AcademicJournalofManagementSciencesISSN23052864

Vol.1.No.1Dec.2012

Determinants of organizational development: empirical investigation from higher Eeducation institutes of Pakistan
Mohammad Tahir, Faisal Khan, Shaghayegh Maleki Far, Imran Abass Jadoon, Hashim Khan, Yasin Munir Faculty of Management and Human Resource Development Universiti Teknologi Malaysia, Skudai, 81110, Johor (MALAYSIA) Abstract Change is something to replace with another so to match with the changing environment and to become a successful organization different organizations have clear impact on their organizational development. The objective of this study is to analyze the reasons of organizational change and cultural impacts on organizational development. 200 questionnaires were distributed and 170 out of 200 were received complete questionnaires at the response rate 85 % to analyze the impact of organizational culture Organizational change on Organizational development. To observe the impact of Organizational Change and Organizational Culture on Organizational Development Pearsons moment correlation was analyzed and to test the effect of Organizational Change and Organizational Culture on Organizational Development linear regression was conducted. Results indicate that organizations have to change them for superior and developed organizations. Research limitations and future directions are also discussed in this study. Keywords: Organizational Change, Organizational Culture, Organizational Development Introduction Change is something to replace with another so to match with the changing environment and to become a successful organization different organizations now a day change their strategies that have a clear impact on their organizational development. Some factors like achievements of high economic growth, employment generation, functional efficiency in order to meet the new and emerging challenges, focus on Strategy, workforce diversity, trust issue, pressure of internal and external sources, employees need and values, control over resources may be the reason for this change in the organizations to accomplish their organizational goals. Every day is a new day so you have to set their planes according to the changing conditions. Strong organizational culture has a positive impact on the organizational development. According to Sisaye (2011) the paper shows that sustainability is a question that exceeds numerous disciplines and including accounting and sociology. Although able to be maintained has been within the domain of sociology and environmental anthropology, recently the subject has attracted researchers from other regulation, particularly from accounting and business management. TBL reporting has become a viable advantage for many business organizations for sustained productivity and growth. According to Newbold (2009) production and earnings rise in business that embrace a systematic approach to aptitude development. According to Sisaye, (2005) ODs process and structural diversity have a precious team members obligation and operating routine in these three control systems. Progress in information technology has established a new outline of normative: supervisory control. According to Sharlow (2009 ) amalgamate organizational culture among management development can assist create a clear line of sight involving the individual and the organization and builds broader responsibility for the success of an organizational change program. The objective of this study is to analyze the reasons of organizational change and cultural impacts on organizational development. Literature Review According to Asree, Zain and Razalli, (2010) in strong organizational culture Leadership ability to guide, director influence the hotel staff to be customer oriented that yields positive results by improving their services in order to generate supplementary revenues and customer desirability. Total Quality Management (TQM) is a continuous improvement approaches to doing business through a new management model by emphasize teamwork. Create constancy of purpose by adopting a new philosophy. Provide efficient management style checking the worker, organizational norms & traditions, inspection of Hospital workers to achieve Quality (Rad, 2006). According to Rashid, Sambasivan and Rahman, (2004) there is a connection between organizational culture and its attitude towards change in organizational culture. Some organizations have strong culture and some have week culture .Culture is shared, awareness & descriptive so some organizations to be depended on their existing culture while some organizations take reward by pleasing the risk.Strong norms & traditions and cooperation among the upper level management and lower level management and among the workers results in high performance and accomplish the organizational goals (Lee & Yu, 2004).According to Xenikou and Simosi, (2006) adoptive culture have strong impact

