BBPP 1103

OUM SRI RAMPAI SETAPAK

JANUARY/2016

BBPP 1103
PRINCIPLE OF MANAGEMENT

MATRICULATION NO:

921105085861001

IDENTITY CARD NO.

921105085861

TELEPHONE NO.

016-5016702

E-MAIL

baljinder.singh1824@gmail.com

LEARNING CENTRE

OUM SRI RAMPAI SETAPAK

BBPP 1103

INSTRUCTIONS

Do not copy the assignment question and instructions to your answer.

Prepare your assignment answer following the layout of the ASSESSMENT

CRITERIA shown in the RUBRICS provided for the course. Where RUBRICS are
not provided, follow the instructions/guidelines specified by the Faculty for the
assignment concerned.

Your assignment should be between 2500 to 3000 words EXCLUDING

references.

Type your answer using 12 point Times New Roman font and 1.5 line spacing.

Show the number of words at the end of your assignment.

Tables and figures where provided, should be appropiately titled.

List your references separately in the APPENDIX page.

BBPP 1103

Introduction of Company
Background
AEON CO. (M) BHD. is a well-known retailer in Malaysia. The total
revenue of the company is RM3.51 billion for the financial year under review. AEON
CO. (M) BHD. was incorporated on 15 September 1984. The journey began with a
response to the invitation sent out by the Malaysian Government to AEON Japan to help
modernize the retailing industries in Malaysia. Because of its association with the
international AEON Group of Companies, the brand AEON has become a well-known
name among Malaysian as well as foreigners. AEON is well reputed as a leading chain of
General Merchandise Stores (GMS) and supermarkets. The stores of AEON are mostly
situated in suburban residential areas. This makes it convenient for AEON to cater for
Malaysias vast middle income group. The AEON Group of Companies consists of
AEON Co., Ltd. and more than 250 consolidated subsidiaries and affiliated companies.
Besides the core GMS, supermarket and convenience store operations, AEON also
actively involves in specialty store operations, shopping centre development and
operations, credit card business and services. Despite being an integrated Japanese
retailer, the AEON Group of Companies is active in operation all over ASIA and China as
well as Japan.
History
The history of AEON goes back to JAYA JUSCO. The first Jaya Jusco
Stores Sdn. Bhd. was opened in Malaysia in the year of 1984. This was because of the
then Prime Minister of Malaysia, Tun Dr. Mahathir Mohammad who requested help to
modernize the retail industry in Malaysia using the world's most advanced management
expertise.

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Modernization of the retail industry was deemed vital by Tun Dr. for the
economic development of the country. Prior to this major step in Malaysian retail
industry, Dr. Mahathir visited Tokyo and met the then JUSCO Co., Ltd. President, Mr.
Takuya Okada in 1983. This meeting resulted in the proposition of bringing the JUSCO
name to Malaysia. The meeting ended on a positive note for both parties involved and
with that, the invitation was sent to JUSCO to set up stores in Malaysia. This step
towards uplifting the retail industry was a part of the Look East Policy introduced by Tun
Dr. Mahathir Mohammad for Malaysia.
After the fruitful meeting, in September 1984, a joint venture company
was established. Three parties were involved, namely JUSCO Co., Ltd., Japan, Peremba
which is a leading government-owned property company and Cold Storage which is a
premier supermarket chain store.
The aim of JAYA JUSCO was to grow with the people of Malaysia. This
was done through the transfer of expertise from Japan to Malaysia as per the Look East
Policy and human resource development. These two factors were deemed as great
contributors to progress of Malaysia.
Organization
AEON CO. (M) BHD. is managed by a group of well-respected board of
directors. Dato' Abdullah bin Mohd Yusof as the Independent Non-Executive Chairman,
Mr. Shinobu Washizawa as the Vice Chairman, Ms. Nur Qamarina Chew binti Abdullah
as the Managing Director, Mr. Poh Ying Loo as the Executive Director, Mr. Kenji Horii
and Mr. Mitsuru Nakata as the Non-Independent Non-Executive Directors, Datuk Syed
Ahmad Helmy bin Syed Ahmad as the Independent Non-Executive Director, Dato' Tunku
Putra Badlishah Ibni Tunku Annuar as the Independent Non-Executive Director, En
Abdul Rahim bin Abdul Hamid as the Independent Non-Executive Director and Mr
Charles Tseng as the Independent Non-Executive Director.

