Organisational Behaviour Assignment

Performance Review Report ————————————————- Cho Cho Phyu Company Limited Group – 2 â€Å"We can say that there can be a change situation, when the people are dissatisfied with the current status or current situation. † Kurt. W. Lewin â€Å"Change can be happened when the people in the organization are open-minded and willing to change. † U Aye Kyaw(MHR) Acknowledgements We would like to express our sincere acknowledgements to all those who have helped us in preparation for this project.Initially, we would especially like to express my gratitude to our teachers- TakeruOhe, PhosyChanhming, and Yasushi Ishida who give the training of COBLAS Myanmar (Consulting Based On Learning Asean Small and Medium Enterprises). We are greatly in debt of gratitude to all of our Myanmar teachers for their encouragement, unflagging support and invaluable guidance throughou t our project. We are very much grateful to Daw Phyu Phyu Seinn, Managing Director of Cho Cho Phyu Co. , Ltd (SPIKE Fashion Collection) who allows us to do the research in her company and gives us invaluable datas, information and help which is very important for our project.Furthermore, our special thanks are due to the employees in Cho Cho Phyu Co. , Ltd, for their contribution and help in our change process. Last, we would like to offer my thanks to the authors and publishers mentioned in the references for using their materials in preparing this project. Many thanks to everybody who gave us help and support throughout our project. Executive Summary People are talking about the powerful word called ‘Change’, which is really popular in the human society started from the not more than the past three decades.And yes, this will be happened continuously at every time and in every situation. This is also happened in our business environment. Many literatures say that the e nvironment that the businesses operate is ‘rapidly and massively changing’. So, here are only two questions for all the businesses. Those questions are â€Å"kill? † or â€Å"be killed? †. For the business to be successful in the foreseeable future, it has to be killed the change before it is too late. So, the businesses must have aligned its internal arrangement with the demand of external changes.In this project, we focus on the aspect of ‘Starting up the Human Resource Department and introducing about Customer-led Culture’ at the company called â€Å"SPIKE Fashion Collection†, which is a successful fashion brand in Myanmar. ORGANIZATION PROFILE Cho Cho Phyu Company is started with a humble sole trader business structure in 1992, in the Third Capital City of Myanmar, Mandalay. And then, the business moves to Yangon in 2006 and formed as a private limited company. Also in 2006, Cho Cho Phyu company launched a fashion brand called †˜SPIKE’, which offers woman clothing to both business and consumer markets.Now, SPIKE is very popular brand for its local target markets of both Upper Lower and Lower Middle classes who live in suburb areas. Now Cho Cho Phyu hasTwoShow Rooms, in some downtown areas and TwoGarment Factories, which are operating very well. Business Canvas CUSTOMER SEGMENTS 1 Upper Lower Classes Lower Middle Classes VALUE PROPOSITION 2 ‘Spike’ is a fashion brand which is well established and has a good quality and reasonable price to its target market. the design is the main proposition for it, which is mostly emphasise on the comfort and confidence for its targets. CUSTOMER RELATIONSHIP 4Personal Assistant, Email, Phone, Letters DISTRIBUTION CHANNELS 3 Indirect Channel Direct Channel Consignment KEY RESOURCES 6 Reasonable Market Experience KEY ACTIVITIES 7 Cutting, Making , Packaging, Selling and Distribution PARTNERS 8 COST STRUCTURE 9 Social / Environmental Costs Financial Risk Capital Investment REVENUE STREAMS 5 Business community Well established Brand Seven Colour Textile Co. ,Ltd Long Foung Laung Yee ‘Spike’ aims to generate small revenues from a large number of customer designed items. This represents a valuable addition to Spike Fashion Collection. SWOT Analysis Strengths Customer loyalty / relationshipsProduction quality High production efficiency Skillful employees S W O T Weaknesses Poor Human Resource Management Lack of Plan Lack of clear mission, vision & goals Opportunities Changing customer’s needs Technological advance Get offer from ASEAN free trade Fashion trend changes of different ages Threats Changing the taste and preferences of the customers. the direct investment of the foreign companies. Main Issues As Cho Cho Phyu Co. , Ltd is just transforming from Sole Trader business structure to Limited Liability Company (LLC), there are many problems associated with conventional or traditional management style.Many theorist s say that most of the business owners are still getting lost in this change period, as they do reflect and remember their past behaviors, which are very well relevant for them in the past. In this firm, employee are dissatisfied with their job as they do not get the benefits and privileges that can get easily in the external market or in other companies. The Bureaucratic decision-making and less delegating also lead the whole organization to feel stifle and less important. Moreover, no Human Resource Department leads to become unstructured and unsystematic procedure in dealing with employee aspects.As a consequence, there are many unmatched job responsibilities and position. Employees do not know ‘what are their rights? ’ and â€Å"what are strictly forbidden/†. Initial Stage (prelude) We met with the Managing Director of Cho Cho Phyu Co. , Ltd and discussed about the matters that are currently arising within the Company. After discussing about the matters, we m ade an agreement with MD of Cho Cho Phyu Co. , Ltd and we sent TOR (Term of Reference) Letter to make the agreement. After due consideration of all aspects, our group started to work the following activities. Investigation methodsResearch Design Exploratory: After getting the permission from company’s board of director, we started to discuss what factors of Cho Cho Phyu Co. ,Ltd contribute to employee satisfaction. Because of time and budget constraints, we were unable to conduct focus groups or in depth interviews. By doing interview, we developed the research design. Descriptive: To gain a better un derstanding of the problem, and to clarify the research questions, we conducted secondary research to discover what experts say aboutemployee salary scales. This research allowed us to gain a solid understanding of the business.We clearly describe about the process of our research and data process through clear clarification in our ‘Employee Job Satisfaction Report’ . Force Field Analysis For every change management, the most vital thing to consider is that whether this change is needed or not. To know the solution, we made investigations by using interviewing, questionnaire and scanning the environment. After being investigated the