K60_ CAB Topic 9: ORGANIZATIONAL STRUCTURE AND CULTURE 1. Overview of True Earth Tru Earth is the fastest-growing consumer packaged goods company on the Canadian Business startup list 2020. Ryan McKenzie, Co-founder Brad Liski, Co-founder Kevin Hinton, Co-founder In 2022, they are focused on tripling those numbers and moving beyond the laundry room to offer similar products for the kitchen and bathroom. Two years into their mission, Tru Earth has saved over 6 million jugs and donated over 10 million loads to families in need. Tru Earth is supplementing the global shift to an earth-conscious and sustainable lifestyle by offering a hassle-free and eco-friendly alternative in the form of detergent strips, a switch from the traditional liquid laundry detergent and powder detergent of yesteryear. Apart from the fact that all Tru Earth strips are safe for the environment, they’re also safe for humans—they’re vegan, free of any harsh chemicals, and safe for use by people with allergies or sensitive skin. 2. Organizational structure The Organizational Structure is a system that outlines how certain activities are directed to achieve the goals of an organization. Organizational Structure can have a significant impact on its financial performance and ability to manage its employees and product. Also, it can formally dictate how jobs and tasks are divided and coordinated between individuals and groups within the organization. Moreover, partially illustrated through the use of organizational charts, provides the foundation for organizing jobs, controlling employee behavior, and shaping communication channels through which employees view their work environment. There are 5 major elements in organizational structure which are work specialization, the chain of command, the span of control, centralization of decision making, and formalization. - Work specialization: · - is how tasks in an organization are divided into separate jobs. Chain of command: · - Span of control: · - A manager’s span of control represents how many employees he or she is responsible for in the organization. Centralization: · - The chain of command within an organization essentially answers the question “Who reports to whom?” Every employee in a traditional organizational structure has one person to whom they report. Centralization reflects where decisions are formally made in organizations. Formalization: · A company is high in formalization when there are many specific rules and procedures used to standardize behaviors and decisions. Organizational design - Business environment Company Strategy Technology Company Size Steps reduce the negative effects of restructuring efforts - Organizations should focus on managing the stress levels of the employees who remain after the restructuring. Providing employees with a sense of control can help them learn to navigate their new work environment. Honest and frequent communication with layoff survivors greatly help reduce their feelings of uncertainty and stress. 3. Organizational culture - Organizational Culture is the entire cultural value built up during the existence and development of an enterprise, thereby becoming familiar rules and habits deeply ingrained in the operation of the enterprise, and governing the feelings, ways of thinking, and behavior of all members of the enterprise in the pursuit and realization of goals. → Organizational culture creates unity in actions (employees' behavior, dressing style, and value system of leaders). Enhance the image and reputation of the company. Enhance the strength and competitiveness of the company. Components There are three major components to any organization’s culture: observable artifacts, espoused values, and basic underlying assumptions. THE ROLE OF ORGANIZATIONAL CULTURE Corporate culture is an intangible asset of the enterprise, contributing to its great strength of the enterprise. Corporate culture is deeply rooted in trust, so it plays an important role in the implementation of the organization's goals and tasks. I.GENERAL CULTURE TYPES We can classify org culture along various dimensions. Many researchers have tried to create general typologies that can be used to describe the culture of any organization. · Cultures in which all employees are friendly to one another, but everyone thinks differently and does their own thing, are networked cultures. Many highly creative organizations have a networked culture. · Organizations with friendly employees who all think alike are communal cultures. · Organizations that have cultures in which employees think alike but aren’t friendly to one another can be considered mercenary cultures. Organizations that are low on both dimensions have a fragmented culture in which employees are distant and disconnected from one another. SPECIFIC CULTURE TYPES - Customer service culture Safety culture Diversity culture Creativity cultures K60_ CAA TOPIC 9: ORGANIZATIONAL STRUCTURE AND CULTURE 1. Business details: 4PS CORPORATION Type: restaurants, cheese production, wholesale cheese, retail sales. 2. Organizational culture Social knowledge among members Rules, norms, and values Shapes attitudes and behaviors Components of Culture Observable artifacts ( symbols, physical structures, language, stories, rituals, ceremonies) Espoused values ( beliefs, philosophies, and norms) Basic underlying assumptions Common culture types general Networked Communal Fragmented Mercenary Common culture types - specific types Safety Diversity Customer service Sustainability Creativity Culture Strength A high level of cultural strength exists when employees agree about the way things are supposed to happen, and employees’ behaviors are consistent with agreed expectations. Traits of strong cultures unite and direct employees, take a long time to develop difficult to change, which does not always guide toward the most successful outcomes. Adapting to culture: attraction, selection, attrition, socialization Important of culture: high levels of job satisfaction, feel less stress about their day-to-day tasks, higher levels of trust toward managers CUSTOMER SERVICE CULTURE AT PIZZA 4PS Symbols: living happily, positively, and achieving a peaceful state of body and mind. Physical structure: restaurants surrounded by vegetable gardens, ponds, …. Routine: treat customers with courtesy and hospitability Espoused values: “ delivering wow, sharing happiness”, “ by eliciting the inner peace of many people, I want to create the world with endless smiles and peace”. Basic underlying assumptions: a passion for peace, integrity, omotenashi the Japanese spirit of hospitality, being cause in the matter, positive family spirit, Kaizen - constant