions, which it initiated, preferred approach.
have completed and hence when it has achieved a passive state.
A. Extension of the Independent Transaction Approach B. Generalized Passive State for Systems Using
Dependent Transactions
Consider a number of client nodes Ci which access a printer
server S via their agent Ai and a server manager node M (Fig. 13). The proposed approach for systems using dependent transac-
In this case, a transaction may consist of a sequence of message tions is to expand the passive set PS(Q) to include those nodes
interactions involving Ci, Ai, M , and S . For instance, C1 may which initiate transactions which have consequent transactions on
initiate transaction s l to request a print service; completion the node Q required to be quiescent. However, the passive state
of s l is dependent on the consequent transactions r l and p , may not be reachable for nodes utilizing dependent transactions.
which A 1 and finally M will initiate to S, to actually print the Consider the example in Figure 14. In this system suppose N3
lines. Dependent transactions and their potential consequent(s) is in the passive state and N1 has initiated transaction a . In this
are denoted as dependent/consequent(s), as illustrated in Fig. 13 situation transaction a cannot complete because transaction b can-
where si is dependent on ri, which is dependent on p . not complete because N3 cannot initiate c . Consequently, neither
The change transaction discussed in relation to independent N1 nor N2 can move into the passive state in bounded time
transactions, such as removal of S, would require that M is if requested. Hence, Proposition I does not hold for dependent
quiescent and all agents Ai, M , and S are in the passive state. systems.
This implies that S could be removed when M and A complete We could consider providing an ordering on the passive set
their current two party transactions ri and p , and S completes the such that nodes are made passive in the order of the dependence
associated processing. However, since Ci may still have further graph. In the example in Fig. 14 we would passivate in the order
lines to send (si is not complete and may require further ri and N1 then N2 then N3. However, this order cannot be determined
p transactions), this is clearly not sufficient to maintain system in general. In the example in Fig. 15, transaction a / b requires N1
consistency. before N2, whereas cld requires N2 followed by N1.
Hence, if the change passive set of nodes consists only of the A more appropriate approach is to generalize the definition of
set of nodes which can initiate transactions on a target quiescent the passive state to include the means for dependent transactions
node plus the node itself, there is no guarantee that the node to complete:
is in the quiescent state. Nodes may still initiate consequent A node in the general passive state must accept and service
transactions on the target node to satisfy completion of arriv- transactions and initiate consequent transactions, but
C
Fig. 16. Independent and dependent transactions on node N .
Fig. 14. A system with cyclic dependencies.
Proposition 3': Reachability of the Quiescent state.

alb Given the generalized definition of the passive state and the
enlarged passive set, Proposition 3 holds for both independent
cld
and dependent systems.
Fig. 15. A system with mutual dependencies. Justification 3':
Follows directly from Propositions 1' and 2'.
1) it is not currently engaged in a (nonconsequent) trans-
D . Change Rules
action that it initiated, and
2) it will not initiate any new (nonconsequent) transactions. The change rules remain as before, except that the region of
quiescence where the change is to occur results in an enlarged
Thus a node in the general passive state must respond to
set of passive nodes specified by the EPS.
transactions while it is in the passive state, and, it must initiate
any consequent transactions required for the completion of the
transactions to which it responds. For independent transactions, E. Composition Rules
the definition of the general passive state reduces to the same In the foregoing, we have been concerned with flat or one-
as passive. level graphs of connected nodes. However, in general, we are
For example, in Fig. 16, if node N is in the general passive concerned with an hierarchic graph structure such that nodes at
state it must not initiate x or y as a result of responding to b one-level may themselves be implemented as graphs of connected
or c. However, it may initiate x to permit completion of a . (For nodes at the next level of detail. For example, in the Conic system
conciseness, we henceforth use passive to mean general passive which represents systems as configurations of logical nodes, these
where such use is unambiguous.) logical nodes are themselves implemented as a graph of subnodes
or tasks. The Conic logical node is the unit of change and
allocation, and the task is the unit of concurrency [19]. To ensure
that the change management system need be concerned with only
C. Resultant Properties for Systems Using one level of the configuration graph at a time we must be able to
Dependent Transactions derive the transaction dependency relations of a node from those
Proposition 1': Reachability of the Passive state. of its subnodes. In the following, a node which is composed of
Given the generalized definition of the passive state, subnodes is referred to as a composite node. A substitution rule
Proposition 1 holds for systems using both independent and can be used to determine the dependencies of composite nodes
dependent transactions. from the dependencies of their constituent nodes.
Justification 1': Node Composition by substitution: In composing two nodes,
As for Proposition 1, with the added justification that depen- substitute the consequents for each occurrence of the dependent
dent transactions will also complete in bounded time even if transaction which is hidden by the composition (see Fig. 17).
the recipient nodes are in the (general) passive state since they For more complex structures, the rule can be used for each
respond to and can initiate consequent transactions. connection and by repeated application for each node composi-
The definition of quiescence for systems using dependent tion. For example, consider the fork structure in Fig. 18, where
transactions remains the same as that for independent transactions a is potentially dependent on b and/or c.
(see Section 111). However, as discussed above, the passive set Internal transactions are not visible in composite nodes. For
must be expanded in order to account for dependent transactions example, each philosopher node of the Evolving Philosophers
which lead to consequent transactions on the node. problem can be (and was) implemented as a composite node
The enlarged passive set EPS for a node Q, EPS(Q), is as shown in Fig. 19. This solution structure follows that of [ l ]
defined as follows: (which addresses only the original Dining Philosophers problem).
The philosopher subnode implements a simple state machine
1) all nodes in PS(Q) are in EPS. to control the transitions between thinking, hungry, and eating,
2) all nodes which can initiate dependent transactions which while the servant subnode encapsulates the protocols necessary to
result in consequent transactions on Q are in EPS. acquire forks. The internal transactions relforks and getforks are
Proposition 2': Passive requirements for the Quiescent state. not visible in the composite node Phil. It should also be noted
Given the generalized definition of the passive state and the that the dependency of the philosopher transaction getforks on
enlarged passive set, Proposition 2 holds for both independent the consequent transactions reqright and reqleft (the transactions
and dependent systems (i.e., if node N and all nodes in the to request a left and a right fork) is not visible in the composite
enlarged passive set with respect to N are passive, then N is node. However, this dependency means that for the node Phil
quiescent). to be passive both its subnodes (philosopher and servant) must
Justification 2': be passive.
As for Proposition 2, with the added justification that all In our prototype implementation of change management in
nodes which can initiate transactions (independent, dependent, Conic, we have adopted the following simplified but pragmatic
or consequent) on N are passive, then all transactions involving strategy. The change management system views the system as
N will be complete. a one-level graph of logical nodes. As mentioned above, logical
Change specifications should be independent of the algorithms,

