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Dissertation On The Company Amanah Mutual Berhad Management Essay

CHAPTER 1

INTRODUCTION

This chapter consists of background of company, background of study, problem statement, objectives of study, research questions, significance of study, definition of terms, limitations of study and research methodology.

Background of Company

1.1.1 Company’s Background

Amanah Mutual Berhad (AMB) is a unit trust management company which is regulated by the Securities Commission of Malaysia (SC). The company is a wholly-owned subsidiary of Amanah Saham Nasional Berhad (ASNB). Permodalan Nasional Berhad (PNB) is the ultimate holding company of AMB.

AMB is in the business of developing, promoting and managing unit trust funds in Malaysia. Hence, AMB’s business focus is to provide an opportunity for its clients to participate in performing funds with diversified investments such as in equities, bonds, short-term money market instruments and other capital market instruments.

AMB has total staff strength of 41 experienced personnel. There are responsible for the day-to-day management of the Funds and are committed to deliver service excellence to its respective clients and business partners.

1.1.2 Nature of Business

At 2011, AMB have sixteen (16) Funds of which seven (7) are Equities, four (4) are Bonds, three (3) are Balanced, one (1) Mixed Assets, and one (1) Capital Protected; of which 4 of the fund namely Dana Arif, Dana Yakin, Dana Ikhlas and AMB Dana Aqeel are shariah compliant.

Mission of AMB

AMB is positioned to be a commercially driven unit trust manager, reputable for sound management and strives to be one of the leading unit trust management companies in this region.

Objective of AMB

AMB guarantee their integrity and commitment to all their valued clients and business partner as the company take pride in providing them with quality performing funds that would profit their investment in the long run.

Figure 1.1 Corporate Structure

1.1.5 Board of Directors

Tun Ahmad Sarji bin Abdul Hamid (Chairman)

(Non-Executive/Non-Independent)

Tan Sri Dato’ Dr. Wan Mohd. Zahid bin Mohd. Noordin

(Non-Executive/Independent)

Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman

(Non-Executive/Non-Independent)

Tan Sri Dato’ Md. Desa bin Pachi

(Non-Executive/Independent)

Ybhg. Dato’ Idris bin Kechot

(Non-Executive/Non-Independent)

Figure 1.2 Board of Directors

1.1.6 Management Team

Puan Aldilla @ Zilfalila Abdul Halim (Sheila Halim)

Chief Executive Officer

Puan Ahirah binti Abdul Rahman

Head, Accounts Departments

Puan Ross Liza binti Othman

Head of Product Administration &

Product Development

Encik Mohd Kudus bin Abdul Manaf

Head, Operations Department

Puan Adibah Khairiah Ismail @ Daud

Company Secretary

Encik Paisol Ahmad

Senior Compliance Officer

Figure 1.3 Management Team

Background of the Study

All organization wants to be a leader in their industries. Thus, each of them competes with each other to win the industries. However, to be listed as top organization in each industry, they have to ensure that they have the capabilities to be extraordinary from others. To become the top organization, they have to make some changes for the organization itself. The main role in successful of one organization is the employees. To ensure changes are implemented successfully, first the employees should have the initiative and be prepared towards the changes. Individual change is a mediator through organization change although organization change is often about change in structures, hierarchy, reward systems and technology (Schein, 1980). The top management which is employers should inform their employees about the changes in their workplace. They must give full of support to the employees so that the changes could be achieved. If employees did not received support from their employers, the changes could not be achieved and thus fail. Both employers and employees should have highly commitment towards the planning changes in the organization. Based on Armenakis and Bedeian (1999), employee’s commitments are needed to support the changes.

The employers should know how far their employees are ready or prepared for the changes. It is important for them to know to avoid conflict or misunderstanding in future. Armenakis and Bedeian (1999) have found that openness to change also has been shown to play an important role in an individual’s adaptation to the dynamic and diverse global business environment. Thus, it clearly shows that openness to change contribute not only to the employees but also to the organization itself.

