The History Of Organizational

Development Management Essay

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Organizational changes are increasingly becoming a major component of everyday
organizational functioning. All organizations must adapt to new business
environment if they are want to survive. It is supported by (Simons, 2005), that
organizations need to introduce many different types of change in order to survive.
In the history of organizational development, change has been thought of as an
important and dominant factor in the development of organization. The pace of
change has primarily been increased with the increasing challenges such as
competition, development, general instability, mergers and reengineering of work
process (Wu, 2011).
Substantial change and adaptation are among the most challenging events that
organizations must respond to (Baba, 2012) Organizations are faced with the need to
implement rapid changes in plan, structure, method, and culture. Thus, it requires
proper handling the situation because of human involvement that can develop fears
and ambiguities due to diverting situation from known to unknown and individual
differences in their life.

There are surprising statistics about the success rate of organizational change that
indicate the difficulties experienced in comprehending and implementing it.
According to Graetz (2006), only few organizational change efforts have been
successful. Based on Angela Shin-yih Chen (2009), Waddell and Sohal (1998) restate
this point by stating that although many organizations encounter wide spread
changes of varying kinds, nearly two thirds of all major changes are unsuccessful.
The reasons for these failures vary; however, Spector (1989) found in his study that
one main reason for organizational change failures is the fact that the organizational
members were not ready.
Thus, to gaining positive consequences, organization must and recognize employee's
attitudes, beliefs and behaviors towards new programs. In this regard, the main focus

is on employee's readiness factors. This research focuses to examine the employees'

readiness predictors which might support effective and successful organizational
changes.

Background of Company
Flextronics is the leading Electronics Manufacturing Services (EMS) provider
focused on delivering operational services to technology companies. Flextronics is a
major global operating company with design, engineering, manufacturing and
logistics operations in 32 countries and five continents. This global presence allows
for manufacturing excellence through a network of facilities situated in key markets
and geographies that in turn provide its customers with the resources, technology
and capacity to optimize their operations..
In Asia, Flextronics has a geographical footprint of more than 15 million ft2 and a
work force of approximately 58,000 employees. Flextronics Asia has steadily
contributed to adding value to the overall business of our customers and continues to
win more business opportunities for the region.
Flextronics Shah Alam Sdn Bhd, it was located at 7, Jalan Keluli 1, Kawasan
Perindustrian Bukit Raja Selatan, Section 7, 40000 Shah Alam. Before this, it was
formerly known as Vista Point Techologies Sdn Bhd. Since starting in 2003,
Flextronics Shah Alam Sdn Bhd has shipped over 250 million mobile phone camera
modules.
Flextronics is committed to bringing small and smart solution to the
optomechatronics market. The team of engineers and manufacturing experts are
committed to supporting the customers from design to manufacturing, shipping and
service. Whether it the USA, Europe, or Asia, the Global Design Centres are available
24 hours to support the customer needs. Each design centre is equipped with cutting
edge technologies and equipment for rapid-prototype design. The Advanced
Technology Development teams ensure that designs are robust and ready for high
volume manufacturing. Each site is equipped with State-of-the-art clean rooms,
reliability test equipment, and team members champion Kaizen principles.
With knowledgeable and experienced engineers in optical and mechanical design,
Flextronics remains a leader in cutting edge Optomechatronics design. The team
prides itself on small packaging development (Flip Chip and Wafer Level Modules),
firmware and image science, and Auto Focus technologies (MEMs, VCM and iVCM).

Flextronics Shah Alam Sdn. Bhd offers a wide-range of mobile camera modules.
Starting in 2003 with the first CIF and VGA camera, Flextronics Shah Alam Sdn Bhd
has remained a leader in mobile phone modules. Today, Flextronics's cameras
produce high image quality in compact form factors at competitive costs. Their
internal high-volume supply chain and dual-factory locations guarantees supply to
their most demanding customers, while still providing for short-term upside
flexibility. They offer a wide range of technologies and solutions to meet their
customers' needs - whether it is being cost, size, or functionality.

Vision
To become industry leader in design, manufacturing and delivery of
optomechatronics systems that continuously exceed customer expectations.

Mission
To become the recognized preeminent, profitable, high quality designer and
manufacturer of Camera Modules Power Systems and LCD's to their target customer.

Market Position
To become the largest camera module supplier in the world and a leader in power
systems and small form factor displays.

Five Key Values of Vista Point Technologies'

Culture
Intense collaboration
Passionate customer focus
Thoughtful fast disciplined execution
Tenacious commitment to continuous improvement
Relentless drive to win


Organizational Chart
Sekaran
General Manager

Jennifer Sim
Executive Secretary

ROCK
ENGINEERING
OPERATIONS
ROCK
Steve Rumsey
Vice President Operations Engineering

Paul Tan
Director Admin & Security

George O' Kelley

Vice President Program Management

Naidu
Director Operation FOL & Eol

Nathaniel
Director Human Resource

Amarjit

Director Planning Control Tower

Mandeep Singh
Director Maintenance& Equipment Engineering EOL &FOL

YK Lee
Manager IT

Chu Lip Chun

Senior Manager Supply Chain

Kalisvaran
Senior Manager Quality

Poovendran
Financial Controller Finance

Sim Hup Kooi

Senior Manager Business Excellence

KC Gan
Director Asset Manangement/ IE/Facilities

Background of Study
Organizational researchers have increasingly emphasized the need for readiness in
the process of change. (Russell, & Gaby, 2000) have been conducted in various
settings and usually support the conclusion that employees within organizations
need to be ready to work towards change in order for the change effort to be
successful. Changes, however, may bring about a level of uncertainty and ambiguity
that are not welcomed by employees. It is, therefore, necessary for employees to be
motivated to adopt the change. The employees' willingness and readiness are
important components of successful organizational change (Armenakis et al., 1993).

