Professional Documents
Culture Documents
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Table of Contents
Executive Summary...............................................................................................................................3
Q1...............................................................................................................................................................4
Q2.............................................................................................................................................................12
Q3.............................................................................................................................................................20
References..............................................................................................................................................25
Table of Figures
[ CITATION Has07 \l 1033 ]Explains that the global economy is the product of three main
changes namely globalization, liberalization and technological innovation. There
certainly lies various new issues that directly relates with the modern management
concept. [ CITATION Bab08 \l 1033 ]Explains that the innovation of new knowledge to fulfill
the expectations of stakeholders is increasing day by day, it has become a fact of
everyday life for everyone in business operation. Both ALDI and Gore Company as
presented in the case has its due importance around, and they do have the attitude in
regard to best performance of the picture around. Following are the major emerging
management issues for both the companies.
Corporate Social Responsibility: It has not been stated about both firm's social
responsibility related deeds. Each individual thereby would hold personal beliefs
regarding what would be right and what would be wrong. This is developed
through personal values. Modern management concept equally looks over the
direct contribution that one would hold for any such operations around - and here
as explained in the case ALDI and Gore Company seems to be lagging behind
for the both.
Global Expansion: Although it has been explained in the case that ALDI has
more than 4000 stores across Germany and various other European nations like
Belgium, Denmark, France, Netherland and only few outside Europe; this has
turned out to be major issue for ALDI as it holds the opportunity for working
abroad as well. It is important that they all work systematically for expansion
across Asia, Africa and America as well.
Comparatively, Gore Company has further global exposure than that of ALDI as
it operates from 30 different nations across the globe. However, they do hold the
challenge about operating from other unexplored regions as well.
Knowledge Management: Although ALDI does not require huge knowledge
management, it should be able to tactfully manage the knowledge that it has
been around with. Similarly, for Gore Company, innovation and creativity seems
to be something utmost. Hence, they should focus rapidly over such issues
thereby. They need to cope up with all the moves that would ultimately deal in
their long term profitability.
Human Resource managers have been facing several layers of challenges on day to
day basis. So, because of the increased globalization and latest production techniques,
the change that is to be noticed in customers’ demands and corporate restructuring
there arises wide range of Human Resource related issues every day. Human Resource
manager should tactfully manage them. Following are the major HR issues thereby:
Retention: It has often been believed that Human Resource section is source to
empower just new talent, but the truth is that Human Resource Management is
also about retention of existing employees. ALDI has been widely engaging
various types of employees within the organization from permanent, temporary to
part time employees who can operate with efficiencies. Although Gore Company
has not mentioned about its strategies to retain the employees, they should work
with full efficiency from their level as well.
Productivity: In both the organizations, the employees seems to be working with
their full efficiency. It is important that these personnel working around should
look over productivity issues from deep within. HR should know if there are any
problems for regular operation or not as well. So, the determination is often made
by carrying out Time and Motion studies.
Training: For Gore Organization, it has been stated in the case that that the new
associate starts working through the team, which is more likely within different
teams working around. So, for the first few months the sponsors is not at all
responsible for managing the associates around. They get to learn it on the job
itself. For ALDI, they rather cope up with the learning phase on the job itself.
Health and Safety: Health and Safety has been something utmost of today’s HR
issues. It can be well traced that ALDI does actually hold its safety measures, as
there are no high risks associated with the workplace there. For, Gore Company
it is important that they retain their legacy over their working spaces around, and
cope up with all the minimum standards in their working place.
Discipline: It has been stated that ALDI has maintained its regulatory standards
through reporting of associates. Employees in Gore Company should have ability
of self discipline for all the organizations. Those in the organization who were
previously managers will require to face powerless realities. For ALDI,
identification of misconducts of shop assistants can be reported to the middle
management, where the middle managers can systematically collect their
irregularities through both shop assistants and shop managers who will report to
their immediate superior.