Some of the employees resist changing. Thus, the organization has to handle this group wisely because they can be obstacles towards the planning changes. The employer should know how to explain about the changes towards the employees. They have to transmit the right and effective information about the changes. According to Erturk (2007) nowadays, the effectiveness of managerial communication during organizational change is becoming more and more obvious. The organization should clearly communicate the reasons why they change to their employees so that, employees have their direction to achieve the goals and make improvement (Erturk, 2007). According to Chawla and Kelloway (2004), some research have proven that information sharing and communication decrease uncertainty about change and also managerial communication have influencing by directly and indirectly from openness to change. Communication also play important role in order to implement the changes in the organizational.

Problem Statement

One key element to ensure the successful to implement changes in organization is communication. In addition, communication between employer and employees is important because it can lead to the level of understanding towards the changes. According to Erturk (2007), insufficient information and communication about the change and less communications of top managers are major problems in organizations. Thus, employer should properly manage and plan how to transmit the information towards the employees so that they have much information and understand the reason for the future changes. On the other side, if the organization fail to communicate with the employees, there might be faces some problems during implementing the changes in their organization. Besides, the employer also should know whether employees are ready for the future changes. Refers to Erturk (2007), openness of employees towards the changes are one of most important element in these many types of changes. Employees who are not readily or not open about the large changes may plan to leave (Cartwright and Cooper 1992). This clearly shows that openness of employees toward the future changes in the workplace is important to ensure the successful. In this research, researcher will find out the correlation of managerial communication which can help the organization to create openness to change among the employees. Previously, many research on openness to change in organization have been done, however it is still need to have further research on it because there are many other factors that contribute towards the successful of changes in organization.

Objectives of Study

For this study, the researcher has come out with two main objectives. The objectives are as follow:

1.4.1 To identify the relationship between task communication and openness to organizational change.

1.4.2 To identify the relationship between career communication and openness to organizational change.

1.5 Research Questions

In this research, the researcher has come out with four research questions in order to achieve the objectives set for the research. The research questions are as follow:

1.5.1 Is there any relationship between task communication and openness to organizational change?

1.5.2 Is there any relationship between career communication and openness to organizational change?

1.6 Significance of the Study

1.6.1 Researcher

Through this study, the researcher has the chance to know and understand about the issue in organization. In addition, the researcher gets to know the organizational and also the employees’ behavior. Besides, the researcher can study on the real situation in the workplace. Furthermore, this study also will help the researcher to gain an experience, knowledge and skills.

1.6.2 Organization

The organization here refers to AMB where the place researcher did the research. From this study, the organization may know how important the changes to be implement to achieve their mission and vision. At the same time employer and employees can improve their communication in order to implement the changes for improving company performance.

1.7 Definition of Terms

1.7.1 Openness to Organizational Change

Openness to organizational change refers to comprising a willingness to support change and a positive affect towards change (Wanberg and Banas, 2000). On the other words, the employees are ready and willing to do the changes of the organization.

1.7.2 Managerial Communication

Managerial communication refers to open communication between supervisor and employees in a way to give information, share information and other that associated with commitment. (Erturk, 2007).

1.7.3 Task Communication

Refer to Penley and Hawkins (1980), task communication reflects the information about why and how tasks are to be done and also task communication has found to be related to performance.

1.7.4 Career Communication

Career communication refers to the supervisors discussed training opportunities with subordinates and provided them with career advice for future opportunities. (Erturk, 2007).

1.8 Limitations of the Study

When conducting this research, researcher found there are some challenges limitations that could affect the result of the study in term of collecting data. Those challenges and limitations are:

1.8.1 Cooperation from Respondents

When conducting this research, the researcher found that there are some of respondents who are not willing to completing the questionnaire. Furthermore, the answer given may not represent their feeling towards the real situation in their workplace. Some of the respondents answer the questionnaire with the same answer and this will make the questionnaires invalid.

1.8.2 Time Constraint

During conducting this research, researcher found that it is difficult to complete the research within a specified time frame. During distributing the questionnaire, many of the respondents are not at workplace and some of them are on leave. Due to that, the researcher should have to manage time properly. Besides, time period also becomes a constraint for the researcher to get more accurate and reliable data.