a/c protocols, and states of the application.
The node configuration states (active, passive) abstract away
v
Fig. 1 f . Derived dependencies for simple node composition.
the specific application states, and provide a convenient means
for viewing and controlling the application.
Changes should leave the system in a consistent state.
The passive and quiescent states together with the possi-
ble inclusion of connection initialization and finalization code
provide the application with the means to preserve application
consistency in a convenient and pragmatic manner.
Changes should minimize the disruption to the application
system.
v The change passive set identifies the set of nodes affected by
Fig. 18. Derived dependencies for repeated node composition. a change. In fact, the set is not currently minimal. For instance,
in the client server example in Section IV, the clients need only
be passive with respect to the particular server being removed
0 philosopher
reqright
and need not actually be prevented from initializing transactions
on other (unillustrated) nodes.
Let us consider the connection level further. The current model
provides for change in the form of creation and deletion of
nodes, and connection changes. Change which only involves
reqright reqlen
connections could place emphasis on each connection rather
servant than the entire node which initiates that connection. Thus the
state of each connection (disconnected or connected-passive or
connected-active) could be modeled, together with the consis-
Fig. 19. Composite philosopher node. tency preserving actions associated with each connection. This
leads to a finer grain model in which a node can be active with
respect to one connection yet passive with respect to another.
nodes are both the unit of change and the unit of allocation in This approach appears to be promising in its ability to describe
Conic. Logical nodes are constrained by design to communicate connection changes at a finer level of granularity however, it
by independent transactions so that the management system need does require more passive substates. Furthermore, the design of
not be aware of dependency information. The structure of a the connection level actions seems to be more difficult since
logical node is fixed at node instantiation time. Transactions the node and its environment may be partially active thereby
between subnodes can be independent or dependent as shown making consistency more difficult to attain. Hence, although
in Fig. 19. To simplify local node management we have our current approach of requiring complete node quiescence
implemented the rule that a logical node is passive when all its may not be minimal in terms of the disruption to a system,
constituent nodes are passive. A local entity collates management it does seem to be sufficient and far simpler to reason about
state for each logical node. and use.
Composition thus provides a coarser grain for system con-
figuration and dynamic change management. For a finer grain,
decomposition can be used (where appropriate) to expose the A. Dependent and Independent Transactions
internal structure of connected nodes to make them accessible The approach adopted for dependent transactions generalizes
to change. the passive state of a node to permit initiation of consequent
transactions and enlarges the passive set to include nodes
which can initiate dependent transactions with consequents
on the nodes previously in the set. This expansion of the
passive set corresponds to our intuition that changes to systems
VII. DISCUSSION
AND CONCLUSIONS
which are more interdependent require more global quiescence
This paper has presented a comprehensive model of change and cause more disturbance (i.e., close-coupling makes change
management which clearly separates the management respon- more difficult). We believe that the model confirms and, to
sibilities and view from that of the application (see Fig. 1). some extent, quantifies that interdependence. One approach
In particular, the objectives given in Section I1 have been ap- to alleviating this interdependence, is to compose dependent
proached as follows. nodes together so that composite nodes communicate using
Changes should be specified in terms of the system structure, only independent transactions. Changes must then be performed
Changes are specified in terms of the primitives create, at a “coarse grain” level on composite nodes rather than on
remove, link, and unlink which refer only to system structure. In constituent dependent nodes. Alternatively, dependent systems
fact, changes specified in these primitives could be derived from can be reduced to independent systems for the purpose
the difference between specifications of the current and desired of management, if transactions can be aborted by passive
system structures. nodes. The cost of this is the extra complexity incurred
Changes specifications should be declarative. by the application to preserve consistency in the presence
It is the derived change transactions which include the change of aborted transactions (cf. atomic transactions). However,
control actions (activate and passivate) and specify the paral- in real systems, this cost may be inevitable to deal with
lelism or sequencing of the actual change execution. failure.
B. Detection of the Passive State way. Given that even the transformational approach needs to
The transactions used in the model require that the initiator describe nontrivial systems as some composition of components,
is aware of the completion of the transaction, whether it is our model provides a means for obtaining the required structural
dependent gr independent (see the definition in Section 11). This changes from the new structural specification (Fig. 2) and of
is required i n order that a node can determine when outstanding deriving the change transactions for integration of the changes
transactions that it initiated are complete and hence when it is dynamically. Hence, although at first sight the two approaches
passive. If this were not the case, it is possible that a node appear to be incompatible, our model provides a systematic and
could assume completion of a transaction which was actually pragmatic basis which could be used in conjunction with the
delayed in communication and still outstanding. This requirement transformational approach.
could be relaxed to permit, for instance, asynchronous messages
if the node or management system used some other method D. Further Work
for detecting termination of transactions. This would require The paper has concentrated on evolutionary change where
use of a distributed termination algorithm such as the diffusing change is instigated by an agent external to the system. However,
detection algorithm of Francez [8]. Assuming that messages do the change protocol can equally be invoked internally by the
not overtake one another, the management system could initiate application. The application can minimize the disruption caused
detection by sending queries along the dependency chains of the by a change by instigating the change when quiescence is
nodes in the passive set and cbtaining confirmation if all nodes detected rather than externally imposed.
agree that they are indeed passive. Change could also occur as a result of failure. Although
not explicitly handled by the model, we believe that failures
C. Related Work can be handled if the nodes incorporate the necessary recovery
actions. These would be used to restore the remaining system to
The changes described in this model are directed at the consistency in conjunction with the reconfiguration actions which
operational system itself, in terms of changes to the software could be triggered by detection of failure. This area requires
components and their interconnections. It can be contrasted with further investigation.
the model for change incorporated in the Inscape Environment The management of evolutionary change is a difficult but
[21] which concentrates on change validation in relation to important issue. It is therefore essential that the techniques
a static definition of the system. Inscape utilizes a semantic adopted are both practical and soundly based. We believe that
interconnection model which could form a useful adjunct to our our approach, with its clear separation of structural management
model by permitting static change validation before application to and application concerns, is very promising in these regards.
the system itself. A promising and related approach which could Some small case studies have been prototyped and tested in the
be used to model and analyze dynamic configuration changes Conic environment for distributed programming which provides
has been suggested using graph grammars (Garp [ l l ] and A- both textual and graphical facilities for performing dynamic
Grammars [121). This provides a formal graphical description configuration changes [16]. It now remains to be further refined,
of system structure which is equivalent to our configuration formalized, and tested on larger case studies.
specification. Changes are specified in terms of A transitions
which act on the system structure to produce new structures.
However, unlike our approach, they have chosen to model aspects
ACKNOWLEDGMENT
such as message passing at the structural level, thereby making The authors would like to acknowledge discussions with our
the specification of changes rather more complex than ours at colleagues M. Sloman, N. Dulay, K. Twidle, and K. Ng during
the configuration level. Also, their model appears to be purely the formulation of these ideas. In particular we acknowledge the
for specification purposes, and gives no indication as to how contribution of A. Young in prototyping and refining the change
it might be realized. For instance, it is not clear how detailed management model.
consistency constraints, such as those preserved by the actions in
the evolving philosophers, could be modelled in A-grammars. REFERENCES
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Software Specification and Design, Pittsburgh, PA, May 1989, research interests include requirements analysis
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building distributed systems,” IEE Proc., vol. 134, part D, no. 2, and extensible parallel and distributed systems.
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June 1989. development of System X he returned to college
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INRIA Advanced NATO Studies Inst. Logics and Models for in computing science from Imperial College,
Verification and Specification of Concurrent Systems, Nice, France, London, England, in 1978 and 1984, respec-
1984. tively.
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Con$ Software Engineering, Apr. 1987, pp. 142-149. partment of Computing at Imperial College. His
research interests include parallel algorithm design, distributed operating
systems and languages, and tool support for distributed systems. He was
a principle investigator of the various research projects funded by British
Coal and SERC which led to the development of the Conic Environment.
Dr. Magee is a member of the IEE.
New Paradigms in Organization Development: Positivity, Spirituality, and Comp...
Fahri Karakas
Organization Development Journal; Spring 2009; 27, 1; ABI/INFORM Global
pg. 11
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Electronic copy available at: http://ssrn.com/abstract=1743445
African Journal of Business Management Vol.4 (2), pp. 278-281, February, 2010
Available online at http://www.academicjournals.org/AJBM
ISSN 1993-8233 © 2010 Academic Journals
Full length Research Paper
Clarifying spiritual values among organizational

development personnel
Akbar Husain and Aqeel Khan*
Department of Educational Psychology and Counseling, Faculty of Education, University of Malaya, 50603 Kuala
Lumpur, Malaysia.
Accepted 17 December 2009
Values lie at the core of all human behavior. Initially, it was believed that human behavior could be best
explained in terms of one’s personality system, including needs, motives, beliefs, goals and attitudes.
But eventually, the emphasis shifted towards values, as there are many aspects of human behavior that
cannot be attributed to the former concepts, but where values play an important role. The authors
believe that values make personnel life more meaningful and give them a sense of direction for
organizational performance and development. In this article, the authors have discussed the sources of
values, early assumptions about values, a value based approach to organizations and value
assessment. Recommendations have also been offered for the human resource managers to inculcate
spiritual values among personnel that may in turn be fruitful for organizational development.
Key words: Spiritual values, organizational development.
INTRODUCTION
Industrial organizations are mainly concerned for produc- Spiritual leadership and values
tivity and quality by personnel. Spiritual values of the
personnel are the prerequisites for the organizational Earlier studies has established link between spiritual
health and development. Surprisingly, spiritual values of values and leadership. For example, Fry (2003) defines
the personnel are treated casually in organizations. This spiritual leadership as “the values, attitudes, and
fact has made many organizations to think that person- behaviors necessary to intrinsically motivate one's self
nel’s spiritual values should be viewed as a potential and others so that they have a sense of spiritual survival
resource in organization rather than as something to be through calling and membership” (p. 694-695). He says
ignored. According to Mohamed et al. (2001), organiza- that spiritual leadership is treated more as an observable
tional theories and models that ignore the spiritual phenomenon occurring when a person in a leadership
dimension will remain deficient. They said in this context: position embodies spiritual values such as integrity,
“our current models of micro and macro behavior do not honesty and humility, creating the self as an example of
account for spirituality and its effects and, as such, some someone who can be trusted, relied upon and admired.
of these models may be misleading or incomplete” (p. A research on effective leadership traits and behaviors
647). Values of the personnel may improve quality of pro- (Den Hartog et al., 1999) claims that attributes and
ducts and services and a better workplace. To achieve practices widely associated with spirituality have been
the organizational goal, that is, a satisfied workforce, found to have a global appeal. More than half of the
spiritual values must be owned and practiced by all the universally endorsed leader attributes (14 out of 22) may
personnel. be considered to be associated with spirituality, values
and ethics: “positive, trustworthy, just, win-win problem
solver, encouraging motive arouser, communicative,
excellence-oriented, confidence builder, honest, dynamic,
*Corresponding author. E-mail: draqeelkhan@gmail.com. team builder, motivational and dependable” (Den Hartog
Husain and Khan 279
et al., 1999, p. 239). Leaders who view their own work as world (Richards and Bergin, 1997). The following
a means of spiritual growth have also been shown to assumptions about values, particularly naturalism, ethical
increase organizational performance (Himmelfarb, 1994). relativism, ethical hedonism and positivism seem to be
Mitroff and Denton (1999) found that many individuals are closely linked to the organizational development.
looking for ways to express their spirituality in their work.
Workers who are able to express their spirituality through
their work, find work more satisfying. Early assumptions about values
Realizing the importance of incorporating spiritual
values in the workplace and the possession of spiritual Naturalism
values in spiritual leaders and workers, we considered
that organizations should consider the value system, par- It is the belief that the “universe is self-sufficient, without
ticularly the spiritual ones, among personnel to facilitate supernatural cause or control” (Honer and Hunt, 1987,
their job performance and productivity that in turn may be p.225). Naturalists assume that human beings and the
important for organizational development in a number of universe can be understood without restoring to spiritual
ways. This article also discuss sources of values, some explanations and that “the explanation of the world given
early assumptions about values, value based approach to by the sciences is the only satisfactory explanation of
organizations and value assessment. reality” (Honer and Hunt, 1987, p.225). This assumption
led many behavioral scientists to conclude that all moral
values are ephemeral and of human origin.
The sources of values
In an ancient tradition like India, the spiritual values as Ethical relativism