whole environment, we can suggest that the Cho Cho Phyu is needed to set the Human Resource Department. As the nature of organization comprises with human beings, there can be complexity of human emotions and psychological implications.People always feel threaten because of change. So in this situation, there is no doubt that this will be happened too. Then when we look at Lewis Force Field, there are two forces – the positive forces for change and obstacles of change. there will be change of the positive forces are greater than obstacles. Driving Forces * Demographic Changes In previous days, there are few places for all customers to buy products or whatever they want. After 1998, the demographic changes inc ur and customers now have habits to buy things at retail stores. Now, customers are very choosy, know they have a right to sue and knowledgeable.Moreover, every customer thinks they are paramount for every businesses. * Various Stakeholders Interests Stakeholders are those who are interested in the business activities and can be affected by the business operations. There is declined in organization’s profit level at those days. Poor customer management skills and overlooking the customers’ needs and expectations made the Cho Cho Phyu bad image. For Cho Cho Phyu, employees are the best valuable assets which cannot be copied or imitate. Also, there is a strong relationship between the Employee Job Satisfaction and Customer satisfaction. * Political ChangesAfter changing government and political policies in 1989, the economic condition of Myanmar is gradually increasing. Changing from socialist economy to market economy gave the Myanmar economy to become more developments and beneficial returns. In 2015, there will be an AFTA (ASEAN Free Trade Agreement) issues. So, many SMEs and large scale businesses are starting to prepare for the unseen able future changes. * Competitors’ Reactions In Myanmar, there are same businesses like SPIKE Fashion Collection. The main rivalries for the SPIKE are D2, ,who are aggressively aiming to satisfy the customer requirements. * Economic IssuesIn Myanmar economy, there are too many uncertainties for every businesses. Also the implication of globalization of markets, organization must learn to break the limited mindset of national markets to compete on a worldwide basis (Ghoshal and Butler, 1992). Restraining Forces * Habits For every complexities, everybody rely on habits or programmed responses. People are difficult to change if they are naturally habited. * Security Even people at the high level can resist if the change is threatening to their feeling of safety. For staffs, there can be a sense of insecurity of being the nature of culture change due to the fear of unknown. Group Inertia Even if individual want to change, there can be resistances, which are constraint to the group norms. In Cho Cho Phyu Company Limited, there are many resistances – perceived habits of the shop floor workers, the current perceived culture of the worker, the status quo of the workers, and uncertainty of the desire situation. So, we made some assumptions that as this is a culturaland department change, the incremental change could be more appropriate forCho Cho Phyu Company in this development process. RESTRAINING FORCES (Obstacles for Change) Present State or Desired State DRIVING FORCES Positive Forces for Change) Lewin’s Force Field Analysis Excerpt from www. changemanagement-coach. com Impact Area Analysis Impact area analysis means analyzing the area which will have impacts because of the nature of effect of change. So, weanalyzed the whole organization and after the investigation, this change is mainly depended on the whole organization but the Top management has already been committed to set up the HR department. Then, the impact area was now clarified, our main aim is to change the perceived culture of the Middle and First Floor level of the organization. The Required BehavioursThe required behavior for this change are as followed: The customers in Myanmar are now very educated, knowledgeable and very complaining. Not only about customer, also the competitive reactions are so intense. So, for retail chain like SHMT Home Mart, the required behavior will be as followed; * Lean and structured Organization * Well and systematic HR Department, HR Policies, Practices and Procedures * Rightful design of job * Better place to work. Prudence that We All need to Aware * This process is a ‘Change’ process. * Examine whether it needs to do or not. * We must have ‘Management’ it well, until it reaches the proper end. This is not an ‘Event†™, this a â€Å"Journey†. * Many people give ‘Bloods and Lives’ during the Change Process. * ‘Resentments or conflicts’ can occur during the whole phase. * We cannot do it lightly, and when we dealt with it ‘there is no turning back’ * There is a ‘Time Constraint’. Role of Change Sponsor or Leader In this change process, Ms. Phyu Phyu Seinn, MD, is the leader, an inspirational leader. Before she communicates about the new ‘Culture’, firstly, she must build the level of trust, which Stephen. P. Robbins means that there are dimensions of integrity, competence, consistence, loyalty and openness.As she is a leader, she must do the to minimize the possible employees’ resistance. The main task for the leader are as followed: * Know his employees. * Know his customers * Think about the desired results * Empower People * Create a Win–Win situation In this situation, Phyu Phyu Seinn acted as a ‘Tran sformational Leader’, that is, â€Å"Leaders who inspire followers to transcend their own self-interests for the good of the organization by clarifying role and task requirements. †, â€Å"Leaders who are also capable of having a profound and extraordinary effect on their follower. † Stephen P. Robbins.For Mr. Chan, changing the nature of ‘Customer unimportant Culture’ to ‘Customer-centric Culture’. Transforming the old believes to new opposite one. On the other hand, Phyu Phyu Seinn also acted as a ‘Sponsor’ who provides resources, authority, or reinforcement neededto accomplish change and has the authority to modify reward systems or otheraspects of organizational culture. Role of Change Agent Change Agent means that â€Å"Persons who act as catalysts & assume the responsibility for managing change†Robbins et al 1994 Qualities of the Change Agent * Flexibility * Objectivity * Commitment Leadership and inspiration o f others * Ability to handle uncertainty * Organizational Awareness * Sense of Humor Here are tasks for the Change Agent, which was identified by for SHMT Home Mart culture change process. The tasks of the change agent are: to get the commitment to the change from the impact groups, to set up and strengthen the change network, to disseminate the information about change, to help and support the groups in implementing change processes, to make involvement and educate others to participate in the change, to monitor the whole change process. The First Stage . We prepared an Employee Profile Form to know the length of services, knowledge, qualifications, and summary of the current position. The total workforce number is 46 in Head Quarter. We made the entire total workforce to fill up the employee profile to know the record of the employees. 