1.

0 INTRODUCTION
An organization is a stable and formal social structure that takes resources from the
environment and processes them into output. Organizations consist of two types, namely
profit-based organizations and non-profit organizations.
Humans are usually afraid of change. When we talk about the need for change in the
organization, many feel that it is the responsibility of superiors. Either the head of the
organization or his deputy. Furthermore, when management teachers such as Peter Drucker,
Tom Peters, or Steven Covey emphasize on management commitment as one of the steps to
implement change in the organization, then we quickly associate it with the phrase
"exemplary leadership" that demands that leaders proving that they need to change first
before something changes to spread down.
Pointing a finger at a party to initiate change does not actually provide any profit.
Dealing with change in an organization is a shared responsibility. This is because life in an
organization is intertwined between decision makers and decision makers.
Producing various decisions without being able to implement them as well as possible
does not give any meaning. While implementing decisions that are not guided by a clear
direction does not benefit the organization; even easier to move towards entropy. Every
member of the organization regardless of rank and degree must understand their respective
roles in dealing with change. Management determines the direction to be achieved; while
understanding the goals to be achieved, the direction to be followed, and both enjoy the
results to be achieved.
Since change is not static in nature, efforts to address change must be done with
careful planning. Patience and a sense of urgency are among the important factors in dealing
with change. Change usually takes time because it involves humans and this requires
patience. At the same time, organizations need to emphasize on the "sense of urgency" to
change. The balance between these two factors will help the organization to continue its
journey without this end point.
Managing change requires certain knowledge and skills. Change cannot be arbitrarily
made according to feelings. This is what often happens in most organizations. Its managers
make changes without having basic knowledge of it. Eventually the expected change did not
happen. Therefore, changes need to be made carefully and systematically. One area of
management that helps managers make changes is Organizational Development or simply
OD.

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 Clark (1994) states that Organizational Development (OD) is a top-down support
management, a long-term effort to improve the process of organizational reform and problem
solving, especially through more effective diagnosis and collaboration as well as greater
emphasis on formal group collaboration, temporary group and intergroup culture with the
help of a consultant or facilitator as well as the application of theory and technology to
applied behavioral science, including behavioral research.
It is an effort and program that involves individuals from all levels of the
organization. It is implemented by one or a group of people known as change agents. The
transformer agent is the catalyst for change in an organization. He is an expert in this field
that is, to improve the operating system of an organization. He may be one of the employees
in the organization but usually he is hired to implement the OD program.
Organizational readiness for change is building multiple levels. As a constructive
level organization, readiness for change refers to organizations' shared members determined
to implement change (change of commitment) and shared beliefs in their collective ability to
do so (change in effectiveness). Organizational readiness for change differs as a function of
how many members of the organization value change and how well they evaluate three key
determinants of implementation capacity: task demand, resource availability, and situational
factors. When organizational readiness for change is high, members of the organization are
more likely to initiate change, exert greater effort, exhibit greater persistence, and display
more cooperative behavior. The result is a more effective implementation.
According to Bennis, W. (1966), as we all know, organizations need to adapt to the
environment. The importance of the field of organizational development can be seen when it
is able to help the organization to respond effectively to environmental changes.
Organizational Development plays a role in helping organizations to change. This situation
will indirectly help the organization to assess the organization's own capabilities and
environment as well as the importance of re-evaluating the organization's strategies, structure
and processes.
Apart from that, Organizational Development is also considered important because it
also helps members in the organization to move further in the changes that are made which
aims to change the way of thinking or change the paradigm and values that control their
behavior over the years. It is also important for those who make career planning that is as a
professional in this field, either as an internal consultant of the organization or as an external
consultant who can offer services to many other organizations. Choosing a career in the field
of OD, allows an individual to obtain high recognition, in addition to having a challenging

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job and having an interesting paper (assignment). It aims to improve the organization and
also work life.

