TABLE OF CONTENTS TABLE OF CONTENTS.............. CONTENTS.................................. ........................................ ........................................ ...................................................... .................................. 1 INTRODUCTION....................... INTRODUCTION........................................... ....................................... ....................................... ....................................................... ................................... 2 ISSUES.......................... ISSUES.............................................. ........................................ ........................................ ........................................................... ............................................ ..... 3 ISSUE 1: INSUFFICIENT RESOURCES....................... RESOURCES........................................... ................................................ ....................................... ........... 3 RECOMMENDATION.................... RECOMMENDATION........................................ ....................................... ....................................... ........................................ ............................. ......... 3 Feasibility Study.............................................. Study.................................................................. ............................................................ ........................................... ... 3 Cost-Benefit Analysis......................... Analysis............................................ ....................................... ........................................ ...................................... .................. 6 ISSUE 2: TIME CONSTRAINT...................................... CONSTRAINT.......................................................... ......................................................... ..................................... 9 RECOMMENDATION.................... RECOMMENDATION........................................ ....................................... ....................................... ........................................ ............................. ......... 9 ISSUES 3: RESISTANCE TO CHANGE................................. CHANGE..................................................... ........................................ ............................ ........10 10 RECOMMENDATION.................... RECOMMENDATION........................................ ....................................... ....................................... ........................................ ........................... ....... 11 1. Education and Communication........................ Communication............................................ ........................................ ..................................... ................. 11 2. Participation and Involvement............. Involvement................................. ........................................ ................................................. ............................. 12 3. Facilitation and Support............................. Support................................................. ........................................ ...........................................12 .......................12 4. Manipulation and Co-option............................... Co-option................................................... ........................................ ................................... ............... 12 5. Explicit and Implicit Coercion....................... Coercion........................................... ........................................... ..................................... ................. ... 12 ISSUE 4: TERMINATION........................... TERMINATION............................................... ....................................... ............................................. .................................. ........ 13 RECOMMENDATION.................... RECOMMENDATION........................................ ....................................... ....................................... ........................................ ........................... ....... 13 THOMAS-KILMANN CONFLICT CONFLICT MODE INSTRUMENT INSTRUMENT (TKI)............................................... (TKI)...............................................14 14 CONCLUSION............................ CONCLUSION................................................ ....................................... ......................................................... ................................................... ............. 15 REFERENCES REFERENCES ....................................... .......................................................... ....................................... ........................................ ........................................ .................... 16
1
INTRODUCTION Akademi Teknikal Laut Malaysia (ATLAM) was established established on 15 August 1981 which subsequently subsequently privat privatize ized d on 1 Janua January ry 1997 1997.. In Dece Decembe mberr 2001 2001,, the manag managem emen entt of ATLA ATLAM, M, a wholl wholly y owne owned d organization of MICT Berhad, had been asked to upgrade its accounting system with the PETRA group-wide group-wide SAP system. The proposed SAP system was scheduled to be phased in by 1 April 2002 as the start of the new financial year. SAP SAP system system was was the system system that that inclu include ded d compr compreh ehen ensiv sive e functi function ons s of Finan Financia ciall Accou Account nting ing,, Controlling, Asset Management, Sales and Distribution, Materials Management, Human Resources, Plant Maintenance, Project System, BASIS system and so forth. Before the year 2000, ATLAM was in a poor stated of technology. However, the privatization of ATLAM resulted in the introduction of new shareholders and brought the academy into the fold of the PETRA Group of Companies, and it was provided with better IT facilities. At the same time, all PETRA’s servers had to be consolidated to leverage its group-wide PETRANET network system. In accounting system, ATLAM was previously relied on a customized single-user system that solely used to enter the accounting entries, but not functioned to produce financial reports. At this point, ATLAM was looking for better alternatives to upgrade the accounting accounting system. They were considering considering the available alternatives; there were ACCPAC or SAP system. Zulkifli Osman, the Finance Manager was critically assessing the risk associated with the decision and he was going to have discussion with some of his members for this project. During the meeting discussion, Lim and Gopal who were User representative and User Project Manager, were not so consent to the implementation implementation of SAP onto the factor of time constraint, insufficient insufficient of resources (fund, (fund, expertise, facilities), facilities), subsequent subsequent problems in SAP system compared to the ACCPAC. ACCPAC. However, Sani and Kamal who as Project Manager and Functional Analyst, were quite agreed to the SAP system with Zulkifli Osman. They were trying to analyze in various aspects to give solutions for the issues that rose up, for instance, feasibility study, cost-benefit analysis, scheduling and so on. Zulkifli Osman also had thought to kick Lim out from the group as he always criticized in the discussion. But is it a good deal to do that? At last, even though there are some conflicts of opinions within a project group, but indeed, they have the intention to serve for the company own well. ACCPAC or SAP, it is just a system, the most important thing the collaboration of the whole organization are well bonded to drive the ATLAM to a better future.
