Critical Analysis of Pemancar Acquisition by NOVA: Leadership Report

This report provides a critical analysis of the Pemancar acquisition by NOVA Europe International Corporation, examining the roles of leadership and management within the context of this case study. It evaluates the appropriateness of the management style employed, considering its impact on the organization, its staff, and the project itself, supported by relevant academic literature. The report further analyzes the two primary factors contributing to the decline in employee morale following the acquisition, and proposes two distinct strategies for addressing these issues. The report also explores the methodologies that could be applied to improve operational efficiency and achieve cost savings within the organization. Finally, the report discusses the background of lean methodology and CCPM, and how these methodologies could be applied within the organization.

ANALYSIS

Table of contents
Introduction......................................................................................................................................3
Critically analyse the case study in terms of the acquisition of Pemancar by NOVA Europe
International Corporation.................................................................................................................3
The role of leadership and management..........................................................................................3
The Push for Higher Efficiency, Productivity and Quality.............................................................3
The leadership and management role..............................................................................................4
How the management style used in the case was appropriate for theorganization, its staff and the
project itself?...................................................................................................................................4
The two major sources of reduction in morale amongst employees in thisorganization following
the acquisition by NOVA................................................................................................................5
The strategies that could be implemented by the company to raise the moral of their employees. 6
The methodology to be used in the operations................................................................................7
The background of lean methodology and CCPM..........................................................................7
The methodology to be used in organization...................................................................................7
Conclusion.......................................................................................................................................9
References........................................................................................................................................9

INTRODUCTION
Change within the organization or project management approach could be defined as the
transformation of processes or tasks that have positive impact on the project proceedings or
outcome. Effective management of change within the project need to be controlled and
monitored through positive leadership approach and style. Various tools and processes need to be
implemented or adopted in order to achieve desired outcome in project approach or functionality.
The case study on permancar by NOVA Europe International Corporation will be studied and
will be researched here in this assignment on the basis of their leadership and management roles.
Through this study, all those factors will be analyzed that are misleading the operations and
morale of the employees in the organization. Along with identifying the problems, the solutions
and methodologies that can be used in the enhancement of the employees moral and the
operational working will also be discussed.
CRITICALLY ANALYSE THE CASE STUDY IN TERMS OF THE ACQUISITION
OF PEMANCAR BY NOVA EUROPE INTERNATIONAL CORPORATION
THE ROLE OF LEADERSHIP AND MANAGEMENT
The acquisition of permancar by NOVA Europe International Corporation was made through the
introduction and restricting for the process and to new procedures in all the areas. The mission of
permancar is to become one of the most prominent producers in the industry of automobile and
also in the region of the world. The company is aiming to inspire their employees to achieve its
mission as well as to satisfy the customers to give them high competitive products and qualities
services. In accordance to examine the role of management and leadership, the research states
that the company’s main aim is to satisfy the customer’s wants as well as its competitive
products, quality and the services which they offer (Hechanova, et al. 2018).
The nova made permancar also believes that their excellence begins with the individuals as well
as with the catalyst of what they are doing for their people. As it is the mission of the company,
they are committed towards reaching out to a world-class operation by building up corporate
values and philosophies. The permancar leadership and management style also plays an
important role in providing high quality, customer satisfaction, employees and shareholder
satisfaction too.
Accessing KL corps’ product dealers’ network: KL Corp took over permancar and established a
product distribution channel and distributor’s network in local market. Nova’s objective is to
penetrate the product’s dealer’s network in order to establish the footprint in the regional market.
Leadership plays a critical role in this case in order to achieve specific goals as mentioned below.
 Transformation of accusation objective into strategic vision of organization.