The purpose of this study is to investigate and gain better understanding on the
factors that influence change readiness among employees at Flextronics Shah Alam
Sdn Bhd. There are many researches on employee' readiness for change has been
conducted worldwide. This study involves the organization and individual outcomes.
This research will reveal more specific scope to make the data collected more easily
and the finding will able to explain clearly. It is because all employees are come from
the different background of status, positions on work, perception, characteristics and
opinion regarding some issue. For example, some employee who works at Flextronics
Shah Alam Sdn Bhd are resistant toward changes because they feel more comfortable
with the old ways of working and did not like any risk. It will effect to their readiness
for changes in the organization. That is mean, as usually if many works to do, the
employees will not give enough commitment to their task and at the same time will
give a bad performance in the company.
The finding of this study will help organization to identify the factors that contribute
to change readiness among employees in Flextronics Shah Alam Sdn Bhd and
suggest the best solution to the organization in cope with the problem.

Problem Statement
Market, technology and products are constantly changing, customer are becoming
ever more demanding, quality and service standards are constantly going up. In
Flextronics Shah Alam Sdn Bhd, to gain competitive advantage and to meet the
customer demand, the organization has to reorganize and do some changes to
achieve its objectives. Thus, the company are faced with the need to implement rapid
changes in strategy, structure, process, and culture.
The customer in Flextronics Shah Alam is the main priority and currently the
demand of the Flextronics Shah Alam product increase due to the services and the
high quality that they produced. To meet the high demand and to fuel expansion
plans, Flextronics Shah Alam Sdn Bhd need to increase the headcount in the
company especially in the production line which are the operators.
The current production operators are not sufficient and the company planned to
boost the huge number of headcount by hiring foreign employees or by using
subcontractors or agent services. Currently, foreign operators in Flextronics Shah
Alam only from Indonesia, Myanmar and Vietnam and the next plan are to hiring

employees from Bangladesh and Nepal. Table 1 shows the number of Direct Labour
operators from January 2012 to August 2012 in Flextronics Shah Alam Sdn Bhd.
Until now, the number of headcount still increasing and end of this year, they plan to
increase to 8000 and more employees and more including Indirect Labour.
From the planning, many changes will occur in the company especially in
management side and the production system. The Indirect Labours (IDL), employees
whose has to face the drastic changes in managing the increasing number of
employees in the short time of period will give positive and negative impacts to the
company. For example, the changes that will be involve in the company are the
Biometric System, which the company have to use the new machine of biometric to
accommodate the large number of employees to scan out and scan in when they are
working.
The process of changing and upgrading involve on high commitment and need new
skills, knowledge and abilities. The intranet in the company which called
Flexiansconnect that can be used to check their attendance, leave, and schedule,
overtime and so on also have to upgrade to ensure it more effective than before. The
hiring department also will be affected because they will face with new job task which
have to hire and manage the foreign employees which involved in many procedures
such as immigration procedures that will become more complicated due to the large
number of foreign employees. The trainers from the training department also will
face with some difficulty to train the foreign employees before they enter to the
production line. The differences in language are the barriers for the trainers to
handle and guide
By the changes plan, it issues are the acceptance by the employees. Some of them
maybe will accept it positively but some of them not. The main problem is when the
employees give negative reaction. They maybe will be shocked and have difficultly to
adopt with the changes. The changes will decrease employees' productivity and
morale if the employees give a negative response. It subsequently will bring negative
impact towards employee's performance. The negative response from the employees
will brings to the resistance to change which will give impacts to them and to the
company as well. In the other words, resistance to change is the refusal to engage
with the plans.

Besides, uncertainty and fear would cause the employees reluctant to change
(Dulger, 2009). Employees are concerned their employment, own benefits and
welfare after the change. They are afraid of whether the organizational change would
bring a good or bad impact towards their employment and benefits. Thus, the
employees may not have the motivation to work hard for the organization and their
performance would be affected as well. The employee's motivation is very important
for helping the company to achieve a good result, reputation and profitability.
Thus, to ensure the change management run smoothly and effectively, the company
has to understand more deeply how to increase their readiness before and during the
changes occur. The employees' readiness towards the organizational changes will
assist them to go through and adopt with the changes positively.
DL Operator (E3)
FLEX Employees

Jan 12
Feb 12
Mar 12
Apr 12
May 12
June 12
July 12
Aug 12
Local
226
272
305

270
235
228
192
Indonesia
0
298
563
669
740
761
965
1145
Nepal
0
0
0
0
0
32
64
87

