Organization Change of Aeon Co. Malaysia Bhd Essay

eon Co. (M) Bhd. is principally engaged in the trading operations of a chain of superstores selling a broad range of goods ranging from clothing, food, theatre goods, other merchandise and shopping centre operation. eon Co. (M) Bhd. was started from Jaya Jusco Store Sdn. Bhd. In 15 September 1984, the first JUSCO store was embeded in Malaysia. In 1983, our Malaysian Prime Minister Dato Seri Dr. Mahathir (Now make outn as Tun Dr. Mahathir) visited Tokyo and and so met the JUSCO Co. Ltd. President, Mr. Takuya Okada to discuss the proposition of bringing JUSCO to our expanse. This is be seduce he believes that it was a get hold of for our country economic growth on that beat. eon Co. (M) Bhd. aim to be a global company, meaning that circumspection must both pucker global quality standards and at the selfsame(prenominal) time remain rooted in topical anaesthetic communities. On the basis of this mark, eon is striving to achieve long-term prosperity and growth by buildi ng excellent relationships with its customers, sh areholders, occupancy partners, local communities, and employees, while continuing to offer products and services that match customers.For example, eon Co. (M) Bhd. ho apply cardholders with numerous incentives, ranging from discounts to an parentd point system such(prenominal) as eon coin Card, the first gold card in Japan without an annual fee, and their voltaic toll collection (ETC) cards which offers cardholders bonus points when customers shop, pass g unity to massive lengths to raise the number of affiliated merchants. JUSCOs vision is to establish eon as a flat victimisation retailer stake in consumer finance and service industry by providing excellent customer service. Its mission is to provide a wide range of consumer pecuniary services that best meet their customer necessitate and they are connected to serve their customers to better their modus vivendi through eon products and services. eon insist to a st rict code of corporate ethics and at the same time, engage in activities which turn over to society. Lastly, AEON Co. (M) Bhd. is listed in Bursa Malaysia as a trust company low the Trust Companies Act 1949 and Registration of Businesses Act 1956. AEON was awarded the Green runninging Award and Prime Minister CSR Award for Community and Social Welfare. nationalTo analyze the companys practices/operations in AEON Co.(M) Bhd. tilt isan musical arrangemental reality. Most managers go out welcome to revision some things in their useplace. It can classify these transfers as disposalal change which is alteration of an brass instruments large number, mental synthesis, and technology. Firstly, changing structure includes any alteration in billet relationships, coordination mechanisms, degree of centralization, frolic design, or similar placement structure vari equals. AEON Co. (M) Bhd. control the clip transition engineering, restructuring, and empowering outlet in d ecentralization, wider spans of control, reduced field of study grumpy(a)ization, and work groups. These structural components give employees the authority and means to implement sue improvements. For instance, the insane asylum of work teams that cut across departmental lines allows those people who specify out a problem best to solve that problem. It can help cross-functional work teams encourage cooperative problem solving rather than us versus them situations. at any rate that, changing technology encompasses modifications in the way workings is done or the methods and equipment used. Most of the managers in AEON Co. (M) Bhd. deal with changing technology are continuous improvement initiatives on their products and services, which are directed at develop flexible outgrowthes to frequent better quality operations and besides their employees ripted to continuous improvements are constantly looking for things to fix. Thus, work processes adaptable to unrelenting cha nge and fine tuning, it requires an extensive commitment to educating and training workers. AEON Co. (M) Bhd. provided training to employees which are imply in new technology and new methods. Lastly, changes in people refer to changes in employee attitudes, expectations, perceptions, or behaviors. The kind-hearted dimension of change requires a workforce that is committed to quality and continuous improvement. Again, AEON Co. (M) Bhd. provided priggish employee discipline and training is needed, which are need in problem solving, finality making, negotiation, statistical analysis, and team-building, and they can able to analyze and act on data. As is a performance evaluation and reward system that supports and encourages those improvements.Conclude, employees training to defy its commercialize leading position in their business. The main practices for AEON Co. (M) Bhd. is range the goals of a change effort with governmental system. This is because of brass instruments st rategic plan mark the products and services and the core business, and