Natt Poontanes


Executive Summary

King Power International became a leader of duty free and tax free shopping center in Thailand. It's located at Thai major international airport, Suvannabhumi Airport in Bangkok. The company provides high quality brand name products, gifts and traveling retails at a lower price than what available at the market. King Power is best known for its low pricing and wide selection of good. The company is very proud to take part in the development of the country. King Power has contributed not only the amount of 7,000 million baht ( Thai currency ) concession fee generated to the Thai government, but also their operation, which creates over 3,000 job opportunities to the Thai employees. King Power is being considered as a large retail business.

The reason that I choose to explore and analyze this company is because I'd been working for this company for over a year and my real life experience at this company has given me a clear vision of what the company does and what major problems that exist within the organization. The company is so huge that change becomes necessary to continue its role as a place that provides the best quality products with lower prices. Continuous improvement is the path to competitive advantage.

    Brief summary of change strategy:
    - Constant Meeting and group discussion
    - Employees Training and Coaching program
    - Establish Reward system
    - Make employees feel as a part of company's success.
    - Empowerment

John Kotter's eight steps model should be applied to the change management of King Power. The today highly competitive market is one of a main driving force that change management within the organization is necessary. New improvement must be made so that the company can continue to maintain its high standard products and services to the customers. The organization faces a challenge of overcoming a highly competitive market. Even though the company is best known as a place that offer a low price goods, without satisfying service and high product quality, it cannot survive in today competitive market. To generate more revenue, employees should be more involve as a team to bring the best to the company. It's each individual that can make the different. Therefore, the company should encourage employees to be more productive and inspire them to work hard to improve and achieve the organization's goal and vision. I highly believe that with high employee involvement, the company will be able to reach its goal.


Assessment/Diagnosis:

Before change implementation plan was determined to take place in the organization, King Power does not take any action to help increase employee's performance. They neglected the fact that how well the employees perform will greatly result in the organization's profit and improvement. Some employees were lack of knowledge and skills to assist customers about the product. They were unable to answers some questions to the customers. Some employees were not friendly with the customers. The managers from each department received many phone calls and complain about the employee's ability to help the customers with the products. There were many returned products when the customers dissatisfy with the goods because they were not function as the way the sellers assist them. When King power decided to conduct a survey about how well the employees performed, the rate of satisfactions from the customers were very low. As a result, it leads to change. Change leader soon realized that action and new change implementation plan must take place to improve the organization. Before any change take place, change leaders need to determine what factors has a negative influence on the company's performance. For King Power, the organization needs to build a strong support from their employees. They need to provide a better service to the customers. Therefore, their change management plan is employee involvement strategy. They need to unite their employees under one goal, to bring the best service and high quality product to the customers. By doing so, organization can implement their plan by establish a reward system to motivate their employees to increase their performance and increase total sale. Meeting and group discussion should also be hold regularly so that each individual worker can raise their voice and share their thoughts with the others. It's important to make the employee feel that they are part of organization and their jobs are very important to the organization.


Analysis of the Changing Strategy: Employee Involvement:

King Power is such as a huge organization that change becomes necessary. It's important for the organization to bring improvement to the organization so that it can survive in today competitive market. There has been an increasing in realization that people are one of a company key's assets. Retail means working and serving customers in a direct, personal way. This calls for special actions from retail companies to fulfill the demands of an increasing number of well-informed and sophisticated customers. Moreover, the first thing the company must do is to hire the employees who are willing to devote to their jobs, those who are willing to work to bring the best to the organization. The company should consist of people who have high passionate and commitment to the company. Employees who are lack of motivation should be eliminated from the workplace. Once the right employees are in place, effective training and development are needed to cultivate and maintain desirable employee behaviors and attitudes. It's essential that the company hire the right people so that business can be successful. Retailing is a major labor-intensive industry sector. One of the major changes that King Power can lead is to engage their employees to become more involve and motivate them to become more productive. As a retailer business, customer's satisfaction should be their priority. Therefore, employees should have an ability to answer each customer about the products in the store as well as being able to assist customers about the organization and improve customer's experience. The organization should provide a coaching program that will educate employees about their tasks. Employees are the driving force behind all the transactions that occur in retailing outlet. The purpose of providing a coaching program to the employees is not only to educate employees or organize the company, but also to provide a full support and motivate employees to understand about team work and fulfills their tasks to accomplish a common goal. King Power is being considered as a huge retailing store based on profit oriented. Employee's performance is one of a key to increase revenue. To achieve their goal, employees must understand clearly about what change necessary and why change should take place in the organization.