Vietnam
0
0
0
0
0
225
239
289
Mynamar
0
0
0
0
0
186
217
211
Sub Total
0
524
835

974
1010
1439
1713
1924
Subcon Employees
Local
0
40
134
89
11
0
0
0
Nepal
0
108
123
114
68
67

66
42
Myanmar
0
368
431
416
348
333
324
395
Bangladesh
0
12
12
12
43
87
115
212
Cambodia
0

114
108
108
72
70
216
304
Indonesia
0
168
185
181
105
101
123
94
Vietnam
0
105
110
110
24

57
60
112
Sub Total
0
915
1103
1138
671
715
904
1159

Direct Total
0
1439
1938
2112
1681
2154
2617
3083

Table 1: Headcount of Direct Labour Operators from January 2012 - August 2012
Flextronics Shah Alam Sdn Bhd.
(Source: FMM Controlled Document Flextronics Shah Alam Sdn Bhd)

Research Questions
Is there any relationship between self efficacy and change readiness?
Is there any relationship between appropriateness and change readiness?
Is there any relationship between personal valence and change readiness?
Is there any relationship between management support and change readiness?

Research Objectives
General Objectives
The purpose of this study is to understand employees' views of their readiness to
change. Thus, the study explores the factors that can influence employee change
readiness in individual perspectives at Flextronics Shah Alam Sdn Bhd.
Specific Objectives
To identify the relationship between appropriateness and change readiness among
indirect labours in Flextronics Shah Alam Sdn Bhd.
To determine the relationship between self efficacy and change readiness among
indirect labour Flextronics Shah Alam Sdn Bhd.
To identify the relationship between personal valence and change readiness among
indirect labours in Flextronics Shah Alam Sdn Bhd.
To identify the relationship between management support and change readiness in
Flextronics Shah Alam Sdn Bhd.

Research Hypothesis
H0: There is no relationship between appropriateness and change readiness in
Flextronics Shah Alam Sdn Bhd.

H1: There is a relationship between appropriateness and change readiness in

Flextronics Shah Alam Sdn Bhd.
H0: There is no relationship between self efficacy and change readiness in
Flextronics Shah Alam Sdn Bhd .
H1: There is a relationship between self efficacy and change readiness in Flextronics
Shah Alam Sdn Bhd.
H0: There is no relationship between personal valence and change readiness in
Flextronics Shah Alam Sdn Bhd.
H1: There is a relationship between personal valence and change readiness in
Flextronics Shah Alam Sdn Bhd.
H0: There is no relationship between management support and change readiness in
Flextronics Shah Alam Sdn Bhd.
H1: There is a relationship between management support and change readiness in
Flextronics Shah Alam Sdn Bhd.

Significant of Study
The Researcher
The research paper is prepared for academic and for practical training requirement.
It gives the researcher the opportunity to develop his own skills in a lot of aspect
especially in self explore study. In addition, the study is to develop more studies that
explain about the organizational change which focus on the factors that contribute to
change readiness among employees. It will be a reference to other researcher by time
to time.
Employees
Employees will know about what they should do and make a preparation regarding
their organization changes especially for both mental and physical. In order to get
the employee's easily to adapt toward the organization changes, employees must
have their own desire and management supports thus will create some factors such
as readiness to receive new changes in organization. Not only that, employees also
must know their own potential for their career development that can give a lot of

advantages in the future as well can create competitive advantage towards other
people.
1.7.3 Company
Through this research, the company will know thoroughly about the factor that
influencing the change readiness especially in individual perspectives after the
research had been done systematically. It is very important to the company because
company can create more effective ways in dealing with employees that resist
changing and will help all employees to adapt with any changes and obstacles.
Changes are like investment. Every cent invested by them must worth it and can give
a lot of benefits in terms of performance and productivity. Thus, company can
achieve their goals by gaining full support and commitment from their employees
because employees are the backbone of the company's achievement.

Scope of Study
The study will be conduct within indirect labours (IDL) in Flextronics Shah Alam
Sdn Bhd. It will discuss the analysis of the changes in the company. The study will
explain about factors that contribute or influence the change readiness among
employees. The researcher also will explain briefly how to handle and manage the
change more effectively. In conducting this study, the data will be arranged from
primary and secondary data. The primary data will gather through distribute the
questionnaire to all respondents. The data will be collect from indirect labours (IDL)
which are the employees that not direct with the production. The IDL are employees
that more to the management side and faced with many issues when the company
implement any changes. The sample size would be 185 respondents for the
questionnaire distribute. For secondary data, the data are collected from journals,
books and articles that related with the research topic.

Limitation of Research
There are few difficulties in conducting this research which the major challenger is
cooperation. The difficulties to gain cooperation from the employees become a
barrier in order to collecting the information and data. Data confidential of the
company is one of limitation in conducting this research. To getting the data and
information, the researcher has to follow the procedure and steps. With the limited
time given, researcher did not have ample time to explain and the respondents do
not have leisure time to answer questionnaire due to busy with work and task.