Be it ADLI, or the W. L. Gore & Associates their profitability is highly dependent upon
their organizational functioning effectiveness. They are also placed on the space where
every employee and leaders would feel valued around. Following are the major
organizational issues that are faced by top companies across the globe include Gore
and ADLI.
Awareness: When the top layer makes the plan, in absence of proper alignment
they do operate in silos but they don’t collaborate effectively around. This has
been clearly implied in case of ALDI and Gore as the case does not mention in
depth detail about effective communication procedure. The communication
channel is ALDI seems to be straight enough but for Gore Company, there can
be direct communication channels which lacks presence of formal bosses or
exist throughout the company itself for operation of the business.
Development Opportunities: As explained in the case for Gore Company, each
associate will have at least one sponsor but it can be that they can have more
than one. They offer encouragement, guidance on principles and practices,
feedback on performance, and guidance in personal development planning in the
phases thereby and the sponsor acts as role model for the sponsored associate
thereby. This is something really appreciable. There is peer to peer learning in
case of ALDI. These sort of opportunities ultimately help in uplifting employee’s
morale.
Trust and Integrity: Trust and Integrity counts as next major element for the
entire procedure of operation tasks. ALDI and Gore Company, though it is
presented that they do have some legitimate policies, they can’t ensure trust and
integrity through it. it is therefore important that both of the companies rapidly
work out for the process in such a manner that they ensure trust in the working
pattern.
Working Environment: A good working environment has been major
challenging scope for various radiant for today's issue. It has been explained that
Gore has got a good working environment which looks secured challenge of
accountability for dealing with controversies around. Similarly, it is explained that
the company has vigorous working environment for innovation which is need of
the time. ALDI seems to take concern over such issues thereby.
Organizational Leadership
Organizational Leadership has often been explained as the field in the workplace that
includes setting of goals for both the individuals along with group of people. It is field
that can include working over larger projects with business along with corporations
around. It gives emphasis over strong leadership for optimum effectiveness of the
leadership and it deals with both human psychology along with expert tactics around.
So, an ideal organizational leader works without domination of anyone and motivating
everyone to work with full efficiency in the work place.
[ CITATION Gol13 \l 1033 ]Stated the fact that leadership behavior along with self-efficacy
have curtain sphere between each other. The performance and satisfaction of the
employees direct relate to the positive behavior of the leadership. On the other hand
[ CITATION Dev14 \l 1033 ] suggested that a leader is considered as a role model among the
employees. So the development of the mutual understanding between leader and
employees is a good sign for the progress of the educational institution. He further
explained that every individual revolves around the pivot for making new decisions and
work is distributed equally among all the employees. Empowerment leads the
innovation, new ideas and development for the institution. [ CITATION Dev14 \l 1033 ]Also
stated that empowerment of the employees does not men to participate in
organizational planning and implementation directly but giving instructions for the
betterment of the organization.
The lattice organization is the one where direct transactions, natural leadership is
promoted. There anyone can be the leader. However, for both ALDI and Gore Company
both the top level executives determine the entire set of policy framework and decide
their working pattern for leadership movement around.
People Management
People management can be explained as the practice for recruiting, engaging, training
and retaining the employees in order to optimize their talent for maximization of their
productivity. It is a sub category of Human Resource Management where activities
related to training and development, compensation and benefits, organization,
performance management, engagement and retention, recruitment and safety and
wellness are assured. People management has also been taken as part of human
resources that looks all the process from acquisition, optimization to retention of talent
in the organization aiming at professional growth of people thereby.
Here, in the case it can be stated that both ALDI and Gore Company has been
efficiently working for better and smooth people management. While ALDI has hired
several types of staffs, Gore Company is also working for smooth hiring process
around. ADLI has strong policy that regulates the smooth procedures in one way or the
next, as it employs several classified employees from temporary, part time to permanent
and full time and ensure that there lies consistency over the working pattern in one way
or the next.