1.8.3 Lack of Experience and Computer Expertise

Since it is a first time researcher conducting an individual research study, it is quite difficult to perform well in data collection and analysis. In this research, the researcher use SPSS software to analyze the collected data from questionnaire. Since the researcher not really familiar with the systems, it gives some problems to process and interpret the data precisely. However, the researcher tries to make this study easier by adopting a positive attitude and taking it as a challenge.

1.9 Research Methodology

1.9.1 Type of Study

Descriptive research design is a scientific method which involves observing and describing the behavior of a subject without influencing it in any way (Shuttleworth, 2008). Besides, descriptive study is undertaken in order to identify and be able to describe the characteristics of the variables of interest in a situation (Sekaran, 2006).

1.9.2 Data Collection

There are several methods that can be used to collect the data include interviews, questionnaire, observation and a variety of other motivational techniques. For this research, data will be collect through questionnaire.

1.9.3 Sampling

The questionnaire will be distributes to 41 respondents which is all staffs of AMB. They are from different gender, age, income level, position, and education level. Besides, the researcher chooses these respondents that are reachable to her.

CHAPTER 2

LITERATURE REVIEW

This chapter consists of the collection of the research which had been done previously related to the openness to changes. Literature review is documentation of a comprehensive review of the published and unpublished work from secondary sources. The purpose of this study is to develop a conceptual model that describes the relationships between managerial communications and openness to change.

Openness to Change

According to Erturk (2007) explain that one of the most important key elements in many types of changes is the openness of employees towards change. Managers are play important roles to explain why changes are needed and which improvement are intended to their employees (Erturk, 2007). Hartel (2004) defined diversity openness as the degree of receptiveness to look different from the characteristics of the majority group. Wanberg and Banas (2000) define openness to change as willingness to tolerate and embrace change that is related with readiness to change. LaMarsh (1995) advanced the notion that change management starts with a strong management commitment to the future and requires a high tolerance for ambiguity; tolerance means understanding the future is a moving target to be watched and challenged. It also means understanding that change is a necessary element to the path of success of the changes (LaMarsh, 1995). Individuals who score high on openness may also be more open to affective responses to brands and perceive and experience brand-related affect stronger than closed individuals (Grabner-Krauter, 2006). Openness to change may be influenced by dispositional emotional stability and openness to experience (Edwards, 2003). This openness is a necessary, initial condition for successful change and involves positive affect about the potential consequences and support for change (Miller, Johnson, and Grau 1994). Individuals open to change presuppose that change, not stability, is normal and provides opportunities for growth, not a threat to security (Kobasa, 1982).

2.2 Managerial Communication

Recent research has shows that information sharing and communication decrease uncertainty about change (Chawla and Kelloway, 2004). Chawla and Kelloway (2004) also showed that openness to change is directly and indirectly influenced by managerial communication. Employees who received useful and sufficient information about what is expected of them related to their work during change (task communication) will increased their understanding of the goals, vision, norms and values of organizational change (Penley and Hawkins, 1985). Also, in the global research conducted by the Management Center Europe (2005) of the Human Resource Institute, managerial communication is among the top three most important organizational characteristics needed to create a culture for change in both individualist and collectivist cultures. Refers to Armenakis et al., (1993); Mayer et al., (1995); Wanberg and Banas, (2000); Young and Post, (1993) the findings that openness and trust were positively and directly predicted by communication are consistent with research affirming communication’s capacity to enhance management credibility and employee receptivity to change. Brunetto, (2004) stated that the way managers communicate proposed work changes to employees can affect how employees perceive and receive the information. Furthermore, because employees interpret their work environment through the various dimensions that make up the organizational constructs of a workplace; good quality organizational communication processes are the key to achieve organizational effectiveness (Mills, 2000).

