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FACULTY OF BUSINESS & ACCOUNTANCY

(SEMESTER NOVEMBER 2022 / SESSION 32234)

INDIVIDUAL ASSIGNMENT
COURSE NAME : CHANGE MANAGEMENT
COURSE CODE : PMS3393
GROUP : GROUP 5
LECTURER NAME : MADAM NOOR MALINDA MOHAMED MOHAN

Please fill in the following particulars:

STUDENT’S DETAIL

Name Student ID Program


1. LIVYASRI PALASUPARAMANIAM 4211002771 BHRM

ASSIGNMENT DETAILS

DATE OF SUBMISSION: 30 DECEMBER 2022 (WEEK 6)

Course Learning Outcome MARKS

1 CLO 1: Adopt and adapt a multiple perspectives approach to /25


managing organizational change.

2 CLO 2: Adopt and apply the diagnostic model’s strategy and, reasons /15
why people resist to change.

TOTAL /40
INDIVIDUAL ASSIGNMENT
PMS 3293 – CHANGE MANAGEMENT
NOV 2022/32234

Choose up to TWO (2) articles from the business section of a newspaper or a business
magazine or internet about organization going through changes in Malaysia context within
year 2020-2022 and answer below questions.

GENERAL WRITING FORMAT REPORT:

NO OUTLINE OF THE REPORT MARKS MARKS


1. Table of Content
2. Introduction (summary for each article) – (CLO 2) 6 Marks
3. Organizational Analysis: – (Chapter 3_CLO 2)

i. For each article, what is the rationale presented for the 4 Marks
change?

ii. Which of the external and internal pressure considered 10 Marks


are referred to? Are there additional pressures not
specifically considered in this chapter?

iii. Compare and contrast the pressures in each article. Are 5 Marks
there commonalities that emerge? In your opinion, why
might this be the case?
4. What type of images those leaders reflect in each article 15 Marks
(Chapter 2 - CLO 1)

TOTAL MARKS 40 Marks

1. The report must be typed using Times New Roman, Font size 12 and 1 ½ double
spacing and the length of the report must between 10-25 pages.
2. Attached the articles and print out the report.
3. A table of content and reference page is a MUST.
4. Will DEDUCT 5% of the marks if DO NOT follow the requirements (REPORT
FORMAT)

***PLEASE HAND IN YOUR REPORT BEFORE 12 PM HARDCOPY (FOR G4) /


ELEARNING (FOR G5) BY 1 JANUARY 2023 (WEEK 6) ***
TABLE OF CONTENT

NO TITLE PAGES

1. Introduction 1

2. Organizational Analysis: 2-5

I. What is the rationale presented for the change

II. Which of the external and internal pressure


considered are referred to and are there additional
pressures not specifically considered in this chapter

III. Compare and contrast the pressures in each article.


Are there commonalities that emerge. In your
opinion, why might this be the case

3. What type of images those leaders reflect in each article 5-7

4. Conclusion 7

5. Article 8-16

6. References 17
INTRODUCTION

Article 1

The Telekom Malaysia Berhad (TM) telecommunications firm was founded in


Malaysia in 1946. began as a national telecom that provided broadcasting services for
radio and television on landlines. They offer a range of goods and services, including
home phone lines and phones, broadband, Wi-Fi with daily steady connection use
guarantees, etc. When people wanted to own the internet connection at their houses in
the past, the most popular option was TM. This is due to TM's superior coverage
compared to its rivals, which encourages customers to select TM over other telco
companies.

In 2014, TM attracted a sizable user base, with 2.23 million people signing up for its
broadband services. Every year, the number grows, but in 2016, it fell since there were
more competitors and because consumers no longer approved of TM's ratecharges. For
a variety of causes, TM lost RM 12 billion in market capitalization in 2019, which
resulted in a decline in share price from RM 4.70 to RM 4.00. Because there is less
consumer demand for their services and slower internet bandwidth compared to their
rivals, TM is thus getting worse with time.

Article 2

This article claims that as part of its turnaround strategy, national carrier Malaysia
Airlines Bhd[MBA] will restructure its corporate structure to boost operations. After
the second quarter of this year, he said, MAB will also decide whether to relist the
national carrier on the regional stock exchange. He made this statement following the
signing of a memorandum of understanding (MOU) between Malaysia Airlines' parent
company, Malaysian Aviation Group (MAG), and the National Anti-Drugs Agency
(AADK) in Kuala Lumpur today. In the event that the company is not totally ready, we
do not want to conduct an initial public offering (IPO). Izham claimed that in addition
to the restructuring, MAS would rebrand. Essentially, this exercise will maintain
current names and logos, but our product and service offering will be unique.

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ORGANIZATIONAL ANALYSIS

I. The Rationale Presented For The Change

The company TM is in a difficult scenario where it experiences more losses than it


does earnings, which may lead to more deficits than it does profits. A shutdown of TM
is a possibility if this trend continues and no effort is made to resolve it. Because TM
continues to maintain its original rates for internet services, one of the primary reasons
customers opt to subscribe to TM rivals is because they provide considerably cheaper
bundles with superior service and internet coverage.

