Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the different level reviewed related literature and previous studies;

both foreign and local that has some bearing to the present study.

Related Literature

One of the concepts most frequently researched, discussed and written about in recent

years has been change in organizations and ways of its management. It is no surprise, because

change is inevitable for companies that wish to stay competitive and be profitable.

One of the many concerns in Health care system in a country is management of change

and health care professionals are obligated both to acquire and to maintain the expertise needed

to undertake their professional tasks, and all are obligated to undertake only those tasks that are

within their competence. Moreover, change occurs continuously in our society due to the fast

changing technology. People may want to support change, be indifferent to it, and be passive or

participate in it. The pace of change has increased dramatically due to competition in business

and industry.

Beyond leadership and change management, People also found that good relationships

appear to be a requisite foundation for change initiatives. This is not surprising given the collective

nature of Filipinos. When a culture of management-employee cooperation and teamwork is in

place, the organization becomes not just a workplace but an extension of oneself. Members feel a

sense of oneness with their bosses and co-workers. This sense of collectivity is an important value

that can be harnessed in the efforts to transform Philippine organizations. (Hechanova and Calleja

2011)
 Cultural values have profound impact on management practices in the Philippines. The

Filipino manager is typically person-oriented, who is committed to maintaining smooth

interpersonal relationship with subordinates, fellow managers, supervisors, and even

competitors. At the workplace, there is little hesitancy to mix informal matters with official

issues, pleasure with duties, social interaction with work discussion; so much so, employees find

it difficult to differentiate the organizational from the personal (Andres, 1988 as cited by De

Leon & Selmer). Whereas a Western manager designs work around equipment and production

process, a Filipino manager prefers to view machines and systems as simply extending a

persons abilities.

Change management is an organizational process aimed at helping stakeholders accept

and embrace changes in their operating environment. It involves the application of a set of tools,

processes, skills, and principles for managing the people side of change in order to achieve the

desired outcomes of a project or initiative.

Organizations operate within an increasingly volatile environment and are in a state of

constant change. The pressure to change stems from a variety of internal and external sources

such as political, economic, social and technological factors (Boojihawon & Segal-Horn, 2006).

Some of the major forces contributing to this scenario are globalization (which has greatly

increased competition), technological advancements, and shifts in consumer tastes and changes

in culture. All these factors demand adaptation from companies in order to maintain their

position in the market. Nevertheless, external forces trigger change, also internal factors such as

low productivity are meant to produce change.

 In the 1940s, Kurt Lewin, a social psychologist, proposed a three-stage approach to

planned change involving unfreezing, changing, and freezing. The model is still recognized

today for its relevancy in modern change management.

People are not likely to change the way they have been successfully working. Resistance

to change is therefore the natural reaction. Organizational Change Management deals with the

emotional reaction to change and aims to provide an implementation friendly environment.

Communication of the required changes and participation of people affected by change are

common means of Organizational Change Management to address initial fears and to build trust.

(Bruck, 2002)

People in an organization may view change differently and the level of interest for

change varies from person to person and from hierarchical level to hierarchical level.

Effective change management involves planning, organizing, staffing, directing,

coordinating, supporting and communicating and budgeting (Miranda, 2000).

Planning must be done carefully to make the execution of management system

effectively. Short and long-term development plans must be done properly. The administrators as

well as the employees should know the entire plan to make the implementation and the

realization of the plan easier and achievable.

According to (Fleming, J., & Senior, B., 2006), the future is uncertain, globally,

regionally and as country environments are dynamic and typically change at every increasing

rate. Organizations are forced to more intense competition. It stands to reason that organizations

innovative, relevant and extremely effective leadership practice to change management and

approach to face the challenges of change in the organization that arise by resistance with the

organization at any level.

 Enabling change is an often difficult process simply because organizations are human

systems. Even when what is being changed is technology, processes or structures, the success of

the transformation will ultimately depend on the people who will implement these changes.

A clear and defined system of implementation of change management must be a part of

the plan itself. It is always best that responsible people are assigned to coordinate job

responsibilities and competent people are assigned to monitor if jobs are being done in

accordance to plan (Mateus, 2011).