2.0 FACTORS TOWARDS SUCCESSFUL ORGANIZATION DEVELOPMENT

2.1 Leadership in Organizations
There are various definitions given to leadership. John Maxwell (1998)
defines leadership as the ability of a leader to influence others in doing something
while Peter Drucker (1996) simply refers to leadership as a leader and follower in an
organization. In this regard, Robert P. Vecchio (1997) has described leadership quite
comprehensively as follows namely "Leadership has been conceived as the focus of
group processes, as a matter of personality, as a matter of inducing compliance, as the
exercise of influence , as a form of persuasion, as a power relations, as an instrument
to achieve goals, as an effect of interaction, as initiation of structure, and as many
combinations of these definitions "
Leaders are indeed recognized as an important factor that leads the
organization towards the vision, goals and objectives set. The ability of leaders in
leading the organization has been accepted as a factor that can determine the success
and failure of the organization. Perspectives on the importance of leadership can
actually be traced back to academic writing from time immemorial, for example
Pluto’s old work in Republic and Aristotle in Politics. Writing on leadership continues
to evolve and the theory and model of leadership by modern era writers can be seen
for example from the Sloan Leadership Model, Hersey and Blanchard Situational
Leadership Model, Covey's Principally Centered Leadership Model and Contigency
Model of Leadership Effectiveness.
Successful leaders in national development such as Abraham Lincoln, Ghandi,
Suharto and business leaders who successfully change the direction of the
organization to become successful organizations such as Jack Welch (General
Electric), Rupert Murdoch (Newscorp) and Stephen Case (American Online) for
example have become models studies and models of leaders that need to be followed.
This indirectly reflects the high value given to the leadership aspect of the
organization.

i. Leaders Set the Vision and Direction of the Organization

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 Leaders must be able to look ahead and set the vision, direction and strategy of
the short and long term of the organization after taking into account various internal
and external factors including weaknesses and strengths of the organization to bring
the organization to a higher level in terms of efficiency and effectiveness and meet
goals and objectives. Through this process, then all the internal factors of the
organization whether structure, system, human resources and so on will be able to be
guided to the direction and vision set by the leader.
A lot of academic writing talks about the relationship of leaders and insights.
Warren Bennis for example has stated that "The most indispensable quality of a good
leader is a guiding vision and a clear idea of what he or she wants to accomplish". He
further stated that "leaders are people who do the right things that leaders think about
dreams, missions, visions, strategic intent and purpose".

ii. Leaders Mobilize Resources Including Human Resources Towards the

Direction of the Organization
Leaders not only ensure that employees perform their work on a regular basis
but are able to communicate and influence them to believe, obey and be willing to
work hard by mobilizing and utilizing all the resources and equipment of the
organization towards achieving a set vision and direction. Robert Spitzer in The Spirit
of Leadership (2000) has stated that one of the qualities of an excellent leader is the
ability to communicate rationally with employees to create spirit and trust (spirit and
trust) towards achieving the vision and objectives of the organization. Rowan Gibson
in Rethinking The Future (1998) states that "Above all, leaders will have a vision, a
passion, an aspiration. And this aspiration, once shared with everybody in the
organization will unleash tremendous human energy".

iii. Leaders Cultivate Employee Motivation

Managers control employee behavior but leaders will be inspired by efforts to
improve employee motivation, morale, commitment and esprit de corps by
implementing human resource management that provides opportunities to improve
skills and career development while applying organizational culture which is based on
values, ethics, recognition and welfare. Employees who are motivated and feel their
contributions are appreciated by the leaders of the organization will surely provide
more efficient and effective services.

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2.2 Training and Development in Human Resources
Training is one of the alternatives in producing an efficient, knowledgeable
and skilled workforce. According to Ibrahim Mamat (2006), training in the
organization is a learning program designed to improve the knowledge, skills and
performance of staff. According to Anwar (1997), most local companies fail in
providing appropriate training to employees even though it is one of the incentives to
employees. Since designing the program and managing the training function is very
important, then the handling of these two activities should be entrusted to individuals
who are trained in the field of training and human resource development. The success
of a training program depends on the comprehensive program design, coaching skills
in the field of coaching and the ability of the program manager to manage all
resources efficiently.
The productivity of an organization is inseparable from the quality of its staff.
Employees are an important production factor in addition to other production factors
such as land and capital. Therefore, productivity and staff quality are difficult to
control or to accurately predict. This is because the quality and productivity of staff
work involves aspects of commitment and motivation. Noe (2002) states that training
refers to the efforts that have been planned by an organization to encourage
employees to learn skills related to their work to improve the quality of one's work.
Therefore, training is one of the important elements in the formation of skills, abilities
and knowledge of employees. Furthermore, the effectiveness of training is important
in order to reduce problems such as reported public complaints, the rate of errors in
doing work, as well as the time taken to do a job. Appropriate training is important to
ensure the quality of work of employees at various levels in an organization.
Training is an important element in ensuring that employees have the skills,
abilities and knowledge that can help them improve job performance as well as assist
in performing current and future work. Effective training can provide many
advantages to employees such as for staff development and improving employee
competencies and skills. Ibrahim Mamat (2006) states that basically every training
program should be able to benefit not only the organization, but also its employees.
Training programs that provide invisible effects such as training to change employee
attitudes and shape staff morale are usually not fully emphasized. Therefore, most
organizations will prioritize training programs that are able to benefit the organization