embodied in its religion and philosophy can claim to be
the primary and original source of all derived social This is the belief that “there are no universally valid
values (Ganguli, 1989). Sinha (1972) pointed out that “the principles, since all moral principles are valid relative to
moral and social qualities that are valued in a society cultural and individual values” (Percesepe, 1991, p.572).
have their roots in religion, philosophy and tradition and Thus, “whatever a culture or society holds to be right is
are relatively more enduring facets of our existence” therefore right or at least, right for them” (Solomon, 1990,
(p.153). p.235). Values are considered as relevant to profess-
There are empirical evidences that the transcendental sionals and organizations. Ethical relativism led to
and spiritual values that Indians hold is acquired from conclude that, if values are relative, then organizations
their religions and philosophies (Kakar, 1978; Mukerjee, should lay emphasis on the values of the personnel.
1949; Nehru, 1946, 1981; Radhakrishnan, 1968; Roy and
Srivastava, 1986; Sinha, 1988; Sinha, J.B.P, 1982;
Tandon, 1981; Tripathi, 1988; Verma, 1987). Ethical hedonism
Hinduism, Islam and Buddhism have been the mother
religions and the sources of values for millions of people This is the belief that “we always ought to seek our own
around the world. They are the underlying religious pleasure and that the highest good for us is the most
traditions for the systems of Yoga, Sufism and Zen, and pleasure together with the least pain” (Honer and Hunt,
are the basis of Eastern psychologies and philosophical 1987, p.222). According to some behavioral scientists
thought. (Hillner, 194; Lundin, 1985; Watson 1924/1983), human
Yoga, Sufism, Buddhist teachings have been originated beings are basically hedonistic and reward seeking. This
from a common need to understand the relationship is the reason for contradicting the assumptions of ethical
between religious practices and everyday life. All these relativism by endorsing hedonistic ethical values. Relying
three viewed morals and values in an iconoclastic and on this assumption, organizations should encourage their
practical way. Furthermore, each of them emphasized personnel to “throw off the shackles” of religion and be
transpersonal growth and experiences of the adherent. more accepting of their hedonistic tendencies.
The value systems of most cultures and societies
described as profoundly religious, have emphasized the
meditative and ecstatic experiences of the willing Positivism
individual and has meticulously outlined the process of
transpersonal growth of the self (Angyal, 1956). It holds that “knowledge is limited to observable facts and
th
Modern psychology began late in the 19 century. To their interactions” (Honer and Hunt, 1987, p.226), and
escape religion’s influence, behavioral scientists have that the scientific theories can be “shown to be true on
adopted a number of assumptions about reality that the basis of evidence” (Bechtel, 1988, p.18). Positivists
directly conflicted with traditional religious views of the assume that it is possible for scientists to be objective,
280 Afr. J. Bus. Manage.
impartial observers and that their empirical observations 2. The most ethical way for organizations is to assess
will eventually lead to a complete understanding of values of the personnel during in-job training. Value
reality. Logical positivists sharply distinguished facts and imposition should not occur when training is imparted to
values. They have advocated that only scientific thinking the employees.
and logical assertions were to be cognitively meaningful 3. Personnel should be encouraged to have their
(Tolmin and Leary, 1992) values (understood in ethical personal value system while disagreeing with their
terms) and were regarded as intellectually meaningless superiors on certain issues.
(O’ Donahue, 1989; Putnam, 1993). 4. Spiritual values and beliefs affect personnel’s goals,
The assumptions discussed above could bring the lifestyle, physical, social, mental, emotional, and spiritual
major influence on organizations’ beliefs about how health. When appropriate, organizations should let
personnel values should be managed. In the light of the personnel know that values have personal and
above mentioned assumptions, it hardly need to be em- organizational consequences and help them increase the
phasized that the ultimate objective of the organization- quality and productivity.
quality and productivity will be influenced by the values of 5. Teaching, training, and modeling spiritual values
the personnel which in turn would improve interpersonal should be the desirable and honorable activity for the
relationships and pave the way for smooth organizational organizational development personnel. Trainers should
change and rapid development. accept the fact that they are value agents and purposely
Although values were excluded from mainstream attempt to model and teach value systems to their
psychology for nearly a century, this normlessness is personnel.
ending. Many organizations are now incorporating value 6. Personnel’s spiritual values can have a significant
system into practice. It is believed that, spiritual values of impact on their mental, physical, social, emotional and
the personnel could increase the organizational perfor- spiritual health. Organizations should help the personnel
mance in the right perspective. We therefore, suggest to utilize their values and resources to assist them in their
that the organizations should pay full attention to the efforts to grow and develop, as fully functioning persons.
clarification of spiritual values among personnel.
Spiritual values are built in the universe that is eternal
and beneficial. Spiritual values promote spirituality, health Value assessment
and harmonious relationship. According to Richards and
Bergin (1997), humans should “often forego their own We believe that, there are some spiritual values that
rewards (pleasure) for the welfare of others. Respon- should be cultivated among personnel through training to
sibility, self-sacrifice, suffering, love, and altruistic service promote the organizational development. Organizations
are values above personal gratification (p.30). Personnel can appeal to both the human resource managers and
cannot keep their values out of work domain, such as personnel for developing insights to the spiritual values.
performing organizational roles, taking part in training, Miller and C’de Baca’s (1994) list, includes a sizable
productivity, nor should they always change or try. When number of spiritually-oriented values that we believe is
appropriate, organizations should explicitly endorse and more suitable for organizational development personnel.
respectfully teach healthy values. It is the responsibility of Examples of values are as follows: achievement, attrac-
the organizations to explore the personnel values, tiveness, career, caring for others, equality for all, fame,
especially spiritual values, to promote growth and well- family, forgiveness, fun, God’s will, growth, happiness,
being. healthy, honesty, intimacy, justice, knowledge, loving,
pleasure, popularity, power, rationality, romance, self-
control, self-esteem spirituality and wealth.
Value-based approach to organizations Organizations can use several techniques to assess,
explore and modify their personnel’s values and life style.
The most ethical and effective approach for organizations For example, organizations can simply ask to the
is to assess the value of the personnel and to adopt a personnel value-related questions such as the following:
valuing style. The spiritual valuing style may be the best
way for organizational performance and development and 1. Are you spiritually oriented?
consequently to improve quality of work life and 2. Do you believe in God or a supreme being?
satisfaction of the personnel. 3. What is purpose of your life?
Value based approach should consider the following 4. What gives your life meaning?
assumptions. 5. What is most important to you in life?
6. What spiritual values do you use to guide your life?
1. Organizations’ theoretical orientations, goals, assess- 7. What are your goals and aspirations?
ment methods and training of the personnel should be 8. Do you feel that your behavior is consistent with the
well grounded in spiritual values. values you profess?
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9. Do you feel that your values and behavior are Fry LW (2003). Toward a theory of spiritual leadership, The Leadership
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congruent?
Ganguli HC (1989). Development of a moral order. Indian J. Soc. Work
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conceptual approach.
Himmelfarb G (1994). On looking into the abyss: Untimely thoughts on
These questions can give organizations considerable
culture and society, Knopf, New York .
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values, and whether their values are healthy for the (5th ed.). Belmont CA: Wadsworth.
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and society in India. New Delhi: Oxford University Press.
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that will help them regulate their behavior in harmony with
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Jossey-Bass, San Francisco.
Mohamed AA, Hassan AM, Wisnieski JM (2001). Spirituality in the
workplace: A literature review. Global Competitiveness. 9: 644-652.
Recommendations
Mukerjee R (1949). The social structure of values. London: Macmillan.
Nehru J (1946/1981). The Discovery of India. Bombay: Oxford
When working with personnel who are spiritually inclined, University Press.
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New York: Macmillan.
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such as praying, meditating, reciting Holy Books and Radhakrishnan S (1968). Hindu view of life. London: Allen Unwin.
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Organizations would need to do this in a way that Koch S, Leary DE (Eds.), A century of psychology as science.
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guarantees freedom of thought to everyone, whether they
Tripathi RC (1988). Aligning development to values in India. In Sinha D,
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Strategic Planning, Organizational Development, and School Effectiveness Page 1
Best Practices in Strategic Planning, Organizational

Development, and School Effectiveness 1
Howard M. Knoff, Ph.D.
Arkansas Department of Education—Special Education