2.3 Task Communication

Task communication can be described as supervisors let subordinates know what they are needed to be done, explain changes in the workplace and explain the organizational policy (Ertuk, 2007). Meanwhile, Refer to Penley and Hawkins (1980) define task communication as reflects the information about why and how tasks are to be done and also task communication has found to be related to performance. Refer to Penley and Hawkins (1985), employees will increased their understanding of the goals, vision, norms and values of organizational when they are receiving useful and sufficient information about what is expected of them related to their work during change (task communication). It can be suggested when one the effect of communication that is task communication on the change process and on the development of trust in both individualist and collectivist cultures, it would enhance employees’ trust in their supervisors during the change processes (Ertuk, 2007). Major changes are unlikely to be successful unless individuals are committed to initiatives, even when employees are satisfied with their jobs (Herscovitch and Meyer, 2002) According to Shin (2003), communication quality and technology support are affected by the details of telework design that is task characteristics. Based on Kling (1978) and Karasek (1984), there are many ways of task characteristics can be differ include job level, task interdependence, job discretion, skill variety, job pressure, closeness of supervision and task significant. From Campbell (1988) as well, task can be characterized in terms of complexity, multiplicity, uncertainty, portability (Venkatesh & Vitalari, 1992), and autonomy and responsibility (Kwon & Zmud, 1987).

2.4 Career Communication

Career communication refers to the extent to which supervisors discussed training opportunities with subordinates and provided them with career advice for future opportunities (Erturk, 2007). Erturk (2007) also have stated that career communication also receive information about future opportunities and career advice that encouraged development and adaptation when organizational change process commenced. All required information about career and future and given by supervisors (Erturk, 2007). When the employees received sufficient information about future opportunities and career advice also received useful and sufficient information about what is expected of them during change, employees’ trust in the supervisor will increase (Pettit et al, 1997). At organization level, to design effectiveness of career systems, relationship between personality and career success can help human resources managers to design it (Aryee et al., 1994). Gould and Penley (1984) importance of career communication when an association between aspects of career communication and salary progression. It is clear that interpersonal communication between supervisors and subordinates that focuses on career encourages the latter’s’ development and adaptation (Greenbaum, 1974).

CHAPTER 3

RESEARCH METHODOLOGY

A researcher must determine the methods that will be used before conducting a survey. By knowing the methods, it will become much easier for the researcher in developing the analysis procedure and making decision regarding the most suitable methodologies. Here, researcher will explain the theoretical framework, research design, sampling technique, data collection and data processing and analysis.

3.1 Theoretical Framework

Managerial Communication

Task Communication

Openness to Change

Career Communication

Independent Variables (IV) Dependent Variable (DV)

Figure 3.2 Theoretical Framework

Figure 3.1 shows the theoretical framework that consists of dependent and independent variables. In this research, the dependent variable is openness to organizational change that can be defined as the willingness and readiness of the employees toward the changes in the organization. So, the openness of employees in this study is referred to employees at AMB.

Next, managerial communications are located under independent variable that consists of task communication and career communication. Managerial communications are referred to the way the employer manage their information to their employees so that the information have separate successfully. Task communication can be describe as the way the employer or manager explain about the task to the employee while career communication refers to opportunities that the employer or managers give to employees in a way to develop their career.

3.2 Research Design

Research design is involves a series of rational decision making choices with having identified the variables in a problem situation and to design the research in a way that the requisite data can be gathered and analyzed to arrive at a solution. According to Malhotra 2002, the research design is the “framework or blueprint” for collecting the information needed for the project in the best possible way. According to Hedrick, Bickman & Rog, 1993, the correct design will save resources and is also essential in allowing undertaking valid and reliable research.

3.2.1 Purpose of the Study

This study was conduct to identify the relationship between the independent variables with the dependent variable. The researcher would like to identify the relationship between managerial communication and openness to change. In addition the researcher would like to identify the relationship between task communication and openness to organizational change.

This study also was conduct to identify the relationship between career communication and openness to organizational change.

3.2.2 Type of Study

In this research, a descriptive study has been use. Descriptive research design is a scientific method which involves observing and describing the behavior of a subject without influencing it in any way (Shuttleworth, 2008). In other words, descriptive study is undertaken in order to identify and be able to describe the characteristics of the variables of interest in a situation (Sekaran, 2006).