John Kotter (1996) believes there are eight stages in the change process. There are three phases in this model, similar to Lewins Three Step Model (unfreezing, moving, refreezing). He created the following eight stages model to prevent mistake from making change within the organization.

1. Establish a sense of urgency

    - examining the market and competitive realities
    - identifying and discussing crisis, potential crisis, or major opportunities

2. Creating the guiding coalition

    - putting together a group with enough power to lead the change
    - getting the group to work together like a team

3. Developing a vision and strategy

    - creating a vision to help direct the change effort
    - developing strategies for achieving that vision

4. Communicating the change vision

    -constantly and repeatedly communicate the new vision and strategy
    - having the guiding coalition role model the behavior expected of employees

5. Empowering broad-based action

    - getting rid of obstacle
    -changing systems or structures that undermine the change vision
    - encouraging risk taking and non-traditional ideas, activities and actions

6. Generating short-term wins

    - planning for visible improvements in performance, or "wins"
    - creating those win
    - visibly recognizing and rewarding who made the wins possible

7. Consolidate gains and reducing more change

    -using increase credibility to change all systems, structures, and policies that don't fit together and don't fit the transformation vision
    -hiring, promoting and developing people who can implement the change vision
    -reinvigorating the process with the new projects, themes, and change agents

8. Anchoring new approaches in the culture

    - creating better performance through customer-and-product-oriented behavior, more and better leadership, and more effective management
    -articulating the connections between new behaviors and organizational success
    -developing means to ensure leadership development and succession

To successfully bring change to the organization, King Power should follow the eight steps created by Kotter. This model will help the company succeed in making a new transformation.

It's important for the organization to provide as much information to as many employees as possible about their business. They should share financial information, customer feedback, employee satisfaction survey results, industry projections and challenges, and data from processes their measure to employees so they are well informed about how well the organization being perform or what are the risk the organization face that need to be fixed. In this case, King Power should constantly hold a meeting to discuss about the organization goal and vision. A clear communication about organization's goal should repeatedly emphasize to the employees. If an organization wants to implement change, change leaders must explain the reason or basic purpose for change. Employees may not have a realistic idea of where the organization is or what problems it is facing. Change leaders must inform them. They need to understand the purpose for the outcome the organization is seeking. To clearly communicate vision, it will help eliminate resistance in the workplace.


Results / Outcomes:

Implementing change in such a large organization as King Power is not an easy task. Employees should feel emotionally engage and committed to their work. Resistance to change became one of the obstacles that change leaders must overcome. Change leaders would expect all the employees from top to bottom to cooperate, however no matter how effective the organization strategy is, there will be some employees who refuse to change. These are employees who perceive change as a threat. They might feel lack of interest or feeling that change does not affect them personally. These employees might belong to a group that they have been in the organization for too long and they sense that change is not necessary. They might feel happy the way things are. They might also feel that change has nothing to do with them and it's only general organization that will receive a profit. The change leaders must convinced their employees that it was time for change and bring the organization to move forward. It's the change leader's duty to eliminate the resistance in the work place. Resistance can be eliminate if the employees doesn't feel threat or agree that change is necessary. Employees must be fully supported and educated about the whole concept. As a result of a clear vision and communication, it will eliminate employee resistance to change. An effective team work will help organization accomplish their goal. When employees become motivated and inspired, they tend to work harder. The way the organization treat them will greatly affect their work attitude. By making employees feel as a part of a company's success is the best way to inspire individual worker to work their best. King Power is an organization that making a profit by selling good. Therefore, customer's satisfaction is very important to the company. Ultimately, by bringing such positive change to the organization, it will greatly impact the organization's performance. These changes will produce improvement in workplace. However, the result of change can be a short term effect. Employees might feel lack of interest to implement such plan, it's change leader's responsibility to inspire the employees for a long run. The employees must constantly being inform about how greatly the organization's performance will affect their life. For example, when the company increases their revenue, employees might be encouraged by getting bonus and reward at the end. Even though we all expected employees to follow the strategy and getting more involve in organization, there will be some people who resist changing.