A flight route to Perth, Australia is also being developed as part of the turnaround
plan, as the current difficulty we are facing is the shortage of capacity, which calls for
additional assets. These changes are justified by Article 2 of the contract. The arrival of
six Airbus A330-200 wide body aircraft is anticipated to strengthen it and ensure
continuous expansion. The new aircraft will then enable MAB to further develop its
routes to Perth and other important cities.

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II. The External And Internal Pressure Considered Are Referred To And Are
There Additional Pressures Not Specifically Considered In This Chapter

External and Internal pressure considered by TM

Organizations function as systems that are influenced by a variety of interrelated


forces that have an impact on their daily operations, strategic choices, and long-term
action plans. There are two types of pressure that may be present: internal and external.

The government's decision to enact the mandatory standard on access pricing


(MSAP), which requires all internet subscription fees to be lowered so that all
Malaysians may access the internet, put TM under external pressure on May 23, 2019.
This led to a decrease in the cost of internet packages, which caused TM to lose a lot of
money on the cost of internet subscriptions, ultimately causing TM to fail.

In addition, there is more rivalry in the modern day, where most companies offer
the same goods and services but at better prices than TM. The same TM internet plan is
still available each year at the same price, which forces customers to switch to other
telco providers who offer better services at the same price as TM. For instance, TM
offers 1 Mbps for RM 110 per month whereas Maxis offers 30 Mbps internet speed for
just RM 89 per month. This demonstrates how consumers switch to Maxis since they
have better offers and packages and offer internet speeds that are 30 times faster and
cheaper than TM.

Next is the marketing staff at TM's lack of promotion. As we can see, Maxis,
Celcom, U-Mobile, and Digi engage in aggressive marketing, promoting their goods
and services via television, social media, billboards, road shows, etc. However, up until
this point, we have scarcely seen TM advertising on their goods and services, and
because of TM's subpar marketing, customers are unaware of the bundles and deals
they are now offering.

Last but not least, TM occasionally suffers losses due to a lack of consumer
loyalty. When Maxis, Celcom, and Digi joined the market and used strategic marketing
to entice users to subscribe to their plans, all that had previously been the case with
TM's largest client base in the telecoms industry changed. They have released a post-
paid plan that eliminates the need for a router or Wi-Fi at home and instead allows you
to take internet connectivity with you wherever you go. They always have better and
more affordable packages available. Because TM is well known for its pricey internet
plans and patchy coverage, they frequently respond late and only do so after the
majority of their customers have switched to other telecom companies. As a result, it is
challenging to win back lost consumer confidence and draw in new ones.

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External and Internal pressure considered by Malaysia Air Line

For instance, in article 2, the workers of the company must work hard to ensure
the success of the organisation. Additionally, staff members possess expertise and
experience. They are watchful to ensure they reach their objectives. For instance, the
staff at organisation is working hard to find a way to emphasise growth.

Corporate brand is a shared set of objectives and purposes. Such adjustments are
frequently the outcome of expansion made to manage the complexity of an expanding
company. For instance, National Carrier Malaysia Airlines Berhad [MAB] has
excellent service in item 2 to stay relevant in the market. The secret to obtaining client
pleasure was service quality.

The internal environment of the business is also shaped by the management.


Changes in geophysical factors, for example, are an environmental pressure that
determines a firm's fate. The physical environment surrounding the company's business
site is described in article 2 as having an equatorial temperature that is hot and muggy
all year long. The weather is suitable for taking off, landing, and flying. Due to its
excellent connectivity to the seas and oceans, Malaysia's geographic location also helps
the organisation flourish. As a result, for its long-distance regional operations, the
company does not need authorization to cross the border of other nations. In this way,
Malaysia's physical environment offers Air Asia equal opportunity.

III. Compare And Contrast The Pressures In Each Article. Are There
Commonalities That Emerge. In Your Opinion, Why Might This Be The
Case

As we can see, every company has unique internal and external aspects. According
to what we have learned, pressures for change are influenced by fashion pressures,
demographic trends, external mandates, globalisation and geopolitical changes, as well
as credibility and reputation.

We can also see that change is a crucial component of organisations, and as a result,
change can help an organisation prosper and be successful in the future. On the other
hand, for established businesses that resist change, issues may arise in the near future.

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The internal department pressure mentioned in Article 2 has had an impact on
internal organisational structures. Pressure within the department can be viewed as a
significant organisational change. The company's employees are experienced and
skilled, and they work hard to secure the company's success. They have objectives they
desire to accomplish. They are diligent in ensuring that they meet their objectives, and
the CEO is working hard to develop ways to support them. Additionally, the demand on
leadership style has impacted internal and external organisational structures.
Additionally, it is impacted by geophysical pressure, which determines a firm's fate
through environmental pressure. The physical environment around the company's
business site has an equatorial temperature that is hot and muggy all year long. The
weather should be suitable for flying, taking off, and landing.