 Maintaining performance metrics as top priority
 Creating vision and strategic goal for permancar in new market
High performance culture: there are various factors have been contributing to the high-
performance culture whereas positive leadership approach can implement the strategic outline to
achieve the high-performance culture. Innovation is leadership and functionality, agility in
leadership approach and effective communication can positively contribute to the high
performance culture in permancar workplace environment.
THE PUSH FOR HIGHER EFFICIENCY, PRODUCTIVITY AND QUALITY
In the organization NOVA, the major concern was to increase their number of workforce with
proper skills to meet the best level of productivity and efficiency in their operations. However,
Nova applied a certain standard for their production volume of its skilled employees that was
based on their standard volume. However, the drawback that company faced was that, permancar
was not able to give enough volume which was expected by the NOVA. Additionally, the skills
and productivity level of the employees was also not up to the mark. The way the company could
achieve its productivity is by increasing its outputs and by decreasing the man force in their
operations. However by the late 2006, the company faced a tremendous lost due to decrease in
their productivity and due to less man force in their operations (McCaffery, 2018).
THE LEADERSHIP AND MANAGEMENT ROLE
The corporate values of the company are inculcated by giving each employee in their company
with a role of sincerity, realization, interdependence, openness and trust. Under the section of
leadership role the members of the organization lacks in giving out the best responsibility in their
respective job role. The need of sense of ownership and sense of responsibility is vey essential in
the business. It is essential to push the limits of employees working in the organization so that
they can act accordingly to solve the relevant situations (Hayes, 2018).
The researches have also stated that the roles of employees are more reactive then it should be
proactive. The employees and managers noted that the people’s performances in their respective
job roles are delayed due to less submission of their operations in the organization. Additionally,
due to this delay there occur several variances and deviations in the budget of the organization.
The organization also lacks down in the role of executing the operations and motivating the
morale of employees. Also the Finance department is solely regarded as responsible for the
whole situation. It is seen that the leadership and management style played in the organization
does not fully satisfying the employees rather it drops down its morale.
Rapid penetration in the local market: The role of the leadership and management is to penetrate
the local market through accusation of local distributor channels, collaboration with PL Corp’s
dealers and distributors. Adopting the exiting market strategies in line with Nova’s business

objective would help to penetrate the market and create an high performing cloture in newly
emerged organization in local market.
cooperative management style: the role of Nova’s management is to create an cooperative
leadership approach in permancar in order to create an high performing workplace culture and
environment. Each team member need to contribute equally in permancar organization in order
to create an collaborative vision and progressive approach in the regional market.
HOW THE MANAGEMENT STYLE USED IN THE CASE WAS APPROPRIATE FOR
THE ORGANIZATION, ITS STAFF AND THE PROJECT ITSELF?
The kind of management structure which is issued by the permancar is done under the KLCorp,
which is headed by the plant manager. The Plant Manager is responsible for managing the plant
and supporting the vision of operations. The company has taken the management style by
dividing the whole work to the organizations that consists of seven departments. The
departments comprise of the Engineering Unit, Production Unit, Quality Management, Planning,
Industrial Engineering, Plant Operation And Product Industrialization (Mikkelsen & Olsen,
2019).
The company also has a support division that consists of the six departments that is on Human
Resources, Purchasing, Controlling, Accounting And Finance, Safety And Health. In terms of
creating a management style the company also has manpower of more than 1700 employees that
comprises of 130 managerial and middle management level persons, 100 individuals at clerical
and 1400 employees at the operational level (Van Rossum, et al. 2016).
With its unique and subordinated management style, the company has marked itself as one of the
largest plant in the north part of Peninsular Malaysia. The well-supported vision and their
management operations have increased their volume of production as well from 9million kg per
year and up to 40 million kg in the year of 1988. The pemancar has grown and also flourished
itself with producing high volume of automotive parts all due to its effective management style
by separating each group of people with their operations. The good support management style
and supported staff have recognized the company in both international and national level
(Cameron, 2015).
THE TWO MAJOR SOURCES OF REDUCTION IN MORALE AMONGST
EMPLOYEES IN THIS ORGANIZATION FOLLOWING THE ACQUISITION BY
NOVA
The acquisition of permancar has the two major events that lead to huge impact upon its
operations. The two acquisitions by NOVA were introduced with:

• The liberation of the Malaysian economy
• Trade barriers through the free trade agreement
However, the management felt that the business partners need to be sustained in the existence of
Permancar. Thus, the technical agreement got terminated in the year of 2001. However, the
KLCORP went to make a technical agreement with the Nova, as they are one of the largest
automotive suppliers. In the late 19th century, Nova established its company in Europe with
nearly 90,000 employees in it that are working in more than 30 countries. So, subsequently, more
than 30% of pemancar employees were divested to Nova (Talwar & Mehta 2019).
The major philosophy the Nova worked on with the employee was to make them understand
about their day to day actions that have to be covered by them as the act of entrepreneurs. The
major thing which made the morale of their employees low was on the following two things:
• Full responsibility for the management
The management placed to give attentive development to the organization which was studied
according to the cases study. The managers lacked to develop a cooperate spirit, high
performance, responsibility, knowledge managers and corporation in the company due to lack of
training and lack of support from the company (Neves, et al. 2018).
• The level of productivity
The company expected to get a high level of productivity from its employees. Additionally, the old management that
needs to be set up to manage and to run their operations. The head of production, as well as the plant manager, are
required to implement some changes so that the employees can easily carry out their working. According to the
manager, the major drop down on their morale was the company terms and Conditions. The organizations asked the
employees for high productivity level and the company was very tight in terms of manpower that tremendous lead to
a shortage of workforce and high responsibilities to the employees (Miles et al. 2018).
THE STRATEGIES THAT COULD BE IMPLEMENTED BY THE COMPANY TO
RAISE THE MORAL OF THEIR EMPLOYEES
Co-operative management style
The company is expected to foster out a cooperative management style that can encourage the
employees with giving out accountability and delegation on the work. The programs also
facilitate the exchange of their knowledge as well as their expertise internally so that they can
give better suggestion, constructive answers. Additionally, due to this facilitation the
performance of employees will also get improved. The company is also expected to foster out
management styles that can groove out better retention to the employees so that they can give out
best in their respective job roles (Burnes et al. 2018).