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on the organizational culture.Well-built leaders revolutionize the situations successfully and forecast the situation because a leader is one who sees more than other sees.According to Guidroz, Luce and Denison (2010) by imposing organizational culture and leadership development individuals can better understand their duties and can perform in a better way and their will be a boarder line for all so, they will not cross it and build good relations and work whole heartedly for the success of organization. According to Sharlow, Langenhoff, Bhatti, Spiers and Cummings (2009) the LDI was critical to developing leadership and management skills, organizational networking, realationship building, fostering a philosophy of leadership as collaborative visionary practice toward a common goal.Acoording to Chen (2009) after the in-depth case study from a Taiwanese IC design house, its clear that, to decrease the value of ERP system, firms growth is totally dependent on impelementation, some different industrial characteristics, effects of businees groups, alignment of the internal control and audit function, corporate governance and IT governance.According to Mulili and Wong (2011) a variety of organizational development intervention strategies exists. There is a need to adopt a coordinated approach in applying efforts for the organization to gain maximum benefits. According to Nwebold (2010) productivity, development, working and profit increase in organizations that accepts a systematic approach to talent development. According to Lucas and Kline,( 2008) mistrust ,no group effort among the organizations faculty influence the organizational achivments inadequately & yields unconstructive outcome.Employees training, understanding, coworker support, and future prospects must be undoubtedly distinct to trim down the missing link between employee and organizational culture to pull off the organizational goals (Taormina, missing link between employee needs and organizational culture, 2009). Leadership style varies from culture to culture .leaders should be more strict and oldfashioned in traditional environment and more sympathetic and supportive in modern and innovative environment (Taormina, Interrelating leadership behaviors, organizational, 2008). According to Hilal, Wetzel, and Ferreira, (2009) their must be the rationality among performance indicators and organizational cultural measurement to deal the bulk. Job satisfaction level varied across corporate cultural typology. Provide those job satisfactions which emphasize control stability and order with an emphasis on flexibility and spontaneity (LUND, 2003). According to Tyler,( 2005) tells that men using language day to day change Very effective most probably and manager and workings change the language and women are working utmost affective Support function. According to Parish Cadwallader Busch, (2008) Result Show the fit and vision, quality of relationship, manager employ yes, motivation of job and all influence deal to change the role autonomy. Usually good commitment that show the better result employees better activities and behavior implementation success and individual learning regarding the change .According to Ronnenberg Graham Mahmoodi,( 2011) Change the role and reduction and understanding the environmental activities increase the producing the department and primarily intercuts the high amendment level involved and provides the help so successful implementation of department. According to Wu (2011) Development how explores the theoretical models to pay the amount of employees and distribute the equals resources. Decrease the difference in firms because firms provide the high disparity pay. Tested the 391 listed Chinese firms this articles .Low resources different firms and paying the salary. According to Bordum,( 2010) Better performance the rationally planning reconstructs strategic management and strategic balance when is it possible to design and kanga concepts of strategic management and planning and empirical demands. Diefenbach, T. (2007), highlights a systemic-multivariate view of change by investigating internal change agents that is managers, accounts of the barriers to change management. It addresses the limitations of change management by attending to the opinion of the manager that actors give priorities and take crucial decisions. This article gives the example of the systematic thinking that managers undergoing major restructuring efforts in their organizations. According to Jimmieson, S. E. (2006), Middle managers vagueness management was found to be important in assisting their employees in the change transition. The factors acknowledged as being either facilitators or difficulties to doubt management listening carefully on themes related to the purpose of change, announcement with senior management and their own staff, support from senior management, role divergence, and look closely communication. According to Johari, C. J. (2010). This study is aimed at analysing the existing connection between different fundamentals of the management system (strategy formulation process and organizational design) and the managerial learning ability of the built-up companies of the Spanish Basque Region.According to Nekane Aramburu, J. S. (2006). In adding up to identifying positive awareness of the HRM function, the conclusion elevate issues about the premeditated spotlight independence, authority, and leadership strategies allied with the HR functions challenges to engage with strategic change inventiveness. According to Saka, A. (2008), it depicts the awareness to the downsides of top-down change management approaches, to ideologies and interests behind such initiatives as well as intended and unplanned significances. It exposes personal and assembly benefit behind ideologies, and what change management of this type is really about.

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According to Prenkert (2006) Study of paradox identifies that between the constituent elements of an ASM, can be empirically. Then the results of this product generate a new genetically more evolved ASM. Hence, paradox in organized activity will eventually change, just like replacement of one or more of them. According to Grigoruta (2006) in the end, the observations were made on 84 valid questionnaires and they allowed for the discovery of the ways of organizational change at the present moment. Organizational change creates their relations with their co-workers and with the managers in the analyzed companies. Accordint to Kerosuo (2011) findings describe those double binds and crises become a running force for organizational change. These two factors are strongly connected with emotions. Emotions are often working out and become critically. This study demonstrates that some phases can emerge in organizational change. According to Andrews, Cameron, & Harris (2008) the complexity of managing change reflect the difference between organizational environment and culture. The skills which are derived from managers are most important for those, who make organizational change. Managers earlier studies indicated the prompt informative etc. According to Cameron & Harris (2008) Finding tells that transformation of military organization shaped the communication artifacts and org. structure. It also indicates the importance of knowledge is allocated among units, with a specific way. According to Rong Chen (2009) Organization development depth study occurred in Taiwanese IC shows that, to leverage the value of ERP system. The major characteristics of development are the firms growth stages, the unique industrial characteristics, the influences from the business group, and the alignment of the internal control and audit function. According to Newbold( 2010) Organizational Development (OD) must be increasable and profit earned, that embrace a systematic approach to talent development According to Newbold (2010) Organizational Development (OD) must be increasable and profit earned, that embrace a systematic approach to talent development According toSisaye (2005) recently introduced directions of organizational development (OD) have transformed management accounting control systems new control for managing team, performance and activities in industrial organization. In short the traditional control approach has been replaced by organic based and team based control system According to Sisaye (2005) Organizational Development (OD)s process indicates difference between team members commitment and performance in three control systems. According to Chen, (2009) the findings are drawing on an thoroughly case study from a Taiwanese IC design house, this study demonstrate that, to influence the value of ERP system, the realization should consider the firms enlargement stages, the unique industrial characteristics, the authority from the business group, and the arrangement of the internal control and audit function, corporate governance, and information technology governance. From above literature following hypothesis are deducted to analyze the impact of organizational change on organizational development. H1: Work force diversity has significant association with organizational development. H2: Organizational culture has significant association with organizational development. H3: Organizational change has significant association with organizational development.

