HOW TO INDUCE AND MAINTAIN AN EMPLOYEE READINESS AND COMMITMENT DURING ORGANIZATIONAL TRANSFORMATION A STUDY CASE FROM INDONESIAN CONSULTING FIRM FINAL PROJECT In partial fulfillment of the requirements for the master’s degree from Institut Teknologi Bandung By WIRDA SAVITRI Student ID : 29323086 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG March 2025 i ABSTRACT HOW TO INDUCE AND MAINTAIN AN EMPLOYEE READINESS AND COMMITMENT DURING ORGANIZATIONAL TRANSFORMATION A STUDY CASE FROM INDONESIAN CONSULTING FIRM By Wirda Savitri Student ID : 29323086 (Master of Business Administration Program) As the world changes, industry changes, and companies can either resist the change or follow and transform themselves to stay in business. However, change is not an easy feat. The majority of companies failed to conduct change, and one of the main factors that determines change are the individuals in the organization. The same is occurring in PT Sumber Belajar Berkah where the transformation of their Learning Solution line of business into The Academy is facing threatening challenges and delay. A root cause analysis was conducted and found that change readiness and change commitment may influence the issue in hand. Therefore, drivers of change readiness and change commitment were identified based on extensive literature review of 25 literatures to identify 4 main drivers which are: transformational leadership, perceived organizational support, high-performing human resources practice, and belief in self-efficacy. The research conducted a qualitative approach through interview and thematic analysis. The interviews were conducted to 6 interviewees who are mainly involved in the transformation of PT Sumber Belajar Berkah. Thematic analysis was conducted in accordance with each of the change readiness and change commitment drivers. The result from the interview and analysis elaborated that PT Sumber Belajar Berkah weaknesses could be identified in its human resources management practices where it is deemed as lacking according to the interviewees’ answer. From the analysis, solutions were identified and elaborated. The solution was formulated based on the information from data collection, analysis, PT Sumber Belajar Berkah’s condition, and the previous studies that focuses on change readiness and change commitment. Several programs were advised in order to enhance each of the change readiness and change commitment drivers namely instrumental leadership program; intensive communication, implementation, and reward system; as well as the most crucial is the improvement in Human Resource Management Practices. Keywords : Organizational Transformational, Change Management, Employee Readiness, Commitment, Leadership iii ABSTRAK UPAYA MENINGKATKAN DAN MENJAGA KESIAPAN SERTA KOMITMEN KARYAWAN DALAM PROSES TRANSFORMASI ORGANISASI: STUDI KASUS PADA PERUSAHAAN KONSULTAN DI INDONESIA Oleh Wirda Savitri NIM : 29323086 (Program Studi Magister Administrasi Bisnis) Ketika dunia berubah, industri pun berubah, dan perusahaan dapat menolak perubahan tersebut atau mengikuti dan mentransformasi diri mereka untuk tetap bertahan dalam bisnis. Namun, perubahan bukanlah hal yang mudah. Mayoritas perusahaan gagal dalam melakukan perubahan, dan salah satu faktor utama yang menentukan perubahan adalah individu-individu di dalam organisasi. Hal yang sama juga terjadi di PT Sumber Belajar Berkah di mana transformasi lini bisnis Learning Solution menjadi The Academy menghadapi tanta ngan dan keterlambatan. Analisis akar masalah dilakukan dan menemukan bahwa kesiapan perubahan dan komitmen perubahan dapat mempengaruhi masalah yang dihadapi. Oleh karena itu, faktor pendorong kesiapan perubahan dan komitmen perubahan diidentifikasi berdasarkan tinjauan literatur yang ekstensif terhadap 25 literatur untuk mengidentifikasi 4 faktor pendorong utama, yaitu: kepemimpinan transformasional, dukungan organisasi yang dirasakan, praktik sumber daya manusia yang berkinerja tinggi, dan keyakinan terhadap efikasi diri. Metodologi penelitian ini menggunakan pendekatan kualitatif dengan metode wawancara dan analisis tematik. Wawancara dilakukan terhadap 6 narasumber yang terlibat langsung dalam transformasi PT Sumber Belajar Berkah. Analisis tematik dilakukan sesuai dengan masing-masing faktor