SCCA2103 LEADERSHIP COMMUNICATION

GROUP D

SECOND SEMESTER SESSION 2021/2022 (A212)

TITLE:

PKT LOGISTICS SDN.BHD

PREPARED FOR:

DR. SUHAINI MUDA

PREPARED BY:

NO. NAME MATRIC. NO

1.
KEK JING QIAN 262949

2.
RUEBEN RAJ A/L NITHIANANTHAN 270500

3.
SANGARI A/P CHELVAM 271091

4.
SARANYAA SELVARAJU 272001

5.
TEH HUI YIN 281197

6.
ISTIQOMAH NURUL INDAH 281645

Table of Contents
1.0 Introduction..........................................................................................................................1

2.0 Background of Protagonist...................................................................................................3

3.0 Background of Organization................................................................................................6

4.0 Problem in Leadership Context............................................................................................7

5.0 Decision Making in Leadership Communication Contexts.................................................9

5.1 Solving the Employee Difficulty to Connect Problem.....................................................9

5.2 Solving the Problem Regarding the Shortage of Young Talent.....................................10

5.3 Solving for Employee morale down due to new norm...................................................10

5.4 Solving for the CSR does not support business development........................................11

6.0 Conclusion..........................................................................................................................12

7.0 References..........................................................................................................................13
1.0 Introduction

PKT Logistic Group is a firm situated in Batu Kawan, Penang which controls the
logistics sector in Malaysia. The firm intends to deliver logistics services such as customized
overall logistical services, automobiles, food and beverage, and other industrial items. PKT
Group's key responsibility is to employ local human resources, create ecologically
sustainable warehouses, participate in open dialogue with society, and motivate other
enterprises to deliver beneficial influence to individuals and society via their actions. The
further the firm operates, the more modern technology as well as other infrastructure
improvements are constructed until their firm is well recognized as a top logistic industry in
Malaysia. The corporation has already invested in numerous warehouses that are well-built
and have many innovative features, (Group, 2021). The improved amenities given in each
warehouse assist PKT in its quest to increase revenue contribution. These expansions and
transformations of the PKT Group would never be possible without such an inspirational and
imaginative CEO.

Dato Michael Tio, CEO of PKT Logistic Group, desired to build a long-term robust
and stable organization. Dato' Tio has demonstrated his leadership ability by attempting to
restructure their logistics operation. He had ambitious goals of leading and improving the
organization from a conventional business system to a more contemporary business approach,
(Chong, 2021). PKT Group wants to build a logistic Multinational with a worldwide reach in
order to serve multinational customers. This contemporary period has had an impact on most
company activities, with more industries beginning to use new technology for everyday
operations in order to be more efficient and regulate the quality of goods and services,
(Group, 2021). That is just what PKT Group has created over the years in becoming the top
logistics firm in the nation by enhancing warehouse amenities and nurturing their human
resources. However, Dato' Michael Tio used superior communication and strategy to
accomplish those successful transitions.

Dato' Michael Tio plays a critical role in leading the workers who are collaborating on
the transition, and he goes above and beyond to acquire people's faith in his new goals. He
motivates people to perform efficiently and effectively, and he ensures that his workers are
properly equipped to fulfill the expectations. Dato' Michael Tio also created a Facebook page
for individuals to interact with one another and establish Facebook groups. This is

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accomplished by presenting as much information as staff can in a short period of time. Any
messages would be communicated via the Facebook page, since this platform allows his
employees to use communication for development and efficiency, (PKT Group, 2019).

He also discovers ways to enhance workers' enthusiasm to work for the organization
by adopting beneficial conversations on their Facebook Community. Dato' Tio places a high
value on his personnel in addition to his goals of propelling PKT Logistic Group to the top.
He attempted to interact more with his employees by using Facebook as a forum for sharing
between workers and management. Furthermore, it is utilized as an internet platform to
enhance the company's brand and deliver information to users, including advertising. It
facilitates two-way conversations by combining feedback and views in a single post, (PKT
Group, 2019).

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2.0 Background of Protagonist

Image 2.1 Professor Dato' Michael Tio

Professor Dato’ Michael Tio, our protagonist who had made an effort to solve the issue
in the organisation. Dato’ Michael has shown positive potential towards his business. It was
the enterprising quality that was conveyed down from his dad Dato' Tio Sook Keo who had
established Port Klang Trading and it was renamed as PKT Logistics Group Sdn. Bhd. path
during the year of 1974. As an understudy in England, Dato’ Michael Tio began showing his
business by engaging in exporting extravagant used cars.

