Available online at www.sciencedirect.

com

Procedia Economics and Finance 4 (2012) 140 – 148

International Conference on Small and Medium Enterprises Development with a Theme

(ICSMED 2012)

Creating A Meaningful Planned Change

Banowati Talima*
a
Business Administration Study Program, Faculty of Social and Political Science,
Parahyangan Catholic University, Bandung, Indonesia

Abstract

The purpose of this study is to analyse what factors influence to create meaningful of a planned change perceived by all
member in the company, analyzing the influence of leadership in realizing of a meaningful planned change, and analyzing
ealize better planning quality. The results show that the meaningful planned
changes significantly affected by the initiation of change which is showed a manifestation of an effective leadership role in
the planning process. This indicates that the workers have not become an independent worker, and still depend on the
leaders. Surprisingly, resource availability bring an paradoxical situation, because its existence would negate the effect of
initiation of changes in creating a meaningful planned change. The initiation of the changes is significantly influenced by
the leader's capabilities and competence of workers, both in production and marketing area.

©
© 2012 The Authors.
2012 The Authors. Published
Published by
by Elsevier
Elsevier Ltd.
Ltd. Open access under CC BY-NC-ND license.
Selection and/or
Selection and peer-review
peer-review under
under responsibility
responsibility of Parahyangan
of Parahyangan Catholic
Catholic University.
University.

Keywords: meaningful planned change management, leadership, spirit of togetherness, spirit of innovative learning, self efficacy,
awareness of change, aspirative orientation, ethical orientation.

1. Introduction

Change in the information age today are thing that can not be avoided anymore. Managing change starting
from determine the direction of change, then set the ways to achieve change objectives. Gardini, Giuliani, and
Marricchi (2011), argued that successful transformation happens and that employee remain engaged in the long
term when company implement change by focusing on the employee who have most influence over the daily
work that needs to change.

* Corresponding author :bano@alesindo.com.; bano@unpar.ac.id

2212-5671 © 2012 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license.
Selection and peer-review under responsibility of Parahyangan Catholic University.
doi:10.1016/S2212-5671(12)00329-2
 Banowati Talim / Procedia Economics and Finance 4 (2012) 140 – 148 141

Research on the planned changes have been done in the last decade, Jian GW., (2007) in a meta-analytic
studies indicate that the study of the changes includes many aspects, as indicated by the effort to change the
organizational culture of the 1980s (Deal & Kennedy, 1982), re-engineering the organization (organizational
reengineering) proposed by Hammer and Champy (1993), and changes that possible by technological
developments, such as those encountered during the 1990s. Experts refer to issues ranging from content of
changes (Burke & Litwin, 1992), the context of changes (Fox-Wolfgramm, Boal, & Hunt, 1998), the change
process (Lewin, 1947), and the result or outcome of changes (Meyer & Allen, 1997; Armenakis & Bedeian,
1999). It could be argued that what has been done by the experts is more concern on aspects of organization
and management of change. Yet to the success of a change, is also require attention to the actors, especially on
the psycho-social aspects of the actors involved in the organizational change.
Changes made in the organization will be positively addressed if the man who made changes or are affected
by the change can feel the positive meaning of the change. Research on the meaning of the change was made
among management experts such as Mourkogiannis (2006) and Ulrich (2010). Mourkogiannis (2006)
suggested that the aim (purpose) is something people most want from work. The role of these goals is
important, because people will have higher work spirit, when their purpose clearly well identifed. In the hands
of an effective leader, the objective (purpose) become the fuel of the company, the source of its energy for
progress and change. A successful purpose both drives a company forward and help build sustainable
competitive advantage.
Meanwhile, Ulrich (2010) proposed the concept of "meaning" in the sense of why and how. Why refers to
a person search for meaning finds its way into their working place. The concept of how, shows how a leader
facilities that search personally and among their employees.
From this point of view we can see that people become the central actor in the company, so concern about
people as a subject, or as an object, who affected by change is so important.
The purpose of this study is to analyse what factors influence in creating meaningful planned change
perceived by all member in the company, analyzing the influence of leadership in realizing of a Meaningful
to realize better planning quality.