2. Analyzed the detail aspects of the job by using interviewing methods. 3. Sent out the job satisfaction questionnaires to know the satisfaction r ate of employee. 4. Redraft and rethink the old bloated and ineffective organizational chart to ensure that human resources are fit with the right job. . Sent out the new job description HR Manager post to set up the proper HR Department. * Posted in Institutes and in some Universities. * Advertised through internet * Linked with Employment Agency * Posted in internal Notice Board 6. Started to with Billion Forces Co. , Ltd to introduce the HRIS software. The Second Stage 1. Draft and prepared Job Descriptions and Person Specifications to know the detail of their tasks, duties and responsibilities. 2. Set HR Policies in line with Organization Strategy and Philosophy 3.Prepared HR Forms in accordance with HR policy and procedures to have a proper and systematic HR system. 4. Completed an Employee Handbook, both in English and Myanmar, which constitutes all the aspects of HR policies, Attendance and leaves, and some procedures. 5. Interviewed to all the applicants, to get the right pe rson at the right job in the right place. 6. Redrew a New Organization Chart, which is more effective, and lean structure than ever. the Third Stage 1. Implement the new organizational structure andHR procedures and rules, and transferred all the necessary HR forms. 2.Set new salary scale level in accordance with secondary research data published by MRS (Myanmar Research Survey), 2011. 3. Held Human Resource Management Training to all the managerial and supervisor level, to know the importance of the Human Resource Management in the business organization. 4. Introduce the new figure print system to know the attendance of each and every employee. 5. Introduce the Employee Cards to record and improve the customer service and know the attendance of each and every employee. MD HR Manager Sr. Operation Manager Finance Manager Sale & Marketing ExecutiveAdministrative Manager Sr. Designer HR Officer As. Production Manager As. Logistic Manager As. Procurement Manager Chief Accountant Accoun tant-1 Accountant-2 Stock Controller Cashier (Shop 1) Cashier (Shop 2) SCM Administrative Officer Sale Manager Mobile Team Leader Sale Staff (Shop-2) Sale Staff (Shop-1) Mobile Team member IMC Officer Jr. Designer Inbound L. Officer Production Supervisors Production Leaders SCM Outbound L. Officer Managing the People issues – Human Resource Management Strategy As organizationis comprising with people, there is more or less human resource factors for us to consider.Torrington and Hall (2008) defined ‘Human Resource Strategy’ as ‘a central philosophy that people in the organization are managed and transition of this into HR policies and practices, to become effective, policies and procedures need to be integrated with business or organizational strategy’. In here, we are needed to be considered is that the HR strategy must ‘Fit’ with business strategy which means ‘employees are seen as key in the implementation of the declared organi zational strategy and human resource strategy is designed to fit with it. ’ Torrington and Hall (2008)The main aims of aligning the HRM with organizational strategy are to ensure the best utilization of Cho Cho Phyu Co. , Ltd employees to generate the organization performance and to reduce the level of risk by arranging and organizing the right people, in the right place, to the right job and in the right time. For human resource issues, we drew a plan, which is to cover most likely cases of Cho Cho Phyu Company people issues. Topics covered for Cho Cho Phyu Co. , Ltd are as followed: Motivating, Training and development, Reward System, managing Psychological issues and Appraisal systems. Motivating or Committing others to Change For every successful change management process, the motivation of the followers is one of the factors to consider. ‘For most changes, people’s past experience of change can affect the level of commitment and willingness to support furthe r change’ John Hayes (2002). So, as this is the first time for Cho Cho Phyu, we have a responsibility to win this change. To motivate the workforce, we set, firstly, a proper goal and linked with the non-financialreward system of Cho Cho Phyu Co. , Ltd.We also set MD and Human Resource Manager as a role model for this change by visiting stores for every weeks, dealing with customers and giving speeches to employees about the importance ‘customers’. * Training Program Another issue during the department start-up time, we need to think about the ‘training program’. This is a new culture, people will not be familiar with it. For the first step, they have to understand what the new culture means for them. As this is the new culture, most of the sale staffs and supervisors would require a certain specific training for their job purposes.Each and every individual employees will be tested to ensure that they do have qualifications, skills and experiences to work with the new culture. We empowered change agents (managers) to persuade the workforce to attend and commit to the new culture. * Reward and appraisal system Another aspect is the reward and appraisal system. Organizational rewards are powerful incentives for improving employee and work group performance. Based on ‘carrot and stick’ metaphor, we set both tangible and intangible rewards for workforce. We made variety of reward, which is linked, with the culture of the organization.Reward such as recognition, contests, games, financial rewards, incentives, employee of the month or year awards which are mainly to show the appreciation for employee effort. We also made the reward systems link to the needs and wants of the individual employees. We used House’s Path-goal theory to motivate the workforce. * Managing Psychological Issues As people are human beings, there was many resistances to the new culture. Many people feel they were defeated, threatened, coerci ve by the new culture. Some people feel demoralized, stressful and frustrated for the change.So, from human resource management view point, we have a responsibility to take care and manage the psychological issues of the affected employees. That is why, we have made an agreement with HR department to make employee assistance program (EAP), stress management program and work-life-balance program. During the culture changing process, there can be some degree of redundancy. So, for survivors from the cuts, there can be shock, bitterness, anger and also peer and group pressures. Survivors need information about ‘why action had to be taken’ and ‘what the future holds for them