2
ISSUES ISSUE 1: INSUFFICIENT RESOURCES One of the ultimate and overriding issues that may face by ATLAM is insufficient resources in terms of fund, facilities and expertise. Zulkifli believed that their efforts to implement SAP will involve unique risks and challenges. In their first meeting Lim have mentioned the implementation implementation process of SAP will costly them a lot even though Petra group will provide leverage to them. Moreover, Lim claim that there are shortage of PCs and space to install them in the department. Lastly, the personnel of ATLAM that involved in implementation process did not have an extensive experience with the SAP. It is important as knowl knowled edgea geable ble team team membe memberr can help help to antic anticip ipate ate poten potentia tiall issue issue that that occur occur onsit onsite e durin during g implementation. Those three problems should be consider by project team before proceed with the project.
RECOMMENDATION In order to evaluate the sufficiency of implementation of SAP system project, we are advised that ATLAM could throughout throughout feasibility feasibility study and cost-benefit cost-benefit analysis to evaluate and analysis the valuable and feasibility of SAP system project in organization. Feasibility Study We suggest that ATLAM can throughout the Feasibility Study to assess and considered in a number of areas for the SAP project, for example economic, operational, scheduling, technical and political. a. Techni Technica call Feas Feasibi ibilit lity y Assessing technical technical feasibility of ATLAM in implementation SAP System project project would required to identify identify and evaluate evaluate that whether whether SAP System System will perform effectivel effectively, y, reliable reliable and the capability of resources to utilize SAP System. It will provide a discussion of relevant technical risk factors and overall risk rating of the project. (Hoffer, George, and Valarich, 2011) This This analy analysis sis shoul should d inclu include de an asses assessme sment nt of the the techn technica icall risk risk on SAP SAP System System that that is depending on four primary factors: project size, project structure, ATLAM development group’s experience with similar system, and user group’s experience with SAP System development projects and the application area. (Kirsch, 2000) By using those project risk assessment factors to access the technical risk level of SAP System, the result drawn that SAP System project has a medium risk. The conclusion is based on the following findings:-
3
1. Proje rojec ct Si Size This project is reasonably large project for ATLAM, to be said, the larger the size of the projects, the riskier the project is. (CHAOS Report, 1999) This is because the project will impacted on entire ATLAM organizations. Almost 20 departments in ATLAM will involved, it will give high stress to project team members which consists of five persons (Sani as Project Manag Manager, er, Gopa Gopall as User User Projec Projectt Manag Manager er,, Lim as User User Repre Represe senta ntativ tive, e, Kama Kamall as Functional Functional Analysts and Zulkifli as Finance Manager) to finish the project in shorter duration time (second weeks of February until fourth weeks of March). 2. Proj Projec ectt Stru Struct ctur ure e The requirements for SAP System project is highly structured and well define have a lower risk. In fact, under the SAP system, it will provide an applicable applicable system to ATLAM and to all companies within the PETRA group. Even though there are user representative (Lim) whose refuse to carry on the implementation of SAP system, it is still under control as the ATLAM management have highly commitment through the system. 3. Devel Develop opmen mentt group group and and User User group group The projects have a high risk as the development group and user group has low familiarity with the application area of SAP System. However, conducting some training will reduce the risk. Medium risk of technical technical assessment of SAP project should be considered considered as acceptable acceptable to ATLAM as refusing to take any risk will cause ATLAM couldn’t make the major breakthroughs in innovative uses of systems. (Hoffer, George, and Valarich, 2011) b. Operat Operation ional al feasi feasibil bility ity Assessing operational operational feasibility of ATLAM in implementation SAP System project is to gain an understanding understanding of the degree to which which SAP system will likely to solve the business business problems, problems, or take advantage of the opportunities or not (Hoffer, George, and Valarich, 2011). Also, we need to assess whether the current work practices and procedures support a new system and how the organizational changes will affect the working lives of those affected by the system (Jaffe 1967). Lim argued that implementing the SAP System project may cause some obstructs and may increase difficulty to the staffs in their day-to-day operation because the SAP System are likely