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Principle, Strategy and Goal

The Principle of AEON CO. (M) BHD. is to serve the 'Customer First'.
They make it a point to always be mindful of the three keywords which are deemed as
the essence and the key point of the retail industry and that must always be prioritized at
all times. The three keywords are 'peace', 'people' and 'community'. As retail industry is a
person-to-person business, AEON CO. (M) BHD. s existence and survival is highly
dependent on the people of the region and societies in which they serve. This mentality
has been cultivated in the work ethics of AEON wherever they do business and as such
they act as a contributing member of the local community.
Their strategy is to establish a solid competitive position and achieve
continuous growth. The two key components identified as underlying this strategy are
Accelerating Shopping Center Development and the Aggressive Pursuit of GMS Stores.
They are set in channeling their resources towards developing attractive and integrated
commercial facilities their customers can fully enjoy. For example, regional shopping
center and neighborhood shopping center. Besides that, their General Merchandise Stores
(GMS) combines supermarkets and departmental stores under one roof and operate as
full-line retailers. The products offered are food and other daily necessities, apparels and
household goods such as bedding and bathroom products, and specialized products such
as home appliances, sporting equipments and cosmetics.
Their goal is to operate as an "international-scale retailing group" which is
well known for excellence in Japan and other parts of the world. The international
recognition we are working to achieve is not one which can be measured merely in
quantifiable terms of size, growth and profitability. They hope to be competitive at the
global level in intangible aspects such as customer satisfaction and corporate citizenship
instead of quantifiable aspects such as size, growth, and profitability. "Quality
management" is considered a key point to reach greater heights.

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Management and Manager

Management is defined as the process of overseeing and coordinating
resources efficiently and effectively in line with the goals of the organization. The key
terms in the definition of management are effectiveness and efficiency. Effectiveness can
be defined as goal attainment that realizes the objectives of an organization. Efficiency
can be defined as the process of completing a job with minimal effort and cost. An
effective and efficient management is deemed a successful management. In other words,
management can also be defined as the delegation of tasks to employees in a manner
which ensure the completion of the tasks at hand.
There are four functions of management, namely planning, organizing,
leading and controlling. Planning is a process where a framework which includes the time
period and procedures to complete a given tasks. The planning stage usually involves all
management levels in an organization. Secondly, organizing refers to the process of
specifying the what, where, who, how, and when. These aspects will lead to the orderly
manner of the whole process. Organizing will also be an advantage in terms of crisis in
that plan B can be executed appropriately. Thirdly, leading involves the communication
between employers and employees, among employees and subordinates. Communication
channels are kept clear and conflicts are resolved so as to achieve the objectives set on
time. Finally, controlling is when any changes to the original plan are identified; cause of
the deviation identified and an alternative is taken in order to achieve the objectives.
A manager is defined as an individual who is directly responsible to ensure
that tasks are performed by people or employees in an organization. Generally, there are
three types of managers in an organization. The managers at the top level in an
organization are known as top-level managers. They are also known as executives and
they normally have titles such as president, chief executive officer and vice president.
Then comes the middle-level managers usually known as managers. At the lowest level
of the management hierarchy are the lower-level managers also known as line managers.
They are supervisors who oversee employees in a factory.
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There are many roles that are played by a manager namely, figurehead,
leader, liaison officer, spokesperson, negotiator, and initiator. The first role is as a
figurehead. This refers to ceremonial duties such as the opening of events and delivering
opening speeches. Secondly, a manager also has to be a leader when it comes to the
matter of motivating his/her subordinates and directs the unit towards goal completion.
Thirdly, as a liaison officer. This refers to the role of the manager as a middleperson who
conveys messages between the organization and the public or between the units. For the
role as a spokesperson, the manager conveys the necessary information to the respected
subordinates which ensures goal completion. As a negotiator, the manager needs to
resolve conflicts diplomatically via discussions. Finally, as initiator, the manager suggests
and implements new ideas which enhances the running of the organization.
A manager is required to possess several skills which will ensure the
smooth running of an organization. The skills required are conceptual skills, interpersonal
skills, and technical skills. Firstly, conceptual skills refers to the ability of the manager to
view the organization as a whole and yet compartmentalize each unit within the
organization. Secondly, interpersonal skills will enable a manager to work smoothly
alongside people of various backgrounds, ideas, mentality, and personality. Qualities such
as good listener and speaker also is part of possessing good interpersonal skills. Finally,
the technical skills which refers to the ability to apply techniques and procedures required
in the completion of the goal. This may also refer to specialized knowledge on the
processes of producing a final product from the beginning till the end.

