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HCM541 Leadership And Change Management

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1. You are to select an appropriate organisation (private, public or voluntary – in total or a unit or division) that is prepared to allow you access to carry out a diagnostic exercise.  The organisation may be a business but may also be a public, voluntary or social type organisation. If it is a large organisation it is advisable to only explore a meaningful part of that entity (e.g. a department, unit or team). You will need access to at least one or two key informants to gather some primary data and ideally have access to some level of company documentation (annual reports, web site, publicity material, etc.).  The anonymity and confidentiality of the organisation may be protected by giving it an appropriate pseudonym if needed.

The company chosen is Badja Karya Technik (BKT). It’s a hardware, mechanical & engineering general trades company (take a look a this website: https://www.badjakarya.com/home/about)

2. Using any one of the key diagnostic models covered on the module (OTHER THAN SWOT or Force-Field Analysis), undertake a systematic diagnosis of the organisation (or unit thereof). The diagnosis should include, at minimum:
A brief analysis of the organisation’s external and temporal environment.
An identification of the key problem(s) / inefficiencies facing the organisation or main areas or activities with good scope for improvement.
An identification of any interrelationships between the problems identified.
An identification of the underlying source(s)/main cause of the problem(s) (This is important, do not misunderstanding the causes of the problem with the syndrome, please be specific and detailed on the underlying source/cause)

Current problems:

The revenue of BKT decreasing 20% - 30% over past 4 years (from 40tons/month of PVC and copper pipe in 2015 to 28-32tons/month in 2018). 

In the past there were 8 big regular customers and 3 of them stopped purchasing the product from the BKT (losing market share).

There are some reasons:

  • Due to the developments of technology, the customers can easily laise and find direct source from oversea and import the products by themselves so that they can save cost (they don’t have to go through a middle distributor like BKT). 
  • Tax increases from 15% to 20% in last 4 years for hardware/ mechanical products.
  • Cost (include labour cost and transportation cost also increased by 5%).
  • Indonesian gorvernment policy is more open for global trading (this might need some proof of reading).

The Model given for dianogsis:

In this assignment, we just need to focus on INPUT (external factors) and TRANSFORMATION.

3. Based on the diagnosis identify a suitable intervention or set of interventions which you consider appropriate in tackling the problems identified.  Categorise the interventions chosen and justify your selection.
4. Develop a brief action/implementation and evaluation plan based on your diagnosis.  Change recommendations should be prioritised. Issues to be included in the implementation plan include membership of the change team, a schedule and timeline of activities, allocation of responsibilities, motivation and communication plan, budget.
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