personally’. Compensation and Ethical Considerations During the change process, there can many be issues like layoffs and compensations for those who resist change. So, we made some financial and non-financial transition arrangements. we arranged transition stay bonus and outplacement progr ams for all the layoffs employees. As most of employees at Cho Cho Phyu are between twenty and twenty-eight, there are much potential for their whole life long. So, Ms. Aung arranged personal career counseling, resume preparation and typing services, interviewing workshops and referral assistance in the outplacement programs.Initiating and implementing the new ‘Customer-centric’ Culture â€Å"The change process goes through a series of stages that, in total, usually require a considerable length of time. Skipping stages creates only the illusion of speed and never produces a satisfying result. †John Kotter, Leading Change To implement the new organizational culture, we were followed the model described by Kurt Lewis (1951). This is one of the best change model that is combining the theories of sociology and psychology, developed a three stage model for large-scale system change. Unfreezing phase This is the establishing stage for Cho Cho Phyu Co. , Ltd, which is forced by the environment to implement the customer-centric culture as their competitors, or back off from this aggressive market. Unfreezing phase is first step of the Lewin’s change transition stages, where people are taken from the situation of being unready to change to the firststep of being able and willing to change. Schein(1995) states that in order for change to occur, there must be a combination of both adding driving force and removing restraining forces.Creating a sense of crisis will bring the whole components in the company into one voice. As the main aim of this stage is to ‘let go’ the old culture of the organization, we, firstly, searched the bad points of the current culture and linked it with the issues and problems currently faced by the SHMT Home Mart. This step is the most important fundamental step for this whole change, we created a crisis – ‘burning platform’ to reduce the level of trust on the currently using culture. According to many researchers, most of the change processes are failed because of the unreliable vision and strategy.So, for second, we created a persuasive vision – ‘what we want to be? , then communicate it to the whole organization, to overcome the current crisis situation of the Cho Cho Phyu Co. , Ltd. By drawing a clear vision and strategy in how to achieve that vision, the employees will understand how the new system will benefit them and they will progressively change their effort to support the implementation of the new culture. We made change agentsto set clear vision of customer-centricculture in implementation process of Cho Cho Phyu Co. , Ltd.According to Lewin, this is a phase, which melt down the old beliefs, assumptions, and paradigm of organization. * Transition Phase this is a changing phase form the old undesired situation to the new desire situation. This is the hardest part for every individual to start. So, Ms. Aung, also made a pioneer team to fac ilitate the change situation. In this phase, the leader has to act like a king or role model. We made some form of coaching, counseling, reward, appraisal system, motivation and other psychological support for this phase.This phase get rid of anything which may vulnerablethe implementation plan of change process, including any unsuitable ideas, company structures, activities as well as existing beliefs which may potentially undermining or threatening the new culture implementation. Linking the reward and performance is very important for all change management process, and also with punitive actions. A sense of motivation is now needed for all employees to go to the goal of the organization. The project team also provided plenty of penalties of options for employee involvement in this change process.Giving opportunities to have delegation and empowerment can get the commitment of the employees. By announcing the short-term success also made the whole organization to generate motivati on. * Refreezing phase At the end of our journey, the final goal is to ‘refreeze’ the situation. Making short-term wins made the whole change process to run smoothly. As this new culture is very beneficial for both organization and staffs, each and every employees are very enthusiastic with the change. But in every change, there can be a ‘Marathon Effect’ that is some people reached the aim while other people are still running from the start.Visionary and icon leadership supports, proper reward systems, and reliable feedback systems made the change process to get success. we also made the training and development sessions for all the impacted employees to get the desired and required results from change management. For every change, there can be a fall back to the old undesired stage. That is why we made ‘burning bridges’ to ensure that there is no way to go back by establishing proper rules, regulations and policies and rewarding the successfu l employees whose behavior are aligned with the desired behavior. Communication StrategyCommunicating about the change throughout the whole organization is also the main point for all change champion, change leader and change agents to consider. Varey also said that ‘culture and communication cannot be separated’. People may feel shock, and deny in the first place, if the communication strategy is not well. So, we found out that we have to arrange it in the right timing during the transition process. We also used both formal and informal communication structure. In this strategy, we made people more rely on the formal communication system (that is – meetings, speeches, briefing, discussion, memo, notice etc. rather than informal (that is – rumors, gossips, conjectures and opinions). We planned the communication more focus on ‘what, when, who and how’, but there is no formula about the communication that can apply in all situation. In some circ umstances, change agents may advocate a complete openness of about all the issues to the impact groups. Conclusion This change management is concerned not only for the employee job satisfactions and delights but also for the business organizations to get competitive advantage.In this changing environment, the environment that the businesses operate is rapidly and massively changing. Notable experience is that, in Myanmar, the demographic changes have hugely impact on the Myanmar Businesses. As it is a culture change for Cho Cho Phyu Co. , Ltd, we faced with many problems and it may take more than 1 year for the whole organization to accept and exercise the new culture. Although it is a new culture for the whole organization, it is very beneficial for both employees and employer. Because of that point, we can implement the whole change management in successful