4
to change in work process, culture and habits. This shows that SAP System have high risk project to undertake in terms of operational risk as it have a significant and widespread impact on ATLAM’s ATLAM’s operation. operation. Therefore, Therefore, further further analysi analysis s on the resistance resistance to change change should be conducted to understand more in this area. Moreover, the existing operations and support infrastructure of ATLAM cannot handle the SAP System, however with the support from PETRA and appropr appropriate iate training training of the affected affected staff staff in ATLAM, ATLAM, then then this project will operatio operationall nally y feasible. c. Sche Schedu dule le feasi feasibi bili lity ty Assessing schedule feasibility of ATLAM in implementation implementation SAP System is concerns with the dura durati tion on of the the SAP SAP Syst System em proj projec ectt befo before re it full fully y impl implem emen ent. t. The The purp purpos ose e is to gain gain understanding understanding of the likelihood that all potential timeframes and the completion date schedules can be met met and and that that meetin meeting g these these date will will suffi sufficie cient nt for deal dealing ing with with the needs needs of the organization. (Hoffer, George, and Valarich, 2011) This project is estimated to complete within 7 weeks. Gantt chart will be used to detail out the project activities and the durations. In line with the scheduled activities, the resources such as user, support infrastructure and etc should be available for feasible the project scheduling. Therefore, project teams should firstly deal with the resistance of staff to change as claims by Mr. Lim. The time frames needed to implement the SAP System involved a number of months; however however the projects lack of time to met the completion date schedules. They have to evaluate the scheduling risk such as the possibility on delivering improper functioning SAP System in order implement the project on time. It is advisable for ATLAM to extend the implementation due date of SAP System, since the cost is significant and the ATLAM’s staff shod be ready and prepare well to embrace SAP System. An inadequate systems implementation implementation will worsen the ATLAM’s organizations. d. Politi Politica call feasi feasibil bility ity Assessing political feasibility is the process of evaluating evaluating how key stakeholders stakeholders within the organization view the proposed system. The key stakeh stakehol olde derr for ATLA ATLAM M is it very very own own staffs staffs,, theref therefore ore the project project teams teams cann cannot ot exclu exclude ded d the user user repres represen enta tativ tives es and and most most import importan antt is to overc overcom ome e the resis resistan tance ce of ATLAM’s staffs staffs to change. change. (Hoffer, (Hoffer, George, George, and Valarich, Valarich, 2011) 2011)
5
Cost-Benefit Analysis According to Gitman, L.J. (2009)., cross all capital budgeting budgeting analysis, analysis, the ideal evaluation evaluation method should include all cash flows that occur during the life of the project,consider the time value of money, andincorporate the required rate of return on the project. Therefore in our analysis, there is some part of this consideration not able to be included as we have lack of information on their financial situation. a. Init Initia iall Outl Outlay ay Initial outlay is the cost incurred to enter a project. To understand how much it cost to start and run a project is imperative to determine the feasibility range. By including this in the initial cost into project financial plan, it allows us to have better understanding on how profitable the project will be. Based on data provided, below is the initial outlay that would incur by ATLAM in this project.