The present study which will conduct a thorough research on the change management

practices of Central Luzon Doctors Hospital considered the above cited literature as relevant for

they provided insights and direction to the present study. At the same time these review literature

contributed to the conceptual framework of the research.

Related Studies

Foreign

In a study conducted by Hans-Jurgen Bruck in 2002 entitled The Impact of

Organizational Change Management on the Success of a Product Lifecycle Management

Implementation - an Investigation into the Electronics Manufacturing Industry discussed the

implementation of Product Lifecycle Management (PLM) in the Electronics Manufacturing

Industry. In particular, the impact of Organizational Change Management on the implementation

success of PLM has been researched. The methodology used to investigate the topic includes

quantitative research (survey) as well as qualitative research (interviews).It was found in the

research, that the most critical success factors as well as potential problems are people related

issues that can be addressed by Organizational Change Management. In conclusion, the impact

of Organizational Change Management on implementation success can be rated as relatively

high. Including Organizational Change Management methods and tools during a PLM

implementation can play an important role to facilitate changes, in processes as well as in the

corporate culture. It was also found out that early involvement of people affected by the changes

and the barriers between departments and companies have to be addressed by Organizational

Change Management as early as possible. However, the most important factor for success can be

found in the role of senior management whose support and commitment not least decides if the

additional budget for the Organizational Change Management initiative is released.

This study is similar to the present study for they both determined and assessed the

change management in an organization however, they are different for the study of Bruck

focused on the impact of organizational change management on the success of a product

Lifecycle management implementation while the present study will not determine the impact of

the change management implementation but rather the change management practices done by

CLDH.

The study conducted by Tesfaye Fentaw in 2016 entitled Analysis of Organizational

Change Management Practices at Ethio Telecom analyzed the organizational change practices

of Ethio Telecom based on the leadership capability of a leader, challenges of change

management, result of the implemented change and the employees perception towards a change.

A descriptive survey design was employed. The main findings of the study showed that lack of

transparency, responsiveness, communication, documentation, awareness creation, principals

support and implementation problems. The study also revealed that there was incompatibility of

manpower with the approved organizational structures and job positions. The result of these

might have been one of the hindering factors for effective change implementation. Thus, change

managers should take some intervention strategies in managing organizational change; solve
problems and plan organizational change management activities through: awareness creation,

communication, training and establishes transparent and clearly defined parameters or some

types of predetermined change frame work.

This study is related to the present study for they both analysis the Organizational Change

Management Practices however they differ for the former study did not include management and

employees ways to sustain the change management practices.

Another study conducted by Mashhura Sidikova in 2011 entitled The Impact of Change

Management on Employees Motivation whereas the purpose of the study was to measure the

impact of working environment change on employee motivation. The empirical part of the

research was based on survey and interviews done in the case company as well as on the

observations made. Research findings proved assumption that change impacts employee

motivation. Although it was mentioned that it did not specify one answer, whether positive or

negative, it was proven in the study that with right communication techniques and sociological

management approach mood of organization can be changed. When faced with change workers

go through a cycle of emotions before welcoming change. Even after welcoming they can go

back to stage one, because as motivation is very close to emotion is tends to shift. In the case

company employees were in all four stages of reacting to change. Some were still fearful, some

doubtful, some feeling discomfort, while others found discovery stage. This proves that even

though it is same organization, where culture and structure is the same, individuals move from

one stage to another at different rate: same as in theory. In most of employees are found to be in

last stage; discovery, which explains that management effort and personal interest of workers are

high in this organization.

 The former study is related to the present study for they both determined the impact of

change management on employees motivation. They are different for the former study did not

include practices in the study while the present study included other aspect of change

management such as description of the management by the management and employees along

area of purpose, budget, management changes introduced, strategies, persons leading the change,

benefits of changes, challenges and employees coping mechanism as well as the management

and employees ways to sustain the change management practices.

