SENAI INTERNATIONAL AIRPORT

1.0

Introduction

The success of an organisation will depend on its strategy to cope with

change in the organisation. As effectiveness and efficiency in organisations
become crucial issues there will always be a constant change in the
workplace. Invention and innovation play an important role in this dynamic.
This implies that all aspects in an organisation will be influenced by
constant change.
benefit

from

the

In addition, the top level of any organisations cannot

past

experience

to

bring

transformation

in

the

organisations as the nature of the future is unpredictable and there will

always be a period of discontinuity. However, the future can be predictable
through planned change. Consequently, change can be anticipated using an
appropriate analysis and development program.
There are a number of models of planned change and each organisation can
selectively implement which model is effective to bring transformation in
the organisation. Several general models of planned change are discussed
by several scientists such as Waddell, Cummings & Worley, 2000), Lewin
(1948) and Dawson, 1994. These models of planned change obviously focus
on the processes of change that emphasize on steps of implementing
change though proper actions which are suitable with the organizations
situation. Thus, the identification of problems will become the initial step of
overall steps that will be beneficial for further steps in these models.
Furthermore, the process of change in an organization can be implemented
by

utilizing

the

intervention

of

organizational

development.

The

organizational development practices again will vary according to the

ability of any organization. This ability can be influenced by its internal
factors (such as budgeting, leadership, policies, or size of the organization)

and external factors (such as technological development, competition,

globalization or customer demand).
Organizational Development (OD) is a process of using knowledge, concepts
and practices related organisational behaviour in effective ways. It assists
any organisations to achieve their goals. Organisational development will
include processes of improving the quality of organisational performance
through developing human resources to be productive in the organisations.
Organisational development is more concerned with the quality of human
resources instead of organisational efforts to bring change through
purchasing new equipments/gadgets, redesigning a design or restructuring
a department because once the human resources have their ability to cope
with change and the organisation will then have capability to recognise
problems and find better solutions over the problems occur within the
organisation. Furthermore, organisational development aims to eliminate
factors which can impede development and block people to contribute their
efforts to the organisation so that the organisation can effectively achieve
its goals. In addition, although organisational development focuses on a
planned change, it is not rigid and formal practices because organisational
development tends to be adaptive in the process of planning and
implementation.
Therefore,

this

paper

will

discuss

the

practices

of

organizational

development implemented by Senai Airport. Stages in General Model of

Planned Change will be referred to discuss the practices using related
theories of organizational change. This paper will include critical literature
reviews

related

to

organizational

development.

Furthermore,

all

Organizational Development practices implemented in Senai Airport will be

discussed and analyzed using SWOT analysis. This paper will also come up
with recommendations which are beneficial for Senai Airport to implement

better

organizational

change

through

organizational

development

practices.
2.0

Literature Review

Previously, many efforts have been undertaken to explore the framework of

planned change. Several OD scholars and practitioners have established the
model of organizational planned change. The current contemporary model
of planned change is adapted from Lewins (1947) classic three stage model
of change, specifying the three important stages of implementing change
that are unfreezing, movement and refreezing. Planned change model
outline the sequences of actions that explain the degrees of core principal
stages of change (Bate et al., 2000; By, 2005; Kotter, 1996; Luecke, 2003;
Mintzberg & Westley, 1992; Reardon, Reardon, & Rowe, 1998). This paper
will focus on the contemporary model of planned change named general
changed model by Cummings and Worley (2000) which outline four basic
stages

of

organizational

change

that

is

Entering

and

Contracting,

Diagnosing, Planning and Implementing Change, and Evaluating and

Institutionalizing Change. General model of planned change emphasized
that organizational change as complex, involves considerable overlap and
not straightforward or linear process (Cummings and Worley, 2008, pg 29)
2.1

Entering and Contracting

2.1.1 Entering
This is the stage where the leader first realizes that organization is
facing a problem and there is the need to change. Therefore leader is
essential to organizational change. Bass (1990) has defined leaders as
change agents the person that have more influence to affect others
than anybody else. Leaders are recognized as a person who play a
dominant role on the development and direction of cultural norms,
3

values, and basic assumptions in institutional settings (Schein, 2004).