Software Licenses Hardware cost Training cost Customization work TOTAL
RM 1,000,000 2,000,000 1,271,550 72,840 RM 4,344,390
As to guide the project project implementation implementation assessment assessment this cost-benefit cost-benefit analysis analysis has been been released as supplementary guidance material available to assure the project framework, and provides practical guidance regarding the range of issues to consider when conducting a financial and efficiency analysis of SAP project in ATLAM.
6
COST (RM): Average SAP license cost Data conversion cost Overhead cost System maintenance and firewalls Hardware expansion Training TOTAL COST Savings(RM) : Accountant’s time and efficiency Technical expertise cost savings Process and procedures cost savings Working capital savings TOTAL SAVINGS Net savings per month NET SAVINGSAFTER TAX (1-0.25)
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
YEAR 6
-
150,000
200,000
225,000
250,000
250,000
100,000
160,000
180,000
560,000
600,000
640,000
300,000
420,000
490,000
560,000
600,000
640,000
60,000
120,000
130,000
140,000
150,000
160,000
-
260,000
300,000
340,000
380,000
400,000
500,000
800,000
900,000
1,000,000
1,100,000
1,300,000
960,000
1,910,000
2,200,000
2,825,000
3,080,000
3,390,000
-
400,000
800,000
1,200,000
1,600,000
2,000,000
600,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,0000
-
500,000
900,000
1,200,000
1,500,000
1,800,000
900,000
1,200,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
3,300,000
4,600,000
5,500,000
6,400,000
7,300,000
540,000
1,390,000
2,400,000
2,675,000
3,320,000
3,910,000
405,000
1,042,500
1,800,000
2,006,250
2,490,000
2,932,500
Based on information provided provided and this cost benefit analysis, analysis, it is clearly shows the new system upgrade is justified. The system will save ATLAM over half-of-a-million to RM3, 000,000 from the the firs firstt year year to sixt sixth h year year.. Thus Thus it will will be no fina financ ncia iall cata catast stro roph phe e resu result lt from from SAP SAP implementation regardless of ATLAM who’s showing cash deficit in their December 2001 cash flow statement. Apart from this, we would recommend that Finance and Accounts Accounts Department Department in ATLAM to evaluate more possible benefits and cost to assure the success of this analysis. Some of the overlooked costs include floor space, insurance and utilities power consumption. Despite the numbers that being discussed here, we also acknowledge that capital expenditure incurred by ATLAM would be finance finance by PETRA group as their aim to consolidate consolidate PETRA’s entire server server to
7
leverage its group-wide PETRANET network system. This means, decision on implementing SAP into ATLAM also brings financial benefits to the institution. b. Payb Paybac ack k Peri Period od
CIMA defines payback as 'the time it takes the cash inflows from a capital investment project to equal the cash outflows, usually expressed in years'. Usually a company might have a target payback, and so it would reject a capital project unless it’s payback period Based on the cost-ben cost-benefit efit and initial initial outlay outlay were less than a certai certain n number number of years. years. Based computed earlier, earlier, we would like to proceed on evaluating the time taken for this project to cover its entry cost. To cover the weakness of payback period analysis, analysis, we will consider the timing of
cash flows within the payback period, the cash flows after the end of payback period and therefore the total project return. i.
Prese resen nt Va Value lue of of Ne Net Sa Saving ings (Assumed Interest rate as 10%)
Discount rate, r =
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
i.
RM 540,000 1,390,000 2,400,000 2,675,000 3,320,000 3,910,000
r 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645
PV 490,914 1,148,696 1,803,120 1,827,025 2,061,388 2,207,195
490,914 1,639,610 3,442,730 5,629,755 7,331,143 9,538,338
Disc iscounted ted pa payba yback pe perio riod This is simply calculated calculated by adding up the discounted net savings until they are equal to the initial outlay. Despite ignoring the saving occurs after the payback period, it uses the savings computed and considers time value of money. As in time value of money, the receipt of
money is preferred sooner rather than later. Money can be used to earn more money. The earlier the money is received, the greater the potential for increasing wealth. Thus, to forego the use of money, you must get some compensation. 8
Recall the initial outlay is RM 4,344,390. Up to year 3, the accumulated saving is RM 3,442,730. It requires another RM 901,660 to cover the initial outlay. To determine the remaining period: =
3
+ 901,660 1,827,025
= 3.49 years *** So the discounted payback period for this project is 3.49 years.