it can help organization supporting processesthat help deliver these products and services. Further more than, it to a fault identifies the organizations special get byncies and help organizational enhance the core and key supporting organizational processes. For example, the goals of AEON Co. (M) Bhd. changed effort do not support the organizational strategy then the change effort leave not yield meaning(a) value to the organization. in that respectfore, by aligning the goals of a change effort with their business strategy, the change effort get out have a massiveer expectation of succeeding because the change effort volition receive greater decision maker commitment than if the goals were not adjust. To accomplish this, Aeon clearly specify its structures, management systems, and guiding principles, policies, and procedures.Instant, administrators take the time to communicate the vision to all of the organizations employees in small groups of people. Besides that, AEON Co. (M) Bhd. stoold and maintained a superior change team. This is because a charter that identifies a line of work that is narrower in scope than the organizations strategy statement and states the expectations of management in equipment casualty of goals and metrics. These goals and their descriptions did not change during the change effort, because should except be a few of them. However, the change team has control the goals, which able to measurable, and besides define its purpose, the methods, procedures it forget use, and the acceptable team behavior, because it will help to resolve fight and define team roles. For example, AEON Co. (M) Bhd. creating a superior change team with several of good planning, it also requires good people to enact the change, change team members are experts and have positions of authority, possess good management and conference skills, and the ability to focus on the change vision and objectives. In closing, a superior change team will effectively create a plan for change, mark the processes to change, and acquire support for the change effort of organization at all the levels. Thus, the quality of such verification is gamely suspect. On the others hand, AEON Co. (M) Bhd. plans for continuous improvement.This is because of continuous process improvement will cause an organization to produce better products or goods more reliably and expeditiously to enhance customer satisfaction and value. For example, to achieve continuous improvement of organization, AEON Co. (M) Bhd. uses good performance measures and management monitor their employees as necessary. In addition, managers should blaspheme that the selected metrics are accuratemeasures of business goals in managing organizational changed. To position and relieve the relevant principles and concepts of management in AEON Co. (M) Bhd. those are organism applied in the company. The principle s and concepts of AEON Co. (M) Bhd. is Customer Centre Approach. AEONs mission is always to be contributed to the customers. The goal of AEON Co. (M) Bhd. is to operate as an international-scale retailing group which focused on the quality management to enhance their capabilities. The increasing in the Malaysia population shows that there is a probability that the fool customers for the retailing industry have grown. A wide range of customers involves in the market mostly tend to purchase household products which is suits for family members, children and adult.This is an opportunity for AEON to achieve the mission of company for contribute to their customers. With the changes in the customers lifestyle, that is means that the trends would also changes. AEON Co. (M) Bhd. will provided with higher(prenominal) quality products, so that the customers will mindful that the AEONs goal of quality management is exactly aligned with their demand and involve. In addition, this will also gi ve impact on the companys goal to satisfy their customers. To designed an image to satisfy the ever changing necessitate and desires of consumers, AEONs constant upcountry refurbishment of stores. The managements acute correspondence of target market needs and the provision of an optimal product-mix enhanced the companys performance. In Malaysia for 28 years, Aeon has been successfully to positioned itself as a benchmark in excellent customer service, such as high workers discipline and maintain high standard level of their food as well milieu. AEON Co. (M) Bhd. provided variety of products for their customers.On the others hand, the principles and concepts of management of AEON Co. (M) Bhd. is subdivision of work. This principle tells us that as far as possible the all told work should be divided into different parts and severally private should be assigned lone(prenominal) one part of the work correspond to his ability and taste rather than giving the whole work to one p erson. AEON Co. (M) Bhd. applied this principle to manage organizational change from Jusco shop Centre to AEON Co. (M) Bhd. where all department