Image 2.2 Professor Dato' Michael Tio with his father

Dato’ Michael returned to Malaysia during the year of 1996 to join his privately-owned
company PKT which he cites by saying "I returned for National Service". Under his
stewardship since 1996, PKT has gone through two changes in program. The organisation
transformation as well as employee transformation, four visions have been written out during
these changes. One of them is called “Wawasan 60:40”.

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 The “Wawasan 60:40” is basically to increase income/revenue proportion between
Automotive (60%) and non-Automotive (40%) portions. Non-Automotive is primarily being
driven by the FMCG sector. Furthermore, the “Wawasan ASEAN 30” is to acquire an
income/revenue contribution from automotive logistics of 30% by nations outside Malaysia
before the year 2016. Next is known as “Wawasan 1B” which is to earn RM1 billion revenue
by 2016. Followed by “Wawasan 5M5”, it attained a warehouse with 5 million square feet.

Dato’ Michael has a philosophy and will always stick to it “Dream of it, talk about it,
Plan for it, Work on it and Get it” he played the major role to additionally develop the
organisation with the vision of turning into a market leader in logistics in giving modified
incorporated complete logistics arrangements in the ASEAN locale. He additionally took a
major jump to use on advancements by making Facebook mandatory in PKT.

These days the communication tool of PKT is through Facebook with 350,000
followers in Dato’ Michael’s personal account. Moreover, looking into Dato’ Michael’s
commitment and dedication to the logistic sector in the country, he was appointed as an
Adjunct Professor by the University Utara Malaysia. His way of thinking towards Corporate
Social Responsibility (CSR) will be "CSR isn't about how you spend your revenue; CSR is
about how responsible you make your revenue" which has made PKT's CSR stand apart
among the rest.

In addition, Dato’ Michael emphasises on CSR that starts from home and has
assembled his business domain with numerous components like a full office recanted, a day
care community for staff to send their children, lounges for staff to unwind, the board and
friends’ trips, a genuineness corner, a spa and a lot more offices that is made to additionally
raise the workers confidence, motivation, satisfaction and happiness.

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 Image 2.3 Dato’ Michael with his staff
On the other hand, Dato’ Michael has likewise created high worth CSR for the local
area. There are like “Anak Belajar Ibu Bekerja (ABIB)” program, its main focus offer
position chances to moms that live in towns encompassing PKT's office, Career Day for
Facebook fans to come and look for open positions from our clients and customers with task
coordinating finished by our human asset group. Other than that, the brilliant driver program
is additionally executed to propel new alumni to work 4 years as a driver with compensation
going from RM4000 to RM5000 with vocation movement.

Image 2.4 Career Day by PKT

Finally, today’s PKT is the market leader in the logistics sector in Malaysia with a
client base of more than 15 car brands. PKT pays lots of attention to Fast Moving Consumer
Goods (FMCG) and Food and Beverage (F&B). PKT gladly sits on 3 best in class idea
distribution centres: The Ship, The Waves and The Lighthouse. At the point when finished,
One Logistics Hub will be simply the greatest supporting logistic hub in the ASEAN area.

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3.0 Background of Organization

PKT Logistics Sdn Bhd is an enterprise in Malaysia, with the main office in Shah
Alam. The enterprise operates in the Transportation and Warehousing industry. It was first
established on September 19, 1996. PKT is a socially responsible company providing
logistics services by utilizing local human resources, building environmentally friendly
warehouses, open engagement with the communities, inspire other businesses to provide
positive impact to people and communities through its activities. PKT is located in Shah
Alam, Selangor and is part of the Freight Transportation Arrangement Industry. PKT has 500
total employees across all of its locations. (Employees figure is estimated). There are 7
companies in the PKT corporate family.