ISSUE 2: TIME CONSTRAINT What is constraint? According to Oxford Dictionary means something that limits your freedom to so what do you want. Thus, time constraint issue related to ATLAM is about limited time that is ATLAM be ready of implement SAP system to replace the old system. From the case study, the ATLAM have just two month to go to complete total SAP system to their company, 1st April 2002. As we know, the last meeting that held by ATLAM is 23rd January 2002 and the next meeting will be held on fortnight, first week of February 2002. Therefore, ATLAM will start their project by second week of February. The upgrading system of accounting is not as easy as Zulkifli (Finance Manager) and Sani (Project Manager) have thought; due to ATLAM also face of scarcity of intelligence source on implementing the project. Furthermore, the ATLAM need to provide training to users. The full time training will takes about three weeks and more time will deliver to the users does not have any basic in computer system. Therefore, ATLAM essential to plan, organize, implement and control the project well by having the guideline to ensure the project is succeed and it aids the group project illustrate how the project will carried out.
RECOMMENDATION We recommend ATLAM to use Gantt chart will assist ATLAM illustrate the whole project. What is Gantt chart? A Gantt chart is visual aid in the management of a project then, will lead to the effective communication. Gantt chart is a kind of bar chart, developed by Henry Gantt, which illustrate the start
9
and finish dates of the terminal elements and summary elements of a project. Terminal elements and summary elements comprise the work breakdown structure of the project. (Pearson) A Gantt chart is constructed constructed with a horizontal horizontal axis representing representing the total time span of the project, broken down into increments (for example, days, weeks, or months) and a vertical axis representing the tasks that make up the project (for example, example, if the project is outfitting your computer with new software, the major tasks involved might be: conduct research, choose software, install software). (Rouse, 2007) The common method to create Gantt is using project management applications such as Microsoft Project, and Microsoft Excel. For economic cost, ATLAM also can use Microsoft Excel then it will not bear any cost. On the other hand, ATLAM also can just design the Gantt chart by online and print it out. An advantage advantage by using Gantt Gantt chart is it gives clear clear illustrative of current status of of project run by ATLAM. ATLAM.
AKADEM AKAD EMII TK TKNI NI KAL LAUT MALAYS MALAYSII A (ATLAM) GANTT CHART SAP syst emi mpl ement aTi on Friday, riday , 1February, 2002 TASK TASK Organisation project Investigate Inv estigate current current system Determine Determine problem pro blem and feasibity study of SAP Pilot testing and training Develop solutions Prepare analysis report
WEE WEEK 2 WEE WEEK 3 WEE WEEK 4
Friday, riday , 1 Marc Mar ch, 2002 WEE WEEK 1 WEE WEEK 2 WEE WEEK 3 WEE WEEK 4
ISSUES 3: RESISTANCE TO CHANGE One One of the main issues issues in this this case case are ATLAM ATLAM facin facing g resist resistan ance ce to chan change ge in devel develop op a new new accounting system with the PETRA group-wide SAP system. Zulkifli Osman, Finance Manger concern that whether ATLAM’s staff would be ready to embrace the new system. We found that there are several reasons the ATLAM is resistance to change at that time. They are lack of the good information about the SAP system. Due to no provided any briefing and information about the SAP system, they do not even know how the SAP to run and implement in their workplace. They are lack of the knowledge about the SAP system and its also cause the misunderstanding by the user represen representati tative, ve, Lim that SAP’s only only suitable suitable for manufac manufacturi turing ng industry industry not in educati education on industry. industry.