pendorong kesiapan perubahan dan komitmen perubahan. Hasil dari wawancara dan analisis menguraikan bahwa kelemahan PT Sumber Belajar Berkah dapat diidentifikasi dalam praktik manajemen sumber daya manusianya yang dianggap kurang sesuai dengan jawaban narasumber. Dari hasil analisis tersebut, solusi kemudian diidentifikasi dan diuraikan. Solusi dirumuskan berdasarkan informasi dari hasil pengumpulan data, analisis, kondisi PT Sumber Belajar Berkah, dan penelitian-penelitian sebelumnya yang berfokus pada kesiapan perubahan dan komitmen iv perubahan. Beberapa program yang disarankan untuk meningkatkan masing-masing faktor pendorong kesiapan perubahan dan komitmen perubahan adalah program kepemimpinan instrumental; komunikasi intensif, implementasi, dan sistem penghargaan; serta yang paling krusial adalah peningkatan praktik manajemen sumber daya manusia. Kata kunci: Transformasi Organisasi, Pengelolaan Perubahan, Kesiapan Perubahan, Komitmen, Kepemimpinan v VALIDATION PAGE v FINAL PROJECT GUIDANCE Unpublished masters’ final project is registered and available in the Library of Bandung Institut of Technology, and is open for public, provided that the author owns the copyright in accordance with the intellectual property rights that are applicable in the Library of Institut Teknologi Bandung. Bibliographical references are allowed to be use in a limited manner, however the citation and summarization can only be proceed upon the author’s permission and must include the scientific norm of stating this final project as the source. This final project has to be cited as: Reproduction or publication of parts or whole of the final project must be under the consent of the Head of Graduate School, Bandung Institute of Technology. and Commitment During Organizational Transformation: A Study Case from Indonesian Consulting Firm, Master’s Final Project, Institut Teknologi Bandung Savitri, W. (2025): How To Induce and Maintain An Employee Readiness vi This final project is dedicated to parents, husband, and my beloved friends who always support me.. vii ACKNOWLEDGEMENTS Jakarta, February 2025 Wirda Savitri By the grace and mercy of Allah SWT, the author would like to extend deepest gratitude for: First and foremost, I would like to express my deepest gratitude to my thesis advisor, Prof. Dr. Aurik Gustomo, S.T, M.T. for his invaluable guidance, unwavering patience, and continuous encouragement throughout my research journey.. To my beloved husband, words cannot adequately express my appreciation for your unwavering support and companionship throughout both my bachelor's and master's degree journeys. Your guidance and presence have been my cornerstone of strength. I extend my sincere appreciation to all the lecturers and staff at SBM ITB Jakarta for providing an enriching academic environment where I had the privilege of gaining knowledge and connecting with extraordinary individuals.. To my amazing classmates in BLEMBA 34, thank you for your exceptional solidarity and friendship. Your presence has made this academic journey both inspiring and unforgettable. My heartfelt gratitude goes to my parents, who have consistently supported me in every circumstance and trusted my decision to pursue this master's degree. Your unconditional faith in me has been a source of endless motivation. I am deeply grateful to all my colleagues from the four companies where I worked during my studies. Your positive support and understanding have been invaluable in helping me balance my professional and academic responsibilities. Finally, I would like to acknowledge myself for continuously embracing opportunities for learning and growth, and for being fortunate enough to meet such remarkable individuals along the way. May this achievement open new doors of opportunity and lead to greater accomplishments in the future. viii TABLE OF CONTENTS ABSTRACT ......................................................................................................... i ABSTRAK .......................................................................................................... iii VALIDATION PAGE ........................................................................................ iv FINAL PROJECT GUIDANCE ..........................................................................