Leaders need to motivate, shift, organize, enable and direct effectively
to make change happen (Audit Committee, 2001). Nadler and
Tushman, (1990) emphasized the responsibility of a leaders to provide
adequate resources in order for a change initiative to be successful.
Vales (2007), on the other hand, found that senior manager in an
organization are the decision maker that determines the success of
change initiatives.
2.1.2 Select a consultant and develop contract/agreement
These stage also where consultant is selected to identify problems
that organization is facing. The consultant can be from internal or
external

of

the

organization.

Kleiner,

(1992)

defined

external

consultants as who are hired on an as-needed basis, come from

outside the company, stay for the duration of the contract and then
leave the company when the intervention successfully implemented.
In contrast, an internal consultant is an organization development
professional whose is employed full time by an organization, and who
reports to the senior manager or leader. The purposes of developing
contract with external consultant during the planned change process
is to clarify goals, spell out the role of consultant, outline ground rules
and to determine the use of resources (Block, 1981).
2.2

Diagnosing
2.2.1 Open system model
In this stage, the consultant will study about the client system and
communicate it to leaders and other organizational members. The
usual open systems model can be applied to organization, unit and
individual levels because the open system explain what factors or
reason that demand a change and why change is needed in an
4

organization. For example, change generally is driven by events or

problem in an organization's external environment for instance
shortfall in expected revenues, increase competition in global market,
advances in technology, or new customer demands triggers a change
(March and Simon 1958; Cyert and March 1963; Hedberg 1981; Levitt
and March 1988).
2.2.2 Diagnosing Organizational system
Diagnostic model for analysing problem explore three levels of
activities. There are organizational-level issue that concerned to
improve the total organization effectiveness, group level issue
concerned to improve group/department effectiveness or individual
issues that concerned of job design and individual performance. This
is explained further by Chin & Benne (1985), as he defined planned
change as aware, deliberate, and planned decision to improve
individual performance and to improve an organizations effectiveness
and capability (Cummings & Worley, 2005; Porras & Robertson, 1992).
2.2.3 Gathering, analysing and feeding back information to
managers and
organizational members.
In the diagnosing stage, collection and analysing of data is important
as well as preparation of feedback and action planning (Dyer, 1989).
A good feedback session provides the client with the opportunity to
accept ownership of the data. Consultant should play an important
role in facilitating a good meeting to make sure that organizational
members at all level from manager to staff, have the motivation to
take part in the change initiative; and thus, that process help the
client analyses the data well (Nadler, 1977).
2.3

Planning and implementing change

5

2.3.1 Designing intervention/change

This stage involves the design of activities to address issues, which
were generated as a result of the feedback session and joint
diagnosis,

compose

implementing.

the

Argyriss

consulting
(1970),

phase

emphasize

of

planning

that

in

order

and
to

successfully implement change, good information is important and

organization must make the information about the change is
accessible by employees and give a freedom to them to whether they
want to participate or not without forcing them, by giving them some
autonomy in the planned change, employee can take ownership of the
planned activities, involved and commit until the end process of
change. Organization should design interventions to overcome the
problem

identified

in

the

entering

process.