3.2.3 Sampling Technique

3.2.3.1 Sampling Population

Refers to Sekaran (2006), population refers to the entire group of people, events or things of interest that the researcher wishes to investigate. In addition, it is also refers to the possible respondents that the researcher interested to generalize the results of the research. Thus, the population that has been selected for the implementation of the research is the employees who work at AMB.

3.2.3.2 Sampling Size

The questionnaire will be distributes to 41 respondents which are all staffs in AMB. They are from different gender, age, income level, marital status and education level.

3.2.3.2 Sampling Method

For the sampling design, the researcher has use simple random sampling. This sampling design have used because all respondents in population have a chance to choose to be a sample.

3.2.4 Data Collection

Data can be collect through several methods such as questionnaire, interviews, observation and other motivational techniques. For this research, the researcher chooses to use questionnaire method in order to collect the data. Questionnaire about the study had been distributed to the respondents and the respondents have answered the entire question.

3.2.4.1 Questionnaire Design

Questionnaires have been distributed to workers of every unit at AMB. The questionnaire is based on the research objectives and consists of open-ended and close ended questions. The questionnaire consists of 27 questions. It have divide into four (4) main part that is demographic, openness to change, task communication and career communication.

3.2.5 Data Processing and Analysis

There are three objectives in doing data analysis that is getting a feel for data, testing the goodness of data and testing the hypotheses developed for the research (Sekaran, 2006). In this study, the questionnaires have been distributed to respondents and from the collected questionnaires the researcher get the data and analyze it to know that there are correlation or difference among variable that have been studied. This data analysis also used to test the hypotheses that already developed for the study. However, the data has been analyzed based on quantitative methods which consist of descriptive and inferential statistics.

3.2.5.1 Frequency Distribution Analysis

According to Zikmund (2003), frequency distribution is a mathematical distribution which objective is to obtain a count of the number of responses associated with different values of one variable and to express these counts in percentage terms. This analysis is done to obtain a count number of responses associated with different values of the variables. The relative occurrences or frequency for different values of variables is expressed in percentage. A frequency distribution for a variables will produces a table of frequency counts, percentages and cumulative percentages for all values with the variables.

3.2.5.2 Descriptive Statistic

This statistic involves transformation of raw data into a form that would provide information to describe a set of factors in a situation. This is done through ordering and manipulating of the raw data collected. This analysis also make it much easier to interpret data and technique involve is frequency and percentage.

3.2.5.3 Reliability Analysis

Uma Sekaran (2003), the reliability of a measure is established by testing both consistency and stability. Cronbach’s Alpha is computed in terms of the average inter-correlations among the items measuring the concept. Cronbach’s Alpha is a reliability coefficient that indicates how well the items in a set are positively correlated to one another. In general, the closer Cronbach’s alpha to 1, the higher the internal consistency reliability.

Alpha Coefficient Range

Strength Association

<0.6

Poor

0.6 to <0.7

Moderate

0.7 to <0.8

Good

0.8 to <0.9

Very Good

0.9

Excellent

Table 3.2.5.3 Reliability Analysis

3.2.5.4 Hypothesis Testing

The purpose of hypothesis testing is to determine whether there is enough statistical evidence in favor of a certain belief about parameter. This is purposely to measure the correlation and the significance of the independent variables toward dependent variable. Thus, for this research, the technique used to test the hypotheses is multiple regression analysis.

Multiple regression analysis is used to identify the strength of relationship between dependent variable and independent variables. By using this analysis, researcher can determined the positive or negative relationship. Thus, the equation is based on:

Y= β0+β1X1+ β2X2+ β3X3........+ e

Finally, significant of p values for inferential analysis was be used for hypothesis testing is 0.05 as guideline whether accepted or rejected hypothesis.

3.3 Research Hypothesis

A hypothesis can be defined as a logically conjectured relationship between two or more variables in the form of a testable statement. A null and alternate hypothesis is used in this study. The null hypothesis is a proposition that states a definitive, exact relationship between two variables.

In general, the null statement is expressed as no (significant) relationship between two variables or no (significance) difference between two groups. The alternate hypothesis, which is the opposite of the null, is a statement expressing a relationship between two variables or indicating differences between groups.

H0: (H-Null)

Expressed as there is no relationship between two variables.