Definition of Terms
Organizational Change
Organization change is the renewal, improvement, development or creating
something new in organization. It can involve change in the process, structure,
methods, resources, culture and so on. Organizational change usually involves whole
or parts of members in the organization because it interrelated between each others.
Resistance to Change
Resistance to change is the rejection or negative response from employees towards
change that will occur or already occurred in the organization. There are different
ways in showing their resistance such as anxiety, lack of confidence, refuse to give
cooperation, absence from any change program and etc. Resistance to change will
bring negative impacts to the employee itself and for sure to the organization.
1.10.3 Change readiness
Readiness for change or change readiness is the process of unfreezing, is reflected in
organizational member's beliefs, attitudes, intentions and behaviour. Thus, it
involved willingness both mental and physical for any changes that occur in
organization. In other words, employees have to prepare and ready to face and can
manage any challenges that will arise in order to complete tasks and achieve
organizational goals.
Appropriateness
The appropriateness of the change is whether the change is suitable and relevant to
be implemented. It is important because individuals may feel some form of change is
needed but may disagree with specific change being proposed. In other words,
employees those facing change need to understand why the change is necessary and
why particular change efforts are the right solution.
Self Efficacy
Self efficacy can be describes by having confidence in one's ability to do well in
general or to do certain things well, not just performing the mechanics of a specific
behaviour or task. In the organizational change, it can be considered as being
confident in one's ability to change successfully.

Personal Valence
Personal valence in the change perspective means employee perception in change
whether it is needed, important, beneficial and worthwhile for them. In the word,
they will evaluate the value of the change that occur for their work, career and for
themselves.
Management Support
Management support is the support from management side in the change process. It
involves flexible policies, procedure, system support such monetary resources, trust
between employee and management and a relationship between leader and
employees.

CHAPTER 2
LITERATURE REVIEW
2.1 Organizational Change
Change is a normal part of business life. Nowadays, there are rapid changes in
organization which increased the markets and opportunities in terms of gaining the
growth and revenues. According to Ackerman (1986), "change" means different
things to different people; it serves as a melting pot for scores of concepts and
methods. Jick (1993) stated that "change in its broadest sense is a planned or
unplanned response to pressures and forces". There are research sayings that
organizational change means organization transformation. Laura (2007) says that
the change is not only for products and services that they provide, it also includes
making changes at the organizational level such as continual equipment update,
retraining employees, mergers and acquisition.
Managing changes is one of the most critical challenges in organizations. The
development and the survival of the organization are based on how success changes
being implemented. In turn, positive implementation of these changes depends on
the acceptance and adaptability by the employees (Dahlberg, 2007).
For organization change leader must identifying influence factors that can force
employees to motivate for change situation. Both employees and management need
to know what predictors which can deal with successfulness of changes and how to
reduce uncertainty and anxiety of changes. Whether change is continuous or

discontinuous, evolutionary or revolutionary, may not be so much the issue as is

modern organizations' failure to deal with it. In similar findings, Stewart reported a
failure of 2/3 of TQM programs (Stewart,1994), while Kotter stated that few of the
change programs he studied have been very successful, and 50 percent were failures
(Zamor, November 1998).
2.1.1 Resistance to Change
By understanding the key or factors that contribute to the employees' readiness will
help the organization in managing resistance to change; indirectly will assist
organization to achieve its goals. Although the meaning of resistance to change is
intuitively clear, how resistance translates into active opposition to change is not so
obvious. Resistance can include a wide range of behaviours including the refusal to
engage in joint problem solving, refusal to seek common ground, the silencing of
advocates for change, sabotage and a general lack of cooperation (Graetz, 2006).
According to (Graetz, 2006), there are different assumptions about the causes or
difference perspectives of resistance. First, the psychological model of resistance
suggest that there are a range reasons behind the resisatnce to change. It typically
causes include uncertainty, lack of tolerance, different opinion corncening the need
for change and threatened self importance. In other word, it highlight on fear and
anxiety which the result of an emotional response. Second, the institutionalized
resistance to change. It means that the behaviours associated with resistance have
become incorporated into the struture and systems of the organization. Resistance to
change may be made possible because of the way in which decisions are made and
resources are allocated. It can occur as a result of informal systems and unspoken
expectations within an organization. There are three main ways in which
institutionalized resistance can occur. First, the need for change could be denied
because the old ways of thinking many be powerful and ingrained in the
oragnization. Second, organziation members may refuse to take responsibility for
dealing with the change issue. Last is organizational members simply decline to
cooperate.
Despite these conflicting views on the notion of resistance to change, it is true that
people react in various ways to the idea of a change. Readiness for change may act to
pre-empt the likelihood of resistance to change, and increasing the possibility of a
successful change effort (Anderson, Oct 2002).