Evaluation of the Efforts:

Change leaders can use theory and principle present in the course. First of all, they need to understand what are the factors that drive and bring their organization to the changing stage and why change management become necessary. Forces such as human capital, technology, political-legal, competitive and economic and globalization forces are facts that effect the survival of the organization. To bring change to the organization, change leaders need to build strong support from their workers to overcome resistance. They can use principle of change resistance to motivate those who refuse to change. Leader's characteristics such as their ability to empower and inspire employees can have a great influence on change management. Change leaders can follow Charlotte Beers's leadership style. Her ability to persuade her employees to follow her vision proves to be helpful to bring improvement to her organization. John Kotter and Lewin's state in change process are an important steps that change leader can use as a tool. To make change more successful in organization, King Power can organize a team that works to improve the customer service directly. They can set up a hotline service to answer any call from customers to answers questions that employees themselves are unable to answers the customers. Reward system is a way to accomplish a higher goal. People tend to work harder to gain their personal interest. After finishing this class, I have acquired much useful information that I will be able to use them in the future.


Change Document : E-mail from change leader to employees

Dear King Power,

I'm writing you this letter to inform you about new exciting program that will take place at King Power. Due to a highly competitive market today, King power need to make improvement to gain its share in the market. We need to make our service and good stand out from our competitors. As a team who are greatly concerned about the performance of the organization, we are proud to inform you that King Power is now doing well. Our customers are very pleased with our good and product. However, to continue our role in serving the community the best service possible, we decided to take some actions to bring positive improvement to our organization. Our change program include providing our employees a new knowledge and skills about the products from each department, providing our employees and assistance on any issue regarding to their work, and also establishing a reward system such as bonus for those who have high performance. Employees who achieve high total sale will be rewarded. The meeting from each department will be hold constantly so that employees can take part with our discussion. We want each individual to feel that they are part of the organization. We want our employees to feel that the organization's success is their success. Now I would like to take this opportunity to thank all of our employees to help bring success to our organization. Please continue doing a good job.

Sincerely,

King Power


Research Document: customer survey (a survey that will evaluate employee's performance)

  1. How do explain your experience at King Power. Do you enjoy your shopping at King Power?

  2. How well our employees are able to assist you with the products?
    Poor          Good          Very Good          Excellent

    How well do they know about the product they are trying to sell to you?
    Poor          Good          Very Good          Excellent

  3. How do you rate our service and employee's performance?
    Poor          Good          Very Good          Excellent

  4. How often do you shopping at King Power?
    Often          Once or twice a month          Once or twice a year          Not very often

  5. Which department do you mostly visit? What's your favorite store at King Power?

  6. Any suggestion or comment on our product and service? What should we do to improve your experience at King Power?

Reference

Books and articles

1. Argyris C (1998) Empowerment: The Emperor's New Clothes, Harvard Business Review, May-June, pp98-100

2. Wilkinson A (1998) Empowerment: theory and practice, Personnel Review Vol. 27 No. 1 pp40-56

3. Lashley, C (2001) Empowerment: HR strategies for service excellence Oxford, Butterworth-Heinemann

4. Okumus, F.; Hemmington, N. (1998) Management of the change process in hotel companies: an investigation at operational level. Journal of International Hospitality Management, 17 (4), pg 363-374.

5. Lewin, K. (1951) Field Theory in Social Science. New York: Harper and Row.

Electronic resources

7. King Power Duty Free Organization background. ( 2009 ) in King Power Duty Free corporate Retrieved from http://kingpower.com/2009/our_corporate.php

8.Organization structure and design. (2005). In International Encyclopedia of Hospitality Management. Retrieved from
http://www.credoreference.com.proxy.devry.edu/entry/esthospitality/organization_structure_and_design

9. Empowerment. (2005). In International Encyclopedia of Hospitality Management. Retrieved from http://www.credoreference.com.proxy.devry.edu/entry/esthospitality/empowerment

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