Managing Communication Process in the Organizational Changes: the Case of PT Xyz

Communication is vital to the effective implementation of organizational changes. During the major organizational changes within the organization, a good and suitable communication process is needed and important to improve company's operation performance. The aim of this paper is to analyze communication problems during organizational changes and to propose the appropriate interventions in the organization's case study. Three major internal communication barriers are found and indicated which related to the geography, culture and people problems. Through applying not only ICT's approaches, but also implementing training, education and workshop as well as boundary spanners programs, those communication problems could be overcame. To cite this article (7th APA style): Masyhuri, M.. (2019). Managing Communication Process in the Organizational Changes: The Case of PT XYZ. Journal Communication Spectrum, 9(1), 42-56. http://dx.doi.org/10.36782/jcs.v9i1.116

However, many barriers which is called "noise" occurred in the communication process. Eunson (2005) defined noise as anything that distorts the message, such as incomplete message transfer, message's misinterpretation, and misperception of situations and people.
To cope with those communication barriers, Eunson (1994) recommended using different communication channels. Other solutions such as maintaining content and message as well as making Furthermore, Hayward (1998) differentially mentioned communication channels in the organization which called: vertical and horizontal communication process.
Vertical communication process usually occurs between managers and their subordinates or upward and downward communication process. In the mean time, horizontal communication process occurs between co-workers in the same level within organization.
Nevertheless, there are many barriers to communication process within organization which are mainly due to physical distraction, semantic problems, cultural differences and the absence of feedback (Wood, et al, 2004). In addition, Hayward (1998) found that at least two major barriers occurred in the communication process, namely: informational and attitudinal factors. Informational barrier related to inaccurate information, poor or inappropriate use of language, whilst attitudinal barrier influenced by cultural differences and stereotypes and negative beliefs.
Moreover, Hamilton (2010)  He defined that interpersonal communication as the process by which information is exchanged and understood by two or more people, usually with intent to influence or motivate behavior. Therefore, he found that most important communication problems in the organization related to the external factors, the limited time, the language and the ability of perception and the negative attitude. To overcome with those problems, Athanasios (2005) suggested, clearly communication, training and teaching education and improve non-verbal communication are the some solution from others interventions to improve communication in the organization.

Communication Process in Today's and Future's Organization
Based on Ihator (2004) statement, communication between and within organization today has been changing and substantially improving due to a changing society, corporate values and information technology. Consequently, to succeed in communication process, present company should more transparent in its business, understand industry trend and issues and open to learn, develop new skills and grow (Cummins, 2003).
Similarly, Huang and Kleiner (2005) supported Ihator statement that in today's business environment, effective corporate communication is becoming important due to the highly diversified workforce and rapidly changing technologies. Therefore, he suggested using multi channel communication is more common today to achieve company's goal. In addition, Firoz, Taghi and Souckova (2006) clearly agreed that information technology as integral part of today's business infrastructures.
In line with those notions, Denton (2006) suggested that using the intranet has many advantages to improve communication process in today's organization. He insists that the intranet is able to help management and group members obtain a clear picture of what is really going on within organization. In addition, the intranet is used to provide instant access to information deemed important or relevant to various sections or individual within a company. Furthermore, Corso, Martini, Pellergini, Massa and Testa (2006) pointed out that the Information Communication Technology (ICT) enable to overcome geographical, time and organizational barriers to communicate and transfer knowledge in disperse networks. As argued by Bouwman, van den Hooff, van de Wijngaert, and van Dijk (2005) that the use of the ICT in organization requires knowledge regarding both organizations and technology.
Therefore, they recommended four factors are needed to succeed adopting ICT within organization, namely: the organizational; technological; economic; and user perspectives (Masyhuri, 2013).
Aside from that, based on Eunson (2005)'s point of view, the futures organization is signed of emerging virtual organization which is defined as an organization comprising a network of geographically dispersed workers connected to one another, and sometimes to a central workplace via computer, phone, video and other links.
However, Hertel, Kondrat & Orlikowski (2004) admitted that it is difficult to maintain of virtual teams because of reducing of face-to-face interaction during communication process. In the same way, as argued by Conrad and Poole (2005) that beside have many advantages, the implementation of the ICT in the organization could harm employees' privacy and security because of using such the ICT may threatens to erode workers' private time, even further.