Project ACHIEVE Incorporated
Running Head: Strategic Planning, Organizational Development, and School Effectiveness
1
This chapter is based on previous material and published works copyrighted by Project
ACHIEVE Incorporated Press, Little Rock, AR 72212. As such, the material in this chapter is
covered under those previous copyrights.
Overview
Over at least the past twenty-five years, virtually every state and school district in the country
has worked in the area of school improvement in order to improve the academic and social-
behavioral outcomes of all students. Prompted in the 1980s by the business community’s
demand for a more prepared workforce, in the 1990s by eight National Education Goals
(National Education Goals Panel, 1999), and in the new millennium by the No Child Left Behind
legislation, school-wide efforts to hold educators accountable for student outcomes are now
required, continuously monitored, and reported annually. And while a number of school
improvement models exist, their outcomes have varied (Comprehensive School Reform Quality
Center, 2006), largely due to the interdependency between these models’ ability to adapt and
respond to local school and district conditions, and the local acceptance of a particular model
along with a commitment to its sound implementation. In the end, schools and districts should
focus first on the evidence- or research-based blueprints that can help guide their school
improvement efforts. Using these blueprints as a foundation for all school-based initiatives,
strategies, and activities, schools should be able to individualize their school improvement efforts
while utilizing defensible, accountable school and schooling practices.
This chapter will integrate a number of evidence-based blueprints to provide schools and
districts with a strategic “road-map” toward successful strategic planning, organizational
development, and school effectiveness. Focused ultimately on students’ academic and social-
emotional progress and success, the blueprints also will address school management, classroom
instruction, and professional development. As a first pragmatic step, however, schools need to
be guided by four fundamental questions as the core of their continuous, outcome-based
improvement journey:
1. How do we design and deliver an evidence-based academic and instruction system that
successfully addresses the differentiated needs of all students while improving their rate of
learning such that they progress through the grade levels and graduate from high school with
functional and extended skills; and how do we create functional assessment and monitoring
approaches that are curriculum-based and that are used to evaluate the impact of this
instructional system and guide development of successful, strategic interventions when students
do not respond to effective instruction?
2. How do we design and deliver an evidence-based positive behavioral support system that
increases all students’ interpersonal, problem-solving, and conflict resolution (i.e., social) skills;
that creates safe and connected classroom and school environments; and that maximizes
students’ motivation and their academic engagement, independence, and confidence; and how do
we create functional assessment and monitoring approaches that are ecologically-based and
culturally-sensitive, and that are used to evaluate these school-wide efforts and guide the
development of successful strategic and/or intensive interventions when students do not respond?
3. How do we increase our parent outreach and involvement so that all parents are motivated,
capable, and involved in activities that support and reinforce the education of all students? To
complement this, how do we increase our community outreach and involvement so that real
interagency and community collaboration occurs resulting in effective, efficient, and integrated
services to all students at needed prevention, strategic intervention, and intensive service levels?
4. Finally, how do we design and deliver this integrated, unified educational system through a
strategic planning and organizational development process that incorporates data-based
functional assessment and problem-solving to guide decision making and provide ongoing
formative and summative evaluation? Moreover, how do we institutionalize this process such
that it becomes self-generating, self-replicating, and responsive to current and future student
needs?
All of these needs and questions are essential to ongoing school improvement and success.
But one “common denominator” determines all levels of improvement and success: the positive,
collaborative relationships among the individuals actually implementing any strategically
planned evidence-based initiative. That is, any school can choose and plan to implement an
evidence-based school improvement program. But, process determines outcome. If that
program is not implemented with integrity, enthusiasm, commitment, collaboration, and
consistency, the “evidence base” becomes irrelevant and insignificant. School improvement and
success is “all about the people.” And the process needed for success involves “Seven C’s”:
Communication, Caring, Commitment, Collaboration, Consultation, Consistency, and
Celebration.
On a more formal level, we have known, figuratively, about the Seven C’s for over a decade.
For example, the Annie E. Casey Foundation (1995) sponsored a 5-year, five community New
Futures grant program to prepare disadvantaged urban youth for successful lives as adults. After
investing an average of $10 million in each community over 5 years, the foundation evaluated
the implementation and planned change process to help future initiatives to be more efficient and
effective. In the end, the key lesson was that, in the low-income communities involved, systems-
level initiatives, by themselves, could not transform poor educational, school, and health
outcomes for vulnerable children and families. That is, institutional change was not enough; the
comprehensive change process required home school and community collaboration that included
social-capital and other economic-development initiatives targeting entire low-income
neighborhoods. Among the other lessons described in this report were the following:
1. Comprehensive reforms are very difficult and involve, at times, the path of most
resistance. True integration at the service-delivery level requires collective decision making
across budgeting, staffing, and resource allocation; good communication and clear program
planning, purpose, design, and expectations; attention to issues of power, race, and ethnicity; and
time, trust, risk-taking, and perseverance.
2. Comprehensive reform requires advanced and ongoing efforts to build constituencies
that are committed to long-term efforts, to strategic planning, and to the development of systems
that can sustain the change process over time and through changes in leadership.
3. Comprehensive reform is not for every community, nor is every community at a
readiness level to begin this process. Comprehensive reform efforts must be planned, public,
realistic, and shared; and they need core leadership, management systems and skills, conviction
and momentum, and credibility and legitimacy to have any hope of success.
4. Comprehensive reform requires a blend of outside technical assistance and local
commitment, leadership, planning, funding, and evaluation that results in local ownership and
self-renewal.
5. Comprehensive reform requires repair, revision, reassessment, and recommitment.
Significant modification should not be interpreted as a sign of failure.
6. Comprehensive reform often requires the development of entirely new systems and
ways of being. The alteration of existing systems or the implementation of new systems built
alongside old systems often will not lead to real change and enduring outcomes.
And so, with the focus on people, process, and the Seven C’s as a given, the remainder of this
chapter will describe some essential evidence-based blueprints outlining a “road-map” toward
successful strategic planning, organizational development, and school effectiveness.

