FINAL EXAMINATION

AUGUST 2022 SEMESTER

COURSE : CHANGE MANAGEMENT

COURSE CODE : PMS3293
DURATION : 2 HOURS 30 MINUTES
FACULTY : BUSINESS AND ACCOUNTANCY
DEPARTMENT : BUSINESS MANAGEMENT AND SPORT INDUSTRY
PROGRAMME : BACHELOR OF BUSINESS MANAGEMENT (HONS)
: BACHELOR OF HUMAN RESOURCE MANAGEMENT
(HONS)
LECTURER : MDM. NORJIAH BINTI MUSLIM

INSTRUCTIONS TO CANDIDATES

This paper consists of two (2) sections:

Section A - 1 question (structured questions)

Section B - 1 question (case study)

Answer all questions in Section A and B.

All answers of:

Section A & B must be answered in the answer booklet provided.

The answer for each question must start on a new page.

Candidates are NOT ALLOWED to bring any unauthorized items into the exam hall
except with the permission of your invigilator.

Do Not Open the Question Paper Until Instructed

This Question Paper Consists of Three (3) Printed Pages

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SECTION A: STRUCTURED QUESTIONS (30 MARKS)

ANSWER ALL QUESTIONS

QUESTION 1 (30 MARKS)

a. Fuller et al. (2000) point to the assumptions underlying the appreciative inquiry approach
to change, which seeks to identify what is currently working best and to build on this
knowledge to help develop and design that might be achieved in the future. They outline
the technique as involving four steps.

Discuss the steps propose by Fuller et.al.

Steps of Appreciative Inquiry (Fuller et al., 2000)

1. Appreciating the Positive (Discovery): This step involves identifying peak experiences,
core values, and strengths of the organization. Here, discussions focus on past successes
and what made them work well.
2. Dream (Imagination): Based on the positive aspects identified, this step encourages
employees to dream about the ideal future state of the organization. Brainstorming and
creative visualization techniques are used to paint a picture of what success might look
like.
3. Design (Innovation): Employees collaboratively design strategies and action plans to
move the organization closer to the envisioned future state. This involves identifying
concrete steps and building upon existing strengths.
4. Destiny (Delivery): The final step focuses on implementing the designed changes and
monitoring progress. This involves continuous communication, celebration of
achievements, and adaptation of the plan as needed.

(14 marks)

b. Central to the traditional Organization Development (OD) approach is the role of the “OD
practitioner”. In coaching people through such change processes, Cumming and Worley
(2015) argue that OD practitioners need a variety of skills. There are four skills the OD
practitioner required.

Determine FOUR (4) skills required by OD practitioner.

In coaching people through such change processes, Cummings and Worley (2015) argue
that OD practitioners need a variety of skills, including:

1. Intrapersonal skills: having a well-developed set of values and personal integrity

including the ability to retain their own health in high-stress organizational situations.
2. Interpersonal skills: which are needed in order to work with groups, gain their trust,
and “provide them with counseling and coaching.”
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3. General consultation skills: including knowledge about intervention techniques (such
as those discussed in chapter 4) to assist them in diagnosing problems and designing
change interventions.
4. Organization development theory: to ensure that they have a current understanding of
the specialist field of which they are a part.

(16 marks)

SECTION B: CASE STUDY QUESTIONS (70 MARKS)

Scenario:

Nowadays, the business environment is becoming increasingly competitive, which is a negative

factor that affects business survival. Businesses should find new ways for creating a sustainable
competitive advantage to be able to survive and develop. For the last forty years, there has been
a growing body of research on the antecedents for predicting the performance of mergers &
acquisitions, but the key factors that can guarantee the success or failure of a merger remain
unknown. Mergers and acquisitions have been a famous strategy for companies to achieve
corporate growth and diversification, especially by creating synergies and have a very important
role around the world.

Your food trading company decided to undergo a merger, making the new company. The merger
of the two companies’ combined, one company’s extensive retail and refining business and its
international operations with the other’s extensive operations in the food industry in Malaysia.
The synergies of the merger, based on plans and spending, included obtaining annual operating
expenditure reductions of more than RM100,000 from efficiencies in overlapping operations,
streamlining business practices, and improving logistics. Additionally, capital efficiencies of
RM300,000 per year were forecasted due to the elimination of redundant spending and
realigning capital budgets with high-return and near-term projects.