need to change since Aeon Credit Service combined together with Jusco Shopping Centre on 12 January 2012. When a particular worker in AEON Co. (M) Bhd. performs the same telephone circuit repeatedly such as in marketing department, financial department, leadinghip department and so onwill make the job an expert in doing that particular part of the whole job for them. Consequently, the benefits of peculiarity will be issue forth available in AEON Co. (M) Bhd. For example, AEON Co. (M) Bhd. gets an ordination for promotional material. They have five to six departments who will do their own job for the promotion.Everyone will do the job in short time and come out with the successful promotion. The principle of division of department applies not only to the workers but also equally to the managers and leader. For example, if a manager is tuned to work on the same kind of activities for a long period of time, he will certainly be an expert in his particular job. Consequently, more and proficient decisions can be taken in a comparatively little time by him. Business processes must support business needs is the one of the principle and concepts of management. Every process will be ontogenesis organizational value by supporting the business vision and supporting strategies. AEON Co. (M) Bhd. created a vision for each process to be changes and also develop a new vision for each process it expects to change. The process of vision described the new capabilities of the process and the expected performance improvements. Furthermore, it make how the AEON Co. (M) Bhd. will support the strategy, respond to customer needs, and respond to competition. This will lower the utility of a change effort and would place it at risk because it probably would not gain the necessary organizational support to make it successful.The issue of organization design would be solved because environment will be free from uncertainty and there no need to adapt. Besides that, the creation of work teams that cut across department lines allows those people who understand the problems and have the best solutions to solve the problems. Besides that, AEON Co. (M) Bhd. make a formal case. This is because individuals are inherently rational and will interrogative to what extent change is needed, whether the company is headed in the right direction, and whether they want to commit personally to making change happen. AEON Co. (M) Bhd. looks to the leadership for answers it will payable to the articulation of a formal case for change and the creation of a written vision statement are invaluable opportunities to create or compel leadership-team alignment. Firstly, AEON Co. (M) Bhd. confront reality and articulate a win over need for change, then demonstrate faith of the company has a possible future and the leadership to get there and last provide a road map to guide behaviour and decision making.Thus, leaders produce this message for various internal audiences, describing the pending change in terms that matter to the individuals. In a series of offsite meetings, the executive team make a brutally honest business case that downsizing was the only way to keep the business viable, and drew on the companys proud heritage to craft a get vision to lead the company forward. By confronting reality and helping employees understand the necessity for change, leaders able to motivate the organization to follow the new direction in the midst of the largest downsizing in the companys history. To identify and explain the pros and cons in the cover of the relevant principles and concepts of management in order to find the problems that will be the encountered by the company. PROSBuild up the customers loyaltyBy satisfy the customers need, AEON Co. (M) Bhd. able to keep their customers loyalty. Loyalty of customers is ty pically repeat customers. The customers will feel comfortable when shopping at AEON mall, which aligned with their needs and lifestyle. If a certain customer enjoys shopping at a particular business, it will return to shop again. The loyalty of customers whitethorn lead to calm the companys income. Higher productivityDivision of work for AEON Co. (M) Bhd. is to achieve higher productivity in Aeon by using practice makes perfect slogan. AEON Co. (M) Bhd. concentrating on the repeating the same t engage again and again, a worker acquires dexterity, skill and speed, and moreover, division of works avoids waste time and effort caused by changes from one task to another. distinctiveness requires a simplification of tasks and facilitates for AEON Co. (M) Bhd. saving devices. Due to all these the criterion and quality of work increase tremendously. Lower costDivision of work in AEON Co. (M) Bhd. increases the efficiency of workers, managers and leaders in each department. In addition, w asteful duplication of process and tools is avoided, it able gain good result and save cost. Large scale production offers several economies in the used of materials, machinery and skills. Therefore, costs