2. Research model development

Organization members and leaders may feel meaningful of changes when the shape and outcome of changes
can deliver benefits, and the company understand the usefullness of member involvement in the change
process. This can be realized when the changes are planned to accomplish a specific goal and not just to
achieve a concrete strategic objectives. Planning of these changes based on a belief that the planned changes
could bring sustainability of progress and growth.
Change awareness is an important factors to create succsessfull change initiative. The behavior of
organization member who has this awareness can be demonstrated by the willingness and tendency to question
the goodness of everything they see, hear, feel, and experience. Change awareness still needs to be equipped
with a sense of competence or self efficacy of individuals in the organization. Self Efficacy is not only be seen
from the confidence of the members to contribute in changes initiative, but also will give confidence and pride
to the members who participate in creating the success together. The behavior of someone who has a self
efficacy would seem from his or her confidence that the skills, knowledge and skills can be used and utilized to
perform the duties and responsibilities, can be used not only in the short term, but also to meet the demands of
long-term.
In a paternalistic culture environment, such as those widely founded in small and medium enterprises, there
is a great leadership role in generate the confidence of his subordinates. Organization s member will be
encouraged to do something new when the leaders motivate members that they are able to carry out their duties
and responsibilities, providing the opportunity and confidence to members to be innovate and creative. Thus,
142 Banowati Talim / Procedia Economics and Finance 4 (2012) 140 – 148

changes in plans are not only requires awareness and self efficacy among workers, but also requires a leader
who can encourage and inspire members to follow his directions voluntary. It is called the leader effectiveness.
Effectiveness of leaders reflects how a leader can foster volunteerism of followers to actively participate in
efforts to realize a common goal. To realize this, which required are not order behaviour, demanding
obedience, and highlight the power and authority of a leader, but it takes precisely the behaviour of leaders who
are able to create a conducive work atmosphere to dialogue and sharing knowledge freely and openly among
members.
In Indonesia, where the paternalistic culture is still strong, usually the leaders set themselves up as the most
powerful party. Within the paternalistic culture, leaders tend to put themselves as directors and decision makers
who do not accept the process of dialogue and knowledge sharing. Direction is usually a monologue. It does
have a charismatic leader who has the charisma to influence members to do the things he wanted. But charisma
is like a double-edged sword. On the one hand, the charisma is used to evoke the spirit of the members to
follow the direction of the leader that benefit society at large, but not rare charisma that is used to realize the
interests of leaders and their related group themselves. To get out of this dilemma, paternalistic society requires
leaders who are able to generate orientation and enthusiasm of his followers to contribute in the effort to realize
a common goal. Leaders need to start the process of learning through dialogue and knowledge sharing among
members of the organization. Leaders need to develop the ability to see the potential and capabilities of its
members, see the benefits from the contributions of its members in an effort to realize the vision of the
organization, as well as integration of the diversity of potential and capabilities of member into a valued

aspirations. In other words, the effectiveness of the leader also will be determined by its leadership capability.
Of course this needs to be accompanied by other preparations, including procurement and availability of
resources necessary to achieve meaningful change.
There are not many management experts who highlighted the significance of good planning quality. Good
quality planning is an activity that produces an action plan involving the participation of members sincerely and
simultaneously produce a plan that accommodates the interests of members. So here is talking about a plan that
focuses on achieving results but rather to concentrate on formulating a plan to build members' commitment to
work with the best effort to achieve their shared vision. The concept of good planning do not overlook the
effectiveness of the plan, because here also believed that the commitment of the members who run and work
with the best expected to carry out the development as aspired together, meaning that the quality of planning
will also produce an effective plan.
Management literature has highlighted the planning process that produces an effective plan. Such studies
are usually based on a rational mechanistic analysis in order generates a plan that is expected to result in
attainment of appropriate target. Not surprisingly, the behavioural aspects of people involved in planning
process likely to be ignored. In contrast to the mechanistic way of rational planning, here are striking how the
behaviour of certain individuals may contribute to the process of formulating an effective plan.
Planning is a joint process of analysis and synthesis to produce a plan in realizing a certain goal. Planning
commonly defined as an activity to determine the objectives to be achieved in the future and formulate ways to
achieve its objectives. Thus in the process of drafting a plan needs someone who has a future-oriented, rather
than just focusing on the present course. Future-oriented means that in the preparation of the plan, individuals
who engage in it, also think about the possibilities that will be faced in the future. It also require an anticipatory
spirit to accommodate the aspirations of members of the organization. This outlook is a form of aspirative