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Evolution of Management Theory

The classical perspective is deemed as the pioneer of management theory
followed by the human perspective, quantitative management perspective and finally
contemporary perspective. It is notable that there are no clear and distinct boundaries
between these theories. These theories overlap and coexist for a very long time.
The classical perspective focused on rational and scientific approaches and in finding
ways to make an organization more efficient. There are three subclasses in this
perspective

which

are scientific

management,

bureaucratic

management,

and

administrative management. Scientific management focused on improving employees

efficiency to expand productivity (Mahmood et.al., 2012). The bureaucratic management
is based on hierarchy, rules and procedures.The aim of this approach was to ensure the
continuity of all operations in the organization by having clearly defined responsibilities.
Next is the administrative approach whereby the whole organization plays a role in the
goal completion.
The human perspective was founded by Mary Parker Follet and Chester
Barnard. This perspective focuses on understanding human behavior, the needs of
employees and the attitude of employees in the work environment. There are three
subclasses in human perspective namely, human relations movement, the human resource
approach and the social science approach.According to the human relations movement,
individual employees are more influential when it comes to efficiency compared to strict
authority. The productivity increases when employees feel that they are well treated.
Human resource approach points out that the productivity of employees increases when
they are satisfied. The satisfaction of employees are directly related to meeting their basic
requirements. The social science approach involves the sociology, psychology, and
anthropology to further understand the behavior of employees. Through the study of
employee psychology, it can be said that motivation, proper communication and good
personnel management increases productivity.

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Next is the quantitative management approach. The three subclasses under

this approach are management of science, management of operations, and management of
informative systems. This approach involves quantitative techniques to achieve
objectives.
Finally, the contemporary approach. The two subclasses under this
approach are known as the systems theory and contingency theory. System theory focuses
on sections or units that work together to ensure the completion of a common goal. The
five components of systems theory are input which refers to tools, work force, money and
information used to produce something, transformation process which refers to the
process of conversion from input to output using production technology, output which
refers to the products or the end-product of an organization, feedback which refers to
decisions made from previous process cycle and will be used for the betterment of the
next process cycle, and finally, the environment which covers the economic, social and
political influences that might occur in the workplace. There are also several ideas of
systems which influences the mind sets. The open system is a system interacting with the
external environment to ensure survival, the closed system refers to non-interacting
system which more often than not, fail to survive, the entropy which refers to systems
which eventually become obsolete, synergy which refers to the power of cooperation
among individuals in an organization, and finally, sub-system which refers to
interdependent sections within systems. Other than that, the contingency approach where
observation and case studies play a major rola in decision making .
Management theory used by the chosen organization
AEON CO. (M) BHD. uses the classical perspective in the organization.
The target of the organization is middle income group. Thus, all the shopping malls were
strategically situated in sub-urban areas. This is to lure customers which will increase
their sales. Besides that, the management is continuously finding ways to improve the
performance of its employees.

The employees are given training via Management

Trainee programme. It is a 6 months training to enhance trainees on theoretical and

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practical elements. Through this programme, many successful leaders were born and now
is in the management line. There is also the Japan Trainee Programme which focuses on
the exposure to overseas working environment. The leaders who undergo this programme
are sent to work in AEON Japan to enhance their knowledge and skills in retailing. Apart
from that, there is also MOU between JUSCO and OUM. Programme such as Executive
Diploma is offered so as to enable the participants to manage their career more
effectively and efficiently. This, in turn will increase the productivity of the organization.
Not only that, AEON Business Academy situated in Wangsa Maju is for the training of
AEON employees. It consists of three schools namely, School of Management, School of
Operations and School of Hospitality. The aim of this academy is to provide training
programmes to the employees. All these shows the ample of training provided by AEON
to its employees in order to increase the productivity of the organization. This is on par
with the classical perspective. AEON also has clearly defined responsibilities among the
workers as well as the implementation of unbiased guidelines. The flow of ideas is
unidirectional as in from top level management to the workers whereby there is no
platform for the normal workers to share their ideas on the improvisation of the
organization.
The best theory for the organization
The best theory for AEON is the human perspective. Retail industry is an
industry which deals with people all the time. The employees portray the face of the
whole organization and as such has great responsibility to exude positive image. Their
basic needs should be take care of because according to the human resource approach
employees productivity will increase when their requirements are met. Other than that,
instead of just trainings focused on increasing the productivity of the organization,
trainings and courses which focus on the betterment of the employees as individuals
should be organized. This will enable the employees to gain confidence and build a sense
of loyalty to AEON. These personal based trainings would also enhance the bonding
between employees and create a more pleasant environment. A pleasant environment is
the perfect backdrop for retail industry. The management should also ensure ideas flow
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bidirectionally as in from top management to normal workers and vice versa. This will
promote a sense of involvement among employees which will cause a positive working
environment. The enhancement of employees attitude will result in a pleasant working
environment. As a result, the productivity of the organization can be increased by leaps
and bounds.

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Conclusion
Various management theories have been founded and observed throughout
the years. While some may have been best fit for that time period, some have become
rather unsuitable to current management environment. For example, while the
quantitative....may have been the best approach during war times, it is deemed unsuitable
for current rapidly globalising world where the retail industry is transcending borders. As
such, the best management theory have to be adapted based on the context of the
organization to ensure the survival of said organization in this highly competitive world.
AEON has to make some adjustments to incoroporate the human theory into its
management practise so as to ensure satisfied employees and consequently high
productivity.

2885 WORDS ONLY

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ATTACHMENT

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