Basic Considerations
To coordinate and facilitate a school-based organizational change and strategic planning
process, school psychologists must have expertise and skills in four primary areas: (a) the
evidence-based components, activities, and interactions underlying effective schools and
educational practices; (b) the data-based problem-solving and decision-making processes,
including the planning and development cycles, of schools and districts from an organizational
perspective; (c) how to guide or support strategic planning processes such that effective,
functional school improvement plans are written and executed; and (d) the consultation skills to
facilitate proactive organizational change, effective group processes, student-focused
instructional and behavioral skills and mastery, functional assessment, and strategic and
intensive interventions. Among the more specific skills needed to succeed in these primary areas
are the following: effective functional assessment and data-based problem solving skills;
system, school, and classroom ecological or environmental assessment and intervention skills;
system, staff, and student instructional, academic, and behavioral intervention skills at the
prevention, strategic intervention, and intensive need levels; and action research and program
evaluation skills. Among the beliefs needed to succeed in these primary areas, school
psychologists need to: accept responsibility for all systems, staff, and students while
differentially evaluating and attending to their respective strengths and needs, weaknesses and
limitations, history and experiences, and opportunities and potential; deliver services based on
functional needs and not perceptions or labels; commit themselves to continuous growth,
viewing all challenges as professional development opportunities; and recognize that people, not
just programs and interventions, facilitate short- and long-term change.
Best Practices
In the context of continuous school improvement (or any other planned change process), it is
important to note that organizational change and strategic planning should be natural, necessary,
and ongoing components of any healthy, evolving school. Indeed, as schools focus on student
outcomes, they must attend to these organizational change and strategic planning processes to
build the “infrastructures”—at the staff, school, system, and community levels—that coordinate
resources, build capacity, support school-wide programs, and maximize success. As with most
systemic endeavors, a comprehensive problem-solving process is needed (see Chapter XX in this
Volume). But this process is facilitated by understanding (a) the components of an effective
school; (b) how strategic planning fits into these components; and (c) how the school
improvement process is organized through the committee structure of the school and the
activities of school-level committees. Ultimately, a school or district’s School Improvement
Plan (SIP) is the public “document of accountability,” and it synthesizes all of these planning and
implementation processes. And yet, an essential question is, “Is the SIP a piece of paper written
annually by one or two individuals to meet a state mandate, or is it a functional, comprehensive
document that guides the monthly, weekly, and daily operation of the entire staff in the school?”
The Components of an Effective School. While their specific titles may vary slightly across
different evidence-based school improvement models, a common core of effective school
components has been consistently used to organize organizational development and strategic
planning processes and procedures. Using Project ACHIEVE’s evidence-based model as a guide
(e.g., Knoff, Finch, & Carlyon, 2004), seven interdependent components are described briefly—
components that form the foundation of a school’s continuous improvement, committee-focused,
professional development, and student-specific instructional activities. These components—(a)
Strategic Planning and Organizational Analysis and Development; (b) Problem Solving,
Teaming, and Consultation Processes; (c) Effective School, Schooling, and Professional
Development; (d) Academic Instruction linked to Academic Assessment, Intervention, and
Achievement; (e) Behavioral Instruction linked to Behavioral Assessment, Intervention, and
Self-Management; (f) Parent and Community Training, Support, and Outreach; and (g) Data
Management, Evaluation, and Accountability—are also depicted in the figure below.
Figure 1. Project ACHIEVE’s Seven Interdependent Components of an Effective School
Effective School,
Schooling, and
Strategic Planning and Professional
Organizational Development
Development
Academic Instruction
linked to Academic
Problem Solving, Assessment, Intervention,
Teaming, and and Achievement
Consultation Processes
Behavioral Instruction
linked to Behavioral
Assessment, Intervention,
Parent and Community and Self-Management
Training, Support, and
Outreach
Data Management,
Evaluation, and
Accountability
1. The Strategic Planning and Organizational Development Component initially focuses on
assessing the organizational climate, administrative style, staff decision-making, and other
interactive and interpersonal processes in a school. Activities then move into identifying and
reinforcing, or establishing and implementing the organizational policies, procedures, and
cyclical approaches that support the academic and social-emotional/ behavioral success of all
students. While this process is outlined in more detail below, the ultimate “product” of this
component are three- and one-year School Improvement Plans that help schools build capacity
and autonomy, identify and focus resources, facilitate stability and sustainability, and realize
student, staff, and system success.
2. The Problem Solving, Teaming, and Consultation Processes Component focuses on
consistent, school-wide data-based, functional assessment, problem-solving approaches that all
staff learn and use when developing effective instructional processes and then addressing
students who are not responding to this instruction and the next “level” of evidence- or research-
based classroom instruction or interventions. This “Response-to-Intervention” component
emphasizes a “problem-solving/consultation/ intervention” mode of operation that directly
contrasts with past “wait-to-fail” and “refer-test-place” approaches, and it is applied with
students experiencing academic and/or behavioral concerns. As such, this component provides a
foundation to the primary (whole-school), secondary (strategic intervention), and tertiary
(intensive need, crisis management, and/or wrap-around/systems of care) prevention continua
reflected in the academic and behavioral components below. And, as noted earlier, it recognizes
that problem solving and intervention processes involve teams that work collaboratively for the
school’s “greater good,” and professionals who work, as colleagues and consultants, to share
knowledge, skill, expertise, and experience for the benefit of all students.
3. The Effective School, Schooling, and Professional Development Component focuses on
processes that ensure that effective and differentiated instruction and effective and positive
behavior management exists in every classroom for every student, and that involve all teachers,
administrators, related service professionals, and others. To support this, effective schools
recognize that professional development occurs, formally and informally, every day for every
staff person, and they systematically plan and implement ongoing professional development
programs and processes resulting in increased knowledge, enhanced skills, and emerging
confidence and autonomy. This occurs through in-service instruction and a clinical supervision
approach that involves modeling, guided practice, informed feedback, planned applications, and
the transfer of training. Ultimately, as with other components, the primary goal is to maximize
students' attention to task, academic engaged time, positive practice repetitions, and academic
and behavioral achievement.
4. The Academic Instruction linked to Academic Assessment, Intervention, and Achievement
Component focuses on positively impacting the “Instructional Environment” in every classroom
within a school. The Instructional Environment consists of the interdependent interactions, in a
classroom, of the Teacher-Instructional process, the Student, and the Curriculum. Expanding
briefly, the Instructional Environment involves (a) the different curricula being taught, as well as
their respective standards, benchmarks, and scope and sequence objectives (i.e., “What needs to
be learned?”); (b) the teachers who are teaching, and how they organize and execute their
classroom instruction (i.e., “Are appropriate instructional and management strategies being
used?”); and (c) the students who are engage in learning, and their capacity to master the
instructional material, along with their response to effective instruction and sound curricula (i.e.,
Is each student capable, prepared, and able to learn, and are they learning?”).
Critically, the data-based, functional assessment, problem-solving process and effective
school and schooling practices, described in earlier components, are implicit in this component
as the three facets of the Instructional Environment are analyzed continually to determine how
students can be most academically and behaviorally successful, and what is happening when
success is not occurring to the degree desired. When the latter occurs, a functional, curriculum-
based assessment and intervention approach to student achievement that uses, as much as
possible, direct instruction and a mastery-model perspective of academic outcomes is
recommended (e.g., Shapiro, 2004). This involves teaching teachers how to identify and analyze
curricular and instructional variables and their relationship to student achievement outcomes,
how to assess curricular (i.e., scope and sequence) placement and performance expectations, and
how to complete curricular task analyses such that assessment is functionally linked to
intervention in the classroom. Additionally, research results from learning theory and practice
are integrated into the classroom to enhance the learning environment and process and to
facilitate more positive outcomes (e.g., Stoner, Shinn, & Walker, 2002).
5. The Behavioral Instruction linked to Academic Assessment, Intervention, and Self-
Management Component focuses on implementing comprehensive positive behavioral support
systems across schools. Again using Project ACHIEVE and its evidence-based Positive
Behavioral Self-Management System (PBSS), this whole school approach involves students,
staff, administration, and parents building and reinforcing (a) students’ interpersonal, problem-
solving, and conflict resolution skills and interactions; (b) positive, safe, supportive, and
consistent school climates and settings; and (c) school and district capacity such that the entire
process becomes self-sustaining. Thus, “Self-Management” occurs at three levels: student, staff
and school, and system and district. This is accomplished through six domains at the primary,
secondary, and tertiary prevention levels. The first three domains include: (a) the direct
instruction of social skills for all students in the classroom by general education teachers with the
support of other mental health professionals for more challenging students (e.g., Knoff, 2001);
(b) the development and use of school-wide accountability systems that specify expected student
behavior, connected with positive responses, incentives, and rewards, and “intensity levels” of
inappropriate behaviors, connected with evidence-based responses and interventions that help
decrease or eliminate these behaviors while establishing and increasing appropriate behaviors;
(c) staff, setting, situations, system, and strategic consistency relative to social skills instruction
and student accountability. The latter three domains include: (d) analyses and interventions, as
needed, for a school’s “setting and student special situations”, which involves the common areas
of the school (i.e., setting) and incidents of teasing, taunting, bullying, harassment, and fighting
(i.e., student); (e) crisis prevention, intervention, and response; and (f) community and parent
outreach and involvement, which should occur within all five of the domains noted above.
When students do not respond, behaviorally, to the preventative strategies within the six
domains above, functional assessment is conducted and linked to strategic behavioral
interventions that are designed to resolve identified behavioral problems and/or to improve
staff’s related instructional and classroom management procedures (Kerr & Nelson, 2002;
Stoner, Shinn, & Walker, 2002). These interventions focus, for example, on specific referred
problems exhibited by students (e.g., not completing homework, noncompliance, swearing,
threatening others) or specific behaviors that, inappropriately, are or are not exhibited by
teachers as part of the instructional process (e.g., not providing advanced organizers or
appropriate instructional feedback, reinforcing inappropriate behavior through attention or using
discipline inconsistently). In this context, staff need to have skills in behavioral observation, data
collection, consultation, intervention, and intervention evaluation strategies and techniques.
Interventions here typically address the direct instruction of specific behavioral skills, stimulus
control approaches, behavioral addition approaches, behavioral reduction approaches, behavioral
maintenance approaches, and behavioral generalization approaches (Kerr & Nelson, 2002;
Stoner, Shinn, & Walker, 2002).

6. The Parent and Community Training, Support, and Outreach Component focuses on
increasing the involvement of all parents, but especially the involvement of the parents of at-risk,
underachieving, and students with disabilities (Raffaele & Knoff, 1999). Parental involvement
in the school and educational process often occurs less in the homes of these latter students, and
it often discriminates achieving from underachieving students (Christensen, Rounds, & Franklin,
1992; Dunst, Trivette, & Johanson, 1994). Relative to community involvement, many schools
do not use, much less know, the expertise and resources available to them that can help their
mission and the progress of their students. For students with significant academic or behavioral
challenges, the coordination and integration of community-based professionals and services
often results in stronger and more pervasive progress and outcomes.
Among the activities that schools may consider here are: (a) conducting needs assessments to
look at the current and desired state of parent involvement and home-school-community
collaboration; (b) organizing building staff around collaboration and community outreach
through the school improvement process and plan; (c) teaching parents about the school’s
academic program and how to support students at home relative to study skills, homework, and
literacy; (d) directly training parents to transfer critical school academic and behavioral
interventions into the home; (e) creating Parent Drop-In Centers to encourage parent
participation in school activities and parent access to training and learning materials; (f)
completing community audits and resource directories to identify important organization,
agency, and professional programs, skills, and expertise in areas relevant to the school, staff, and
students; and (g) reaching out to these community resources, formally and informally, to
establish communication, collaboration, and coordination, especially relative to services for at-
risk, underachieving, and challenging students.