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especially if the benefits of the training can be seen and felt quickly such as the
impact of training on productivity, sales results, production results and so on.

2.3 Effective Quality Management

Working effectively is the guarantee that a person will remain in an
organization. Effective simply means, the input used can provide the best or
maximum return. It is closely related to the concept of productivity. If a person is
supplied with many resources, but the results are very disappointing, it is said to be
ineffective. As a result, work productivity will decrease as well as reduce
organizational profits.
The organization, on the other hand, in the case of very limited resources will
definitely give priority to employees who are able to provide benefits to it. This is
because the organization is not a charity-oriented organization. Profits must be
achieved to cover all business costs whether permanent or variable. If the targeted
profit is not achieved, not only the affected workers but also the organization may
have to go bankrupt and be buried just like that.
In this age of competition, the aspect of work efficiency is highly emphasized
by an organization. The level of competence of an employee must be measured so that
they can be rewarded in line with the achievement of the level of competence
possessed.
However, to be efficient is not an easy task. It requires a lot of skills,
knowledge and experience. A competent person today may no longer be efficient
tomorrow because that competency is constantly changing according to the internal
and external environment of the organization. Even efficiency is not a mere measure
of quantity. It also describes the quality of a work produced.
To be efficient, we usually do the job over and over again until one day we are
able to do it with our eyes closed. But if that has been achieved by an employee, it is
not the best level of competence. The level will be further increased. Indeed,
competence is not something that is dead and stagnant. It moves and changes
according to circumstances.
On the other hand, a person who was originally considered incompetent
somewhere but when he moved to another organization, it may be considered to have
reached a reasonable level of competence. It has been stated before that competence

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can be achieved with continuous learning and perseverance to do something over and
over again.
Since after the second world war, organizations began to pay attention and
focus on the concept of quality. At that time, quality was closely related to the activity
of inspecting the finished goods. The main purpose of inspection is to prevent goods
that do not meet the standards sent to customers. Such activities are referred to as
"Quality Control".
Over time, the concept of quality has undergone many revolutions and
changes. Examination of all the goods produced traditionally done has become an
expression of history. These changes are in line with current business developments
and trends.

2.4 ICT in Organizational Change

Use of computer
A computer is an electronic data processing machine that receives and stores
data, performs arithmetic (computational) and logical (decision-making) operations
on data and then produces decisions (information).
Computers process data automatically (without human help) under program
instructions stored in the main storage unit. The program (or program) contains a
sequence of instructions that instruct the computer to solve a problem using the units
it contains.
Human life in the future depends a lot on technology. Technology will become
so sophisticated that today's computers have systems that change quickly and rapidly.
The current era of globalization will definitely provide more significant improvements
and changes in the field of technology.
Among the rapidly advancing and sophisticated fields of technology are the
fields of information technology and computers. Bill gates (1996), a well-known
computer explorer, was able to market Windows applications worldwide. The rapid
development of technology at this time around the world requires immediate action of
human resource development to provide training, knowledge and skills on
information technology, robotics and so on. Human life is increasingly dependent on
computers and technology in today's era of globalization