Methodology To obtain the most important information questioners are filled by the respondents and separate questionnaires are distributed in employees to analyze the impact of organizational change and organizational culture on organizational development. Questionnaires contain two sections demographic and subjective. Demographic section comprises of Gender, Age, education, occupation and job tenure of the respondents. Subjective section contains Organizational Change, Organizational culture and Organizational development. 200 employees are selected to get the information and 200 questionnaires were distributed and 170 out of 200 were received complete questionnaires at the response rate 85 % to analyze the impact of organizational culture Organizational change on Organizational development. While 5-points Likert scale is used to measure the responses. Data is collected from higher education institutes and financial institutes. The target population of this study was University of the Punjab Gujranwala Campus and financial institutes. Sample size for the study was 200. 100 questionnaires were distributed in Punjab University and 100 questionnaires were distributed in financial institutes. Administrative staff and faculty members of the university and financial institutes were the sampling unit of this study. Close ended questionnaire was developed for the purpose of collection of data. The participants were 39% female and 61% male. Analysis and Discussion

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To observe the impact of Organizational Change and Organizational Culture on Organizational Development Pearsons moment correlation was analyzed and to test the effect of Organizational Change and Organizational Culture on Organizational Development linear regression was conducted. Descriptive statistics was also computed to analyze the tendency of the respondents and Cronbachs alpha was measured to test the reliability of the analysis.

Table 1

Intercorrelations of variables Correlations organizational development 1.000 .428 .448 . .000 .000 100 100 100

Pearson Correlation

Sig. (1-tailed)

organizational development organizational change organizational culture organizational development organizational change organizational culture organizational development organizational change organizational culture

organizational change .428 1.000 .422 .000 . .000 100 100 100

organizational culture .448 .422 1.000 .000 .000 . 100 100 100

Table 2
Model R
a

Model Summary
Std. Error of the Estimate Durbin-Watson

R Square

Adjusted R Square

.770

.606

.605

.70068

1.760

a. Predictors: (Constant), organizational culture, organizational change b. Dependent Variable: organizational development

Table 2 shows R=.770 shows 77.0% variation in organizational change organizational culture and organizational development. R square is the coefficient of determination which shows that 60.6% total variation with its linear relationship of organizational change organizational culture and organizational development. Durbin Watson test is used to test the nature of correlation whether it is positive autocorrelation, negative autocorrelation and zero autocorrelation. Since the value of d is less than 2 it means there is positive autocorrelation. Table 3 Analysis of Variance Model 1 Regression Residual Total Sum of Squares 17.650 47.623 65.272 df 2 97 99 Mean Square 8.825 .491 F 17.975 Sig. .000
a

a. Predictors: (Constant), organizational culture, organizational change b. Dependent Variable: organizational development

Table of ANOVA shows level of significance since the value of P is less than .05 so it is accepted that organizational change and organizational culture have strongly impact on organizational development. Table 4 Results of Regression Analysis

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Model Unstandardized Coefficients B Std. Error 1.122 .428 Standardized Coefficients Beta t Sig. Collinearity Statistics Tolerance 2.623 .291 .325 3.045 3.400 .010 .003 .001 .822 .822 1.216 1.216 VIF

(Constant)

organizational .325 .107 change organizational .359 .106 culture Dependent Variable: organizational development

In table 4 A=1.122 is the average of organizational development when organizational change and culture is zero. Whereas .325 is the value of beta that shows one unit increase of organizational change and organizational culture will bring .325 unit increases in organizational development. Organizational Development =1.122+.325 (Organizational Change and Organizational Culture) Above linear equation shows that one percent organizational change and organizational culture will bring 32.5% change in organizational development. A=1.122 is the average of organizational development when organizational change and organizational culture is zero whereas .359 is the value of beta that shows one unit increase in organizational change and organizational culture will bring .359 unit increase in organizational development. Organizational Development =1.122+.359 (Organizational Change and Organizational Culture) Above linear equation shows that one percent organizational change and organizational culture will bring 35.9% change in organizational development. According to table 4 if tolerance value exceeds than 5 and VIF exceeds 10 it means Collinearity exist in data. Table 4 shows tolerance value .822 is less than 5 and VIF is less than 10 that shows there is no Collinearity exist.

Practical Implications This study provides some course of action to management to understand how organizations change their culture or bring changes in their organizations so that their organizations develop according to the market conditions and become the leaders not the followers. People use their Vales, norms, traditions to perform their daily activities. These findings helps the organizations to understand the change in their organizations and development of their organizations, functional efficiency in order to meet the new and emerging challenge, focus on Strategy and accomplishment of their goals. Limitations and Future Directions Time is a major limitation of this study. Data collect only from educational sector and financial institutes. Change is considered as a significant factor for their organizational development. Future research can improve application of this study by using more statistical tools and methods in effective way. Also helps the organizations to understand cultural norms values and traditions in superior sense.

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