of operations in AEON Co. (M) Bhd. are reduced to pass more remuneration. Trusted discolorationAEON Co. (M) Bhd. operated in market more than 20 years. Nowdays, AEON Co. (M) Bhd. pay attention on differentiation of products and services, stock-still when times pass by, payable to many competitors, there are too many of new feature or increase of new offers in the market. It will cause Aeon pay attention on customers needs and wants and able to learn customers oriented strategy. Therefore when AEON Co. (M) Bhd. produce a product, AEON Co. (M) Bhd. makes sure the brand is clear, distinctive, easily understood and expresses a unique, compelling benefit that customers believe can see the value of. Diversification of brandProduct diversification strategies should aim at expanding markets either by brand extensions or new complementary products, but sometimes this is also achieved by creating new uses for the original products with a new twist. The strategy should avoid be too similar to current products and markets, but at the same time it should not be too different from current ones. AEON Co. (M) Bhd. dear this so that they can offer new products to customers, it able to compete in the market. CONSHigher cost burdenTo fulfill the changing of the customers demand and needs, AEON Co. (M) Bhd. may face to higher cost burden. To improve the customers satisfaction for shopping at AEON mall, AEON have to keep on improvement on the shopping environment. This baron lead to higher cost for renovation and decoration the shopping mall. In order to fulfill the changed in customers lifestyle, AEON Co. (M) Bhd. have to come out with higher quality product which may leads to higher cost of product. Lack of responsibilityUnder division of work AEON Co. (M) Bhd. lack of responsibility in creating something new product. Such as, the final be sick is not the task of a single person but the creation of several workers, managers, and leaders. Therefore, no any individual can be held creditworthy if anything goes wrong in the project. Therefore, involvement of workers in their work is reduced. Too untold interdependenceDivision of work in AEON Co. (M) Bhd. leads to interdependence among individuals, firms, industries and countries. Failure of any one link due to strike, war, breakdown in transport and communication, depression and so on it may cause great handicap for the company. Inferior output by one worker in AEON Co. (M) Bhd. may spoil the quality of the entire product. Specialists know only a single process of production. In case of unemployment, they find is demanding to get jobs. Poor advertisingAEON Co. (M) Bhd. does not advertising due to the cost. The advertising activity only will take place during top seasons like school holiday and fe stival season. AEON Co. (M) Bhd. mainly depends on word of mouth whereby, customers pass the news to other customers about promotion or new products. AEON Co. (M) Bhd. should aware this tactic may harm business if customers are not satifity with the products and they will start to complaint and others will get negative thinking about the company. In the end, AEON Co. (M) Bhd. may loss customers and it is not easy to pull back their attention. Thus, sales and profit of company will drop. Create rigidityAEON Co. (M) Bhd. created rigidity in their operations. It can lock an organization into specific goals to be achieved within specific timetables. This is because the goals set under the assumption. Thus, when the environment is random and unpredictable can be recipe for disaster. It may cause AEON Co. (M) Bhd. not able to compete and survive in a rapidly changing environment.RECOMMENDATIONAEON Co. (M) Bhd. should perform annual process appraisements and benchmarks. This is because a nnual process assessments help to identify areas for process improvement, whereas benchmarks help to identify where an organization stands relative to an industry. Based on each assessment and benchmark provides a snapshot of an organizations capabilities, which should be the basis for determining whether it needs to change and the value of such change. Furthermore, auditors can easily determine whether an organization performs assessments and benchmarks by verifying the globe of reports documenting their execution. Besides that, AEON Co. (M) Bhd.should analyze an organizations software portfolio, which is the come in number of applications it owns. A portfolio analysis include counting the number of copies of each application, it can examining the status of each application in terms of flee levels, and identifying the overall importance of each application.Due to this, the highest level of importance indicates that an application is critical to the success of the enterprises mis sions. In addition, Aeon should know the role each application plays in the future of the enterprise. By understanding the software tools that an organization uses, it can identify those areas that have the superlative need for tool support, as well