2.2 Change Readiness

According to Armenakis and Harris (1993), it described readiness for changes as the
beliefs, attitudes and intentions regarding to the extent to which changes are needed
and the organization's capacity to successfully undertake those changes. Since an
organization is comprised of individual employees that will be the change making
change happen, it is important to understand how individual employees impact the
change. Theories that Lewin (1951) developed a simple, yet powerful, change model
that can be summarized as unfreeze, change and freeze (Graetz, 2006). Based on
Lewin's theory, the first step in changing a situation is to unfreeze the current
situation to allow for change. Once unfrozen, the change can be made (Graetz, 2006).
Employee readiness is the antecedent to the behaviours that support the change
effort and is reflected in organizational members' willingness to adopt the change. It
shows that developing the change readiness among the employees is the important
part in order to ensure the changes brings successful results. According to (Simons,
2005), employees readiness is an important driver of change success; if employees
do not believe that change is needed, or if they feel the organization will not able to
change, then change initiatives may fail. In other words, readiness indicates a
willingness to commit physical and psychological energy to the change. Creating
readiness is the proactive attempt by change agents to influence the beliefs, attitudes,
and behaviours of change targets in order to motivate them to change (Baba, 2012).
Creating readiness in the Lewin's concept is the unfreezing stage of change (Graetz,
2006).
Thus, to ensure the changes happen in the right way that management desires, every
conflict must be resolve, so employees' attitude and cognition aligns with those of
management and readiness must be created.A failure to measure organizational and
individual change readiness can result in managers spending significant time and
energy dealing with resistance to change. By creating change readiness before
attempts in organizational new strategy, the need for later action to cope with
resistance may be largely avoided (Hallgrmsson, 2008). An investment in
developing change readiness at both an individual and whole of organization level
can bring an extra benefit to them. Positive energy goes into creating preparedness
for the changes and, in turn, there can be a significant reduction in the need for
management of resistance once organisational revival is underway (Zamor,
November 1998).

2.3 Appropriateness

Appropriateness of the change refers to the content or characteristics of a particular

change and the context wherein the change is about to be implemented (example, the
organization is facing tough competition). Thus, it is a combination of content and
context that constitutes appropriateness in that employees may agree that
organization needs to change to accomplish the desired (Anderson, 2008).
The appropriateness of the change is important because individuals may feel some
form of change is needed but may disagree with specific change being proposed.
Their resulting resistance is clearly well intentioned and potentially beneficial
because it is based on a disagreement about the appropriateness of particular change.
If a change message cannot convince others of the appropriateness of the change,
then efforts should be made to reconsider whether it really is appropriate (G., 2001).
In other words, employees those facing change need to understand why the change is
necessary and why particular change efforts are the right solution (Anderson, 2008).
Thus, in introducing a change initiative top management must not only demonstrate
that the change is necessary, but also that proposed solution is the appropriate one
(Self, 2005). Massey, Montoya- Weiss and Burkman in the (Self, 2005), in a study of
the introduction of new technology within a financial institution, that a variety tools
such as testimonials, formation of user groups and other such means were necessary
to gain employee acceptance of the usefulness of the new technology.
Thus, it shows that in creating change readiness, the appropriateness of the change is
important to ensure the employees understand why the changes should be occurring
and involving them.

2.4 Self Efficacy

Readiness for change can be successfully implemented and developed when the
employees of the organization are sure that they have requisite knowledge and
degree of skills required to make the efforts successful but if they do not have the
required competencies than they will cause resistance against interventions and are
not encouraged to have active participation in the whole process.
When the employees are confident on his knowledge, skills and abilities, there are
greater chances that the change can be handled more effectively. However, if the
employees are not ready and not comfortable in implementing changes and the new
interventions it will create anxiety amongst the individuals which ultimately affect
their productivity level (Siddiqui, 2011).

Self efficacy is not only related with having sufficient knowledge and skills about the
job, it is also concerned with an extent of which the employee is proficient in
handling the situations in the active and continuously changing environment
(Siddiqui, 2011).
Chwalisz et al. (1992) in Ionnis Nikolaou (2007) demonstrated that self efficacy is
correlated with major career events, such as career change and others research
correlates low self efficacy with job withdrawal and situation such as resistance to
change. Thus, all these results converge to the point that self efficacy is precursor for
positive attitudes towards critical career events especially those which involve job
and organizational change (Ionnis Nikolaou, 2007).
Self efficacy also can be describes by having confidence in one's ability to do well in
general or to do certain things well, not just performing the mechanics of a specific
behaviour or task. In the organizational change, it can be considered as being
confident in one's ability to change successfully (Anderson L. S., 2008). According to
Beehr & Bowling (2005) in the Anderson L. S., (2008), suggest that self efficacy can
be perceived as a stable and acts as a personality characteristic, it lacks trait like
qualities in that self efficacy can be more easily altered by experience thatn other
personality traits. In more specific, it relates to a situation that a person experiences.
however, the individual itself knows and aware of his or her limit such there is
something that the individual knows that he or dhe cannot do well (Anderson B. ,
1999).
So, if the top management akes employees aware of respective change interventions
then these employees feel more confident to handle or manage the change situation
sffectively (Siddiqui, 2011). Employees having appropriate information of the change
intervention can easilty makes their adjustment I the unfamiliar situation because
thay think the situation is in their control and they have the proficiency to fulfill the
requiremnt of that situation (Siddiqui, 2011). Jimmieson et al, (2004) in Siddiqui
(2011) stated that high self efficacy indicates that the individual have internal locus
control and the personnel having low self efficacy indicate that they had external
locus of control.