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The challenge that you and your team facing is that the companies had to work through
significant cultural differences. Your company was an erstwhile public-sector company and
known to be risk-averse, whereas the other was known to be a more aggressive company. Due
to this merging process happened, there are resistance towards merging process shown by
employees of both companies. You and your team have been assigned by the top management
to solve the issues.

Source: This scenario is based on Research Article: 2018 Vol: 17 Issue: The Impact of Mergers
and Acquisitions on Corporate Culture and Employees: The Case of Aegean & Olympic Air
which converted into Malaysia context

Based on the above scenario, answer below questions:

a. As a Human Resource Manager, what do you think might be the reasons resistance
happened in your organizations?

Reasons for Resistance to Merging Process

• Attachment to Organization Culture and Identity. Clash of Cultures: The merging of a risk-
averse public sector company with a more aggressive private company can create
significant cultural differences. Employees from both sides may be resistant to adapting
to new ways of working.
• Low Tolerance of Uncertainty Do you enjoy being taken by surprise? You look forward to the
“mystery tour,” destination unknown. Or do you need to know precisely what will happen next?
You want to know all the journey details in advance. There are individual differences in our
tolerance of uncertainty and ambiguity.
• Lack of Conviction That Change Is Necessary
• Lack of Clarity as to What Is Expected
• Belief That the Proposed Changes Are Inappropriate
• Too Much Change
• Fear of the Unknown: Mergers often lead to uncertainties about job security, career
advancement opportunities, and changes in work processes. This can cause anxiety and
resistance among employees.
• Loss of Identity: Employees may feel a sense of loss of identity or belonging as their
familiar work environment and company culture undergo significant changes.
• Communication Issues: If the merger process is not communicated effectively,
employees may feel confused, uninformed, and distrustful of the leadership. (15 marks)

b. During the mergers and acquisitions process, one of the areas that must be altered is vision.
Advise your top management what is the relationship between vision and the
organizational context before vision can be developed using the Nutt and Backoff
technique.

Vision Development using Nutt and Backoff Technique

Relationship between Vision and Organizational Context:

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Before developing a vision for the merged company, it's crucial to consider the following
aspects of the organizational context using the Nutt and Backoff technique:

• External Environment: Analyze the competitive landscape, industry trends, and

technological advancements that might impact the future of the company.
• Internal Environment: Assess the strengths, weaknesses, opportunities, and threats
(SWOT analysis) of both merging companies. This includes their resources, capabilities,
and employee demographics.
• Stakeholder Expectations: Consider the needs and expectations of key stakeholders such
as shareholders, customers, employees, and the wider community.

Developing a Shared Vision:

By understanding the organizational context, the leadership can then facilitate a process to
develop a shared vision that incorporates the best aspects of both companies' cultures and
addresses the challenges they face. This vision should be:

• Clear and Concise: Easy to understand and communicate to all employees.

• Ambitious but Achievable: Set high standards while remaining realistic about what can
be accomplished.
• Inspiring and Motivational: Enthusiasm and excitement regarding the future of the
merged company. (20 marks)

(20 marks)

c. What possible communication strategies can be suggested to your top management to

make all employees easy to understand the merging process in the company?

c. Communication Strategies for Employees

• Transparency and Open Communication: Provide regular updates and clear explanations
about the merger process, rationale behind decisions, and anticipated impact on
employees.
• Two-Way Communication: Encourage open dialogue and address employee concerns
promptly. Utilize town hall meetings, Q&A sessions, and internal communication
channels.
• Focus on the Benefits: Clearly communicate the positive outcomes of the merger, such as
new opportunities, career growth potential, and enhanced competitiveness in the market.
• Highlight Success Stories: Showcase examples of successful mergers and highlight the
positive experiences of employees from other companies that have undergone similar
transitions. (20 marks)

(20 marks)

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d. Sustainability depends not just on what happens after implementation, but also effects of
decisions and actions during the change process. To sustain the new process and norms in
your organization, suggest to your top management any THREE (3) actions that need to
be done so that the merging process can be implemented successfully.

Actions for Sustainable Implementation

• Change Management Strategy: Develop a comprehensive change management strategy

that outlines the steps for implementing the new processes and cultural norms. This
includes training programs, communication plans, and performance management
adjustments.
• Employee Engagement: Actively engage employees in the implementation process.
Create opportunities for them to provide feedback, participate in decision-making, and
champion the changes within their teams.
• Leadership Commitment:

(15 marks)

END OF QUESTION PAPER

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