improvement mindset, forget the Box - there is always room for creative solutions to enhance customer experience. OBSERVABLE ARTIFACTS Physical structure speaks volumes about our culture's strength. A Cambodian restaurant using recycled wastes. • The aprons worn by chefs are made from thrown-away clothes Glasses are recycled from wine bottles Cutlery boxes and chairs are made of plastic waste Tables are built using water bottles Even bullet shells are reused as pizza serving knives Rituals: waste are utilized to manually produce our own fertilizers through the process of earthworm compost. These natural fertilizers are subsequently used to grow vegetables. Policy open and welcoming environment career development opportunities a long list of attractive benefits Kaizen ( continuous improvement ) 3. Organizational structure: work specialization departmentalization chain of command span of control centralization and decentralization formalization Structural contingency factors Overall the organization Size of the organization Technology use by the organization Degree of environmental uncertainly Some common structure Simple structure functional structure ( the following are some of the advantages of this structure, and some potential drawbacks) Departmentalization functional Product geographical process customer Decision making - K60CA-A 1. Theory about the decision making Decision: final choice of action, a process setting a goal Decision-making: multiple step process, the process of choosing a decision Factor impact: learning, past experience, Step to effective decision making: Identify Collect data Determine the alternatives Consider the evidence Select one alternative Take an action Analyze the choice. Type of decision: Non-program decision making based on criteria Program decision making not based on well-defined or known criteria Model The rational decision-making model emphasizes the use of logical procedures bounded rationality s intuitive decision model: relies on feelings and instinct data-based decision making: about the program, practice,... 2. Tiki Cometitors: Shopee, Lazzada, 3. Process identify the problem identify decision criteria: advantage: no worries about mixed goods provides.. disadvantaged: cause numerous difficulties or taking up too much time and will not be the first choice of seller’s decision making in choosing a corporation. developing alternatives: analyzing alternatives. Pros: diversify and increase the product range, more competitive, having a wide range of products compared to competing trade floors. Cos: the p → tiki will be able to increase its product line and attract more clients selecting an alternative implementing decision evaluating decision effectiveness. CA_A: Teams characteristics and diversity Work teams - relatively permanent require a full-time commitment produce goods or provide services Management teams - relatively permanent coordinating the activities of organizational subunits Parallel teams - part-time commitment permanent or temporary provide recommendations and resolve issues Project teams - “one-time” tasks full-time commitment - create new products Action teams - limited in duration quite complex long-term or short-term Team Composition: Team effectiveness hinges on team composition or the mix of people who make up the team. Five key factors of team composition: Member roles, Member ability, Member personality, Team Diversity, Team Size TEAM PROCESS AND COMMUNICATION: Team Processes refer to the actions that team members take to combine their individual resources, knowledge, and skills to address their mission requirements and achieve common goals TEAMWORK PROCESSES communication Team state Taskwork PROCESSES: creative behavior, decision making, boundary spanning Disadvantages of making decisions in team Time-consuming Absence of onus Individual supremacy Decisions on compromise VIETCETERA Vietcetera Media is the fastest-growing digital media network in Vietnam with a total monthly audience network of 20 million, focused primarily on Gen Z and Millennials. Vietcetera brings a diverse perspective on a modern, dynamic, and potential Vietnam with genuine stories about new cultural elements and values. 3 TYPES: Work teams: content team → writing team ( this topic will be transferred) → get a finished writing product PARALLEL teams: give feedback and recommendations about the product → complete and ideal product. PROJECT TEAMS: Different departments will assemble as a group → to work together on a common project for the company. For example, when there is a finished product from the content and writing department, the audio-video and visual departments will work together → to create a quality video product, and the marketing team promotes the product to the audience. Decision infirmity : Vietcetera analyzed the current online information market in Vietnam Shift to promoting the development of young Vietnamese contemporary readers The founding team realized that in order to increase the number of people reading and consuming information. Hierarchical sensitivity: evaluate each member's opinion → Reasonable hierarchy, selective opinion → Make all members feel valued → Promote creativity of all members. K60_ CAB TEAMS: CHARACTERISTICS and PROCESSES 1. Overview Business Vietcetera is a first-of-its-kind multimedia digital platform producing editorial content Mission: bringing Vietnam to the world and bringing the world to Vietnam. Department Competitiveness: A team of employees who are always looking for "hot searches" and a big data platform. Clients: tinder, tiktok, google,... Challenge Attractive customer - Attracting - Saturated idea - Communication Young resource: - Language and cultural barriers The benefits of Teams: Build or take advantage of tacit knowledge Handle large scale problems and decision Develop more solutions and detect flows Innovation and Creativity Type of teams: Work team, Management team, Parallel team, Project team, Action team, Virtual team Member personality: Agreeable, Conscientious, Extraverted Team diversity: Value in diversity problem-solving approach, Similarity-attraction approach, Surface/Deep-level diversity. Team size: Having a greater number of members is beneficial for management and project teams, but not for teams engaged in production tasks. Research shows that team members tend to be most satisfied with their team when the number of members is between 4 and 5. Taskwork Process: Creative behavior, Decision making, Boundary spanning 3 MAIN STAGES: Transition process, Action process, Interpersonal process Training teams: Transportable teamwork competencies, cross-training, Team process training.