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 Human resource development by the year 2000 will achieve a higher ratio of
scientific and technological manpower than it is now at about 1000 per million people
in Malaysia.
Knowledge and skills will be oriented towards a combination of technical,
statistical and computer-based disciplines. This combination of disciplines will equip
future manpower to handle new and emerging technologies such as automated
manufacturing technologies, latest materials, bio-technologies, electronics and
information technology.
Today, most employees of organizations use computer applications to perform
their tasks. They will be exposed to ways to use computers more effectively.
Internet
Since the founding of human civilization centuries ago, communication and
social interaction among them has been quite limited. Along with the passage of time,
human beings with the help of the God-given mind began to make strides in all
spheres of life as well as trigger reform after reform.
Beginning with the outbreak of the agricultural revolution at the end of the
17th century, human civilization continued to grow until the era of the industrial
revolution in the 18th and 19th centuries. the third is the revolution of the digital era
or information technology as a world leader that will change human civilization and
civilization.
With basic computer skills, employees in an organization will be more
exposed to more sophisticated applications in information technology, namely the
internet. With internet access, they are easier to perform tasks using software such as
telnet, e-mail, intranet and even the world wide web (WWW). All this software makes
everything easier and faster.
Software
With ICT, an organization will be more organized. The use of software such
as CD-ROM is very effective because it contains some information about this
organization in more detail. Apart from that, the use of pendrives is also important to
store the data that will be used in the future.

2.5 Effective Communication in Organizations

There is no denying that communication is very important in our daily lives.
Every day we communicate with the community around us whether in formal or

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informal situations. Good communication can convey the desires of the heart well.
However, one fact we cannot deny is that many are unable to communicate well. This
is saddest if it happens among the leaders of an organization. This is because an
organization has a specific mission and vision that it wants to bring and move
together. If this communication problem occurs in an organization, then of course the
smooth operation and direction of an organization will be stunted.
In the book "Self Management" by Mohd Yusof Othman, communication in
the organization can be defined as "a power that connects leaders with people they
lead so that they can mobilize energy in an organized manner to achieve common
objectives." In an organization, communication is a tool of communication between
the leader and the person being led. Leaders must have clear goals and missions of
what their organization wants to achieve. Leaders need to ensure that the people under
them understand the goals of the organization and then carry out their respective
responsibilities to achieve the objectives of the organization. Thus, leaders need to
first understand what the organization they lead wants to convey (Mohd Yusof
Othman, 2003).
Communication is divided into two forms. The first form is verbal
communication or also known as verbal communication. Oral communication means
any communication conveyed to the listener using spoken language. For example,
speaking, giving speeches, public speaking, interviews and so on (Abdullah Hassan
and Ainon Mohd, 2001).
The second form of communication is non-verbal communication or also
known as non-verbal communication. Non-verbal communication can be defined as
any communication conveyed to the listener without involving spoken language. For
example, writing, symbols, how to use, facial expressions, eyesight, body movements,
tone of voice and so on (Abdullah Hassan and Ainon Mohd, 2001).
The effectiveness of communication is very important in an organization. This
is to ensure that the mission and vision of an organization can be moved together.
Looking at the importance of communication effectiveness in the organization, then
here are some ways to increase the effectiveness of communication in the
organization. First of all, before presenting information, the presenter must be clear
about the information and the purpose to be conveyed. The material to be presented
must be structured, concise, concise and clear so that it is easy for the listener to
understand (Mohd Yusof Othman, 2003).

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 To make communication more effective, the presenter must first understand
the situation, situation and soul of the listener before the listener understands the
presenter of the information (Mohd Yusof Othman, 2003). In addition, to make the
presentation always 'fresh' to the listener, the presenter can add some interesting
material such as statistics, words of wisdom, charts and the like. In addition, the
presenter can also use aids such as ‘overhead projector’, computerized dashboard and
various other hearing aids (Mohd Yusof Othman, 2003).
Speakers should also use good speaking techniques with attractive styles such
as controlling the speed of word pronunciation and intonation, choosing appropriate
language and terms, facial expressions, and eye contact between presenter and
listener. The best guide to show face and facial expressions is to have a cheerful and
generous face with a smile, and sometimes a rather serious facial expression to
describe something serious and serious. While the way to control the situation when
communicating or speaking is to look at the audience in the form of "Z", that is from
left to right, from front to back, and in all directions. In addition, the attractive way of
wearing also affects the acceptance of the listener (Dewan Bahasa, December 2008).
In addition credibility is an important condition of communication. There are
two ways to gain credibility. The first is that the speaker must be confident and
believe in what is being presented based on authentic sources, accurate facts and
correct information. Second, the speaker must first do what is said so that the listener
will be more impressed in the heart (Ahmad Fadzli Yusof and Amin Idris. 2007).
All information regarding the business obtained by individuals or groups
should be communicated to superiors as soon as possible and accurately (ASAP). The
information obtained is from newspapers, government gazette, internet and others.
Through the acquisition of such information, feedback can be done immediately to
achieve business goals that are not lost but profitable.
Satisfactory achievement in business and so on in the corporate sector depends
a lot on the communication relationship between staff and employers. This unity of
understanding can give birth to a sense of love, warmth, mutual respect and mutual
respect. The eruption of openness, sincerity, accepting criticism, and considering all
staff as one big family is one of the reasons why an organization can run smoothly
without interruption and obstacles.
Two-way communication should have a good effect between the two parties.
A boss or a leader should not have an egoistic attitude towards the position but the