behavior. Organisational Behaviour Assignment Performance Review Report ————————————————- Cho Cho Phyu Company Limited Group – 2 â€Å"We can say that there can be a change situation, when the people are dissatisfied with the current status or current situation. † Kurt. W. Lewin â€Å"Change can be happened when the people in the organization are open-minded and willing to change. † U Aye Kyaw(MHR) Acknowledgements We would like to express our sincere acknowledgements to all those who have helped us in preparation for this project.Initially, we would especially like to express my gratitude to our teachers- TakeruOhe, PhosyChanhming, and Yasushi Ishida who give the training of COBLAS Myanmar (Consulting Based On Learning Asean Small and Medium Enterprises). We are greatly in debt of gratitude to all of our Myanmar teachers for their encouragement, unflagging support and invaluable guidance throughou t our project. We are very much grateful to Daw Phyu Phyu Seinn, Managing Director of Cho Cho Phyu Co. , Ltd (SPIKE Fashion Collection) who allows us to do the research in her company and gives us invaluable datas, information and help which is very important for our project.Furthermore, our special thanks are due to the employees in Cho Cho Phyu Co. , Ltd, for their contribution and help in our change process. Last, we would like to offer my thanks to the authors and publishers mentioned in the references for using their materials in preparing this project. Many thanks to everybody who gave us help and support throughout our project. Executive Summary People are talking about the powerful word called ‘Change’, which is really popular in the human society started from the not more than the past three decades.And yes, this will be happened continuously at every time and in every situation. This is also happened in our business environment. Many literatures say that the e nvironment that the businesses operate is ‘rapidly and massively changing’. So, here are only two questions for all the businesses. Those questions are â€Å"kill? † or â€Å"be killed? †. For the business to be successful in the foreseeable future, it has to be killed the change before it is too late. So, the businesses must have aligned its internal arrangement with the demand of external changes.In this project, we focus on the aspect of ‘Starting up the Human Resource Department and introducing about Customer-led Culture’ at the company called â€Å"SPIKE Fashion Collection†, which is a successful fashion brand in Myanmar. ORGANIZATION PROFILE Cho Cho Phyu Company is started with a humble sole trader business structure in 1992, in the Third Capital City of Myanmar, Mandalay. And then, the business moves to Yangon in 2006 and formed as a private limited company. Also in 2006, Cho Cho Phyu company launched a fashion brand called †˜SPIKE’, which offers woman clothing to both business and consumer markets.Now, SPIKE is very popular brand for its local target markets of both Upper Lower and Lower Middle classes who live in suburb areas. Now Cho Cho Phyu hasTwoShow Rooms, in some downtown areas and TwoGarment Factories, which are operating very well. Business Canvas CUSTOMER SEGMENTS 1 Upper Lower Classes Lower Middle Classes VALUE PROPOSITION 2 ‘Spike’ is a fashion brand which is well established and has a good quality and reasonable price to its target market. the design is the main proposition for it, which is mostly emphasise on the comfort and confidence for its targets. CUSTOMER RELATIONSHIP 4Personal Assistant, Email, Phone, Letters DISTRIBUTION CHANNELS 3 Indirect Channel Direct Channel Consignment KEY RESOURCES 6 Reasonable Market Experience KEY ACTIVITIES 7 Cutting, Making , Packaging, Selling and Distribution PARTNERS 8 COST STRUCTURE 9 Social / Environmental Costs Financial Risk Capital Investment REVENUE STREAMS 5 Business community Well established Brand Seven Colour Textile Co. ,Ltd Long Foung Laung Yee ‘Spike’ aims to generate small revenues from a large number of customer designed items. This represents a valuable addition to Spike Fashion Collection. SWOT Analysis Strengths Customer loyalty / relationshipsProduction quality High production efficiency Skillful employees S W O T Weaknesses Poor Human Resource Management Lack of Plan Lack of clear mission, vision & goals Opportunities Changing customer’s needs Technological advance Get offer from ASEAN free trade Fashion trend changes of different ages Threats Changing the taste and preferences of the customers. the direct investment of the foreign companies. Main Issues As Cho Cho Phyu Co. , Ltd is just transforming from Sole Trader business structure to Limited Liability Company (LLC), there are many problems associated with conventional or traditional management style.Many theorist s say that most of the business owners are still getting lost in this change period, as they do reflect and remember their past behaviors, which are very well relevant for them in the past. In this firm, employee are dissatisfied with their job as they do not get the benefits and privileges that can get easily in the external market or in other companies. The Bureaucratic decision-making and less delegating also lead the whole organization to feel stifle and less important. Moreover, no Human Resource Department leads to become unstructured and unsystematic procedure in dealing with employee aspects.As a consequence, there are many unmatched job responsibilities and position. Employees do not know ‘what are their rights? ’ and â€Å"what are strictly forbidden/†. Initial Stage (prelude) We met with the Managing Director of Cho Cho Phyu Co. , Ltd and discussed about the matters that are currently arising within the Company. After discussing about the matters, we m ade an agreement with MD of Cho Cho Phyu Co. , Ltd and we sent TOR (Term of Reference) Letter to make the agreement. After due consideration of all aspects, our group started to work the following activities. Investigation methodsResearch Design Exploratory: After getting the permission from company’s board of director, we started to discuss what factors of Cho Cho Phyu Co. ,Ltd contribute to employee satisfaction. Because of time and budget constraints, we were unable to conduct focus groups or in depth interviews. By doing interview, we developed the research design. Descriptive: To gain a better un derstanding of the problem, and to clarify the research questions, we conducted secondary research to discover what experts say aboutemployee salary scales. This research allowed us to gain a solid understanding of the business.We clearly describe about the process of our research and data process through clear clarification in our ‘Employee Job Satisfaction Report’ . Force Field Analysis For every change management, the most vital thing to consider is that whether this change is needed or not. To know the solution, we made investigations by using interviewing, questionnaire and scanning the environment. After being investigated the