that guide the mind, move the productive action, as well as a reference work and effort to realize the future that
shared together.
In preparing a future oriented plan, also need to be coupled with sincere intentions of the people involved to
provide the best and develop measures to achieve the aspired goals together in a way that respects the dignity
 Banowati Talim / Procedia Economics and Finance 4 (2012) 140 – 148 143

and sincerely dignity of all stakeholders. Consideration of the ethical aspects of this so-called ethical
orientation. Hartanto (2009) argued that ethical orientation reflects the belief that members of a company
upholding consistently a set of values, norms, and principles agreed at the time they are working and doing
business, that will provide spiritual satisfaction and result in higher performance and meaningful. This insight
is a form of ethical integrity that characterizes the decisions and actions taken in the workplace.
In the planning activity can be seen the existence of a decision process that is preceded by an analysis of
various alternatives. The best alternative may be developed if the people involved in the planning process, has a
passion to share- the spirit to continuously develop new ideas and willing to accept suggestions, criticisms, and
opinions with humility. This spirit is the manifestation of the spirit of innovative learning. This spirit not only
grown in the forum of learning, but also needs to be run as a habit to ask each other and question the various
issues faced in the workplace, in anywhere, anytime, and anyone in between. In particular Hartanto (2009)
states that the innovative spirit of learning can take place effectively, if there is available "room for error".
Thus, in the planning run by people who have a high enthusiasm for learning innovative, formulation of a plan
can expect the emergence of a mature, adaptive, contextual, and innovative.
In addition to the spirit of learning, other forms of spirit is also needed is a spirit of togetherness.
expexted come from his own works. In
addition, the formulation of the plan is carried out not for the interests of one group of individuals only, but for
the benefit of the organization as a whole. Starting from this belief, planning can only be realized if there is a
genuine mutual trust among members of the organization. Therefore, the spirit of togetherness that was
developed to be inclusive. Through the participation of the people involved in the planning process, can be
fostered ownership of the resulting plan. Hartanto (2009) suggests that the spirit of togetherness shows
members of the company's desire to cooperate and grow together, which grew from the belief that synergy can
only be realized through the integration of the diverse capabilities of the people who trust each other in an
working environment.
To realize the quality of planning, is still needed something else in addition to the aspects of spirit and
behavior of people, namely the competence of the worker. Required here is not individual capabilities of each
actor, but a synergistic combination of competencies that workers have in the form of collective competence.
This is important, given the success of a process, not only determined by the behavior, but also by their ability.
Based on this thinking, I propose a proposition model in figure 1.

Effectivess

Ethical Orientation

Resource
Availability
Aspirative
Orientation

Quality of Planning
Meaningful
Innovative
Planned
Learning Spirit
Change
Spirit of Awareness to
Togetherness Change