10
Besides that, Lim found no reason why ATLAM must change the current system to SAP system. Before that, ATLAM was overhauled its information technology (IT) facilities in 2000 due to privatization with PETRA Group. He was thinks that there are no reason why ATLAM must choose to implement the SAP system instead of ACCPAC which SAP system cause a high cost to implement. In other hands, they are also fear of loss of security and power when change the system in operation. ATLAM is a PETRA subsidiary subsidiary and has to link its system system to PETRA’s to match match with the group reporting reporting structure. Due to this reason, ATLAM’s staffs are fear of loss of the power to control the system operating and their authority will be separately divided to each others. They are worried that the transformation may change their role and responsibilities. The SAP database is pretty much centralized across all PETRA subsidiaries. This might be arises the problem of ‘traffic jam’ with the thousands of users using the system at the same times. And it might be loss of security in dealing with centralized data in that massive volume of data. Due to the habit inside ATLAM and fear of the unknown, they are not willing to change to anything that is not to be familiar with. A human being is not likely change in an unknown situation that might be causes the bad influences and they are having a habit in their workplace that know well. Furthermore, ATLAM is resistance to change because they are facing the lack of resource to implement SAP system which are need a lots of funds, equipments, spaces, intelligence resources and etc to support. The project team members were complaint they are not enough PCs in the departments to make this practical, do not even have the space available to house the system, some of the staff in ATLAM have never used a PC before and lack of the knowledge about information technology. They also concerns in the cost to implement the SAP system that need a lots of funds.
RECOMMENDATION If ATLAM decided to implement SAP system for their operation, the project team members should ensure that there are several ways to dealing resistance change in the organization. Here we are suggested several ways for ATLAM to dealing resistance change: 1.
Education and Communication ATLAM’s staff lack of good information or inaccurate inaccurate information and analysis about the SAP system. When staffs are not really bought into the rationale for any change, top management could provide new skills and knowledge to them via a focused course of education. They might be accepting once they realize why the change of system is needed in ATLAM and what
11
actua actually lly is need needed ed of them. them.
The proje project ct team team members members should should have have a well well and and prope proper r
communication with the users of SAP system. It could help them realize what the problem is facing by the users that cause them resistance to change in currently. 2.
Participation and Involvement When people people are not involved involved physically physically or intellec intellectual tually, ly, they are unlikely unlikely to be involved involved emotiona emotionally lly either. either. The top manageme management nt of ATLAM ATLAM can getting their staff staff to involved involved and participate in this project which is implement the SAP system immediately. Subordinates might not not know know what what the the cond condit itio ions ns or situ situat atio ion n they they are are in if they they are are not not gett gettin ing g into into the the implementation. At the same time, the top management also gets fresh perspectives or idea from subordinates subordinates which allow them to voice out their views about the SAP system. Most of the users of SAP system are those subordinates to run.
3.
Facilitation and Support ATLAM’s staff resistance to change because there lack of facilities or resources support. They are fear to do adjustment of problems. For example ATLAM is not enough space for allocate PCs to all staff, so if develop SAP system, they might be share PCs or go to another department to settle down their works. In order to solve this problem, ATLAM should proper allocate the spaces, facilities and sufficient resources provided to staff. This actions show to ATLAM’s staff the effort of top management that help to achieve and implement the goals together.
4.
Manipulation and Co-option This method will be use if where other tactics will not work, or are too expensive. Manipulation means means controll controlling ing staff’s environment environment such that that they they are shaped shaped by what is around around them. them. Howev However, er, it could could lead lead to future future proble problems ms or dang dangero erous us backl backlash ash if ATLA ATLAM’s M’s staff staff feels feels manipulated manipulated by the top management team in order to change that implement SAP system. This tactics is necessary in the short them and all other avenues have been explored by the project team.
5.