Ha: (H-Alternate)

Expressed as there is relationship between two variables or indicating differences between two groups.

3.3.1 Task Communication

H0 There is no relationship between task communication and openness to change.

HA There is relationship between task communication and openness to change.

3.3.2 Career Communication

H0 There is no relationship between career communication and openness to change.

HA There is relationship between career communication and openness to change.

CHAPTER 4

ANALYSIS AND INTERPRETATION OF DATA

This chapter include analysis of data which the questionnaire that have been collected. The analysis was done by using Statistical Package for Social Science (SPSS) Program 16.0. The purpose for analyzing data is to interpret the results from collected data and make decision about the hypotheses of this research.

4.1 Questionnaire Analysis

There are 41 questionnaire was distributed to all the employees of Amanah Mutual Berhad (AMB) and all respondents have returned back the questionnaire. The percentage of returned questionnaire is 100%.

Table 4.1 Return of Questionnaire

Number of Questionnaire

Number of Questionnaire Received

Percentage of Received (%)

41

41

100

4.2 Frequency Distribution: Demographic Segmentation

4.2.1 Age

Table 4.2.1 Age

Age

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

20-29

9

22.0

22.0

22.0

30-39

21

51.2

51.2

73.2

40-49

9

22.0

22.0

95.1

>50

2

4.9

4.9

100.0

Total

41

100.0

100.0

Figure 4.2.1 Age

Based on the Table 4.2.1 and Figure 4.2.1, it shows 21 respondents (51.2%) are between 30 – 39 years old. 9 respondents (22%) are from the age 20 – 29 years old. From the age of 40 – 49 years old also 22% (9 respondents) followed by respondents 50 years old and above are 2 respondents (4.9%).

4.2.2 Gender

Table 4.2.2 Gender

Gender

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Male

15

36.6

36.6

36.6

Female

26

63.4

63.4

100.0

Total

41

100.0

100.0

Figure 4.2.2 Gender

Based on Table 4.2.2 and Figure 4.2.2, it shows the highest number of respondent shown by female respondent which is 27 respondents (36.6%) while male respondent is 14 respondents (63.4%).

4.2.3 Position

Table 4.2.3 Position

Position

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Top Level Management

1

2.4

2.4

2.4

Middle Level Management

33

80.5

80.5

82.9

Non Executive Level

7

17.1

17.1

100.0

Total

41

100.0

100.0

Figure 4.2.3 Position

Based on Table 4.2.3 and Figure 4.2.3, it shows 33 respondents (80.5%) are from middle level management followed by 7 respondents (17.1%) are non-executive. Only one respondent (2.4%) is the top level management.

4.2.4 Income

Table 4.2.4 Income

Income

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

RM1001- RM2000

3

7.3

7.3

7.3

RM2001- RM3000

6

14.6

14.6

22.0

RM3001- RM4000

11

26.8

26.8

48.8

>RM4000

21

51.2

51.2

100.0

Total

41

100.0

100.0

Figure 4.2.4 Income

Based on the Table 4.2.4 and Figure 4.2.4, it shows the major respondents monthly earning is RM4000 and above with 21 respondents (51.2%). It was followed by 11 respondents (26.8%), the monthly earning at the range RM3001-RM4000. Then, only 6 respondents (14.6%) are with monthly earning at the range of RM2001-RM3000 while 3 respondents (7.3%) are with monthly earning at the range of RM1000-2000.

4.2.5 Education Level

Table 4.2.5 Education Level

Education Level

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

SPM

4

9.8

9.8

9.8

STPM/DIPLOMA

6

14.6

14.6

24.4

DEGREE

30

73.2

73.2

97.6

MASTER

1

2.4

2.4

100.0

Total

41

100.0

100.0

Figure 4.2.5 Education Level

Table 4.2.5 and Figure 4.2.5 shows the level of education of the respondents. It shows that 30 respondents (73.1%) are Degree holders. Followed by 6 respondents (14.6%) Diploma holders, 4 respondents (9.76%) are only having SPM while Master holder is only 1 respondent (2.4%).

