Strategic Leadership and Change Management: A Pemancar Case Analysis

This case study analyzes the change management strategies implemented at Pemancar, a Malaysian automotive parts manufacturer acquired by a European company (NOVA). The changes, led by Danial Tareq, introduced new technologies, quality standards, and a flatter organizational structure aimed at improving performance and communication. The study explores potential conflicts arising from these changes, including task, personality, and value conflicts, as well as potential staff retention issues. It emphasizes the importance of transparent communication, interpersonal bonding, and strategic leadership in addressing these challenges for better organizational outcomes. The analysis draws upon various change management theories and research to provide insights into managing continuity and change within organizations. Desklib provides solved assignments for students.

Running Head : CHANGE MANAGEMENT
Change Management
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1CHANGE MANAGEMENT
PART A
Pemancar Case Study
As per the views of Abdullah and Siti –Nabiha (2012), change management is an
approach that is systematic and deal with the organizational objectives and goals, process and the
technologies too. The study of Abdullah and Siti- Nabiha is regarding the implementation of a
new organizational culture on Malaysian conglomerate subsidiary Pemmcar by the Europe based
multinational company. It also uncovers the organizational resistance against the transformation
or change brought about. It is to be noted that Pemancar is a manufacturing company dealing in
automotive parts which is situated in Malysia.
The company was acquired by the European NOVA company which had infused
different ways of functions in the company lead by Danial Tareq. Since there was new product
specification, new machinery and new technology along with forced standards of quality and
production added, the atmosphere of the company started being claustrophobic for the
employees. However, the change was concentrated towards high performance, powerful
communication, increased accountability and value creation. The changing work culture left the
employees under immense pressure. The previous organizational structure was bureaucratic and
pyramidal in Pemancar. The new system substituted it with a flatter and leaner structure in order
to facilitate effective communication across the entire organization. The theory of punctuated
equilibrium suggests that, the current situation of Pemancar is under extreme stasis and it
requires a kind of leadership that can punctuate it with proper change.

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The article of Nasim and Sushil (2011), the change management is perceived from
various aspects. It is paradoxical in nature and outlines a shift of approach along with
paradoxical thinking. The leaders of the organization should address the paradox of continuity
and the change. In Pemancar, the implementation of cultural change might face certain
difficulties. In this context Danial Tareq might face few conflicts:
 The tasks conflict might be there related to the tasks of the employees. There might be
clash of opinions on the new policies and procedures. The expectations at work can be
hindered by it.
 The personality conflict is also likely to be there that arises from the matters of taste,
personality, taste and conflicting styles too. The cultural difference between Europe and
Malaysia might also be there (Riwo-Abudho, Njanja and Ochieng 2012).
 The value conflict is another which arises out of the different types of values and the
identities. In a given organization, there are different ethics, deeply held beliefs and
traditions which might create issues.
 The other issues regarding the retention of the staffs might also be there. The changed
environment of the workplace might leave huge impact on the overall profitability of the
organization (Stoltzfus, Stohl and Seibold 2011).
Hence, the leadership techniques of Danial while managing the change implemented in the
organization should address few actors for better outcomes.
 The change management is a type of leadership challenge which needs to be addressed. A
transparent communication should be there (Herzberg 1987).
 A good strategy would be “walking the talk “along with having confidence in the self.

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 As per the suggestion of Nasim and Sushil (2011), it is possible to look for proper
solutions on order to provide the desired.
 The primary objective should be to establish interpersonal bonding with the people of the
workforce.

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Reference
Abdullah, Z. and Siti-Nabiha, A.K. (2012) ‘Leadership and change management: a case study of
Pemancar’, Asian Case Research Journal, 16 (1), pp. 115-132.
Herzberg, F.I. (1987) ‘One more time: how do you motivate employees?’, Harvard Business
Review, 65 (5), pp. 109-120.
Nasim, S. and Sushil (2011) ‘Revisiting organizational change: exploring the paradox of
managing continuity and change’, Journal of Change Management, 11 (2), pp. 185-206.
Riwo-Abudho, M., Njanja, L. and Ochieng, I. (2012) ‘The role of strategic leadership during
change’, Kenya Journal of Business Management, 4 (1), pp. 48-61.
Stoltzfus, K., Stohl, C. and Seibold, D.R. (2011) ‘Managing organizational change: paradoxical
problems, solutions, and consequences’, Journal of Organizational Change Management, 24 (3),
pp. 349-367.