whole environment, we can suggest that the Cho Cho Phyu is needed to set the Human Resource Department. As the nature of organization comprises with human beings, there can be complexity of human emotions and psychological implications.People always feel threaten because of change. So in this situation, there is no doubt that this will be happened too. Then when we look at Lewis Force Field, there are two forces – the positive forces for change and obstacles of change. there will be change of the positive forces are greater than obstacles. Driving Forces * Demographic Changes In previous days, there are few places for all customers to buy products or whatever they want. After 1998, the demographic changes inc ur and customers now have habits to buy things at retail stores. Now, customers are very choosy, know they have a right to sue and knowledgeable.Moreover, every customer thinks they are paramount for every businesses. * Various Stakeholders Interests Stakeholders are those who are interested in the business activities and can be affected by the business operations. There is declined in organization’s profit level at those days. Poor customer management skills and overlooking the customers’ needs and expectations made the Cho Cho Phyu bad image. For Cho Cho Phyu, employees are the best valuable assets which cannot be copied or imitate. Also, there is a strong relationship between the Employee Job Satisfaction and Customer satisfaction. * Political ChangesAfter changing government and political policies in 1989, the economic condition of Myanmar is gradually increasing. Changing from socialist economy to market economy gave the Myanmar economy to become more developments and beneficial returns. In 2015, there will be an AFTA (ASEAN Free Trade Agreement) issues. So, many SMEs and large scale businesses are starting to prepare for the unseen able future changes. * Competitors’ Reactions In Myanmar, there are same businesses like SPIKE Fashion Collection. The main rivalries for the SPIKE are D2, ,who are aggressively aiming to satisfy the customer requirements. * Economic IssuesIn Myanmar economy, there are too many uncertainties for every businesses. Also the implication of globalization of markets, organization must learn to break the limited mindset of national markets to compete on a worldwide basis (Ghoshal and Butler, 1992). Restraining Forces * Habits For every complexities, everybody rely on habits or programmed responses. People are difficult to change if they are naturally habited. * Security Even people at the high level can resist if the change is threatening to their feeling of safety. For staffs, there can be a sense of insecurity of being the nature of culture change due to the fear of unknown. Group Inertia Even if individual want to change, there can be resistances, which are constraint to the group norms. In Cho Cho Phyu Company Limited, there are many resistances – perceived habits of the shop floor workers, the current perceived culture of the worker, the status quo of the workers, and uncertainty of the desire situation. So, we made some assumptions that as this is a culturaland department change, the incremental change could be more appropriate forCho Cho Phyu Company in this development process. RESTRAINING FORCES (Obstacles for Change) Present State or Desired State DRIVING FORCES Positive Forces for Change) Lewin’s Force Field Analysis Excerpt from www. changemanagement-coach. com Impact Area Analysis Impact area analysis means analyzing the area which will have impacts because of the nature of effect of change. So, weanalyzed the whole organization and after the investigation, this change is mainly depended on the whole organization but the Top management has already been committed to set up the HR department. Then, the impact area was now clarified, our main aim is to change the perceived culture of the Middle and First Floor level of the organization. The Required BehavioursThe required behavior for this change are as followed: The customers in Myanmar are now very educated, knowledgeable and very complaining. Not only about customer, also the competitive reactions are so intense. So, for retail chain like SHMT Home Mart, the required behavior will be as followed; * Lean and structured Organization * Well and systematic HR Department, HR Policies, Practices and Procedures * Rightful design of job * Better place to work. Prudence that We All need to Aware * This process is a ‘Change’ process. * Examine whether it needs to do or not. * We must have ‘Management’ it well, until it reaches the proper end. This is not an ‘Event†™, this a â€Å"Journey†. * Many people give ‘Bloods and Lives’ during the Change Process. * ‘Resentments or conflicts’ can occur during the whole phase. * We cannot do it lightly, and when we dealt with it ‘there is no turning back’ * There is a ‘Time Constraint’. Role of Change Sponsor or Leader In this change process, Ms. Phyu Phyu Seinn, MD, is the leader, an inspirational leader. Before she communicates about the new ‘Culture’, firstly, she must build the level of trust, which Stephen. P. Robbins means that there are dimensions of integrity, competence, consistence, loyalty and openness.As she is a leader, she must do the to minimize the possible employees’ resistance. The main task for the leader are as followed: * Know his employees. * Know his customers * Think about the desired results * Empower People * Create a Win–Win situation In this situation, Phyu Phyu Seinn acted as a ‘Tran sformational Leader’, that is, â€Å"Leaders who inspire followers to transcend their own self-interests for the good of the organization by clarifying role and task requirements. †, â€Å"Leaders who are also capable of having a profound and extraordinary effect on their follower. † Stephen P. Robbins.For Mr. Chan, changing the nature of ‘Customer unimportant Culture’ to ‘Customer-centric Culture’. Transforming the old believes to new opposite one. On the other hand, Phyu Phyu Seinn also acted as a ‘Sponsor’ who provides resources, authority, or reinforcement neededto accomplish change and has the authority to modify reward systems or otheraspects of organizational culture. Role of Change Agent Change Agent means that â€Å"Persons who act as catalysts & assume the responsibility for managing change†Robbins et al 1994 Qualities of the Change Agent * Flexibility * Objectivity * Commitment Leadership and inspiration o f others * Ability to handle uncertainty * Organizational Awareness * Sense of Humor Here are tasks for the Change Agent, which was identified by for SHMT Home Mart culture change process. The tasks of the change agent are: to get the commitment to the change from the impact groups, to set up and strengthen the change network, to disseminate the information about change, to help and support the groups in implementing change processes, to make involvement and educate others to participate in the change, to monitor the whole change process. The First Stage . We prepared an Employee Profile Form to know the length of services, knowledge, qualifications, and summary of the current position. The total workforce number is 46 in Head Quarter. We made the entire total workforce to fill up the employee profile to know the record of the employees. 