4.3 Descriptive Analysis

Table 4.3.1 Descriptive Analysis

N

Minimum

Maximum

Mean

Std. Deviation

OPENESS TO CHANGE

41

2.38

4.38

3.7927

.39092

Task Communication

41

2.14

4.43

3.6585

.50898

Career Communication

41

1.29

4.71

3.7631

.64887

Valid N (listwise)

41

Table 4.3.1 shows the result for descriptive statistics for the openness to change in organization. Researcher found that independent variable which is career communication obtained the higher mean which is 3.7631. This shows that career communication is the most important factor that influences in the openness in changes in organization compare to task communication which is 3.6585.

4.4 Reliability Test

4.4.1 Openness to Change

Reliability Statistics

Cronbach's Alpha

Cronbach's Alpha Based on Standardized Items

N of Items

.658

.657

8

Table 4.4.1 Reliability Test for Openness to Change

4.3.2 Task Communication

Reliability Statistics

Cronbach's Alpha

Cronbach's Alpha Based on Standardized Items

N of Items

.886

.889

7

Table 4.3.2 Reliability Test for Task Communication

4.3.3 Career Communication

Reliability Statistics

Cronbach's Alpha

Cronbach's Alpha Based on Standardized Items

N of Items

.896

.899

7

Table 4.3.3 Reliability Test for Career Communication

4.3.4 Summary Reliability Test

Types of Variable

No. Item

Cronbach’s Alpha

Dependent Variable

Openness to Change

8

0.658

Independent Variable

Task Communication

7

0.886

Independent Variable

Career Communication

7

0.896

Table 4.3.4 Summary Reliability Test for Dependent and Independent Variables

Table 4.3.4 shows the summary reliability statistic for dependent and independent variable. In general, the closer Cronbach’s alpha to 1, the higher the internal consistency reliability. The Cronbach’s alpha for dependent variable (openness to change), shows the result 0.658. It’s mean that the reliability of the variable is considered as moderate but acceptable.

The reliability on task communication and show the Cronbach’s alpha is closer to 1.0 that is 0.886, meaning that the variable can be considered to be very good and high consistency reliability. For career communication, Cronbach’s alpha shows the result 0.896 that means the variable also can be considered to be very good. In conclusion, all the variables in this research are significant.

4.4 Multiple Regression Analysis

Y= β0+β1X1+ β2X2+ β3X3........+ eAs mention in Chapter 3, multiple regression analysis is used to identify the relationship between dependent variable and independent variables. By using multiple regression analysis, researcher can determined the positive or negative relationship.

Table 4.4 Model Regression Analysis

Model

R

R Square

F

Sig.

 

0.466

0.217

5.277

 

B

Beta

t

Sig.

(Constant)

2.604

6.313

0.000

Task

0.092

0.120

0.609

0.546

Career

0.226

0.375

1.902

0.065

a) Predictors: Constant, Task Communication, Career Communication

b) Dependent Variable: Openness to change

Table 4.5 Overall Test Results

R

0.466

R Square

0.217

ANOVAb F

5.277

ANOVAb (Sig.)

0.009

Task (Sig.)

0.546

Career (Sig.)

0.065

Table 4.5 and 4.6 displays model regression analysis and overall test results. R is the multiple correlation coefficients which is the correlation between the observed and predicted values of the dependent variable. The result of R (0.466) shows that the correlation between independent and dependent variable are weak. Larger values are indicates stronger relationship. While R squared (0.217) which is explained the proportion of variation in the dependent variable. In other words, since the R squared is less than 0.5 its shows that the model does not fit the data well.

The overall, the independent variables (task communication and career communication) thus not fit with dependent variable (openness to change) but the model still has relationship. This happen maybe there are other factors or variables that can make this model more fit. Column Beta indicates that the result are use to make the regression coefficients are more comparable. From the results shows that career are highest number for beta.

Refers to column significance, both task (0.546) and career (0.065) is not significant because of more than 0.05, so the conclusion that task communication and career communication is not significantly related to openness to change.

Overall, since the regression shows positive figure, all H0 can be rejected. For the rest hypothesis are as follow:

Task Communication

H1: There is relationship between task communication and openness to change.