Explicit and Implicit Coercion Coercion is a method that even more extreme than subtle manipulation is overt coercion. ALTAM’s project team should forced their staff down and make overt threats to them. For example warning that if they do not comply or follow to implement the SAP system that they will lose their jobs, perhaps in a humiliating and public sacking. Coercion is speedy the essence and overcome any kind of resistance. resistance. In this case, the users representative, representative, Lim was terminate from
12
the the proj projec ectt team team;; he migh mightt be spre spread ad out out the the bad bad news news abou aboutt the the SAP SAP syst system em.. Top Top management could use this method to overcome the resist to change.
ISSUE 4: TERMINATION In the case of SAP for ATLAM, Lim was having conflict on opinion with Zulkifli Osman when discussing the matter of SAP system in ATLAM. Lim was disagreed to implement the SAP system in ATLAM as he criticize criticize there there were tremendou tremendous s factors factors such as time constrai constraint, nt, insuffici insufficient ent of resource resources s (fund, (fund, expertise, facilities), subsequent problems in SAP system compared to the ACCPAC. In the other hand, Zulkifli Osman was very unsatisfied with Lim’s behavior and intended to kick him out of the project team. Luckily, he frustrated idea had been hold by Kamal as Kamal advise him that the critical ideas of Lim is good for organization since he was very experienced in such related industry. Zulkifli Osman was advised to reconsider on the termination of Lim.
RECOMMENDATION Insubordination is ranked at 4th in the top 10 reasons of employees get fired. (Doyle). However, why employees will insubordinate within the team? It must have any reasons or conflicts existed. As same to the case of SAP for ATLAM, Lim was having conflict with Zulkifli Osman in the SAP implementation matter. Thus, how we could settle this kind of nervous matter? When a team oversteps the mark of healthy difference of opinion, resolving conflict requires respect and patience. (Resolving team conflict) We recommend that Zulkifli Osman must replace the negative experiences with positive ones. The three-stage process below is a form of mediation process, which helps him to resolve the conflict. In stage one, it is suggested to prepare for the solution by acknowledge the conflict, discuss the impact, agree to a cooperative process, and agree to communicate. In stage two, understanding the situation by clarify positions, list facts, assumptions and beliefs underlying each position, analyze in smaller groups and convene back as a team. In stage three, agreement is reached through the steps above. In preventing conflict, the teams can be used such skill and behavior that very work on, such as dealing with conflict conflict immediat immediately, ely, being being open, open, practicin practicing g clear clear communic communicatio ation, n, practici practicing ng active active listenin listening, g, practicing identifying assumptions, not letting conflict get personal, focusing on actionable solutions, encouraging different points of view, not looking for blame, demonstrating respect, as well as keeping team issues within the team. (Resolving team conflict)
13
THOMAS-KILMANN CONFLICT MODE INSTRUMENT (TKI) In TKI, TKI, ther there e are are two two dime dimens nsio ion n that that one one pers person on will will alon along g to, to, ther there e are are asse assert rtiv iven enes ess s and and cooperativeness. Assertiveness is the extent to which the individual attempts to satisfy his or her own concerns. Whereas, the cooperativeness is the extent to which the individual attempts to satisfy the others person concerns. These two basic dimensions of behavior can be used to define five specific methods of dealing with conflicts as shown below. a) Competing is assertive and uncooperative, a power-oriented mode. When competing, an individual pursues his or her own concerns at the other person’s expense, using whatever power seems appropriate to win his or her position. b) Acco Accomm mmod odat atin ing g is unassertive and cooperative - the opposite of competing. When accommodating, an individual neglects his or her own concerns to satisfy the concerns of the other person; there is an element of self-sacrifice in this mode c) Avoiding is unassertive and uncooperative. When avoiding, an individual does not immediately pursue either his or her own concerns or those of the other person. He or she does not address the conflict. d) Coll Collab abor orat atin ing g is both assertive and cooperative - the opposite of avoiding. When collaborating, an individual attempts to work with the other person to find a solution that fully satisfies the concerns of both. It involves digging into an issue to identify the underlying underlying concerns of the two individuals individuals and to find an alternative that meets both sets of concerns. e) Comp Compro romi misi sing ng is intermediate in both assertiveness and cooperativeness. When compromising, the objective is to find find an exped expedien ient, t, mutu mutuall ally y accep acceptab table le solut solutio ion n that that parti partial ally ly satisf satisfies ies both both parti parties. es. Compromising falls on a middle ground between competing and accommodating, giving up more than competing but less than accommodating.