Local
In a study conducted by Carlo DOrtenzio in 2012 entitled Understanding Change and

Change Management Processes: A Case Study wherein the central focus of the case study was

to advance knowledge regarding employees understanding of change and change management

within a public sector organization. The case study sought to understand and represent

employees understandings regarding what influences effective change processes and how these

have impacted upon them. The study used qualitative research methodology. The study found out

that during times of change, employees understandings of change and change management are

more readily apparent as they respond to the pressures of those changes. These understandings

help to explain how individual employees construct meanings about their organization, the

changes affecting the organization and themselves as members of the organization. The findings

from the informal interviews whereby employees understanding of change and change

management processes and practices differed to varying degrees.

This study is similar to present study for they both focused on understanding change

management, however the present study will not only focused on the process of change
management but rather on the practices as well as the perception towards change management of

the management and the rank and file compared, description of the management by the

management and employees along area of purpose, budget, management changes introduced,

strategies, persons leading the change , benefits of changes, challenges and employees coping

mechanism as well as the management and employees ways to sustain the change management

practices.

Meanwhile, in order to understand the factors that influence employee commitment to

change, the Ateneo Center for Organization Research and Development surveyed 1,962 employees

from 29 small, medium and large organizations in the Philippines. The results highlight the

importance of three factors: leadership, change management and organization culture. The research

used Kouzes and Posners Transformational Leadership model that describes five types of leader

behaviorschallenging the process, inspiring a shared vision, enabling others to act, modeling the

way and encouraging the heart. The findings suggest that leaders who are able to display these

behaviors have subordinates who are more committed to change. Thus, organizations that wish to

create a transformative organization need to invest in selecting and developing transformational

leaders.

This study is somewhat similar to the present study for they both dealt on employee

commitment to change; since the study will also determine the coping mechanism by the

employees to the change management. However, the present study will not focus on the factors

that influence employee commitment to change but also to determine the change management

practices done by the CLDH new management and how the management and employees ways to

sustain the change management practices.

 Another study conducted by Perry P. Magday in 2015 entitled Total Quality Management

(TQM) Practices: A Case of Ramos General Hospital determined the problems encountered by

the stakeholders with an aim of proposing a performance improvement programs. The study used

descriptive method. It was also found out that RGH did not fully maximize its efforts and resources

in implementing Total Quality Management The internal stakeholders observed that majority of

the TQM practices are almost always practiced and there are more opportunities that need to be

explored and areas that require improvement.

This study is somewhat similar with the present study for they both deal on management

practices however they are different for the present study does not only focus on quality

management but rather on the change management practices of CLDH.

The reviewed related studies are all closely related to the present study as they all dealt

on the change management including the practices on change management. Hence, these related

studies provided the conceptual framework of the present research.

Conceptual Framework

Changes are occurring in any organization strategic changes, tactical changes,

leadership changes, technology changes. To help minimize those impacts and effects, from

having unintended negative outcomes, it is necessary to have change management

methodologies in place with skilled resources delivering and executing on those methodologies,

principles and processes. The quality and level of excellence desired service of an organization

are highly dependent on the smooth structured approach to transitioning individuals, teams, and

organizations from a current state to a desired future state.

 The study is inspired by the concept that process of change management is a crucial event

in an organization. Furthermore, the study premised that perception towards change management

of the management and the rank and file compared is also important in determining the change

management practices of CLDH.

The study gathered the data from the views and perspective of CLDH Administrators,

staffs and employee

This descriptive-survey research will look into the CLDH change management practices.

The study will also determine the description along area of number of employees, capitalization,

management structure, ownership and average income as well as the description of change

management by the management and employees along area of purpose, budget, management

changes introduced, strategies, persons leading the change, benefits of changes, challenges and

employees coping mechanism

The study will also look into the management and employees ways to sustain the change

management practices of CLDH as well as to find out the implication of the study to business

administration will also be identified.

 Perception towards
Description of change change management of
CLDH Description along Management by the
management and the management and the
Area of employees along area of rank and file compared.
Number of Employees Purpose
Capitalization Budget
Management changes
Management structure introduced
Ownership Strategies
Persons leading the Management and
Average Net Income change
Benefits of changes Employees Ways to
Challenges
Employees coping Sustain the Change
mechanism
Management Practices

PracticesofCLDH

Chapter
Implication of the study 3
to Business Administration

METHODS OF RESEARCH AND SOURCES OF DATA

Figure 1 Paradigm of the Study