10
 responsibility is to achieve maximum achievement for the organization. Selfishness
will cause a leader to be unable to cooperate with subordinates. Subordinate staff find
it difficult to curb their behavior when the selfish attitude of their boss envelops the
heart so as to publish feelings of resentment and staff hatred towards the protracted
boss.
If effective communication takes place within an organization, then all the
problems faced by the organization can be solved. Crisis faced can also be managed
more easily and systematically.

3.0 EXAMPLE OF A COMPANY

3.1 Company Background
PETRONAS was incorporated on 17 August 1974 as the national oil company
of Malaysia, vested with the entire ownership and control of the petroleum resources
in the country. It has since grown from merely being the manager and regulator of
Malaysia’s upstream sector into a fully integrated oil and gas corporation, ranked
among the FORTUNE Global 500® largest corporations in the world.
Over the years, they have gained unique experience and expertise in nation
building and this, coupled with their technical and operational competencies have
allowed PETRONAS to be increasingly accepted as the preferred strategic partner by
international companies and the host countries where they operate. This augurs well
for the realization of their vision to become a “Leading Oil and Gas Multinational of
Choice".
Much of PETRONAS’ success can be attributed to their ability to strike a
balance between being a state-owned entity and a full-fledged commercial
organization. As a state-owned entity, PETRONAS is responsible for the effective
management of Malaysia’s oil and gas resources, to add value to this national asset
and to ensure the orderly and sustainable development of the nation’s petroleum
industry. As a business entity, they conduct their operations in a prudent and
commercially oriented manner to compete effectively in the increasingly challenging
global business environment, while maximizing returns to their shareholders.
With a proven track record in integrated petroleum operations on their home
ground, they embarked on a strategic globalization programme in the early 1990s to

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augment Malaysia’s crude oil and gas reserves, add value to their core business and
provide exciting new challenges for their young employees.

3.2 Implementation of Each Factors

The implementation of organizational development (OD) is carried out
throughout the organizational system. The whole organizational system refers to the
whole organization, the whole department, or the whole working group. This situation
is different from other methods of change such as training and development which are
done only on some systems or groups of workers. The changes implemented at the
organizational system level are aimed at increasing the effectiveness of organizational
strategies. For example, these changes are focused on the aspects of how an
organization relates to its environment and how those relationships can be enhanced
to further increase efficiency and effectiveness. In addition, OD also includes making
changes to the workforce to enable them to perform a task better (structural changes),
as well as changes in communication methods as well as problem solving (process
changes) to support strategy change.
However, the internal factors of the organization itself also cause changes,
such as culture of knowledge, skills and so on. Hence, knowledge, change and
learning organization are synonymous and cannot be separated. Knowledge workers
create a learning environment in the organization and will produce "learning loops"
(to unlearn and re-learn) and learning processes, and further organizational changes.
Prisak (1997) states the need for knowledge as "imbedded in a firm's culture"
which is in the organizational culture to deal with unexpected changes especially.
According to him, science is associated with Intellectual Capital and Organizational
Learning. Organizations need to actively and creatively manage knowledge to deal
with rapid changes to stay in stable condition and be prepared to make adjustments as
needed.
To be recognized as a learning organization is not easy. It requires the
application of a comprehensive strategic management culture, complete with the
mission and vision of its existence. Among the filling needed before being known as
learning organization is independence in empowerment, active in gathering and
sharing of internal knowledge, gathering and sharing of external information and the