2.5 Personal Valence

Employees often ask the question 'what's in it for me?' when they are expected to
adopt a change. Before attempting change, targets are concerned with how they
benefit from it (Anderson B. , 1999). According to Vrom (1967) in the Anderson B.,

(1999) they are often resistant to change because they fear that the change will bring
about some undesirable or negative outcome. An individual believes that there are
associated benefits with a change effort, it is expected that the individual's
motivational force will be high to work toward making the change (Anderson B. ,
1999).
Based on Armenakis & Harris (2002) in (Anderson L. S., 2008), personal valence
refers to self interest. It also stated that if an individual does not see that his or her
self interest is satisfied in some way by a change, the he or she is likely to resist the
change.
In an organizational setting, an overweight of pros compared to cons for engaging in
a proposed organizational change can increase the individual's self interest if the
change seems beneficial for the individual (Siddiqui, 2011). When the individual
realize that the change is more beneficial for them, it helps them to remain
competitive in the market then they more willing to execute the change process.
Individuals always evaluate the advantages and disadvantages of respective
intervention and then put the respective intervention into practice. When the
employees think that by adopting the new ways of doing their work will benefit the
employees to gain the new insights, the employees are more willing towards change.
Then, it will create change readiness among employees. However, Anderson (2008)
in Siddiqui (2011) mentioned if the employee does not think that the there is need for
change and also this change is not worthwhile for them, then employees are not
ready to accept the change.
When the employees might value a planned organizational change because they
believe some sort of change is urgently needed, believe the change is effective and
will solve problem and believe that change will brings the organization into the better
situation, then it already creates a change readiness.

2.6 Management Support

Management support for change efforts is an essential factor in creating change
readiness. Armenakis, et al. (1993) revealed that the degree to which organizational
policies and practices are supportive of change may also be important in
understanding how an employee perceives the readiness for change. Moreover,
Armenakis, et al. (1993) also found that the level of trust in management may foster
perceptions that the organization can withstand rapid organizational change.

Management support can also reflected from how change is accommodated by

management through realignment of performance evaluation and employee
compensation with change initiative program. Another form of management support
is by forming a special team. The team is responsible to conduct analysis toward
influencing internal and external conditions, plans changes in more detail, identify
possible risks and anticipated actions, and to control implementation including
progress evaluation and conduct adjustment toward real situation (Susanto, 2008).
It also supported by Siddiqui (2011) that management support encouraging
environment that will let the individuals to work more effectively and efficiently.
Support form top managemnt is very important because these are the people who are
responsible for providing the proper means to do the work.
This is especially important if there have been past change efforts that bogged down
or failed to achieved intended goals. Thus, the organizational member seeks to
understand if there is true support for the change (Self, 2005).

Theoretical Framework
Theoretical framework is a basis of the entire research paper. It is a logically
developed, described and elaborated network of association among the variables
deemed relevant to the problem situation and being identified through
questionnaires, observation and literature surveys. Since variable is to be considered
important to the study of any give problem situation, it is essential to understand
what a variables means and what are the different types of variables are:
Dependent Variable
The dependent variables are the variables that primary interest of researcher and it
would be the change readiness among IDL in Flextronics Shah Alam Sdn Bhd.
Independent Variables
Independent variables are the variables that influence the dependent variables
positively and negatively based on the research conduct. The dependent variables for
this research are appropriateness, self efficacy, personal valence and management
support.

Independent Variables Dependent Variable

APPROPRITENESS
SELF EFFICACY
CHANGE READINESS
PERSONAL VALENCE
MANAGEMENT SUPPORT
Adapted from (Anderson, 2008)

CHAPTER 3
RESEARCH METHODOLOGY
Introduction
This research paper explained the method use by the researcher in obtaining data for
the research. Research methodology and design is the most important process in
conducting research paper because this stage will give the researcher the ideas and
assumption the explained the objectives, problem statement and the research
questions of the research paper.

Research Design
To achieve the research objectives, the study used the survey research design. This
study was conducted through quantitative research by using questionnaire. The
research will be conducted as a descriptive study and correlation study. Descriptive
study is effective in determine and explain the characteristics of the variables of
selected in a situation. It is undertake in organization to learn about and describe the
characteristic of the selected insurance product. The goal of a descriptive study is to
offer the researcher a profile or to describe relevant aspects of the phenomena of
interest from an individual, organizational, industry-oriented, or other perspective
(Sekaran, U., 2006), while correlation study is undertaken when researcher is
interested in delineating the important variables associated with the problems.
(Sekaran, U., 2006).

Population

It is refers to the entire group of people, events, or things of interest that the
researcher would like to investigates (Sekaran, U., 2006). The population for this
research is focuses on indirect labour (IDL) in the Rock Department in Flextronics
Shah Alam Sdn Bhd. Rock departments are more in management sides. There are
basically 150 of indirect labours for the Rock Department and the sample size is 108
of employees which the researcher will focus on.

Sampling Design
Commonly the sampling design being used by researcher is probability sampling. It
is resorted when elements in the population have a known chance of being chosen as
subjects in the sample. Probability sampling can be either unrestricted which is
simple random sampling or restricted which is complex probability sampling in
nature. The respondent chosen for this study were the parties who are involves in the
major changes. They are indirect labours from the Rock department which consists
on department of administration and security, human resource, IT, finance, supply
chain, program management, planning control tower, and business excellence. The
questionnaire is distributed by personally approach the respondent. The total sample
is 186 respondents.