7. The Data Management, Evaluation, and Accountability Component focuses on actively
evaluating, formatively and summatively, the status and progress of students’ academic and
behavioral mastery of skills and concepts, as well as the processes and activities inherent in all of
the other supportive components (see above) of an effective school. Part of this process involves
collecting formative and summative data that validate the impact of a school’s strategic planning
and school improvement efforts; its professional development and capacity-building efforts
relative to the staff; its selection, training and implementation of academic and behavioral
curricula and, later, interventions; and its effectiveness relative to the functional assessment,
strategic intervention, and response to intervention services for students not making appropriate
academic and behavioral progress. Another part of this process involves evaluating the
consultative success of related service and support personnel with classroom teachers, as well as
the interpersonal interactions that address the other process-oriented parts of the Seven C’s that
influence system, staff, and student success. Critically, this latter evaluation should evaluate
“staff to staff, staff to parent and community, staff to student, and student and student
interactions. All of these interactions collectively determine the climate and functioning of a
school.
The Strategic Planning Process. Strategic planning is a continuous, systematic process that
helps schools and districts to anticipate and plan their annual and multi-year goals and activities
by analyzing their system-specific strengths, weaknesses, threats, and opportunities, as well as
those of their communities. Designed to increase organizational and staff capacity and resources
while facilitating outcomes, strategic planning involves ongoing activities whereby schools and
districts (a) develop, implement, and evaluate programs and activities designed to meet their
mission, goals, and student-related outcomes; (b) track their needs, plans, and progress over time,
(c) analyze and decide what programs, curricula, or interventions to add, delete, substitute, or
supplement to existing programs, while determining when and how to make the “mid-course
adjustments” to maximize these programs’ success; and (d) anticipate and respond to upcoming
or future events that may affect them in their pursuit of educational excellence. Ultimately,
strategic planning uses a systems perspective to the organization and execution of the
educational process emphasizing effective and efficient data-based planning and decision-
making, personnel and resource development and management, fiscal and technological
integrity, and school and community integration. While virtually every school and district is
now mandated to have a School/District Improvement Plan, the “public” outcome of strategic
planning, this does not mean that they have been trained in or have engaged in effective or
comprehensive strategic planning.
Cook (1990) and Valentine (1991) provide two complementary perspectives as to how
strategic planning should occur. Cook divides strategic planning into five phases: Phase I--
Preparing for Planning and Change; Phase II-- Developing the Goals and Outcomes of the
Strategic (or School Improvement) Plan; Phase III-- Outlining the Strategic Plan’s
Implementation Process; Phase IV-- Implementing and Monitoring the Plan; and Phase V--
Renewing the Plan.
During Phase I, the school or district engages in the following activities:
1. An External Environmental Scan and Analysis where (a) economic, demographic,
social, political, and education trends are analyzed; (b) national, state, regional, and local patterns
in the trend areas above are evaluated; (c) scenarios that predict future environmental events and
their impact on the school are created; and (d) school-based responses to the most likely
scenarios, within the resources and the school’s capabilities, are generated.
2. An Internal Organizational Scan and Analysis where the strengths (or assets),
weaknesses (or limitations), resources (or opportunities), and barriers within the school are
identified, guided by the components of an effective school described above (see again Figure 1).
3. An Analysis of Stakeholder Perceptions and Expectations, where the needs and goals of
the staff and students are identified and analyzed, along with those of critical stakeholders (e.g.,
parents, businesses, others) in the community.
4. A Community Education Process that ties the entire process together (a) by helping all
internal and external stakeholders understand the data that have been collected, the trends and
scenarios identified, and how these data will be utilized during the next strategic planning
phases, and (b) by involving these stakeholders as equal partners in the change process to come.
In Phase II, the foundation to the strategic (or school improvement) plan is drafted by taking
the results of the external and internal scans and sequentially developing a vision statement, a
mission statement, strategic goals and desired outcomes. Consistent with the previous section,
the strategic plan should have prominent sections focusing on the each of the components of
school effectiveness. That is, sections of the plan should describe the annual goals and
outcomes for the school or district’s (a) strategic planning and organizational development
processes; (b) early intervention, problem solving, teaming, consultation, and response to
intervention processes; (c) effective school, schooling, and professional development processes;
(d) student-focused academic achievement, and curriculum and instruction processes; (e)
student-focused behavioral outcome and positive behavioral support processes; and (f) parent
and community training, support, and outreach processes. Beyond this, each section of the plan
should have its own data management, evaluation, and accountability activities built in to
determine the whether the specified goals and outcomes have been attained.
Once drafted, this foundation to the strategic plan is reviewed by members of the planning
team, by critical client and stakeholder groups, and by others who might be either politically or
functionally important to the implementation process. Ultimately, the feedback from this review
process is synthesized and evaluated, and revised goals and outcomes are finalized. According
to Cook (1990), when first engaging in the strategic planning process or when a strategic plan is
being changed in comprehensive ways, the Phase II process may take a school or district up to 3
months. Even then, the strategic plan’s goals and outcomes still may be adapted in Phase III.
In Phase III, all of the strategic (or improvement) plan’s implementation steps and processes
are written and formalized at the school and/or district levels. Thus, in each of the six
components noted, the objectives, activities, timelines, resources, and evaluation tools and
procedures needed to attain the previously identified goals and outcomes are specified. In
addition, the strategic planning process now must be coordinated with the district’s budgeting
cycle. More specifically, most districts finalize their budgets each new school year (typically
beginning on July 1st), during the prior spring. This provides the district, and its schools, with
operating funds to, for example, hire new staff, purchase new equipment and curricula, and
initiate needed construction projects. Given this, most schools complete their strategic plans
with budget requests by early February. Most districts present these plans and budgets to their
school boards by March. And, most school boards approve these plans and pass their budgets by
May. Once these activities are completed, the district and its schools know what financial,
personnel, and material resources will be available to support strategically planned activities.
At times, school districts write 3- to 5-year “Strategic Operation Plans” (SOPs) to guide the
development of their annual district improvement plans. These strategic operation plans most
often contain a series of operational goals and objectives for each of the district’s organizational
units or departments (e.g., Administration, Leadership, and Human Resources; Financial and
Legal; Transportation, Maintenance, and Food Services; Curriculum and Instruction; Personnel
and Professional Development; Public Relations and Community and Family Outreach,
Accountability and Evaluation), along with a prioritization of these goals, and the activities,
resources, and budget needed to accomplish these goals. These operational plans work
symbiotically with the district and its schools’ annual school improvement planning process and
eventual plans, providing structure and direction for their Phase III planning.
In Phase IV, the strategic (or school improvement) plan is implemented and evaluated
formatively and summatively. While the SIP guides all school, staff, and student activities, it is
supplemented—at the staff level—by a Professional Development Plan (PDP) or Individual
Performance Plan for every staff person in a school. The PDP documents each staff member’s
professional goals, objectives, and responsibilities for the school year, and it identifies the
outcomes and procedures needed to evaluate every staff member’s year-long performance and
accomplishments. Significantly, PDPs are based on the activities outlined in the district’s
strategic operation plan and the school’s individual strategic plan. In fact, PDP goals and
outcomes directly assist the school and district to accomplish SIP goals and outcomes. Thus, an
important interdependence exists across SOPs, SIPs, and PDPs, and across the entire strategic
planning process.
Finally, after implementing a strategic (or school improvement) plan for almost a year, it is
reviewed and renewed during Phase V. At this point, the school typically has accomplished a
great deal, and yet it must determine if its strategic direction and activities are still valid. To do
this, the strategic planning team should re-evaluate the school’s external and internal
environmental conditions since the writing of the original plan, re-visit the mission statement and
strategic goals, review the district’s SOP, and re-focus the strategic plan as necessary, assessing
the organization’s commitment, resources, and energies toward the next level of
accomplishment.
Valentine (1991) organizes her strategic planning process into five levels: Level 1-- The Pre-
Planning Stage of the Planning Process; Level 2-- Re-Defining the Organization’s Direction;
Level 3-- Developing the Strategic Mind-Set; Level 4-- Implementing Goals, Objectives, and
Strategies; and Level 5-- Reassessing and Institutionalizing the Change Process (see Figure 2).
While Valentine’s strategic planning process appears more complex and comprehensive than
Cook’s (1990), hers is actually just a more descriptive expansion. Thus, it is instructive to review
her process and compare it to Cook’s approach above. In the end, every facet of Valentine’s
model has already been described. It does, however, provide a good summary to this section of
the chapter.
[INSERT FIGURE 2 ABOUT HERE]
The Committee Structure of a School. The SIP, which operationally reflects the
characteristics of an effective school (see discussions above), is best implemented through a
school committee structure that maintains the same consistent organization. To this end, the
diagram below presents a recommended “organizational map” for a school’s building-level
committees. The suggested structure is a flexible blueprint that should be adapted to fit a
school’s strategic needs, organizational realities (e.g., state statutes, school size, local politics),
and desired outcomes. But, the premise behind this structure is that, just like a business, an
effective school must have committees and people to take responsibility—in organized, planful,
and coordinated ways—for the goals, activities, and outcomes of its SIP using shared leadership
approaches.
Figure 3. Blueprint and Recommendation of an Organizational Map of a School’s

Committee Structure
School Improvement Team
Curriculum & School Discipline/ Professional Development/

Instruction Committee Climate Team Teacher Support
Committee
SPRINT Team Parent Involvement/