Competency Self Efficacy

Figure 1. Proposition Model

144 Banowati Talim / Procedia Economics and Finance 4 (2012) 140 – 148

3. Research proposition

To initiate this study, this is my research propositions: (1) Meaningful Planned Change is positively
influenced by the Awareness for Change, Self Efficacy, Quality of Planning, and Leadership Effectivenes, (2)
Inluence of Awareness for Change, Self Efficacy, Quality Planning, and Leadership Effectiveness to
Meaningful Planned Change will be more powerful with the Availability of Resources, (3) The Effectiveness of
Leadership is positively influenced by the Capability of Leader, (4) The Quality of Planning is positively
influenced by the Ethical Orientations, Aspirational Orientation, Innovative Learning Spirit, Spirit of
Togetherness, and the Worker Competency.
The proposition was put forward in advance to allow validity testing of these variable used in the study. The
score of validity of the variabel will be used as a reference for the formulation variables and research model.
Thus, the research model will be formulated by using validated variables.
This study focuses on human and behavioral aspects of change management. It has not been widely
performed by other researchers in the field of change management. In general, the researchers were more
interested in studying how to make a change, the substance of the change, and the impact of the change. They
also learned a lot about how to keep the process of change effectively. But they tend to ignore the actors
involved in the process of change, good attitude, intention, behavior, and the capability to make changes
effectively. Because this study focuses on the agents of change, this study also considers cultural factors as a
context of the behavior, particularly in small and medium scale industry at Cibaduyut, Bandung.
The data was collected using questionnaires, interviews, and company visits. Respondents of this research
are workers who work at the Center of Small and Medium Scale Footwear and Shoes Industry at Cibaduyut,
Bandung. 150 responds from questionnaires can be analyzed further. Data analysis was performed with factor
analysis and regression. Factor analysis conducted to test the validity of Proposition Model to ensure the
accuracy of any grouping of manifest variables into latent variables. The latent variable which being analyzed
by factor analysis include: Awareness for Change, Self Efficacy, Leadership Effectiveness, Aspirative
Orientation, Ethical Orientation, Spirit of Togetherness, Spirit of Innovative Learning, Quality of Planning,
d Meaningful Planned Change .
Factor analysis will be conducted using Principal Component method and varimax rotation. This method is
commonly used to reduce the dimensionality simultaneously, the average error of the estimate and maintain the
maximum variance of the representative data (Hotelling, 1933; Jolliffe, 2002; in Miranda, 2007). To ensure
placement of the manifest variables on latent variables accordingly, I also do varimax rotation. This method
was first introduced by Henry Felix Kaiser in 1958. To test this hypothesis an analysis done using regression
analysis with SPSS 17. Interpretation of findings will be made by considering studies that have been done
earlier.

4. Factor analysis results

Result from factor analysis show that there has been a change in the grouping of manifest variables that
bring implication of changes to the research model proposed in the initial proposition. Grouping changes
specifically occur in some of these variables. Meaningful Planned Changes is clustered into two variables,
which then called Planned changes that have Economic Meaning and Planned Changes that have Psychosocial
Meaning. Leader Effectiveness Variables and Quality of Planning are grouped into one variable called Change
Initiation. Meanwhile, the competence of workers variable is clusterred into two variables, which in turn named
Production Competence and Marketing Competence. Based on this factor analysis results, I propose new
research model (figure 2) which then being analyzed by regression.
 Banowati Talim / Procedia Economics and Finance 4 (2012) 140 – 148 145

Le
Capability

Ethical
Economical
Orientation Awareness to Meaningful
Change Resource Planned Change
Aspirative
Orientation Availability

Change
Innovative
Initiation
Learning Spirit
Psychosocial
Meaningful
Togetherness
Self Efficacy Planned Change
Spirit

Production
Competence

Marketing
Competence

Figure 2. Research Model

Hypothesis 1
i. Psychosocial Meaningful Planned Change is positively influenced by Awareness for Change,
Change Initiation, and Self Efficacy.
ii. Economical Meaningful Planned Change is positively influenced by the Awareness for Change,
Change Initiation, and Self Efficacy.
Hypothesis 2
Influence of Changes Initiation, Psychosocial and Economical Meaningful Planned Change will be
more significant, if supported by the Availability of Resources (Physical).
Hypothesis 3
Change Initiation is positively influenced by the Capability of Leader, Ethical Orientation, Aspirative
Orientation, Innovative Learning Spirit, Spirit of Togetherness, Production Competence, and
Marketing Competence.
Testing of the research model carried out using regression analysis (backward method) to determine which
variable has a significant influence on the dependent variable of each hypothesis. As a benchmark of p, we
use the significance level which is acceptable < 0.05 and R2 > 0.5. Even so, as this study still contains many
elements of exploration, in particular the significance level of p < 0.10 was considered. Using SPSS 17.0, R
and R2 values obtained in Table 1.