Human

processes

intervention, technology and structure, human resources intervention

and are among the intervention that can be done to overcome
problem identified before (Cummings and Worley, 1993).
2.3.2 Create vision to motivate employee
After designing a suitable intervention of change that could cater the
problem of organization, organization must create a vision to
empower employee towards implementing the change by clarifying
the reason of change, why it is needed, and informed employee clearly
that reason or vision (Kotter, 1995, 2008; Galpin, 1996; Cummings
and Worley, 2004). This vision includes the expected date to fully
achieve the implementation of change, desired state, how the change
will occur, and to what extent that the intervention will change the
organization. Creating this vision is very critical in change process
regardless the size of the company and how many employee involved.
Kotter (1995) in order to make the intervention success, the vision
should be easy to communicate to employee, so employee would have
6

a clear vision of the change. Once the vision has been developed, it
has to be communicate and informed to all level of employee, by
explaining and persuading employees that the change is really needed
and increasing understanding and commitment of the employee
towards the implementation of the change (Hinings et al., 1991;
Whelan-Berry, 2005, Koehler and Pankowski, 1997, Thompson and
Sanders, 1998, Kotter and Cohen, 2002, Pollitt, 2004). Communication
of vision the change can also overcome the issues of resistance to
change (Schein, 1985). Most importantly, to sustain the change, it is
important for organization to regularly communicate the vision to
employees. Regular communication helps to outline important issues
and motivate employees to continue commit to the intervention
(Nadler and Tushman, 1990).
2.3.3 Moving the change to the group and individual level.
In this stage, change models suggest the need to force the change to
all members in organization the organization (Kotter, 1996, 1999) or
organize the intervention (Cummings and Worley, 2004). This means
that

the

change

organization

and

vision

transfers

understood

throughout

across

all

level

all

members

employee

in
and

departments.
2.3.4 Sustaining the momentum of change implementation.
Provide resources for change (time, energy & budget)
During implementation stage, there is also the need to sustain the
change, meaning continuing the new behavior towards change
(Kotter, 1995; Galpin, 1996; Armenakis et al., 1999; Cummings and
Worley, 2004), so the change will continuously adopt by members of
organization and to make sure that the intervention is not failed due
to lack of attention to its implementation . Lack of attention to it may
7

cause the change is receive insufficient resource, thus make the

change may be delayed or worse, failed to implement. Paying proper
attention is critical for a planned change because some intervention
may take a considerable length of time to achieve, for example an
organizational culture shift, which typically takes five to seven years
(Jick, 1995).
Change Related Training
The change is also can be sustained by providing employees with new
competencies and skills related to the new intervention. Previous
research found that training provides an understanding of the change
initiative and related new knowledge, skills and make sure of
continuing behaviors (Schneider et al., 1994; Alvesson, 2002). By
training, employees will learn new work processes or routines that
may be changed after the intervention. Further, training can informed
employees the significance of a change at the group level (Bramley,
1989; Carnevale et al., 1990; Goldstein, 1993; Harrison, 1995; Bennet
et al., 1999). This is especially important when the change vision is
complex, and needs to be specifically explained for group and/or
individual jobs, task and work processes.
2.4

Evaluating and Institutionalizing Change

2.4.1 Performance appraisal
The implementation of a change or intervention usually would be align
with implementation of performance appraisal and reward system to
empower and motivate individual towards
the change initiative (Armenakis et al., 1999; Schein, 2000; Schneider
et al., 1994; Kotter and Cohen, 2002; Cameron and Green, 2004).
2.4.2 Institutionalizing the change
8

Finally, the general planned model identify the need of institutionalize

the change, aligned with Lewins work of re-freezing in 1951. In this
level, organizations make sure that the desired change outcomes or
change behaviour become part of the organizations culture, ongoing
operations and continuous processes (Kotter, 1995; Armenakis et al.,
1999; Cummings and Worley, 2004).
3.0

Application

Senai International Airport is one of the airline terminal located in Johor

Bahru, Johor. This airport is still at the growing stage where they still make
an investment, find a ways to get the revenue and maintain competitive
advantage. Basically, a change is needed in every organization same goes to
Senai International Airport which they keep on doing changes not only the
infrastructure but also the management system. From interview session, it
is found that General Model of Planned Change is being practice but it is
indirectly after we had discovered the issues. They apply entering and
contracting, diagnosing, planning and implementing change and evaluating
and institutionalizing change. Our focus is on how Senai International
Airport makes changes to change the management system in order to
ensure that they have good practice of management with quality and
information security. From the interview, we identify that the major changes
in term of OD practices implemented by Senai airport is ISO. ISO
certification by an accredited certification body shows organizations
commitment to quality, customers, and a willingness to work towards
improving efficiency. ISO certification also important to enhances company
image in the eyes of customers, employees and shareholders alike.
Therefore, in order to implement it, Senai Airport has appointed Energized
Inc. as their consultant to help them achieve the ISO standard. Senai
Airport starts to make changes

on January 2012 when their top

9

management wants to get an ISO certification for their organization. This

can help them to improve their performance and give them a competitive
advantage to compete in the global market. The changes that they want to
make are quality management system and information security within the
organization. So, in order to implement these changes, it is being recognize
that general model of planned change is being adopted.
3.1

Entering and Contracting

The change of CEO has led to a big transformation in Senai airport. The
new top management identify the needs to implement the ISO; International
Standards to make sure that products and services are reliable, safe, and in
good quality. The top management also recognized the needs to reduce
costs, improve efficiency and increase productivity by access new markets
to compete in the global market. All of this only can be achieved with the
guidelines of ISO. The new leadership of Senai airport is focusing in
improving the management system and information security. ISO standard
that involved are ISO 9001:2008 about Quality Management system(QMS)
and

ISO

27001:2005

about

Information

Security

Management

System(ISMS).
They tried to determine what to do in order to implement ISO, what is
involve and then hired an OD consultant to involve in the changes that they
want make. Here, the change is related to change the management system
and information security. So, in order to do that matter, they need a
standardized procedure to follow such as guidelines to run the system.
Therefore, the new top management had clearly clarified the issues, the
problem that they lack in existing management system, the needs for
improvement and decide to implement the ISO in order to maintain
effectiveness, improve performance and increase productivity. That is why
they want ISO to ensure that they have good management system and
information security.
10

Since, they have clarified the problem and symptoms, they decide want to
have ISO for their organization and through ISO, it can help them in doing
their work systematically. They find a consultant to help them in this matter.
They choose Energized Inc. as their consultant and they had draw legal
contract with them starting January 2012. Energized Inc. will help them in
ISO matter and determined which type of ISO that suit with them.
3.2

Diagnosing

In this stage, Senai airport hold a special meeting named focus group for
top management, consultant and staff worked together to collect and
analyze data. Firstly, the consultants collect the needed data about current
quality system and information security in Senai Airport including evaluated
what is lack and weaknesses in the existing quality procedures and
information security.
Then the data is presented to the top management and organizational
members of Senai Airport. Then the data is reviewed, analyzed and
discussed among the focus group. They compared the data of existing
management of quality and information security in the organization with the
requirements of the ISO standards. The focus group then evaluated the gap
between current practice and what is needed to do to comply with the ISO
standard guidelines. The consultant then recommended the strategic action
to done in order to implement ISO. Then they jointly planned of corrective
action needed to comply with ISO 9000 series standards for quality
management standard and ISO 27001:2005 about information security.
Next step, they focus group prepared for quality assurance program and
information security program as part of scheduling an action planning.
3.3

Planning and Implementing change

11

In order to make sure that the implementation is successful, the first step
that Senai airport are doing is the documentation and implementation of
new procedures into a manual. The document about the procedures are
explained to all staff and try to convince them to help organization in
achieving the vision of ISO. What is ISO is focusing is trying to minimize the
resistant to change. As the implementation of ISO increase the demand of
the worker to work very efficiently, increase their workload, they also have
to attend seminars and training on ISO and they have to perform their task
in a new way. This is indirectly increase the pressure of the work as the staff
is consist only about 200 persons and the implementation of ISO of course
bring an additional responsibilities to them. The top management used a
soft approach in order to maintain their staff working very efficiently in
implementing the ISO and encourage them to be a multi-tasking worker.
The implementation of ISO 9001:2008 Quality Management system (QMS)
and ISO 27001:2005 Information Security Management System (ISMS)
involved the change of work method and procedures in certain department,
especially in the airport security/safety department.
Other than that, Senai is focusing in train their staff on new quality program
so they have knowledge about the changes that are taking place in the
organization so know how to perform their job better according the ISO
guideline and understand how implementation of ISO is operated. Such
training also to give the staff the idea of what is the significance of ISO to
the organization and to motivate them to achieve organizations vision.
Senai Airport also conduct internal audit named audit committee to
determine areas of non-compliance and take corrective action to better the
existing

practice.

Throughout

the

implementation

of

ISO,

Senai

International Airport made a few interventions. The purpose of intervention

is to help the changes will success. The types of interventions that this
organization practices are human process, technostructural and human
12

resource management intervention. In human process intervention, they do

the process consultation which they are always consult with their consultant
about the ISO that they want to make. They will have a few sessions with
their consultant to discuss about this matter.
Since Senai International Airport want to make changes in their quality
management system and information security, automatically the changes is
involve technostructural intervention. This intervention is more on total
quality management and it need commitment from senior management and
all the employees to ensure this changes will success. The other
intervention involve is human resource management intervention. This is
more on to motivate the employees. In this intervention they focus on
rewards and employees well-being. This can help to motivate employees to
accept the changes. This can be seen by how the organization take care of
their staff based on the rewards, wellness and their performance. Senai
International Airport give yearly bonus and it will based on gain sharing.
They also get yearly increment. This airport also provides the medical
benefit for limited amount to their staff. The employees wellbeing in
organization is important and it can be seen in this airport. Senai airport
also maintain close relationship among staff and emphasize them to cooperate well with each other. They also make a gathering twice a year and
make some activities that will ties their relationship. These activities can
help to reduce stress and make them feel free from hectic work and
employees will feel appreciated. When the organization doing these
matters, it will help the employees to produce good performance and make
the organization can achieve their vision and target.
3.4

Evaluation and Institutionalization

Therefore, Senai International Airport will evaluate all the process of ISO or
step they are taken to make changes. This airport also has its own audit
committee to inspect or evaluate the progress of the implementation of ISO
13

regularly. All the top management, audit committee and consultant will sit
together and discuss. Basically, the purpose of evaluation is to ensure the
changes they made is successful and not fail due to lack of attention. ISO is
to change the way of doing work, and this ISO is to help the organization
work according to policies, procedures and documentation. Every work
must have its own manual such as at safety department. It must have
manual to be followed. To make changes, it must get a commitment from
employees. So the audit committee will monitor it and evaluate. If certain
procedure they do not follow, that department must make correction on
that. That is why feedback and evaluation is important in making changes
so that it must be accepted by all. The evaluation of ISO involves Energized
Inc. and Sirim Sdn Bhd in order to make them get the certificate of ISO
when all the procedures had been followed.
In summary, the institutionalizing the changes and implementation of ISO
are stills an on-going process. The changes is taking place and Senai airport
is making their effort to successfully institutionalize ISO and get the
certificate to enhances company image in the eyes of customers, employees
and shareholders alike.
4.0

Discussion and Conclusion

4.1

SWOT Analysis

According to Hans Romang, the SWOT is a strategic planning tool to

evaluate strengths, weaknesses, opportunities and threats involved in a
project, in a business venture or in any other situation requiring a decision.
At Senai International Airport,

4.1.1 Strengths
Practising accordingly to the theory
14

From our discussion, we have found that at Senai Airport, in

terms

of

Organizational

Development

practices,

they

are

practising accordingly to the theory. Why did we categorized it

as one of the strength, it is because, organization that follows
the theory will be seen as an organization that works
compliance to the standardized rules and regulations.
Teamwork
From our meeting with Madam Hazara, the management instils
teamwork among the employees in order to strengthen the bond
between the employees and also to keep a harmonious
relationship between the management and also the employees.
Multitasking Employees
Senai International Airport is having multitasking employees
because they have lack employees.
Domestic airlines act as the financial core
At Senai International Airport, domestic airlines act as the main
financial sources. It is because, at Senai, they are focusing more
on the domestic flights.
4.1.2 Weaknesses
Lack employees
Lack of employees seems to be the weakness point of Senai
Airport because they are having some crisis in having their
employees to work with multitasks. There are some employees
who refused to be multitasks because they will do what is in
their job description.
No general training (IATA)

15

According to Madam Hazara, at SIA, they provide training that

underlies according to the IATA or they are focusing mainly to
the mandatory training. This is happening because they have
lack of employees. They do not have enough employees to
provide the general training such as telephone etiquette,
communication training and etc. to the other employees. This is
what makes them capped to the mandatory training only.
No training evaluation
Training is a must in every organization. SIA also not lagged
behind in this training program. They are providing training to
their employees. The thing that they have missed out is that,
they did not practise training evaluation. There is no training
evaluation and they just started to plan of having it recently.
No feedback loop
As what we discussed among us and with the help of the general
model of planned change, at Senai International Airport, they
does not has feedback loop. It is meaning to say that SIA did not
evaluate the actions they have taken.
No fresh employees
Why did we say that no fresh employees as the weakness of SIA?
As we all know, the employees with more working experiences
are much better. But, we have to understand that youngsters
nowadays are very creative and innovative. The fresh graduates
are very proactive, instead of receiving all the instructions, they
would ask before they were instructed. But, at SIA most of the
employees are the experienced employees and they are already
reaching the retiring time and that makes them do not have the
desire to contribute more to the organization.

16

4.1.3 Opportunities
New airlines investment (MALINDO)
As for the opportunity, there will be a new airline investment
(MALINDO) coming in the year 2013. MALINDO is the newly
established

low-cost

airlines

company.

With

this

new

investment, it will help to boost up SIA financial sources.

Shop lots
Instead of all the airlines investments, SIA also open up shop
lots that act as microfinance source for them. Shop lots would
be one of the attractions in SIA.
4.1.4 Threats
Airlines pullback
Airlines pullback means that the airlines company are backing
off from being the investor at SIA. They have no more interest in
continuing their operation at SIA. This has become threat to SIA
because as we all know airlines are the main financial sources
for SIA.

Singapore, Changi airport

Why Singapore, Changi airport is a threat to SIA? It is because,
it is the nearest to SIA and Changi Airport is having
international flights and that is the most crucial factor why
Changi Airport is being a threat to SIA.
From this study we highlight the issue using SWOT analysis. The analysis
stated that weakness is more complex than other analysis. Senai Airport
now is starting to grow and more to develop not just from internal but also
from external. With the rapid changes of development at Senai airport
17

clearly Senai airport will become one of the best airports around Malaysia
and Asia. As an organization Senai airport also started to become
organizational development pioneer that not just on certain expertise but
also as a whole combined groups.
4.2

RECOMMENDATIONS

Organization development is a system wide application and transfer of

behavioural science knowledge to the planned development, improvement,
and reinforcement of the strategies, structures, and processes that lead to
organization effectiveness.
In order to implement organization development in an organization, there
are procedures need to be followed. There are entering and contracting,
diagnosing, planning and implementing change and last but not least,
evaluating and institutionalizing change.
As we can see at Senai International Airport, it can be seen that they are
complying to the standardized organization development, but, they just
didnt practise feedback loop which, feedback loop is a must in order to
evaluate every stage of procedure. Evaluation is very important in order to
see whether the actions we taken are the right thing to do.
As for recommendations, we would like to recommend to SIA that they
should establish a organization development department because currently
HR Department is the one who manages their organization development
matters. With its own department, it will ease up the top management, and
there are employees who are committed in handling the matters regarding
organizational development.

18

19