as where it can derive the greatest benefit tool use or change. Instant, such understanding will also influence the training activities of an organization. On the others hand, AEON Co. (M) Bhd. should listen to the customer. An organization must capture the needs and desires of its customers since their perceptions of its strengths and weaknesses are vital to its success. Wherefore, Aeon should ask its customers what it must do today to satisfy them two, three, and five years in the future. Since customer input helps to improve the products of organization develops and the most important is processes that hollo their concerns, auditors should examine that documentation exists that verifies that the organization obtains and uses custome r feedback on a day-by-day basis.Furthermore, AEON Co. (M) Bhd. should align the infrastructure. The successful change requires that Aeon align its human resource, information, financial, organizational, and other support systems around the core business processes. Organizational structure should be an operational response to an organizations mission and strategy. Thus, the report relationships among an organizations business units should represent its actual workflows, it should help them establish and develop the necessary competencies by providing appropriate training. If an organization does not do this, old practices will render new organizational changes meaningless and a businesss operating units will not function efficiently or effectively. Thus, it is vital that auditors identify the workflow between business units whether the organizations infrastructure matches it, and also personnel within those business units have the skills to effectively and efficiently perform thei r work.Lastly, AEON Co. (M) Bhd. should foster a yeasty and innovative environment. Aeon must be systematically and deliberately identify on new views and ways ofdoing things better. This requires organizations to challenge the basic assumptions on which its organization has been built. Due to this, Aeon change these assumptions requires creativity, which is the generation of ideas and alternatives and innovation, which is the transformation of those ideas and alternatives into useful applications that lead to change and improvement. In particular, an organization must always challenge assumptions, create solutions, and look at problems from different perspectives. . As a result, auditors should objectively assess how experimental an organization is when conducting their business.CONCLUSIONIn conclusion, from the AEON Co. (M) Bhd. we has identified quadruplet organization change management principles, which are vitally important to organizing change. Furthermore, we also have anal yze the companys practices and operations in managing organizational change. Consequently, organizations should adopt these change management principles and practices based on their business needs. To further success, an organization should address the three identified critical processes which are achieving executive commitment, creating a vision of the future organization, and communicating that vision to the organization.In addition, a select group of people, having the necessary skills and personal characteristics, should lead software process improvement efforts. Organizational changes because of uncertainty, habit, concern about personal loss, and the belief that a change is not in the organizations best interests. There are needs many techniques for managing resistance to change included education and communication, participation, facilitation and support, negotiation, manipulation and co-optation, and coercion. Last, the important part which is human resource variables. It i ncluded high commitment to training and development, high job security, and encouraging individuals to be idea champions.REFERENCERobbins, S. P., DeCenzo, D. A., & Coulter, M. (2012). Fundamentals of management Essential concepts and applications (8th ed.). Upper Saddle River. new-fashioned Jersey Pearson Education. Robbin, S. P., & Jones, G. R. (2010). Management (11th ed.). Upper Saddle River, New Jersey Pearson prentice Hall. Brealey, Richard and Myers, Stewart Principles of Corporate Finance, 2nde d., McGraw-Hill (l984). American Institute of Aeronautics and Astronautics Guide for the preparation of Operational Concept Documents. ANSIIAIAA G-043-1992 (1993). Carr, David K., Hard, Kelvin J., and Trahant, William J. Managing the Change Process A vault of heaven Book for Change Agents, Consultants, Team Leaders, and Reengineering Managers. McGraw-Hill(l996). lO.Gouillart, Francis J. and Kelly, James N. Transforming the Organization. McGraw-Hill(l995). Ronald K. K. (2010). Jet Pr opulsion Laboratory, journal of management changing, 4800 Oak Grove Dr., Pasadena, CA 91 109, USA ronald. k. tail end Jones, DeAnne Aguirre, and Matthew Calderone (2004). Principles of change management. Retrieved April 15, 2004, From http//www.strategy-business.com/article/rr00006?pg=all