The programs can also be initiated to facilitate expertise and knowledge to the employees that
can pursuance the employee’s lifelong learning. The company can introduce training and
learning programs for the new as well as for the old employees on their new strategies and
operations so that they can give out their best in their respective role.
Bring out more manpower
Another strategy that the company must use to allocate high production from their business is by
hiring more man force so that the control and responsibilities form other people could be
minimized. As, it is seen in the research it is the major problem that the employees in the
companies are facing with. The manpower can also be introduced with hiring new subordinates
in very operations according to the needs of business and particular operation (Akingbola et al.
2019).
THE METHODOLOGY TO BE USED IN THE OPERATIONS
In the case study, it is seen that the managers in the Permancar are existing with the admitted
cultural differences that need to be managed with the current management. The culture of the
organization is exposed to the concept of the Malaysian government. As, in the change of
concept the permancar has to go through the simultaneous problems that have introduced the
new product, product specifications, and technology at the permancar.
According to the report it is seen that the organization is unable to achieve its monthly
production target that has to lead them to a chaotic situation. The employees working under the
organization are in stress to not achieve the targeted output and especially due to the reduction of
employees. However to improve the functionalities and the performance standard of permancar
the nova can take the help of lean methodology or critical chain project management (CCPM) to
promote their workflow in respect of their people as well as to boost their operations by bringing
in smooth functionality (Hallinger, 2019).
THE BACKGROUND OF LEAN METHODOLOGY AND CCPM
The CCPM method is a way that the project managers should focus on by doing proper
scheduling of work. This method can help the project to underway a change that could reduce the
other changes happening in the operations. Many organizations fail like permancar to move
ahead in the goal while the goalposts keep on moving. However, with the help of CCPM method
the organization can complete their project within the planned timeframe by using up the planned
resources (Doppelt, 2017).
On the other hand, the lean methodology’s is a way that promotes the flow of value and the
customer’s satisfaction through guiding a continuous improvement in respect of people as well
as into the productivity. The lean methodology is also a way and a disciple that can increase the

access of information as well as it can help in making the decision that can create customer value
(By et al. 2016).
THE METHODOLOGY TO BE USED IN ORGANIZATION
The methodology works in different areas to provide development and systematic approach in an
organization. The project manager must introduce the CCPM method in the permancar business
as it can help in recovering with the changes that are undergoing in the change of plan. The lean
methodology method is not suggested as it works in improving the performance of customer
satisfaction as well as to create customer value, which permancar has already created with its
exposure popularity (Hallinger& Hammad, 2019).
The ideas of critical chain project management (CCPM) can be applied according to the below
explained theories of it:
The CCPM consists of three theories that can be looked by the project manager to execute the
operations in permancar accordingly, as well as to understand where it can make the business go
to.
1. Theory of Constraints
The theory of constraints may seem easy to overlook but it can govern the output of the
organization by focusing on constraints of the following five steps:
• Exploit the operations by working in 100% capacity
• By subordinating the elements of systems to constraints
• Keep focusing on the ways to remove the constraints
2. Common Cause Variation
The common cause variation can be used as a part of the system. It can also be regarded in the
sources of employees, team, and circumstances or in the machine. The common cause variation
is applied in the project that could affect the time that is needed to perform in any project. As,
there are several times where the permancar organization need a lot of man force to complete
work independently, but they are not being able to start the work due to the effect of variations in
the internal organization (Pitelis& Wagner 2019).
3. Statistical Common Cause Variation
As permancar is dealing up with a different chain of activities in their operations, all the
activities take a likely hood of 50 percent to be finished in a day. But, most likely there are times
where the activities might take 2 days to complete it. In case, there are four activities to be one in
the chain, then it might take a time of eight days that makes sense on the surface. However, with