2. Analyzed the detail aspects of the job by using interviewing methods. 3. Sent out the job satisfaction questionnaires to know the satisfaction r ate of employee. 4. Redraft and rethink the old bloated and ineffective organizational chart to ensure that human resources are fit with the right job. . Sent out the new job description HR Manager post to set up the proper HR Department. * Posted in Institutes and in some Universities. * Advertised through internet * Linked with Employment Agency * Posted in internal Notice Board 6. Started to with Billion Forces Co. , Ltd to introduce the HRIS software. The Second Stage 1. Draft and prepared Job Descriptions and Person Specifications to know the detail of their tasks, duties and responsibilities. 2. Set HR Policies in line with Organization Strategy and Philosophy 3.Prepared HR Forms in accordance with HR policy and procedures to have a proper and systematic HR system. 4. Completed an Employee Handbook, both in English and Myanmar, which constitutes all the aspects of HR policies, Attendance and leaves, and some procedures. 5. Interviewed to all the applicants, to get the right pe rson at the right job in the right place. 6. Redrew a New Organization Chart, which is more effective, and lean structure than ever. the Third Stage 1. Implement the new organizational structure andHR procedures and rules, and transferred all the necessary HR forms. 2.Set new salary scale level in accordance with secondary research data published by MRS (Myanmar Research Survey), 2011. 3. Held Human Resource Management Training to all the managerial and supervisor level, to know the importance of the Human Resource Management in the business organization. 4. Introduce the new figure print system to know the attendance of each and every employee. 5. Introduce the Employee Cards to record and improve the customer service and know the attendance of each and every employee. MD HR Manager Sr. Operation Manager Finance Manager Sale & Marketing ExecutiveAdministrative Manager Sr. Designer HR Officer As. Production Manager As. Logistic Manager As. Procurement Manager Chief Accountant Accoun tant-1 Accountant-2 Stock Controller Cashier (Shop 1) Cashier (Shop 2) SCM Administrative Officer Sale Manager Mobile Team Leader Sale Staff (Shop-2) Sale Staff (Shop-1) Mobile Team member IMC Officer Jr. Designer Inbound L. Officer Production Supervisors Production Leaders SCM Outbound L. Officer Managing the People issues – Human Resource Management Strategy As organizationis comprising with people, there is more or less human resource factors for us to consider.Torrington and Hall (2008) defined ‘Human Resource Strategy’ as ‘a central philosophy that people in the organization are managed and transition of this into HR policies and practices, to become effective, policies and procedures need to be integrated with business or organizational strategy’. In here, we are needed to be considered is that the HR strategy must ‘Fit’ with business strategy which means ‘employees are seen as key in the implementation of the declared organi zational strategy and human resource strategy is designed to fit with it. ’ Torrington and Hall (2008)The main aims of aligning the HRM with organizational strategy are to ensure the best utilization of Cho Cho Phyu Co. , Ltd employees to generate the organization performance and to reduce the level of risk by arranging and organizing the right people, in the right place, to the right job and in the right time. For human resource issues, we drew a plan, which is to cover most likely cases of Cho Cho Phyu Company people issues. Topics covered for Cho Cho Phyu Co. , Ltd are as followed: Motivating, Training and development, Reward System, managing Psychological issues and Appraisal systems. Motivating or Committing others to Change For every successful change management process, the motivation of the followers is one of the factors to consider. ‘For most changes, people’s past experience of change can affect the level of commitment and willingness to support furthe r change’ John Hayes (2002). So, as this is the first time for Cho Cho Phyu, we have a responsibility to win this change. To motivate the workforce, we set, firstly, a proper goal and linked with the non-financialreward system of Cho Cho Phyu Co. , Ltd.We also set MD and Human Resource Manager as a role model for this change by visiting stores for every weeks, dealing with customers and giving speeches to employees about the importance ‘customers’. * Training Program Another issue during the department start-up time, we need to think about the ‘training program’. This is a new culture, people will not be familiar with it. For the first step, they have to understand what the new culture means for them. As this is the new culture, most of the sale staffs and supervisors would require a certain specific training for their job purposes.Each and every individual employees will be tested to ensure that they do have qualifications, skills and experiences to work with the new culture. We empowered change agents (managers) to persuade the workforce to attend and commit to the new culture. * Reward and appraisal system Another aspect is the reward and appraisal system. Organizational rewards are powerful incentives for improving employee and work group performance. Based on ‘carrot and stick’ metaphor, we set both tangible and intangible rewards for workforce. We made variety of reward, which is linked, with the culture of the organization.Reward such as recognition, contests, games, financial rewards, incentives, employee of the month or year awards which are mainly to show the appreciation for employee effort. We also made the reward systems link to the needs and wants of the individual employees. We used House’s Path-goal theory to motivate the workforce. * Managing Psychological Issues As people are human beings, there was many resistances to the new culture. Many people feel they were defeated, threatened, coerci ve by the new culture. Some people feel demoralized, stressful and frustrated for the change.So, from human resource management view point, we have a responsibility to take care and manage the psychological issues of the affected employees. That is why, we have made an agreement with HR department to make employee assistance program (EAP), stress management program and work-life-balance program. During the culture changing process, there can be some degree of redundancy. So, for survivors from the cuts, there can be shock, bitterness, anger and also peer and group pressures. Survivors need information about ‘why action had to be taken’ and ‘what the future holds for them