14
Thus, in this case, Lim and Zulkifli Osman are more to the mode of competing. However, if they learn and know about these modes, modes, they may switch it to the collaborating and compromising compromising mode. Thus, this will benefit to the ATLAM in operation especially in SAP. In the nutshell, conflict is inevitable in an organization, it is seem how we look on the conflicts, is it a positive or negative conflict? Some tips given to the team for conflict solving, there are defining the actual actual causes of the conflict, conflict, validating validating differenc differences es in percepti perception on and point point of view, setting setting up and getting agreement for a process you both will work through, listening actively and at last documenting the resolution and the plan of action.(Resolving action.(Resolv ing Team Conflict). Lim is expertise and as a good asset to ATLAM, we are not suggesting suggesting Zulkifli to kick kick our Lim from from the project project team. team.
CONCLUSION After we do for the analysis and evaluate the usefulness usefulness of SAP system project, we recommend recommend that ATLAM should implement the system as soon as possible. possible. The implementation of SAP system would be brings a lot of benefit and convenience for ATLAM in the long term view. Even though there have a quite high risk to implement the system from the feasibility study, however an organization organization should willing to take risk in order to gain more benefit in the future. Besides that from the calculation of cost-benefit analysis, we found that the investment in SAP system save ATLAM over halfof-a-million to RM3, 000,000 from the first year to sixth year. Also, the discounted payback period which for this project only 3.49 years? It is one of the main reasons ATLAM should invest in SAP system. To overcome the time constraint mention by Lim, ATLAM could use Gantt chart as a tool to guide the procedures in implementation of SAP. Gantt chart also gives clear illustrative of current status of project run by ATLAM. The resistance to change by ATLAM should faced it by using the 5 suggested ways which which are educati education on and communic communicatio ation, n, particip participatio ation n and involvem involvement ent,, facilitat facilitation ion and support, support, manipulation and co-option and the last but not least explicit and implicit coercion, these could help ATLAM to change their their current current system to a advanced advanced SAP system. The last, we are disagreed that the action of Zulkifli Osman to terminated Lim from the project team due to the conflicts that incurred during the meeting. He should resolve the conflicts but not simply terminate Lim to avoid the conflicts. He can go through the 3 steps that we suggested above and by using Thimas Thimas-Ki -Kilma lmann nn Confl Conflict ict Mode Mode Instr Instrum umen entt (TKI) (TKI) to overco overcome me the confl conflict icts. s. Lim should should not not be terminated because he have a great experience in the industry and he enable to pointed out some critical issues in the way to implement SAP system in ATLAM.
15
A good information system could help ATLAM drive better in the future. SAP system project should be implementing by ATLAM in order to enhance the competitive advantages in the industry and also growth smooth and advanced in the business future.
REFERENCES Gitman, L.J., (2009).Principles of Managerial Finance (12thed.). Boston : Prentice Hall, Inc. Hoffer, J.A., George, J.F., and Valacich, J.S.2011. ” Modern Systems Analysis and Design.” 6th edition. Pearson Prentice Hall. Kirsch, L. J. 2000. “ Software Project Management: An Integrated Perspective for an Emerging Paradigm.” In R. W. Zmud (ed.), Framingthe Domains of IT Management: Projecting the Future from the Past, 285-304.Cincinnati, OH:Pinnaflex Educational Resources. Pearson. (n.d.). Myomlab. Retrieved October 19, 2012, from Chapter 10: Planning and Control: www.myomlab.com Rouse, M. (2007, May). Search Software Quality. Retrieved October 19, 2012, from Gantt Chart: http://searchsoftwarequality.techtarget.com/definition/Gantt-chart THE CHAOS Report (1999), The Standish Group International Inc.
16