Methods
The chosen case study was a PT XYZ is one of major and old plantation company in Indonesia where the author has worked during the period. Data and information were collected through the company's internal and published information including annual reports, internal magazine and reports as well as interviewed with key persons and employees.

History and Background of the Organization's Case Study
Based on its Annual Reports (2003, 2004 and 2005), PT XYZ is a well known as one of the biggest plantation company in Indonesia which has been operated since 1906. Currently, the Company manages 38 different plantation estates locations which are operating in seven provinces in the four major Indonesian islands: Sumatra, Java, Kalimantan and Sulawesi. Relating to the products sold, the Company has variety of products from seeds to palm oil, cocoa, rubber, tea and coffee which are exported to the worldwide. At the end of 2004, the Company employed around thirteen thousands workers across the country and most of them have been served the Company for more than twenty to thirty years.
Traditionally, as a conventional plantation company, PT XYZ has had very hierarchical structure organization and operated in separated different estates locations.
The Company has used traditional communication channels such as mailing post, telex and handy talkie during its operations. Therefore, reporting systems and logistic operations between estates, head office and customers often delayed until four to six months.
As a result, the Company's management could not take a business decision promptly and on-time manner (Annual Report, 2003).
In the beginning 2003, due to changing its majority ownerships and to face a new challenge in a global market as well as to improve the Company's operation performance, the Management has conducted the organization structure overhaul by integrating People-Culture-Structure-Strategy in the whole organization systems. As mentioned by PT XYZ's President Director in the Annual Report (2004, p. 12 transforming from a 'traditional plantation operations of a hundred years, into a 'corporatized' agro-industrial business of a modern corporation. Thus, PT XYZ is being introduced to new ways of doing business…".

Major Problems in the Communication Process
Based on the Company's communication consultant report (Pacific Gehana, 2004), there are three major communication problems in PT XYZ during the transformational process, namely: (1) problems which occurred due to relating to the scattered business unit locations; (2) problems which emerged due to differences cultural ethnics among the employees; and (3) problems which occurred due to relating to the generation gap differences between employees.

Geographical Problems
As mentioned before, PT XYZ operated in the four major island of Indonesia and manage thirty eights estates in different locations.
In addition, some estates located in the remote areas which have lack of supporting infrastructures such as electricity/power energy and poor road conditions. As a result communication process between the estates and the head office can only use the traditional communication channels and it is difficult to obtain report promptly.
As argue by Cheney and Christensen (2001) that maintaining communication process in disperses geographically organization is increasingly difficult. It needs more energy and more capital support to succeed in maintaining business in the scattered locations.

Different Cultural Sub-Ethnics Problems
According to Pitaloka (2004), Indonesia has had more than three hundred different sub-ethnics across the nation as well as has different cultures and languages.
Due to wide operation across the major Indonesia islands, PT XYZ has variety of different sub-ethnics among its employees. Based on the monthly Company's magazine, most workers in Sumatra Island come from Bataknese and Palembangnese sub-ethnics which are known as tough people and have temperamentally characters. However, they have open communication behaviors and able to learn a new technology faster than others.
Similarly, workers in Sulawesi and Kalimantan islands have known as a brave and a tough people, and they have known as best and loyal workers. On the contrary, workers in Java island are dominated by Javanese and Sundanese sub-ethnics which have soft and diligent characters. Nevertheless, they have not ready to absorb a new technology as good as their peers in Sumatra island (Pitaloka, 2004).
According to Mounter (2003:265), "….it required sensitive listening skills and a strategic understanding of the organization's needs to communicate with people from different cultures". Therefore, "communicating across cultures using technology can be a difficult task, because of it needs understanding the advantages and limitations of technology and how to build relationships via technology" (Grosse, 2002:22).

