1 AIT Asian Institute of Technology

A study of organizational effectiveness in product and service delivery : a comparison between the Provincial Electricity Authority (PEA) and Small Power Producers (SPPs)

AuthorPlernruthai Chayantnakorn
Call NumberAIT Thesis no.SM-05-01
Subject(s)Organizational effectiveness
Electric power distribution--Thailand
NoteA thesis submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management
PublisherAsian Institute of Technology
AbstractInitially, Provincial Electricity Authority (PEA) is the only retail electricity distributor throughout the country except Bangkok, Nonthaburi, and Samutprakarn Provinces. Then, in August 1992 the state policy allowed the private sector to participate in power business in the form of Small Power Producers or SPPs. The SPPs can directly sell some of its electricity to private industries in industrial estates or in the area that the concession is allowed in the responsible area of PEA. This has put pressure for PEA, because about 70% of its total income is from this group of customers. Since in the near future this enterprise will be corporatized and operating in a competitive environment, it is realized the important of knowing their market and their competitors. This study examines why customers leave PEA. The scope of this study is within industrial park area where SPPs electricity power providers have in the central region of Thailand. The study is both qualitative research, conducted using indepth interviews power provider managers and quantitative research, conducted using questionnaire survey for electric power provider employees and industrial customers. The qualitative result showed that every sampled manager believes that their product, price, and services can compete with the current competitors and customers are satisfied with their products and services, except one of the sample PEA manager respondents believe differently. All managers have a misunderstanding that customers are not concerned about price. The result in employee questionnaire showed that 25% of sampled PEA participants are bored with customers. About 17% of them are irritated or moody when there are lots of customers waiting to be served. Only 6% of them are impatient to customers' improper words or manners and acting inappropriately. However, 77% of them prefer to work overtime if it contributes to customers higher satisfaction and are worried to take leave because of customers. About 28% of them are bored to repeat the same words, even though, with different customers. Also, at least 60% of them are satisfied with benefits issue. In term of customers, the first three reasons that these sample customers switched electric power providers are product quality, price, convenient at sale point. Customers are dissatisfied or slightly dissatisfied with PEA in product quality, price, meter installation period, convenience at sale point, staff attention, promptness in service, convenience in informing problem, staff acting, solving problem, but satisfied in accuracy in billing whereas customers are satisfied with SPPs in every issue. Finally, based on the empirical results, it is recommended that PEA should improve the management understanding of industrial customers' needs, product and service standards, organizational structure and human resource management, employee satisfaction, and product and service delivery whereas SPPs should improve the management understanding in industrial customers' need, and product and service standard
Year2005
TypeThesis
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Sununta Siengthai
Examination Committee(s)Zimmermann, Willi;Surapong Chirarattananon
Scholarship Donor(s)Royal Thai Government Fellowship
DegreeThesis (M.B.A.) - Asian Institute of Technology, 2005


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