personally’. Compensation and Ethical Considerations During the change process, there can many be issues like layoffs and compensations for those who resist change. So, we made some financial and non-financial transition arrangements. we arranged transition stay bonus and outplacement progr ams for all the layoffs employees. As most of employees at Cho Cho Phyu are between twenty and twenty-eight, there are much potential for their whole life long. So, Ms. Aung arranged personal career counseling, resume preparation and typing services, interviewing workshops and referral assistance in the outplacement programs.Initiating and implementing the new ‘Customer-centric’ Culture â€Å"The change process goes through a series of stages that, in total, usually require a considerable length of time. Skipping stages creates only the illusion of speed and never produces a satisfying result. †John Kotter, Leading Change To implement the new organizational culture, we were followed the model described by Kurt Lewis (1951). This is one of the best change model that is combining the theories of sociology and psychology, developed a three stage model for large-scale system change. Unfreezing phase This is the establishing stage for Cho Cho Phyu Co. , Ltd, which is forced by the environment to implement the customer-centric culture as their competitors, or back off from this aggressive market. Unfreezing phase is first step of the Lewin’s change transition stages, where people are taken from the situation of being unready to change to the firststep of being able and willing to change. Schein(1995) states that in order for change to occur, there must be a combination of both adding driving force and removing restraining forces.Creating a sense of crisis will bring the whole components in the company into one voice. As the main aim of this stage is to ‘let go’ the old culture of the organization, we, firstly, searched the bad points of the current culture and linked it with the issues and problems currently faced by the SHMT Home Mart. This step is the most important fundamental step for this whole change, we created a crisis – ‘burning platform’ to reduce the level of trust on the currently using culture. According to many researchers, most of the change processes are failed because of the unreliable vision and strategy.So, for second, we created a persuasive vision – ‘what we want to be? , then communicate it to the whole organization, to overcome the current crisis situation of the Cho Cho Phyu Co. , Ltd. By drawing a clear vision and strategy in how to achieve that vision, the employees will understand how the new system will benefit them and they will progressively change their effort to support the implementation of the new culture. We made change agentsto set clear vision of customer-centricculture in implementation process of Cho Cho Phyu Co. , Ltd.According to Lewin, this is a phase, which melt down the old beliefs, assumptions, and paradigm of organization. * Transition Phase this is a changing phase form the old undesired situation to the new desire situation. This is the hardest part for every individual to start. So, Ms. Aung, also made a pioneer team to fac ilitate the change situation. In this phase, the leader has to act like a king or role model. We made some form of coaching, counseling, reward, appraisal system, motivation and other psychological support for this phase.This phase get rid of anything which may vulnerablethe implementation plan of change process, including any unsuitable ideas, company structures, activities as well as existing beliefs which may potentially undermining or threatening the new culture implementation. Linking the reward and performance is very important for all change management process, and also with punitive actions. A sense of motivation is now needed for all employees to go to the goal of the organization. The project team also provided plenty of penalties of options for employee involvement in this change process.Giving opportunities to have delegation and empowerment can get the commitment of the employees. By announcing the short-term success also made the whole organization to generate motivati on. * Refreezing phase At the end of our journey, the final goal is to ‘refreeze’ the situation. Making short-term wins made the whole change process to run smoothly. As this new culture is very beneficial for both organization and staffs, each and every employees are very enthusiastic with the change. But in every change, there can be a ‘Marathon Effect’ that is some people reached the aim while other people are still running from the start.Visionary and icon leadership supports, proper reward systems, and reliable feedback systems made the change process to get success. we also made the training and development sessions for all the impacted employees to get the desired and required results from change management. For every change, there can be a fall back to the old undesired stage. That is why we made ‘burning bridges’ to ensure that there is no way to go back by establishing proper rules, regulations and policies and rewarding the successfu l employees whose behavior are aligned with the desired behavior. Communication StrategyCommunicating about the change throughout the whole organization is also the main point for all change champion, change leader and change agents to consider. Varey also said that ‘culture and communication cannot be separated’. People may feel shock, and deny in the first place, if the communication strategy is not well. So, we found out that we have to arrange it in the right timing during the transition process. We also used both formal and informal communication structure. In this strategy, we made people more rely on the formal communication system (that is – meetings, speeches, briefing, discussion, memo, notice etc. rather than informal (that is – rumors, gossips, conjectures and opinions). We planned the communication more focus on ‘what, when, who and how’, but there is no formula about the communication that can apply in all situation. In some circ umstances, change agents may advocate a complete openness of about all the issues to the impact groups. Conclusion This change management is concerned not only for the employee job satisfactions and delights but also for the business organizations to get competitive advantage.In this changing environment, the environment that the businesses operate is rapidly and massively changing. Notable experience is that, in Myanmar, the demographic changes have hugely impact on the Myanmar Businesses. As it is a culture change for Cho Cho Phyu Co. , Ltd, we faced with many problems and it may take more than 1 year for the whole organization to accept and exercise the new culture. Although it is a new culture for the whole organization, it is very beneficial for both employees and employer. Because of that point, we can implement the whole change management in successful behavior.