WHAT TYPE OF IMAGES THOSE LEADERS REFLECT IN EACH ARTICLE

Images of change managers come in six different varieties. The two that are
intended are the Director, who manages operations, and the Coach, who develops
capacities. Navigator and Interpreter are two more. The Navigator, which controls
actions as well, and the Interpreter, which shapes capabilities, set these two apart.
Finally, unintentional. Caretakers are those who oversee activities, and nurturers are
those who mould abilities. The foundation of a director is the notion of management as
control and the outcomes of change that can be produced. N-step models and
contingency theory both support this.

Images the leaders reflect in Images of change managers come in six different
varieties. The two that are intended are the Director, who manages operations, and the
Coach, who develops capacities. Navigator and Interpreter are two more. The
Navigator, which controls actions as well, and the Interpreter, which shapes
capabilities, set these two apart. Finally, unintentional. Caretakers are those who
oversee activities, and nurturers are those who mould abilities. The foundation of a
director is the notion of management as control and the outcomes of change that can be
produced. N-step models and contingency theory both support this. On the other hand,
a coach relies on creating the proper values, abilities, and "training" that are thought to
be the best to employ in order to reach the intended organisational goals. It is associated
with the OD strategy.

Although numerous external circumstances imply that managers can achieve


some intended outcome change and others will occur where they have little influence,
to a navigator, operation is the lifeblood of management. Theories of contextual and
processual transformation lend support to this. Managers operate as interpreters for
other team members, assisting them in making sense of the organization's varied events

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and actions. Theories about the causes of organisational change support it. Caretaker, a
number of internal and external elements that are outside the manager's control severely
undermine their ability to maintain control. As best they can, the caretaker guides their
organisations. The life cycle, population ecology, and institutional theories all lend
credence to this.

Nurturer is the last. Organizations can be significantly impacted by even little


changes, and while managers cannot predict how these changes will turn out, they can
nevertheless protect their organisation. This promotes organisational qualities that
enable fruitful self-organization. It has a connection to Confucian and Taoist chaos
theory. These six images of change managers serve three main purposes, including
drawing attention to the various assumptions made by change managers about change
and raising awareness of various interpretations of change, highlighting the various
perspectives available to change managers, and bringing to light the overall picture of
the dominant change in the organisation.

Based on the TM scenario, we can observe that the leader has a Caretaker image,
with control being constrained by a range of internal and external forces that promote
change despite management goals. This is shown by the fact that they fail to adapt to
change even after it has reached a critical point and caused them to lose billions of
dollars in market value. This is an example of unintentional change outcomes. Due to a
shortage of cash, managers are finding it difficult to bring TM back to the market. As a
result, they are stabilising their firm rather than generating as much profit as they did
during their peak.

For example, when Maxis experienced growth, it introduced a number of products


and services at competitive prices, including Maxis Broadband, Maxis Home Wi-Fi,
Maxis Phone Plan, Maxis One, and other plans that offer better internet coverage and
speed, but TM did not react to the changes made by Maxis and as a result, TM lost a lot
of their customers to Maxis.

An image of the director is implemented based on article 2. A change in image


associated to directing some changes within an organisation is referred to as a director.
To be able to deal with opposition to changes, change managers must possess a certain
set of talents and competencies. In order to boost operations and ensure sustainable
growth, MBA will restructure its corporate structure as part of its recovery plan.
Additionally, the item also includes a navigator's graphic. Navigator is a term used to
describe the process of executing change that is related to navigating some changes in
companies.

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The MBA and Chief Executive Officer Izham Ismail announced that MAS will also
rebrand itself and focus on the forces that could effect the growth or development of
their airlines. Basically, this activity will keep the current brands and logos. However
the way we deliver our goods and services will be unique. In order for any organisation
to advance and achieve its objectives, change managers or agents must take an active
role. They have significant obligations and duties in determining the best course of
action.

CONCLUSION

The systematic process of modifying and moving organisational practises,


policies, tactics, mindsets, functions, or technology from their current condition to one
that is seen as superior is known as change management. Furthermore, events,
circumstances, people, systems, structures, and conditions within the business that are
frequently under the company's control are referred to as internal pressure. A
significant impact on the organisation might result from changes in the leadership style,
the organization's mission, or its culture. Outside forces that can have an effect on a
firm are referred to as external pressure. The worthiness of a business or investment to
achieve its strategic aims and objectives can be impacted by a number of external
circumstances. Competition, social, legal, technological advancements, as well as the
political and economic environment, are examples of these external variables.

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Article 1

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Article 2

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REFERENCES

https://www.theedgemarkets.com/article/why-telekom-malaysia-lost-rm12-billion-
market-capitalisation

https://www.nst.com.my/business/2018/02/339543/malaysia-airlines-reorganise-its-
corporate-structure

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