the CCPM methodology, there is a strong possibility for the organization to complete their day to
day tasks as sooner as possible (Tawse et al. 2019).
If the statistical law of aggregation is used with the CCPM methodology, the organization can
achieve around 90 percent of probability to schedule and complete their activities even in the
worst case scenario. It also means that the larger the sample, it also better to achieve a normal
distribution of operations. The CCPM methodology, as well as this theory, will help the
organization to take minimum time as well as a possibility to undertake its operation in the large
possible way (Bush, et al. 2019).
CONCLUSION
On the basis of the case study and research done, it is concluded that the operations of the
organization fails due to the high production requirements with less man power force. As the top
priority of the organization is to be effective and reliable in their operations and to give better
satisfaction to their employees. It is recommended that the organization can take help of the
CCPM methodology to schedule and execute their operations in the most beneficial way. Finally,
the CCPM methodology can help in encouraging the late completion of late activities in the
business and can help the project to be run smoothly by completing the project on time (Renz,
2016).

REFERENCES
Bush, T., Bell, L., &Middlewood, D. (Eds.). (2019). Principles of Educational Leadership &
Management. SAGE Publications Limited.
Tawse, A., Patrick, V. M., & Vera, D. (2019). Crossing the chasm: Leadership nudges to help
transition from strategy formulation to strategy implementation. Business Horizons, 62(2), 249-
257.
Hallinger, P., & Hammad, W. (2019). Knowledge production on educational leadership and
management in Arab societies: A systematic review of research. Educational Management
Administration & Leadership, 47(1), 20-36.
Akingbola, K., Rogers, S. E., & Baluch, A. (2019). Change and Board Governance. In Change
Management in Nonprofit Organizations (pp. 151-169). Palgrave Macmillan, Cham.
Mikkelsen, A., & Olsen, E. (2019). The influence of change-oriented leadership on work
performance and job satisfaction in hospitals–the mediating roles of learning demands and job
involvement. Leadership in Health Services, 32(1), 37-53.
Talwar, S., & Mehta, R. (2019). Inferring causal relations among key change management
variables: a structural equation modelling approach. International Journal of Indian Culture and
Business Management, 18(2), 152-183.
Pitelis, C. N., & Wagner, J. D. (2019). Strategic Shared Leadership and Organizational Dynamic
Capabilities. The Leadership Quarterly, 30(2), 233-242.
Hallinger, P. (2019). Science mapping the knowledge base on educational leadership and
management from the emerging regions of Asia, Africa and Latin America, 1965–
2018. Educational Management Administration & Leadership, 1741143218822772.
Hayes, J. (2018). The theory and practice of change management. Palgrave.
McCaffery, P. (2018). The higher education manager's handbook: effective leadership and
management in universities and colleges. Routledge.
Hechanova, M. R. M., Caringal-Go, J. F., & Magsaysay, J. F. (2018). Implicit change leadership,
change management, and affective commitment to change: Comparing academic institutions vs
business enterprises. Leadership & Organization Development Journal, 39(7), 914-925.
Burnes, B., Hughes, M., & By, R. T. (2018). Reimagining organisational change
leadership. Leadership, 14(2), 141-158.

Miles, J., Crawford, W. S., Andrews, M. C., &Kacmar, K. M. (2018, July). Reactions To Ethical
Leadership: The Effects Of Regulatory Focus. In Academy of Management Proceedings(Vol.
2018, No. 1, p. 16168). Briarcliff Manor, NY 10510: Academy of Management.
Neves, P., Almeida, P., & Velez, M. J. (2018). Reducing intentions to resist future change:
combined effects of commitment‐based HR practices and ethical leadership. Human Resource
Management, 57(1), 249-261.
Doppelt, B. (2017). Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Renz, D. O. (2016). The Jossey-Bass handbook of nonprofit leadership and management. John
Wiley & Sons.
Hayes, J. (2018). The theory and practice of change management. Palgrave.
Van Rossum, L., Aij, K. H., Simons, F. E., van der Eng, N., & ten Have, W. D. (2016). Lean
healthcare from a change management perspective: The role of leadership and workforce
flexibility in an operating theatre. Journal of health organization and management, 30(3), 475-
493.
By, R. T., Hughes, M., & Ford, J. (2016). Change leadership: Oxymoron and myths.
Cameron, E., & Green, M. (2015). Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.