Career Communication

H1: There is relationship between career communication and openness to change.

As a conclusion, for this research both task communication and career communication has a relationship with dependent variable which is openness to change. Thus, the regression equation can be generated as:

OTC= 2.604 + 0.092TC + 0.226CC

Where,

OTC = Openness to Change (DV)

TC = Task Communication (IV)

CC = Career Communication (IV)

CHAPTER 5

CONCLUSION AND RECOMMENDATION

This chapter consists of the conclusion of the research and the researcher would like to makes several recommendations in order to help the respective organization and those organizations that faced the same problem which is openness to change among employees.

5.1 CONCLUSION

Changes in organization will successful implemented if the employees have the initiated towards the changes and willing to do so. In this research, the researcher found that managerial communication plays important role towards the openness to change. In order to ensure the successful, the top management or supervisor should communicate to their employees and explained about the changes that are coming in the organization. Without communication, the employees may resist changing the way they work. As a result, the implementation of changes will fail and thus the objective cannot be achieved.

In addition, the supervisor should explain the reasons for the change and told them when changes occur. The employees are the person who has the capability to successfully implement the change. The supervisor should know whether their employees are ready for the coming changes.

Good communication will result well in openness of change by the employees. The supervisor should know how to transmit the information to their employees. The way how information will be transmitted is important so that the employees understood well the objective of the changes.

In terms of career communication, it also contributes to the successful of changes in organization. Employer plays important roles in developing their employees. Employer can give information about training opportunities to their employees and thus send them to improve their skills and work. Training can develop the employees’ self confidence, critical thinking and handle in decision making. As a result, employees will understand more the reasons for changing and thus the objective of the organization can be achieved.

5.2 RECOMMENDATION

The company can have many actions or strategies in order to implement the changes and ensure the successful of the changes.

5.2.1 Guidelines for Changes

The company can provide the employees a set of guidelines about the changes that want to be implemented. The guidelines could be a clear vision for the employees to understand the reason and what the company expects on the changes. In addition, the supervisor can give more information regarding how the changes can be made. So that the employees can be prepared for the future changes in the workplace.

5.2.2 Rewards and Benefits

Rewards play the major role in achieving the objective of changes in organization. Rewards could be in term of bonus, increasing in salary, holiday package and voucher. As example, the company can give rewards in term of bonus to the employees who can make the changes successful. By giving rewards, it will motivate the employees to work hard to compete with each other, so that the objective of the organization changes can be achieved.

5.2.3 Training

Employer can sent their employees for training in order to make the changes in company. Training could provide the employees more skills and knowledge. In addition, they employees will exposure about the preparation to make changes. When the employees are informed about the changes, they will be more ready and prepare to face the changes.

5.2.4 Communication

Communication is the best way to interpret what the company expects from the changes. So that employers and employees should communicate to each other to create harmony situation at the workplace. As a result, employees can feel comfortable at the workplace and accept the changes. Communication could be in terms of verbal and non verbal. Supervisor can have discussion directly with the employees. Besides, supervisor also can transmit the information about the changes through e-mail, video conference, fax, phone and others. So that, employees can easily gets new updates from time to time.

5.2.5 Commitment by Employees

Changes in the company could be succeeding when employer and employees commit to it. This is because, if some of the employees are resisting towards the changes, it will influence the others. Thus, the employer should play a role to influence entire employees to accept and ready for the changes in the company. If there is no commitment by each party, the changes could be failed to implement.

5.3 Recommendation for Future Research

5.3.1 Increase Number or Respondents

In this research, the numbers of respondents can be considered as small since only 41 employees in the department involved. Thus, it is recommended to increase the number of respondents so that the outcome of the research will be more reliable to the objectives of the research.

5.3.2 Additional Strong Variables

From this research, the researcher found that the relationship between the dependent variable (openness to change) and independent variables (task communication and career communication) are weak. Thus, it is recommended for future research the researcher should add some other factors that can relate with the dependent variable, openness to change. Even there is still relationship between both variables, but some of it only contributes with small percentage to the openness to change.

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