Sampling Technique
Researcher is using Simple Random Sampling for the sampling technique. This
sampling design is best when the generalizability of the findings to the whole
population is the main objective of the study (Sekaran, U., 2006).

Data Collection Method

For this study, secondary data were collected by paper sources and electronic sources
while primary data were collected through questionnaire.

Secondary Data
According to Malhotra (2009), secondary data represent any data that already been
collected for purpose other than the problem at hand. Compared to primary data,
these can be located quickly and inexpensively. Secondary data also may be available
when primary data cannot be obtained at all. Such data provides a basis for
comparison for the data that is collected by previous researcher.
In this study, the secondary data were collected from two main sources:

Paper- based sources:

Most of the supporting data in this study were collected from books, journals,
research reports, article and internal records of organization. By referring the data
and information gathered from previous researchers, it will helps to improve the
understanding of the problem and gather more evidence in conducting this study.

Electronic sources:
Some of the data are collected from online databases, internet and website. It is
beneficial to collect the data from online databases since it is economical, saves
efforts, save time and expenses.

3.6.2 Primary Data

Primary data was obtained by the researcher in the firsthand without any changes
made by other people. The data was obtained through questionnaire and observation
through the survey was conducted. The most information gain is through
questionnaire made by researcher to sample in Flextronics Shah Alam Sdn Bhd.
Related and suitable types of questions are chosen based on the variables used in this
study.
3.6.2.1 Questionnaires
A questionnaire is a form containing a set of questions that addressed theory data to
statistically significant number of subjects as a way of gathering information for a
survey (Answer.com, 2010). According to Sekaran (2006), questionnaire is defined
as reformulated written set of questions to which respondent record. The
questionnaire will be distributed directly through approaching one by one staff in
organization.
The questionnaire designed based on the theoretical framework in this study. The
questionnaire will be segregate into different sections that include the basic
information of respondent. Table .... below shows the structure of the questionnaire
which consists of three parts. Part A consists of questions about the demographic
profile of respondent. Part B consists of change readiness questions which are the
dependent variable in this study, while Part C included four sections related to
independent variables in this study which are self efficacy, appropriateness, personal
valence and management support.

Table : The Questionnaire Design

Part/ Variables
Number Item
Sources
Part A : Demographic Profile
6
Part B: Change Readiness
7
Part C: Factors influencing Change Readiness
Self Efficacy
Appropriateness
Personal valence
Management support
4
4
3
4

Data Analysis Method

Procedures of Data Analysis
Completed questionnaires were examined by the researcher. Data were coded and
entered into the computer to be processed using the Statistical Package for Social
Science (SPSS). According to Malhotra (2010), SPSS can facilitate data preparation.
For each variables of interest in this study, descriptive data were analyzed in the form

of frequencies and measure of central tendency appropriate for the type of data.
Correlation was incorporated to establish the direction and strength of the
relationship between the independent variables and the dependent variable.
Data Analysis and Treatment
The researcher chooses to use descriptive analysis which is statistical study pattern
or trend in situation. This method helps the researcher generating hypothesis for the
future research. It is used throughout the data analysis in a number of different ways.
Reliability and frequency analysis would be essential to used because it is useful to
measure the variables of the interest in this study collected with more efficiency if
more method used.

CHAPTER 4
DATA ANALYSIS
4.0 Introduction
This chapter reported and summarized the findings obtained in the analysis of data
collected from the sample and tabulation results were presented. The data collected
from the questionnaires survey were analyzed and several findings and inferences
were made that served to the answer the specific research questions and to fulfil the
research objectives in the Chapter 1. The questionnaires were analyzed by using
Statistic Package Social Science (SPSS) version 17.0.

4.1 Reliability test

Reliability of measure is an indication of the steadiness and consistency with which
the instrument measures the theory and helps to measure the goodness of the data ().
According to Miller (2009), he stated that, by conducting reliability test on the
questionnaire, it can measure whether the questionnaire is perfectly reliable or not
valid to be used in the study. The value of Cronbach's Alpha shows the internal
consistency that is, how closely related a set of items are as a group. According to
Brown (2002), it can range from 0.00 to 1.00 with all value between 0.00 and 1.00
also being possible. However, Sekaran (2003) found the range value in order to
measure of the Cronbach' Alpha. Table 4.1 below shows the possible range value to
measure the value of Cronbach's Alpha.
Table 4.1 Range value of Cronbach' Alpha

Value of Cronbach' Alpha

Reliability Analysis
Less than 0.59
Not Good
0.60
Acceptable
0.70 - 0.79
Moderate
0.80-0.89
Good
0.90-0.99
Excellent
1.00
Perfect
The result from the reliability test which has been done for this study has been
summarized in Table 4.2.