Led by Group Chief Executive and Managing Director, Professor Dato’ Michael Tio
believes that that CSR begins at home and has built a business empire with many elements
such as a full facility gym, a day Care Centre for staff to send their kids, lounges for staff to
relax, management and company trips, a honesty corner, a spa and many more facilities that
is created to further elevate the employees happiness and confidence. For instance, PKT’s
innovative Anak Belajar Ibu Bekerja (ABIB) program is uniquely tailored in giving
opportunity to housewives to work at their convenience. Career Days and Educational Tours
for higher learning institutions are the elements that have created a very sustainable CSR
program, with the belief that if you give a man fish you feed him for a day, but if you teach
him to fish, you feed him for a lifetime. Other programs include Career Day for Facebook
fans to come and seek job opportunities from our customers and clients with job matching
done by our human resource team, and the Smart Trucker Program to motivate fresh
graduates to work 4 years as a trucker with wages ranging from RM4000 to RM5000 with
career progression guaranteed after the 4 years.

The Asia Responsible Enterprise Awards (AREA) recognizes and independently

endorses your organizational efforts in creating a culture of compassion, integrity and in
being socially responsible corporate citizens. The programme grows with Asian communities
and reflects their collective action and self-imposed responsibility to better the world we live
in. Being awarded the AREA not only improves corporate visibility, instills credibility, and
provides confidence in your project amongst your staff, local communities and fellow
businesses, but also serves as a badge of excellence to spur further innovation and best-
practice sharing for your organization and the world at large.

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4.0 Problem in Leadership Context

When Dato' Michael Tio took over as CEO from his father, he immediately began
drawing up plans to accelerate the company's expansion. Some of the changes that he brought
to the company were changing the company’s management and culture, improving the
infrastructure and technology. However, changes can be quite difficult to implement
especially when the employees or those who are involved in the changes are not fully ready.
That was the same case as what Dato’ Michael Tio faced during implementing the changes.

For the company's management and culture, he wanted to change the company’s old
way of communicating through emails or phone calls to a new way which was through
Facebook. He established a new policy called Facebook Compulsory Company where all of
his employees must have a Facebook account and interact through it. They also will interact
with their customers through Facebook. The purpose of why Dato’ Michael Tio established
this policy is to make it a main communication channel that can act as a bridge between him
and his employees and between the employees and the customers. Before he established the
policy, there were too many structural layers in the company. He wanted to change that so
that all of his employees can reach him directly. The information, ideas or opinions that will
be voiced out by any of the employees will be known by everyone. It makes other employees
comment on that too.

However, the change that Dato’ Michael Tio intends to do may be too hard for the
employees. Employees are having a hard time adjusting to the move since they don't know
how to reconcile their personal and professional lives on Facebook. They also criticise their
fellow workers over Facebook and cause friction at work. They are unsure what to expect
from the new policy because this type of culture is uncommon among other organisations.
Other firms typically discourage their employees from spending too much time on social
media. Some employers nowadays will go to the extent that they will monitor the employees’
social media accounts secretly just to ensure that they are not posting something that can give
bad impact to the reputation of the company. Different to other employers, Dato’ Michael Tio
made Facebook as their compulsory form of communication and interaction between each
other. However, it can be difficult for the employees to adapt to the change.

Aside from facing difficulties in adapting to the change, Dato’ Michael Tio had to face
the limited young talent in the company. Due to the nature of logistic business which is

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known as dirty, hot and grimy, it is difficult for the company to hire and retain new talent
especially from the young generation. Logistic businesses are also big globally and have been
substituted in technologies rapidly by times. Without next generation that have more fresh
ideas and skills, the strategy that introduced by Dato’ Michael Tio such as Wawasan 60:40,
Wawasan Asean30, Wawasan 5M5 and Wawasan 1M are hard to be executed in the
scheduled time. Wawasan 60:40 is to get a revenue contribution ratio of 60:40 between
automotive and non-automotive segments. The non-automotive segment will be driven
primarily by the Fast Moving Consumer Goods (FMCG) segment. Other Asean countries, as
well as India, Korea, and Taiwan, are expected to contribute 30% of income to Wawasan
Asean30. Wawasan 5M5 is aiming for a warehouse ownership area of 5 million square feet in
Asia, while Wawasan 1B is aiming for a RM1 billion revenue objective. By the year 2020,
everything of this approach should be completed.