(School Prevention, Review, Community Outreach
and Intervention Team) Committee
Briefly, the committee structure recommended above has six primary committees. The
committee that coordinates and guides all of the strategic plan and implementation processes in a
school is the School Improvement Team. This committee is made up of the chairs of all of the
other school-wide committees and a representational sample of teachers, related service staff,
support staff, school administrators, parent and/or community leaders, and sometimes students.
This committee is primarily responsible for overseeing the Strategic Planning and Organizational
Analysis and Development component and activities of the SIP, for most site-based management
and related fiscal decisions, and for evaluating all school-level and student-specific outcomes. It
is significant to note that the School Improvement Team is the super-ordinate committee to
which all other committees report. The remaining five committees include:
The Curriculum and Instruction Committee looks at the most effective ways to implement
new and existing district- and building-level curricula into the classroom such that they are most
effectively taught to all students. This committee is largely responsible for the school and SIP’s
Academic Instruction linked to Academic Assessment, Intervention, and Achievement
component and activities.
The School Discipline/School Climate Committee is the building-level committee that
oversees the implementation of the school’s positive behavioral support system consisting of the
social skills, accountability system, special situation analyses, crisis prevention and management,
and related parent and community outreach programs. Thus, this committee is largely
responsible for the school and SIP’s Behavioral Instruction linked to Behavioral Assessment,
Intervention, and Self-Management component and activities.
The Professional Development/Effective Instruction/Teacher Mentoring Committee organizes
and oversees the school’s professional development and peer-supervision activities to ensure that
all teachers and staff are teaching and interacting with students at the highest levels of
effectiveness and professionalism. This committee is largely responsible for the school and
SIP’s Effective School, Schooling, and Professional Development component and activities.
The SPRINT (School Prevention, Review, and Intervention Team) Committee (Knoff, 2005)
is responsible for developing and implementing—especially in general education classrooms
with the teachers teaching there—the data-based problem-solving and intervention process that
addresses the academic and/or behavioral needs of students who are not responding to effective
instruction. The SPRINT team is composed of the strongest academic and behavioral
intervention specialists in and available to the school, and it is also responsible for determining a
student’s eligibility for more intensive special education services if strategic interventions, over
time and consistent with IDEA, are not successful. Given this, this committee is largely
responsible for the school and SIP’s Problem Solving, Teaming, and Consultation Processes
component and activities, but this committee’s activities clearly overlap with other committees,
especially those focused on the school’s academic and behavioral programming for all students.
Finally, the Parent Involvement/Community Outreach Committee is responsible for actively
involving parents in school activities and in supporting the educational process for all students at
home. It also helps to coordinate community resources such that needed and effective home-
school-community partnerships are created to address the needs of all students, parents, and
others. Thus, this committee is largely responsible for the school and SIP’s Parent and
Community Training, Support, and Outreach component and activities.
Bonus Best Practices
Beyond the best practices already discussed, five practical “bonus best practices” are
recommended to complement the broader, more systemic strategies above. These best practices
emphasize the importance of effective team functioning, resource recognition, periodic reviews
of consultation and intervention activities, and the need to transfer the “student lessons learned”
in effective ways.
Choosing and Rotating Committee Members. In order to fully implement a “shared
leadership model” of organizational development and school improvement, it is strongly
recommended that every instructional staff member be on at least one school-level committee
(some staff, due to their leadership positions either at a grade level or of a committee, also may
be on the School Improvement Team). If a grade level has, for example, four teachers, a sound
approach to committee membership would have one teacher on a separate committee (e.g., on
the Curriculum and Instruction, School Discipline/School Climate, Professional
Development/Effective Instruction/Teacher Mentoring, and Parent Involvement/Community
Outreach Committee, respectfully). Beyond this, it is recommended that the teachers on each
committee serve a three-year term (that may be renewed once), and that the committee terms be
staggered so that only one-third of a committee rotates off a committee in any one year. All of
this ensures that school-level committees have appropriate grade-level teacher representation
(related service and other non-instructional specialists are assigned to committees more in line
with their skills and potential contribution to the committee), continuity, and yet, that their
membership periodically changes so they don’t become “stale” or “institutionalized.”
Publishing a School Resource Directory. In order to facilitate problem-solving and formal
and informal consultation for teachers who have students with academic or behavioral
challenges, the development of a School Resource Directory is recommended. Developed after a
school’s entire staff has completed a brief two-page questionnaire, this Directory identifies staff
member’s formal degrees and areas of certification or specialization, formal areas of in-service
training and professional development, academic and/or behavioral areas of expertise, and
special skills or talents or hobbies. The front section of the Directory is organized by grade level
and teacher, while the back section is organized across specific skill areas, listing all of the
teachers who feel comfortable being formal or informal consultants to another colleague in each
area.
Completing Report Card Scans. Given the primary focus on students’ academic and
behavioral skills, mastery, and self-management, it is important to functionally track students’
progress over time. While this is best done by classroom teachers who continuously monitor the
progress of students using classroom- and curricularly-sensitive authentic measures, other
evaluation “layers” help to confirm and extend teacher-generated data. One layer involves the
academic, behavioral, and attendance data on students’ report cards.
It is recommended that schools’ SPRINT teams complete a “report card” scan, after each
marking period, of every students’ academic grades, behavior ratings (if documented), and
attendance. Usually done electronically (or by teacher report), students can be “red-flagged” if
there are significant (downward) changes in grades or classroom behavior from one quarter to
the next, and/or significant problems with attendance, including school tardiness or requests to
visit the nurse’s office. By creating decision rules (e.g., a drop of three total grade blocks in
more than one academic subject—say, three courses dropping from Bs to Cs—or a drop of two
grade blocks in any one academic subject; being absent from 10% or more of the instructional
days in the quarter), teachers and other professionals can be consulted regarding red-flagged
students to determine the need for further problem solving, functional assessment, and
interventions.
Conducting a Year-End Consultation Referral Audit. In order to analyze the referral patterns
for early intervention services at any level of the SPRINT process (i.e., grade-level or building-
level SPRINT requests for consultation), it is essential that SPRINT teams conduct at least an
annual Consultation Referral Audit. Typically done in April or May, this audit involves
summarizing all of the SPRINT referrals for the past year across the following dimensions: (a)
student age and grade; (b) time of year when referred; (c) specific presenting problem(s) (e.g.,
reading fluency, mathematical applications, ability to sustain academic attention and
engagement); and (d) specific interventions identified, implemented, and successful. With this
information, the SPRINT team can identify referral trends and patterns; “early warning”
indicators so that younger students, who may eventually experience similar concerns, can receive
early, preventative interventions; and professional development needs so that teachers, who will
likely need more intensive interventions for underachieving and challenging students, can be
trained before actually needed these interventions—thus facilitating the consultation and
intervention process. In this way, past referrals result in future effective and preventative
practices, allowing students to receive strategic intervention services, earlier, more quickly, and
more successfully, from more prepared general education teachers with or without the need for
related service or other SPRINT-related consultations.
Identifying “Get-Go’ Students for the New Year. Too often, teachers and SPRINT teams or
consultants spend a lot of time completing functional analyses of students experiencing academic
or behavioral challenges and implementing successful strategic or intensive interventions only to
have all of these processes discontinued with the end of the school year. That is, many schools
do not strategically plan a transition process for student interventions from one school year to the
next. Using the belief that “the new school year begins in April,” it is recommended that the
SPRINT team, with relevant classroom teachers, complete a review of all students who have
received pre-referral or early intervention services, at any level of intensity, during April. Thus,
the review should include all students on IEPs, 504, or state-required Academic Intervention (or
Behavioral) Plans. During this review, three groups of students are identified: (a) “Get-Go”
students who need immediate academic or behavioral interventions on Day 1 of the new school
year, (b) “At-Risk” students, who have enough intervention needs that their new teacher(s) need
a systematic briefing from the previous year’s teacher(s) and consultant(s) before the next school
year begins; and (c) “Check-In” students, who need someone from the SPRINT team to check in
with their teacher(s) approximately 2 to 4 weeks into the new school year. Medically fragile and
students with attendance problems should also be “challenges” that the SPRINT team considers.
By completing this “Get-Go” process, the probability that the functional assessment,
consultation, and intervention “lessons learned” will be effectively transferred from one school
year to the next is increased. Moreover, this process may help determine how students will be
functionally grouped the next year, and what teachers will have the greatest potential for success.
And, finally, this process can ensure that the “next year” teachers will receive the needed
intervention information, training, and support before the new school year begins so that the
services and strategies needed by the selected students are delivered in timely and effective
ways.
Summary
This chapter has focused on the important processes and procedures that relate to school
improvement and effectiveness as facilitated by strategic planning and organizational
development strategies. Focusing on students’ academic and social-emotional progress and

success, four fundamental questions—addressing academics and instruction, behavior and school
climate, parent and community involvement, and planning and evaluation decisions, were
presented as the core of any school’s continuous improvement journey. To further guide this
journey, three major areas were detailed: (a) the components of an effective school; (b) how
strategic planning fits into these components; and (c) how the school improvement process is
organized through the committee structure of the school and the activities of school-level
committees. The school or district School Improvement Plan (SIP) was identified as the public
“document of accountability” that synthesizes all of these planning and implementation
processes. During this discussion, two complementary strategic planning models were presented
by highlighting their most important elements across five sequential phases: Phase I--Creating a
Base for Planning and Change; Phase II--Developing the Strategic Plan; Phase III--Developing
the Implementation Plan; Phase IV-- Implementing and Monitoring the Plan; and Phase V--
Renewing the Plan. The chapter concluded by briefly describing five “bonus best practices”
related to choosing and rotating committee members, publishing a School Resource Directory,
completing report card scans and year-end Consultation Referral Audits, and identifying “Get-
Go” students in May for the new school year.
Today’s children are coming to the schoolhouse door significantly at-risk for both educational
and social failure. Schools and districts must use systematic and strategic planning and
implementation processes so that they build the “infrastructures”—at the staff, school, system,
and community levels—that help to coordinate resources, build capacity, support school-wide
programs, and maximize the academic and social-emotional/behavioral success of all students.
With this success, current and future generations of students will more quickly and readily
demonstrate the independent learning and behavioral self-management skills that they need—not
just when they are in school, but when they return to their homes, when they enter the workforce,
and when they progress beyond to lead their communities and our country.
Figure 2. Valentine’s Strategic Management and Planning Model