5. Conclusion

Workers at Small and medium scale enterprise view a meaningful planned change as a change that is
significantly well prepared and enable the management and members of the company to work better and more
effective.
The impact of Planned Change is felt meaningful by members of the company, if there have been a real
change initiatives especially from leader. Members of companies still tend to be passive in this process of
change, as reflected by the absence of self efficacy and awareness towards change in creating a meaningful
planned change. The initiative for change is not solely determined by the quality and effectiveness of the
leadership of the company, but also determined by the ability of leaders to plan properly. In fact, the initiative
146 Banowati Talim / Procedia Economics and Finance 4 (2012) 140 – 148

for change solely is not enough, but it should be an action plan to realize a change, as reflected by a new
variable called Initiation of Change, which include Leader Effectiveness and Quality of Planning variable.
Tabel 1. Significant score
INDEPENDENT VARIABLE DEPENDENT VARIABLE SIG

Awareness to change A. 0.283 A. 1.078

Economical Meaningful Planned Change
Self Efficacy 0.626 B. -0.448
R= 0.961
Initiation of Change 2
C. 0.000 *** C. 42.055
R = 0.924
Resource Availability D. 0.538 D. 0.618
Awareness to Change A. 0.878 A. -0.154
Psychosocial Meaningful Planned Change
Self Efficacy B. 0.394 B. 0.855
R = 0.936
Initiation of Change 2
C. 0.000 *** C. 32.268
R = 0.876
Resource Availability D. 0.225 D. 1.218
E. 0.003 ** E. 3.035
Ethical Orientation F. 0.937 F. 0.079
Aspirative Orientation Change Initiation G. 0.797 G. 0.258
H. Innovative Learning Spirit R = 0.938 H. 0.072 ** H. 1.813
Togetherness Spirit R2 = 0.88 I. 0.071 * I. 1.819
J. Production Competence J. 0.007 ** J. 2.737
K. Marketing Competence K. 0.004 ** K. 2.042
***: Significant, ,

Resource availability show a paradoxical implication, because its existence would negate the effect of
initiation of Changes to create a meaningful Planned Change. It is thought to occur as a consequence of the
shift of attention from management and members from realizing the changes to get the resources. This last
situation is common, because of the requirement to obtain the resources it is often ask the company to maintain
its status quo. Initiation of change and availability of resources does not need to be contested, but in the real
business life is often placed on both of these contradictory positions.
Efforts to realize the changes are still largely determined by the prevailing leadership role and competency
of management and members of the company. This situation shows that among small and medium enterprises
in Cibaduyut there is still a fairly strong paternalistic culture. Workers are still treated as a person who is
expected to obey the order to utilize the expertise and skills for the benefit of the company. Reviewed from this
perspective of small and medium entrepreneurs in Cibaduyut, workers have not been fully considered as a
professional partner to be invited to go forward and grow together. This of course caused a lot of potential and
virtue of the worker has not been fully utilized for the advancement and development of company.
Changes undertaken among small and medium enterprises in Cibaduyut estimated have not concern yet to
ethical and aspirative orientation, it means that changes plan only have short-term horizon. Or more
specifically, the change is usually still be responsive to current developments in consumer tastes, and not to be
anticipatory of what is potential to develop in the future. This will be a big problem if the company wants to
expand the scope of business into regional or global scale, because the plan would not adequately responsive.
This usually occurs among employers who are still in a state of mere survival the business. Such a situation is
understandable, but now that Indonesian has been increasing in needs hierarchycal and their ethical awareness,
then it certainly needs to be considered in the development of business in Cibaduyut.

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