The number of young talents hired by the company and involved in the strategy play a
significant effect in deciding how long it will take for the organisation to reach its goals. The
company will take less time to achieve their strategy when more young talent is hired as they
have more new ideas and skills needed. It is natural for logistic businesses to hire and retain
their employees, especially the younger generation. The limited young talent will affect the
business as there will be few employees to replace the baby boomers who will exit the
workforce. This is because technologies nowadays are rapidly changing and need more skills
that can hardly be found in baby boomers. Hence, young talent is needed in the field.

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5.0 Decision Making in Leadership Communication Contexts

In order to achieve PKT's grand vision of an RM 3 billion revenue target within the next ten
years, Datuk Michael Tio as a CEO of the company needs to practice good leadership skills
by making sound decisions. As a result of his decision-making process, he applied a few key
manoeuvres as the outcome in deciding the solution to the problems he faced.

5.1 Solving the Employee Difficulty to Connect Problem

Datuk Michael Tio observed that youngsters' esteem network, and having the option
to discuss transparently with their leader helps cultivate trust and a decent working
relationship among partners. He has made Facebook a mandatory form of communication in
the company as part of his efforts to bridge communication gaps.

In the early phase, Datuk Michael Tio prevented employees from abusing Facebook,
and the company struck a deal to keep employees' personal and work accounts separate. He
also launched extensive training and guidance on how employees should use Facebook
properly. Company use of social media has proven to be effective. Tio makes sense that with
Facebook, employees are significantly more associated with the organization’s happenings
and development, reports are done exhausting, long-winded archives yet can be as visuals
and recordings, and the organization doesn't have to put resources into extra space since
archives are facilitated on Facebook.

As a company that uses Facebook to work, Tio discusses straightforwardly with every
one as it brings down correspondence obstructions that typically accompany hierarchical
order. By using Facebook as a work and communication platform, employees in PKT
modernise what is happening in the organization, and they can get to an assortment of
conversations with the snap of a mouse. To be moderate, companies should further develop
communication speed. It has the potential to work. According to Tio, the speed of
accomplishment moves rapidly, so employees should utilize innovation for their potential
benefit to move rapidly and stay effective.

It is a decent move from Tio as a pioneer on the grounds that to lead individuals in
carrying out new changes through training and educating, it is essential to perceive the
restricted information on the impacted gatherings and frequently imparted to those whom he
wishes to impact.

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 5.2 Solving the Problem Regarding the Shortage of Young Talent

According to Tio, it is difficult to retain young talent in logistics companies because

the majority of them find it repetitive and boring. To address this issue, Tio recognises the
importance of changing the negative perceptions of young workers, particularly recent
university graduates, about the logistics industry. Hence, he changes the company culture and
work environment to inspire and nurture both new and existing talents. To foster a flexible
work environment that promotes a healthy lifestyle for all PKT Logistics employees. He
made a big investment by setting up a sauna, a gym room, Wi-Fi connection, and lovely
pantry areas to complete the facilities.

Tio decided to construct a unique concept warehouse that is environmentally friendly

and an iconic building inspired by the Google Office. Tio chose to outfit every one of the
warehouses with LED lighting, solar panels, and water collection. It is a Gold Standard
Warehouse according to the Green Building Index. He wants to contribute to the
transformation of Malaysia's logistics industry, which will also benchmark against PKT.

Tio attaches great importance to employee welfare and believes they will balance time
for work and leisure. PKT Logistics also provides flexible working hours to help employees
maintain a work-life balance. He also highlights that employee are empowered to do more
because you trust them. They are pleased to be employed by the company. Furthermore, Tio
also promotes the company on Facebook and welcomes students to visit. He also introduces
the company's environment, culture, and characteristics to students so that they can join the
company after graduation. These actions demonstrate Tio's efforts to attract young talent and
change the company's overall image.

5.3 Solving for Employee morale down due to new norm

After effectively controlling a second flare-up of Covid-19 illnesses at PKT, the

organization presently needs to prevent the infection from spreading at work with the goal
that business can continue as usual. According to Tio, because of the security estimates set up
before the end of last year, the organization is better situated and more ready to manage the
pandemic this time. To solve the problem, he tracks down ways of empowering the staff to
contemplate development and obligation regarding making groundbreaking thoughts and
answers for handling responsibility during this pandemic circumstance.