Dimension
Cronbach' Alpha
Number of Item
Change Readiness (DV)
0.795
7

Self Efficacy (IV 1)

0.80
4
Appropriateness (IV 2)
0.703
4
Personal valence (IV 3)
0.801
3
Management support (IV 4)
0.724
4
Total
0.88
22
Table 4.2 Summary of Reliability Analysis
According to the Table 4.2 above, all the questions consist in each variable section
are reliable to be used in the questionnaire. The value of Cronbach' Alpha for change
readiness, appropriateness, and management support are considered moderate as
obtained 0.795, 0.703 and 0.724 respectively. The value of Cronbach's Alpha for
personal valence is 0.801 and 0.80 for self efficacy, which mean the data obtained
from the research considered good. Hence, based on test conducted for all questions
in this research, it can be concluded that all the data obtained are considered good
and reliable as obtained 0.88.
4.2 Descriptive Statistics

Descriptive statistics include the numbers, tables, charts and graphs used to describe,
organize, summarize and present raw data. Descriptive statistics are recommended
when the objective is to describe and discuss a data set more generally and
conveniently that would be possible using raw data alone. Table 4.2.1 below shows
summary all the data obtained from the demographic profile of respondents.

Demographic Profile
Item
Frequency
Percentage (%)
Age
18-23 years
24-29 years
30-35 years
42 and above
29
59
10
10
26.9
54.6
9.3
9.3
Gender

Male
Female
49
59
45.4
54.6
Race
Malay
Chinese
Indian
Others
59
19
20
10
54.6
17.6
18.5
9.3
Marital Status
Single
Married

69
39
63.9
36.1
Education Level
Post Graduate
Graduate
High School
2
74
32
Department
Administration and security
Human Resource
IT
Finance
Supply Chain
Program Management
Planning Control Tower
Business Excellence
13
19

9
17
12
11
12
15
12.0
17.6
8.3
15.7
11.1
10.2
11.1
13.9
Table 4.2.1: Respondent's Frequency on Demographic Pro
As refer to Table 4.2.1 above, it indicates the number and percentage of the
demographic profile. From the survey conducted, it shows that the highest number of
respondents are the respondents from 24 to 29 years old which 59 respondents or
54.6 %. The next range of age is 18 to 23 years old which is 29 respondents or 26.9 %.
For the age range 30 to 35 years old and 42 years and above obtained 10 respondents
as 9.3% respectively.
For the gender analysis, the number of male respondents that involved in the survey
was 49 respondents or 45.4 % while female consist of 59 respondents or 54.6 %. It
shows the numbers of female respondents are greater than male.

Table 4.2.1 also shows the race differences between the respondents for this
study.54.6 % or 59 respondents are dominated by Malay. It followed by Indian which
18.5 % or 20 respondents. The numbers of Chinese respondents are 17.6 % or 19
respondents. Another 9.3 % or 10 of respondent are from other races.
For the marital status, majority of respondents are single which consists of 63.9 % or
69 respondents. Only 36.1 % or 39 respondents are married.
In table 4.2.1 also indicates the education level among respondents. There are % or
74 of respondent had graduated in diploma or degree level. % or 34 of respondent are
from high school levels which are from SPM or STPM. Only % or 2 of respondents
are posses post graduate which from master or PHD level.
As refer to Table 4.2.1, the last demographic profile is department. Most of the
respondents are from human resource department which are 19 respondents or
17.6%. It followed by respondents from finance department which are 17 respondents
or 15.7 %. Others respondents are from business excellence department consists of 15
respondents or 13.9%, administration and security department consists 13
respondents or 12%, program management department consist 11 respondents or
10.2 % and respondents from department of supply chain and planning control tower
consists of 12 respondents or 11.1 % respectively. The lowest numbers of respondents
are from IT department which is 9 respondents or 8.3 %.
4.3 Regression Analysis

Table 4.3.1 : Model Summary

Model
R
R Square
Adjusted R Square
Std. Error of the Estimate
1
.783a

.613
.598
.30152
a. Predictors: (Constant), MS, PV, SE, AP
Based on table 4.3.1, it showed that four independent variables which are self
efficacy, appropriateness, personal valence and management support could explain
the change in the dependent variable of change readiness. R value is stated 0.783
which explained that the dependent and independent variables is closely related with
each other. This mean the relationship is positive and have strong relationship. R
square is refers to model fit. According to Gaur and Gaur (2006), the usage of R
square is acceptable to determine the correlation between observed (independent
variables) and predicted values (dependent variables). Thus, 61.3 % of the model is
contributed by the independent variables in this study which are self efficacy,
appropriateness, personal valence and management support. Another 38.7 % are
influenced by others variables.

Table 4.3.2: Coefficientsa

Model
Unstandardized Coefficients
Standardized Coefficients
t
Sig.
B
Std. Error
Beta
1
(Constant)

-1.082
.410
-2.641
.010
SE
.830
.125
.534
6.615
.000
AP
-.491
.210
-.371
-2.338
.021
PV
.656
.139
.670
4.706
.000

MS
.326
.057
.390
5.737
.000
a. Dependent Variable: CR
Based on table 4.3.2, value for self efficacy is 0.753, value for personal valence is
0.670 and value for management support is 0.390. It showed the relationship
between these three independent variables and dependent variable is in positive
manner. However, appropriateness in a negative manner as obtained - 0.491 for
value. All the independent variables are has significant coefficient with change
readiness as obtained self efficacy at 0.000 (p < 0.05), appropriateness has
significant coefficient with change readiness at 0.021 (p < 0.05), Personal Valence
also has significant coefficient with change readiness at 0.000 (p < 0.05) and
Management support has significant coefficient with change readiness at 0.00 (p <
0.05).

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