Generation Gap or People Problems
According to Zemke, Raine and Filipczak (2000) and Community Banker (2002), today's organization consist of at least four level of generation workers, namely the veterans/senior (people who were born between 1940s-1950s); the baby boomers (people who were born between 1950s-1960s); the generation X (people who were born between1960s-1980s); and the generation Y (people who were born in 1980s-today).
In line with that, most of PT XYZ employees have been working for more than 20 years and the major of them come from the baby boomers generation (Annual Report, 2004).
The communication problems often emerged among the difference generation gap level. For example, it is quite difficult to ask some workers from the older generation such as the baby boomers to do something which related to the working conditions if the requests come from the younger generations (generation X or Y), although they have higher position in the organization.
These conditions are supported by Fong and Chuang (2004) report who found that in the most Asian cultures, getting on in the senior age is viewed as positive behaves. Therefore, the Asian always and should give respect to elderly people. Those who failed to consider these circumstances are called "the cross taboo-ers" or the "wrongdoers".

Company Interventions
To overcome those communication problems, the Management implemented two approaches, namely the ERP and the networking support systems.

Implementing The Enterprise Resource Planning (ERP) Systems
During the transformation changes, PT XYZ has implemented the Enterprise Resource Planning (ERP) application systems which integrate every function and component of the Company's businesses (Annual Report, 2004). As mentioned by Company's Chief of Information System that ERP provide not only financial and accounting information, but also covers logistics and supply chain information; and, its system can link and used in all estate operations. In addition, the Company constructed the voice-and-data communication infrastructure network through a Wide Area Network (WAN) configuration combined with wireless network technology, the Very Small Aperture Terminal (VSAT) and leased lines systems.
The Company believes that by implementing for such the ICT's approaches, communicating process as well as reporting systems and logistic operations can be obtained on-time and promptly. However, after one and half year implementing those systems, some major communication problems still have been occurred.
As a result, reporting systems and logistic operations within the organization still have delayed for two up to three consecutive months. Furthermore, Boonstra and de Vries (2005) supported that the ICT based web systems are able to share information and could conduct business across organizational boundaries.
Nevertheless, some experts argued that beside make a company stronger, using the ERP systems also have some limitations. Gupta and Kohly (2004) pointed out that using the ERP systems have potentials to destroy a company if the organization failed to improve internal operations and increasing efficiency within organization.
In addition, Hua, Sher and Peng (2005) noticed that using the ICT can reduced receivers ability to establish good relationship within the group members as well as unable to respond the message immediately. Another notion comes from Pepper and Larson (2006) who insisted that using the ICT have more limitations than benefits such as can not adapt cultural differences among the organization members and can lead to a lack of trust between the employees and the Management.

Applying Information Technology Hardware Networking Support Systems and Providing Power Supply Energy
The company also provided the availability of supporting infrastructures systems to smooth the ERP process in its estates locations. As pointed out by Bouwman et al (2005), to succeed implementing the ICT within organization needs supporting technology systems as well as uninterrupted power supply energy such as electricity. Some benefits by providing networking computer systems and continuity of power supply energy, including: avoiding obsolesce technological traps and can maintaining easily the compatibility of supporting hardware systems as well as increasing efficiency by implementing the same technologies.
The company realized that providing new hardware network supporting systems and supplying continuous power energy in every business unit locations need huge financial capital support and take long time period. Therefore, by implementing the hub-network system and integrated sharing power supply energy between the adjacent business unit locations could give the best solutions to improve the communication process within organization (Pepper and Larson, 2006).
Nevertheless, both company's interventions only seems to cope with the geographical problems, and could not be directly improved the communication process problems within the organization. In other words, such interventions only be able to deal with the "communication hardware problems", and could not manage the "communication soft problems" amongst the employees which were occurred, i.e. differences in sub-ethnics cultural and generation gap problems. As a result, the delay communication and data reports from the sites were still there.
As argued by Grosse (2002), to succeed implementing technology in the communication process within organization, at least four factors should be considered by the organization, namely: (1) understand the advantages and limitations of technology; (2) offer training and technical support; (3) build relationships with team members; and (4) keep the human touch.

Conclusion
Managing communication in the changing organization is not as easy as theoretically said. It needs more and long understanding about the natures, actors (senders and receivers) and the message which related to the organization's structures and locations where the communication process is occurred.
Applying the ICT through the ERP system and Networking Support Systems at PT XYZ during the organizational change could only have a little impact to improve the Company's communication and performance processes.
Other factors such as cultural differences and generation gap amongst workers were still occured and could be the majors' barriers to speed up the communication process within the organization.