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desire to change from status quo and encourage employees to use their own creativity
within performing their duties.
For many organizations in the world regardless of the developed and
developing countries, the issue of independence of employment by a former employee
seems unacceptable. Most of them think that if this is prejudiced, it will cause
problems. The workers are considered to be big heads, will not respect the
management and the more serious are the ruling employer to take any action that
would ultimately harm the organization. Vessey W. B., Barrett J., Mumford M.
D. (2011)
According to Harvard Business Review (2019), leaders perform various
leadership functions that lead to excellence, effectiveness and organizational
efficiency. In this case, the roles of leaders and managers need to be differentiated
where managers are officers who perform organizational management and
administration functions based on established procedures and guidelines while leaders
are those who steer the direction and strategy of the organization by performing roles
beyond management and administration in Petronas.
Blanchard, P.N and Thacker J.W (2004) state that training is a systematic
process in providing opportunities to learn specific skills, knowledge and abilities to
perform current or future work. Dessler (2003) defines training as an ongoing effort to
provide understanding to new and long-serving employees about the skills they need
to carry out a job. In the context of the application of organizational development in
Petronas, the training conducted aims to see whether the support groups who have
attended the training can apply or not what they have learned during the training in
their duties.
In this new millennium, the way we conduct business or organizational affairs
is constantly changing. With the concept of globalization, today's business faces fierce
and fierce competition. To ensure that every challenge faced can be overcome and
subsequently be able to maintain competitiveness, an organization like Petronas needs
to be creative, innovative and always ready to face any change. As a result of these
changes, there are various new philosophies and ways of effective quality
management from time to time. Terms such as supplier chain management,
comprehensive productivity management, "dock to stock", etc. are not uncommon
anymore for today's industry.

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 The question that is often said is how the application and appreciation of
information technology (IT) can help bring about this change. Knowledge and
learning are the contributors to creating a knowledgeable society.
According to historians' views, a civilization should be through several phases
of change, as well as the assimilation and diversification process. Strengths and
weaknesses are judged by the ability or absence of modifying the changing
environment and at the same time not losing the identity and the original parameters.
Scientists argue that change is a natural process in which an organization
needs a mechanism to address the changes caused by external and internal factors
brought about by the feedback process and the reactions through the communication
and information systems between humans and systems.
Communication is a very important element in achieving the mission and
goals of the organization. This is especially so when organizations are involved with
the process of change. The role of leaders and communication complements to lead
the organization to the desired direction. Leaders or managers need to support any
organizational activity. The activity will be able to run smoothly if the leader or top
management can implement strategic communication well. Communication that
involves careful planning, proper implementation of strategies and ongoing evaluation
of communication, will make it easier for organizations to identify problems and take
immediate action to address them before they become cancerous.
Suhailawatie et al. (2015) found that the effectiveness of internal
communication between top management and employees can build a positive
reputation because the majority of employees admit, by interacting with top
management can help employees become a spokesperson for the company. This is
supported by Shao et al. (2016) who found that top management support is identified
as an important factor in the success of an organization's enterprise system.

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4.0 CONCLUSION
An organization lives and thrives in a dynamic environment. Changes in the
environment such as politics, economy, technology and social also affect the performance of
the organization, either directly or indirectly. Every organization needs to plan and implement
change after change to make it more viable in the future to face a dynamic environment.
Changes cannot be made arbitrarily. According to Tams, C. (2019), changes need to be made
systematically and planned. Organizational Development or OD is an area that can help
organizations make changes to the organization's strategy, structure, technology and systems.
Organizational development is considered important for those who do not have the
aspiration to become professional OD practitioners. All managers and administrators are
responsible for supervising and developing subordinates and also improving the performance
of their divisions or departments. This situation is the same for all expert staff such as
accountants, financial analysts, engineers, personnel experts or researchers where they are
responsible for offering advice and counseling to managers and also introduce new methods
and practices in producing a job.
Organizational development occurs due to changes in globalization. This is because
globalization will shape changes in the markets and environments in which organizations
operate as well as their functions. New governments, new leaders, new markets, and new
nations will create a global and ever-changing form of economy.

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