Adapted with permission from Valentine (1991).
References
Annie E. Casey Foundation. (1995). The path of most resistance: Reflections on lessons learned
from New Futures. Baltimore, MD: Author.
Christenson, S.L., & Close-Conoley, J. C. (Eds.) (1992). Home-school collaboration:
Enhancing
children's academic and social competence. Silver Spring, MD: National Association of
School Psychologists.
Comprehensive School Reform Quality Center. (2006). CSRQ Center Report on Elementary
School Comprehensive School Reform Models. Washington, DC: American Institutes for
Research.
Cook, W. J. (1990). The planning discipline. Cambridge, MA: The Cambridge Management
Group.
Dunst, C. J., Trivette, C. M., & Johanson, C. (1994). Parent-professional collaboration and
partnerships. In C. Dunst., C. Trivette, & A. Deal (Eds.), Supporting and strengthening
families (Volume 1): Methods, strategies, and practices (pp. 197-211). Cambridge, MA:
Brookline Books.
Kerr, M. M., & Nelson, C. M. (2002). Strategies for managing behavior problems in the
classroom (4th Edition). Columbus, Ohio: Charles E. Merrill Publishing Company.
Knoff, H. H. (2005). Building strong schools to strengthen student outcomes: The DVD Series.
Little Rock, AR: Arkansas Department of Education—Special Education Unit.
Knoff, H. M. (2001). The Stop & Think Social Skills Program (Preschool – Grade 1, Grades
2/3, Grades 4/5, Middle School 6-8). Longmont, CO: Sopris West.
Knoff, H. M., & Batsche, G. M. (1995). Project ACHIEVE: Analyzing a school reform process
for at-risk and underachieving students. School Psychology Review, 24, 579–603.
Knoff, H. M., Finch, C., & Carlyon, W. (2004). Inside Project ACHIEVE: A comprehensive,
research-proven whole school improvement process focused on student academic and
behavioral outcomes. In K. Robinson (Ed.), Advances in school-based mental health: Best
practices and program models (pp. 19-1 to 19-28). Kingston, NJ: Civic Research Institute,
Inc.
National Education Goals Panel. (1999). The National Education Goals report: Building
a nation of learners. Washington, DC: U. S. Government Printing Office.
Raffaele, L., & Knoff, H. M. (1999). Improving home-school collaboration with parents of
children at-risk: Organizational principles, perspectives, and approaches. School
Psychology Review, 28, 448-466.
Stoner, G., Shinn, M. R., & Walker, H. M. (Eds.). (2002). Interventions for achievement and
behavior problems-II. Silver Spring, MD: National Association of School Psychologists.
Valentine, E. P. (1991). Strategic management in education: A focus on strategic planning.
Boston: Allyn & Bacon.
Annotated Bibliography
Blankstein, A. M. (2006). Failure is not an option: Six principles that guide student
achievement in high performing schools. New York: Sage Publications.
Based on fifteen years of practical research on what is working in schools, this book
emphasizes the importance of professional learning communities as the center of school reform.
In this context, six guiding principles are described for creating and sustaining a high performing
school: (a) a common mission, vision, values, and goals: (b) systems for prevention and
intervention; (c) collaborative teaming for teaching and learning; (d) data-driven decision-
making and continuous improvement; (d) active engagement from family and community; and
(f) building sustainable leadership capacity. The book provides a theory-into-practice
perspective, and provides a number of case studies or vignette that help to concretize its points.
It also looks at ways that schools have been both successful and unsuccessful so that schools can
avoid pitfalls while implementing successful strategies.
Comprehensive School Reform Quality Center. (2006). CSRQ Center Report on Elementary
School Comprehensive School Reform Models. Washington, DC: American Institutes for
Research.
This updated guide reviews and evaluates 22 comprehensive school reform models relative
to their quality and effectiveness. Providing snapshots of each approach’s implementation
process, first-year adoption costs, and effects on student achievement, this guide also lists papers,
articles, and books about each model and their documented effectiveness. While the guide does
not endorse or discredit any of the approaches—trying, instead, to describe and objectively
evaluate—this resource provides a good overview of many of the school reform approaches used
nationwide with decision-making guidelines on how to evaluate school reform and improvement
efforts.
Darling-Hammond, L. (1997). The right to learn: A blueprint for creating schools that work.
San Francisco: Jossey-Bass.

An important work by an educator and researcher who began her work as a public school
teacher and has been involved in the policy and practice of school reform for many years.
Darling-Hammond’s book describes ways to significantly improve not only individual schools
but the overall system of education. Focusing especially on the needs and diversity of students,
this book addresses such topics as how to structure “learner-centered” schools, to staff schools
for teaching and learning, to reinforce teaching as a profession, and to respond to standards
without losing the educational process.
Hirsch, E. D., Jr. (2006). The knowledge deficit: Closing the shocking education gap for
American children. Charlottesville, VA: The Core Knowledge Foundation.
Authored by the founder of the Core Knowledge, this book provides a roadmap toward closing
the achievement gap in our country’s schools. Recognizing that many students, even those who
have mastered reading skills during the early elementary school years, begin to slide after fourth
grade and fail at more difficult comprehension tasks, this book advocates the use of core
curricula that are explicitly outlined, focused on content and comprehension, and that provide
students the foundational knowledge and context that they need to understand concepts,
constructs, and areas requiring higher ordered thinking skills. This book is the culmination of
Hirsh’s many years implementing the school reform principles and practices of Core Knowledge,
one of the long-recognized national school reform models that has been implemented in
hundreds of schools across the country. It integrates the latest scientific thinking on neurological
development and applies it to instruction that must meet state, national, and international
standards. And, it takes a preschool through high school perspective that is specific, practical,
and has already been “scaled up” and demonstrated to be successful.

Valentine, E. P. (1991). Strategic management in education: A focus on strategic planning.
Boston: Allyn & Bacon.
This “book” (which is actually sold in a three-ring binder) provides a comprehensive strategic
management model that is designed to assist the reader in guiding a school district through the
strategic planning process. Supported by case studies and citations from the management
literature, the book has three parts: Strategic Management—Its Role in Education; Planning for
Strategic Change; and Creating Strategic Change Within the Organization. In addition, the book
has over 30 step-by-step worksheets that operationalize the process and make the author’s
approach an easy one for anyone who understands the interdependent components of the school
system to implement. This is a useful book that can help a reader to more completely understand
the inner workings of strategic planning.

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Setyabudi Indartono, Ph.

Author: Setyabudi Indartono, Ph.D

Artikel pendukung implementasi perubahan diantaranya adalah: .................................... 28

Mata kuliah ini membahas tentang pentingnya manajemen

1 Memahami proses pembelajaran Introduction Indartono (2014) #1

Kompetensi Dasar Materi Pokok Sumber Bahan

• Change management Cumming (2006)

13 Memahami pentingnya komunikasi Communication Palmer (2009)

16 UJIAN TENGAH SEMSTER

THE NATURE OF DYNAMIC BEHAVIORS*

* Vivian Chen, Chun-Hsi and Indartono, Setyabudi, 2011, Study of commitment

Manajemen perubahan adalah sebuah pendekatan untuk transisi

Komunitas Manajemen Perubahan, yang menyebabkan pengembangan

Dalam konsep transendeltal, menurut Faisal (2012), Tuhan

Perubahan yang dituntut adalah perubahan yang bersifat positif “

Menurut Faisal (2002) beberapa Bukti-Bukti Empirik dari masa kini

Pertahankan re-engineering. Visi re-engineeringharus datang dari

operasi tradisional. Satu -satunya cara untuk membuat lompatan jauh

Kegagalan Manajemen perubahan sebagaimana dicontohkan Faisal

1. Sebutkan dan jelaskan contoh perubahan dalam kehidupan kita

2. Dalam mengelola sebuah perubahan, Jelaskan kemungkinan efek

3. Sering seseorang mengalami kesulitandalam mengikuti tuntutan

BAB 2 MANAJEMEN DAN PERUBAHAN

The nature of change

perilaku karyawan mungkin berubah sesuai ketika mereka merasa

Image of Managing change

Manajemen perubahan sudah menjadi sebuah tuntutan di berbagai

Dalam tulisannya Dibrata & Murahartawaty (2013) menyebutkan

kerangka dan berurutan dalam mengelola individu untuk melakukan

Menurut Dibrata & Murahartawati (2013), Manajemen perubahan

1. Mengapa perubahan itu menjadi sebuah kepastian. Jelaskan

2. Buatlah sebuah contoh perubahan dan sebutkan indicator

3. Jelaskan perbedaan perubahan dalam perusahaan jasa dan

BAB 3 PERUBAHAN DALAM ORGANISASI

Why organizations change?

karyawan di semua tingkat manajemen. Seluruh perusahaan harus belajar

What changes in organizations

1. Jika anda menjadi seorang manajer di sebuah perusahaan, Faktor apa

2. Jika ada sebuah teknologi baru yang berkaitan dengan perusahanan

3. Di dalam departemen keuangan, operasi, pemasaran dan SDM,

BAB 4 ANALISIS PERUBAHAN

Diagnosis for change

hadirnya teknologi produksi baru. Atau perubahan di segmen system

Kegagalan proses perubahan tidak hanya disebabkan oleh

organisasi yang menghadapi dinamika kompetisi yang tinggi, perubahan

Selain itu dalam proses mengelola perubahan organisasi ada sebuah

psikologis, kognitif, dan kebutuhan peningkatan kapasitas dan kompetensi

Artikel pendukung analisa perubahan diantaranya adalah:

1. Sebutkan kendala investasi SDM yang sering dihadapai dalam sebuah

3. Dalam menghadapi resistensi dalam perubahan, apa yang akan anda

BAB 5 IMPLEMENTASI MANAJEMEN PERUBAHAN

Dengan memahami esensi kebutuhan dan keniscayaan perubahan

pribadi, pengembangan tim, pengembangan sumber daya manusia (SDM),

Dalam proses Appreciative Inquiry dikenal beberapa alur tahapan seperti

Prinsip-prinsip Appreciative Inquiry

Positive organizational scholarship

dapat difahami karena perubahan menciptakan gangguan yang memicu

aliran arus deras memiliki anggapan bahwa perubahan selalu terjadi di

Sebuah contoh model rencana perubahan organisasi sebagaimana di

Pendekatan Kontinjensi dan proses

dan pemantauan diri, serta dilakukan dengan praktek organisasi yang

Menghubungkan Visi dan Perubahan

Artikel pendukung implementasi perubahan diantaranya adalah: