INTRODUCTION

1.1 Information About The Case Company

Uheng Office Equipment Sdn Bhd is office furniture supplier & authrised
dealer of Chubb Safe.They specialized in supplying office furniture and office
equipments, such as office table, office chairs, steel storage, metal and wooden
cabinets, office gypsum board partition, open plan system partition, safety box, fire
resistant safe, banquet chair and table, white board, magnetic glass board, mobile
compactor, link chair, pantry furniture, racking, custom made office furnitures.
U-Heng was established since 1st June 1989 by Mr.Cheon Lai Heng. The
business was first startup in supplying office automation equipment, such as copier
machine, fax machine, time recorder and etc. In Year 1992, they expanded their
business into supplying fire resistant safe, office furniture and office steel
storage.Uheng’s commitment to works and satisfactory from customers has got their
company more business orders and in 2010, thus have increased their warehouse in
Johor Jaya to tackle the incoming orders.
In year 2012, Uheng started to expand its business into Singapore market to
reach to more potential customers. In 2014, they have upgraded warehouse to 3000
square feet area and started using forklift and racking system for better warehouse
management. In just a few year, Uheng again upgraded warehouse to 8400 square feet
area and relocated to Eco Business Park 1, which is year 2018.
The current company director is Mr Cheon Chun Ang. There are 4 major
departments in Uheng Office Equipment Sdn Bhd such as sales department, logistic
department, account department and purchasing department. All these departments
plays an important role in company’s organizational performance especially sales
department, logistic department and also purchasing department. Sales department
consists of 2 project managers followed by their junior sales executive of 4 members,
whereas logistic department and purchasing department is handled by one person
respectively. The workflow in Uheng is started from sales department followed by
purchasing department and lastly is Logistic department.
1.2 Problem Statement

The main issue in organizational performance at Uheng Office Equipment Sdn

Bhd is they have poor performance appraisals. The cause of the issue is that employer
practice halo effect and central tendency in evaluating employees. Employees do not
feel motivated to find sales or carry out given task as everyone is treated the same
even when one is working hard. Employees feel so unmotivated and dissatisfied with
the management.
Employee satisfaction is defined as the optimistic emotional state arising from the
appraisal of one's work as achieving or supporting the accomplishment of one's job
values. A critical feature is work satisfaction in TQM models. It is considered
important because of its well-established association with a number of organisational
outcomes, such as employee success (Siengthai and Pila-Ngarm, 2016), organisational
dedication (Valaei and Rezaei, 2016), customer loyalty (Pantouvakis and Bouranta,
2013; Huret al., 2015) and its contribution to an organization's competitive advantage
(Bellou, 2010). Employee happiness, though, is not well taken care of today by firms.
Profit is what matters to them. Dissatisfied employee can negatively affect a company
because they typically lack of motivation, perform poorly and posses negative
attitudes. These can spread to other employees and affect organizational performance
of a company.
From the perspective of working environment, administrative corruption is
one of the factors that leads to poor performance appraisal. It can be defined as the
abuse of roles, powers, or resources found within the organization. It maybe initiated
by line or staff officials, their superiors or the clients. Corruption can affect all aspects
of HR management processes, with favouritism and nepotism and misuse of authority
in areas of recruiting, training, promotion and transition defined as major risk areas.
Training and development is vital in developing and assessing performance of
employees. Favouritism promotions is know as favoring someone not because he or
she is doing a fantastic job, but for reasons beyond the performance of the job. A
manager, for example, regularly provides the best and most highly respected tasks to
an employee, even when that employee does not perform well enough to merit them.
2.0 PHASE 1: ENTERING AND CONTRACTING

Generally, companies and organization will usually starts when one or more
managers or administrators feel an opportunity in their organization, department, or
group, and believe that new features need to be developed or they decide to improve
performance through organizational development. The organization may be
successful, but there is still room for improvement. It may be facing imminent
environmental conditions and therefore needs change the way it works.
The initial stages in the OD process include joining and signing the contract.
They include identifying operational challenges or prospects for improvement in a
preliminary fashion, and developing a working partnership on how to address these
problems between OD professionals and customer system participants. The initial
conditions for the following stages of OD implementation are set by entering and
signing the contract: diagnostic organization, preparing and implementing
improvements, and reviewing and institutionalization them. They help determine the
challenges can be addressed by those operations, who will execute them and how
they will be done.
The circumstances of entering and entering into contracts may vary from
case to case, and the form and complexity are also different. When the manager of a
work group or department acts as its own OD practitioner, entering and signing a
contract usually requires a meeting between the manager and the group members to
discuss the problems to be solved and how they will achieve the goals together they
set. Here, the entering and contracting process are informal. They enable all relevant
members to directly participate in the process, requiring minimal formal procedures.

Figure 1: Organization Development Cycle

2.1 Organizational Issues, Problems and Symptoms

Uheng company contacted our consultant company which is known as JGD

Management Consultant. Uheng has a subsidiary named as “Marcca Production” and
we are the company’s consultant. Hence, Uheng decided to reach us for their current
company’s organizational issue which is lack of employee productivity to be solved.
Mr Marcus the director of the company had contacted JGD Management addressing
his concerns regarding his organization. JGD Management have to clarify the nature
of the organzation’s current functioning and the issues whether we are capable of
solving it .JGD has to collect preliminary data about the organization to decide
whether client, Uheng and we as consultant can develop a contract for working
together. Uheng also gather information about consultant’s competence and
experience as it is vital to solve the organization’s issue. Mr Cheon had describe what
his organization wants from the process and from the consultant. He also explain his
desired outcomes and the opportunities to the consultant. JGD had prepared a written
contract consist of client’s and consultation’s expectation about how the OD process
will take place. This contact process is carried out in mutual expectations of client and
consultation.After all these processes, JGD Management consultant had signed the
consultancy contract with Uheng.The issue, problem and symptoms are drawn as
below:
I. Issue : Poor Performance Appraisal
II. Problem : Low Employee Productivity
III. Symptoms :Poor Communication, Lack of Delegation, Inconsistency,
High Turnover

3.0 PHASE 2: DIAGNOSIS

The second main step is diagnosing organisation. The method of recognising

the system's present activities is diagnosis. It includes gathering relevant statistics on
current activities, reviewing this evidence, and drawing conclusions on future changes
and enhancements. Efficient diagnosis delivers comprehensive awareness of the
enterprise for the design of appropriate treatments. OD approaches are thus extracted
from diagnosis and provide concrete steps directed at enhancing the function of
organisations. Firstly, I as JGD Consultant will find what is the main issue in
performance appraisal of Uheng and how it affects the employee productivity. I will
work closely with the top management and also human resource department to
analyze this issue. I as consultant will interview the employees at Uheng to inquire
what caused their productivity level to decrease and cause of the symptoms.Analysis
of those data could uncover determinants of poor performance appraisals and low
employee productivity, thus helping the manager to develop an appropriate
intervention to address this issue.

3.1 Input Process Output Model (IPO) Model

The IPO model is a functional diagram that is used to describe the inputs,
outputs, and processing functions needed to transform inputs into outputs. The model
is often designed to provide some storage during the process that might occur. Enter
the data and material flow that from the outside reflects the incoming phase. Both
activities needed to incorporate input conversion are included in the processing steps.
The data and materials that flow out during the process of conversion are the
production. JGD will analyze the issues and discover their effects and consequences
in the organizations at three levels as shown below :-
 Figure 3.1 : Input Process Output Model in Organization at Three Levels
3.1.1 Organization Level
Organization-level analysis is the most extensive system perspective commonly
used in diagnostic activities. There are 2 types of environment such as general and
task environment.As for Uheng 5 major designs components are involved such as
technology, structure, strategy, human resource system and measurement systems.
Organization will align their design components to each other and to the
environment. Output of Uheng in organizational level is affected as its whole
organization effectiveness is low. The performance of employees is deteriorating as
their productivity level is lacking. This has displeased the satisfaction of
stakeholders.

3.1.2 Group Level

Small departments and groups, however, can behave differently from large
organizations and so they need their own diagnostic models to reflect those
differences. When the organization design (input) is not compatible with design
components hence the output will be affected in a negative way. Uheng’s output for
group level is affected as quality of work life of team decreases. Conversely, the
performance of the team will be stirred.

3.1.3 Individual Level

The ultimate degree of organizational diagnosis is the role or position of a person.
There are several divisions in an organization; one group consists of many
individual workers.

4.0 PHASE 3: PLANNING AND IMPLEMENTING

CHANGE

Intervention in organizational growth is a collection of practise, acts and

events aimed at helping organization enhance their success and productivity. The
concept of the intervention or action plan is based on a medical diagnosis that seeks
to address a particular problem and improve specific aspects of organizational
operation. JGD had proposed intervention according to Uheng’s issues after
collection and analyzing the data. As for Uheng, JGD had decided that human
resource management interventions are the most suitable. Human resource
management intervention is used to develop, integrate and support people in the
organization. These practices include career planning, reward systems, goal setting,
and performance evaluation-methods of change traditionally associated with human
resource functions in organizations. I, as consultant will focus on the individuals in
the organization because the effectiveness of the organization comes from the
improvement practices of integrating employees into the organization.

4.1 Intervention Plan

The intervention that will be implemented in Uheng organization is listed down as
below:-

INTERVENTION EXPECTED OUTCOME

Set Goals Effectively
Performance Planning of
Employees
Train the Managers to
Maximize the Appraisal
Process
 Improve the efficiency of organizations by creating
a clearer fit between personal and corporate
priorities.
 Managers and subordinates meet regularly to plan
work, review achievements and solve problems in
achieving goals.
 Facilitate open communication
 Provide Continuous Improvement
 Increase Productivity of Employees
 Encourage development and drive-goal directed
Performance Improvement
 Bias and Discrimination can be Avoided
 Central Tendency & Halo Effect can be Eliminated
 Employees gain Confidence

Train Managers to Frequently  Brings out the strenths and weakness of Employees
Give Feedback  Increase Employee Engagement
 Under-performing Employees will Compete
Link Performance with  Increase Employee Productivity
Rewards and Recognition
 Employees will Gain Motivation

4.2 Readiness of Organization Towards Change

One of the most basic axioms of OD is that people's degree of readiness for change
depends on the perception of change. This involves making people so dissatisfied
with the status quo that they are motivated to try new workflows, techniques or
behaviors.The readiness of organization towards the intervention is assessed based
on following criteria such as organizational culture, power and politics and people
skills and abilities.

Figure 4.1 : Organizational Readiness for Change

4.2.1 Organizational Culture

- Organizational culture is the first and foremost thing that need to adapt for
the upcoming interventions and change. It plays an important role in the
whole process. New vision of what members want the organization to look
like or become will be created. Creating a vision is considered a key element
in most leadership framework. Organizational culture would not be affected
or have a drastic change towards this changes because the vision driven by
employees and employers in an organization.This changes will create a word
picture that is emotionally power for organization and motivates them to
change.

4.2.2 Power and Politics

- The equilibrium of power between parties is also challenged when
attempting to reform the organization which leads to political tensions and
challenges. Individuals and associations will pay attention to how alterations
affect their own control and impact, and will take effective action. I,as
consultant will determine how to use power to influence it on others. This
will make employees and employers in an organization does not feel
threatened towards the change.The politics between organizational
members can be avoided since consultant uses his/her power to make
changes in the organization. No particular party will be influenced or gain
power to rule the organizations from this change.

4.2.3 People Skills and Abilities

- Organizational members may be unsure whether their existing skills and
contribution will be valued in the future, or have significant questions about
whether they can learn to function effectively and to achieve benefits in the
new situation. But the changes and the interventions that will be implemented
will be a favourable advantage for the employees and employers to increase
their skills and abilities. This will enhance their productivity towards working
environment and make them feel ease .

4.3 Managing the Changes Effectively

Once systemic adjustments are made, it is important to pay clear attention to
sustaining energy and devotion to executing the changes. Initial optimism, faced
with the realistic challenges of having to discover new ways of working, sometimes
fades from the activities of transition.There are certain ways to manage the change
effectively as shown below : -
i. Providing Resources for Change : Implementing organizational change often
requires additional financial and human resources, especially if the organization
continues to conduct daily operations while attempting to reform itself. These
additional resources are necessary for change activities such as training,
consulting, data collection and feedback, and special meetings. During the
transition period, due to performance degradation, additional resources also
help buffer.
ii. Developing New Competencies and Skills : Changes or improvement in
organizations demand new knowledge, skills and behaviors from organization
members. For an instance, Uheng need employee-involvement programs for
managers to learn new leadership styles and new approaches to problem
solving. And this is consultant’s job. JGD consultant have to provide multiple
learning opportunities to manage the changes effectively.
Staying the Course :It takes time for adjustments and enhancements, and all of the
financial and operational gains anticipated by the transition behind the adoption. If
the company changes too quickly again or abandons the change until it is
completely implemented, many of the desirable consequences never materialise.
Managers and members of the company must learn to be careful and require time to
train, build and learn new behaviour. Patience and faith in the work of diagnosis and
intervention design are required.

5.0 PHASE 4: EVALUATING AND

INSTITUTIONALIZING CHANGE

This chapter focuses on the final stage of organization development cycle

which is evaluating and institutionalization. Evaluation is perturbed with providing
feedback to consultant and organization members about the progress and impact of
interventions. Institutionalization is a mechanism that includes for the maintenance of
a certain improvement for a reasonable time frame. This means that the effects of
effective initiatives of transformation continue over time. Evaluation mechanisms take
into account both the success of the planned intervention's execution and the long-
term consequences it produces. Measurement and study design are two main elements
of successful assessment. In a context showing the organizational elements,
intervention aspects, and mechanisms leading to the institutionalization of OD
interventions in organizations, the durability of intervention results is investigated.

5.1 Research Design

In order to obtain valid results, experts must make recommendations about how
to construct the evaluation. There are 2 categories of validation, which are internal
validity and external validity. Internal validity is characterized as if the evaluation
may be structured to demonstrate whether the intervention ultimately generated the
outcomes found, whereas external validity is whether the intervention in other
circumstances will perform similarly. There are three factors that are powerful for
accessing changes :-
i. Longitudinal measurement : This requires assessing outcomes replicated over
relatively long periods of time. Ideally, the compilation of data would begin
until the intervention is introduced and conclude before generating predicted
outcomes for a time deemed fair.
ii. Comparison Unit: It is essential to compare the results in the intervention
situation situation with those in another situation where no such change has
taken place.
iii. Statistical Analysis : Statistical approaches should, wherever possible, be used
to ruling out the probability of random error or chance affecting the
outcome.For quasi-experimental designs, different statistical techniques are
applicable, and these techniques should be used by consultants or request
assistance from others who can apply them.

Hence, JGD Consultant uses quasi-experimental research design also survey

feedback (questionnaire) to measure the effectiveness of the interventions at Uheng.
As for quasi-experimental design measures of employee turnover, employee
productivity are taken for each and every employee before and after
intervention.Conceptually, these data was taken for over 4 weeks before and after
intervention as changes reuqires time. This table will give a obvious changes in
percentage on how the intervention had made changes to the organization.
Consultant could also measure the changes in percentage to explore whether the
interventions had made drastic changes or minimal changes for the organization and
plan for future changes.
And next survey feedback which is questionnaire will be used to evaluate the
feedback of organizations regarding the interventions. Questionnaire is a technique
for gathering statistical information about the attributes, attributes or actions of a
population by a structured set of questions. JGD consultant prepares a set of
questionnaire consisting questions regarding the intervention and after change effect
. Organizations members have to answers those questionnaires and give their
feedback. The data from the questionnaire will be evaluated in the SPPS format
which is Statistical Package for Social Science. It is a set of software programme
that can be used for market research, survey, data and many more.
JGD will use SPSS to measure the validity, reliability, multiple regression
analysis to see whether the interventions had made changes to the organization and
accurate for the organization. Reliability test will be done from the data of
questionnaire to understand the relation between employee productivity and the
interventions.It will also explains how a change in the value of interventions can
affect employee productivity.Next, is analysis of variance and it is a statistical
approach to compare events, groups or process, and find out the difference between
them. It can help consultant and organization members to understand which
intervention is most suitable . Lastly, validity measure the extent to which an
intervention reflects the results it is intended to reflect. The results of SPSS will give
a clear picture to the consultant on how organization members feel about the
changes and interventions whether it is effective or no .

5.2 Institutionalization Change

Once it is decided that modifications have been incorporated and are successful,
attention is directed at institutionalize the modifications, retaining them as a regular
part of the running of the company for an acceptable amount of time. Any
improvements are just part of a protracted journey of organizational adaptation in
dynamic and unpredictable settings. It is not a one-time shift to innovate new goods,
but a continual process and this must be enforced over and over again.
A context that describes organization and interference is presented in Figure
features and institutionalization mechanisms that influence the degree to which
initiatives for improvement are institutionalized. The model indicates that multiple
institutionalization mechanisms occurring in organization are influenced by two
main antecedents: Organizational and intervention characteristics. In exchange,
these systems shape multiple institutionalization metrics. The model also shows that
organizational characteristics can affect the characteristics of intervention.

Figure 5.1 shows Internationalization Framework

Organization Characteristics
a. Congruence : This is the extent to which an action is considered as being in
harmony with the organizational theory, policy, and function of the
organization; the existing environment; and other improvements taking
place.Intervention is compatible with these dimensions, increasing the chances
of that it will be maintained and sponsored. Congruence can make persistence
simpler.By making it possible for participants to obtain and disseminate their
contribution to the intervention to larger divisions of the organization.
b. Stability of Environment and Technology : This involves the extend to which
organization's environment and technology are changing.When conditions are
 stable, the durability of transition is preferred. It makes sense to integrate the
shift in the environment and operational design processes of an organization
under these circumstances.
c. Unionization : Diffusion of interventions can be more difficult in unionized
environments, particularly when shifts impact matters of union contract, such as
wage and marginal compensation, role design and employee flexibility.

Intervention Characteristic
a. .Goal Specificity : This requires the degree to which the purposes of action are
not universal, but unique to the company and its members. Specificity of
expectations allows to design activities such as preparation and so on to the
specific actions necessary for the initiative to be enforced
b. .Programmability: This covers the degree to which the improvements can be
configured or the extent to which the particular intervention characteristics may
be relevant.
c. .Level of Change target : This explains the extend to which the change target is
the total organization, rather than department or individual. Each level of
organization has facilitators and persistence inhibitors.
d. Internal Support : This applies to the level of which an organizational support
structure is in place to direct the process of transition. Internal assistance,
normally offered by an internal expert, will draw on the commitment to reform
and encourage the members of the organization to execute it.
e. Sponsorship : This concerns the involvement of an influential supporter that
may introduce, distribute and legitimize action capital. Sponsors have to come
high enough from the level of the company to monitor the necessary services,
and they must have the strength and visibility to promote action to see that it's
still feasible.

Institutionalization Process
a. Socialization : This includes how the data on attitudes, desires, norms and
values are communicated in relation to the intervention. Since the execution of
programmes requires substantial learning and innovation, to facilitate the
persistence of the reform initiative, a continuous process of social ideals is
crucial. Members of the organization should concentrate resources on the actual
 changing existence of the intervention. This evidence must be shared to other
staff and new ones.For an example, coaching among top management is the
initial transmission of information about the intervention.
b. Commitment : This takes individuals to habits correlated with the strategies. It
consists of initial programme participation, as well as dedication over time.
Dedication opportunities should inspire people to choose the routines they need.
Free, explicit, and freely accessible. This factors favour a high degree of
dedication which will encourage the stability of new habits. Commitment can
be based on a variety of hierarchical layers, including the workers personally
concerned and the middle and upper levels managers who will help or
discourage the action.
c. .Reward Allocation : This includes relating benefits to the new characteristics
needed by an action. The persistence of improvements can be enhanced by
corporate incentives in 2 ways. Next, emerging habits can be strengthened by a
mixture of intrinsic and extrinsic incentives. Second, to the degree that
incentives are viewed as fair by workers, emerging habits may continue.
d. Diffusion: This extends to the method of shifting modifications from one
system to another. Diffusion facilitates institutionalize by providing a wider
organizational base to support the new behaviors. Many interventions fail to
persist because they run counter to the values, purpose, or identity of the larger
organization.
e. Sensing and Calibration : This requires identifying deviations and taking
corrective steps from desired intervention patterns. Invariably,
institutionalization views as it is facing destabilizing powers, such as
environmental developments, emerging technology, and resistance from other
departments to nullify changes. Such considerations cause these variables any
variance in results, preferences, criteria, and principles.

5.3 Overcoming Resistance to Change

In individuals and in organizations, reform will produce deep opposition, thereby
rendering in implementing systemic improvements is difficult, if not
impossible.There are three major strategies for dealing with resistance to change :
i. Empathy and Support : How people are going trough change is the first step in
overcoming resistance. This strategy can identify people who are having trouble
 accepting the changes, the nature of their resistance and possible ways to
overcome it.It demand a willingness to suspend judgement and to see the
situation from another perspective. Open relationship in organizations does not
only provides useful information about resistance but also helps to establish the
basis for the kind of problem solver to overcome barriers to change.

ii. Communication : It is an essential part in organizations and interventions.

Effective communication is needed to reduce the speculation and unfounded
fears. It can help members realistically prepare for change.However,
communication is one of the most difficult elements of change management, as
well. Members of the company regularly collect updates on current activities
and strategic plans as well as informal gossip about entities, revolutions, and
politics. Managers and consultant need to really think about how to crack into
this knowledge source. One solution is to make data transition more popular by
interacting through a medium that is fresh or distinctive.

iii. Participation and Involvement : One of the oldest and most successful
techniques for resolving opposition is to engage company members directly in
planning and implementation of transition. Participation will both contribute to
the production of high-quality changes and opposition to adopting them may be
resolved.Participants can provide a range of data and ideas that can lead to
creating the effective and situation-appropriate developments. They can also
recognize pitfalls and challenges to implementation.

The intervention that was proposed to Uheng Office Equipment can be continued for
a long term process as it does not focus only at performance appraisal but gives
importance for the organization as whole. The intervention will increase employee
productivity and at the same time improve performance of the organization.
 CONCLUSION

As a conclusion, it can be concluded that, the main issue that this organization
facing is poor employee productivity due to poor performance appraisal.This poor
employee productivity affects company that it causes low profit and the reputation
of the organization is decreasing. Phase 1 of the intervention explains the entering
and contracting phase of JGD Consultant. In this chapter, organizational issues ,
problems and symptoms were identified and explained well.The factor of the
organizational issue was explained using Fish-bone diagram.Next in phase 2
diagnosis is run towards the key element that contribute to the decrease of
productivity of employees in the organization using Input-Process-Model in 3 levels
such as organization, group and individual.Planning and implementing the
intervention was carried at Phase 3. The interventions and implications were
explained in the table such as set goals effectively, training the employees, train the
managers and link with rewards and recognition. Phase 4 explains the suitable tools
to measure the effectiveness of the interventions. Quassi-experimental and feedback
survey was used to measure the effectiveness. Institutionalization process to create a
culture is explained in this phase using the framework. Three major strategies,
empathy and support, communication and participation and involvement is
discussed to overcome the resistance to change and finally the decision to continue
or modify or suspend the intervention is explained. JGD Consultant made decision
to continue the intervention for the benefits of the employees and the organization.