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 For instance, Tio manages to have meetings to discuss today's task with staff through
Facebook every morning. It invigorates everyone in the organization. This is additionally
uplifting his staff to continue to contribute. Besides, Datuk Michael Tio requested that
organizations and their representatives should rigorously maintain physical removing
measures to forestall enormous scope contamination.

5.4 Solving for the CSR does not support business development

Many of the above corporate social responsibility (CSR) practice elements are
completely irrelevant to the needs of stakeholders and thus contradict their practices. Datuk
Michael Tio activated the PKT Crisis Team Webinar chat after CSR failed to provide
financial assistance, and informed those who tested positive to stay at home and quarantine.
When he found that employees in a certain department had suspected but confirmed
symptoms, he immediately asked them to self-test and start self-quarantine for 14 days. In
addition, he also immediately contacted people at the workplace for disinfection. Aside from
that, connected with social obligation implies that organizations need to figure out how
social, natural, and financial effects impact all areas of society. Hence, carries out stricter
SOPs in light of the experience as closed by Datuk Michael Tio.

His leadership skills were very strong, which enabled him to play a large role in
management and success executing new SOPs. Aside from that, he provides his employees
with access to resources that can help them feel more confident and easier when approaching
problems.

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6.0 Conclusion

PKT Logistics Sdn. Bhd. was well known for its reputation in the market and its
ability to meet new demands. Knowledgeable leaders must create offerings and enhance the
company's consistent growth and profitability. As one of their primary investment
components, logistics has invested in expansion in order to spread its wings globally. PKT
Logistics Sdn. Bhd. also supplied its employees with training in other areas concurrently.
This logistics often accumulates faults in the execution of solutions to accomplish the
organization’s declared goals. This is because the discussion on the transfer of corporate
patterns to the Fourth Industrial Revolution has begun, particularly in emerging nations such
as Malaysia. Dato Michael Tio is capable of using proper leadership tactics in decision-
making with discretion and precision. In the decision-making process of the Covid-19
epidemic, he deploys many strategic efforts. This indicates that the company's difficulties are
highly concentrated. The first obstacle is the difficulty of adapting to a large issue that often
develops when management and culture are altered. Dato Michael Tio has played a crucial
role in resolving staff concerns.

In addition, Dato Michael Tio altered the manner in which his father utilized
Facebook to engage with consumers, and he understood that Facebook could be used to
expedite their contacts with customers as well. In addition, he took action to achieve a clear
goal for all workers. Any workforce that is to be known to all members of the company must
communicate information, ideas, or views. This will provide the firm with a clear
understanding notwithstanding the epidemic. In addition, he examined the quantity of young
talent engaged by PKT logistics to fulfil its strategy for accomplishing its objectives. This
youthful talent afforded the company some breathing room since fresh ideas and skills were
created for young talent to reach future objectives.

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7.0 References

About PKT logistics " PKT Logistics Group sdn bhd. PKT Logistics Group Sdn Bhd " An
Award-Winning Logistics Company. (2022, May 23). Retrieved June 13, 2022, from
https://pktgroup.com/about/

About: Asia responsible enterprise awards. Asia Responsible Enterprise Awards | Enterprise
Asia's Asia Responsible Enterprise Awards programme (AREA) recognises and honours
deserving Asian businesses for championing sustainable and responsible business practices in
the following categories: Green Leadership, Investment in People, Health Promotion, Social
Empowerment, Corporate Governance and Responsible Business Leadership. (2022, January
27). Retrieved June 13, 2022, from https://enterpriseasia.org/area/about/

Chong, K. (2021, July 23). Penang Honours PKT Logistics Dato Dr. Michael Tio J.P with
the title "Dato' Seri". Retrieved from Kr8tif Express :
https://www.kr8tifexpress.com.my/penang-honours-pkt-logisticss-dato-dr-michael-tio-j-p-
with-the-title-dato-seri/

Cynthia Ng. (2019, October 2). Logistics Doesn t Have to be Boring.

https://www.astroawani.com/berita-malaysia/logistics-doesn-t-have-be-boring-222488

Group, P. (2019). Dato' Michael Tio. Retrieved from Enterprise Asia:

https://enterpriseasia.org/area/hall-of-fame/hall-of-fame-2015/responsible-business-
leadership-2015/pkt-logistics-group-sdn-bhd/

Group, P. (2021). About PKT Logistics. Retrieved from PKT Group:

https://pktgroup.com/about/

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