Organizational structure
Organizational structure can be explained as the system which outlines how certain
activities are directed within the organization for achievement of the goals within the
organization. These set of activities can include various rules, roles and responsibilities
in the long run. This structure determines the information flow that takes place within the
company at any situation around. It can also be termed as hierarchy of work flow that
takes place within the organization.
It has been explained that ALDI Germany is divided into ALDI South and ALDI North,
originally owned and managed by the brothers, Karl Albrecht (ALDI South) and Theo
Albrecht (ALDI North). ALDI North and ALDI South are further differentiated into various
regional subsidiaries
Organizational Culture
Organizational culture can be termed as the system of share assumptions, beliefs and
values that governs people's behavior in the organization.These values would have
strong influence over people within the organization regarding their behavior over dress,
performance and acts around.
[ CITATION Ant03 \l 1033 ]Defines organizational culture as a sort of genetic code of the
community, which is in the social awareness and which causes repeatability of both
individual and collective behaviors, images, emotions and attitudes. According to Weis
and [ CITATION Wes00 \l 1033 ], corporate culture is a system of values, norms and symbols
typical for a company, which develop over a long time, and its result is the
establishment of best practices for the entire social group and the specific hierarchy of
values
It can be traced out that Gore Company has rules, regulations for legal issues around
and they are located at the same time with core principles. On the other hand, ALDI has
simple culture of operation where the uniform practice is being followed - being retail
network there are gossips around when customers are not there, and on other cases
they operate with their fullest.They adhere to a culture of support in which the individual
is the focal point and control is exercised by mutual consent. When employees have a
positive picture of themselves, they work at their best. ALDI, on the other hand, has
both a role culture in which performance is linked to job responsibilities and a task
culture in which the focus is on getting the job done.Employees are free to get on with
their work as long as they finish it. This is evident in the case of part-time workers who
do not receive sick leave but are expected to recover in their spare time. A simple
service culture in which the uniform process is followed - as a retail network, there are
gossips when customers are not present, and they run to their full potential.
Q2. Provide a critical argument and specific recommendations for management,
people &organizational issues of W.L Gore and Aldi and identify the rationale
behind your chosen intervention underpinned by academic literate and good
business practices.
ALDI’s Case
Arguments
ALDI has made its position as low priced products that turns out to be available at
reasonable quality. Meanwhile, it has been stated that it has been paying salaries to be
above the average salary among German food retail sector. It has been effectively
managing its employee and productivity balance through hiring part time and temporary
staffs. ALDI has strong mechanism to identify the misconducts for shop assistants,
which would be reported to middle level management as stated. Middle managers also
get involved in collecting irregularities form shop assistants and managers along with
store managers as stated and the mistake would be overseen gradually. There is timely
meeting that is being conducted, which is described would smoothen communication
process as well. This has introduced the practice of all level for regular activities in the
task. There is management issues well discussed from one point, and there also exists
people management and organizational issues around. ALDI has been using up or out
principles for employee's productivity calculation, so the effective and relevant
employees are either given level up with increased standard, or they are kicked out of
the organization. An employee working the can catch the ladder and get promotion into
sales manager or regional manager quickly; or they are sent out of the organization
around. This principle creates strong competition within the employee for increased
level of productivity as stated in the case.
Recommendations
Following major recommendations can be made for ALDI on the basis of their working
pattern.
Gore Company
Arguments
Established in 1958, W. L. and Associates has been popular company for introducing
innovative products like waterproof while breathing textile material. This company is
also known for lattice organizational concept, which is focused over artichecture and
crafts. The company has its management practice where the company operates as a
system without any boss. Leadership of the company is determined by their abilities to
influence followers. This company has more than 10,000 employees and has CEO who
will be contacted by partners and others outside of the company. Every staff in the
organization is selected among the company's associates and there are direct
communication channels with no any formal boss in the organization.
It has been stated that Gore Company developed and marketed PTFE in the form of
products that would use electrical cables. It then created ePTFE, expanded form of
PTFE in its process of innovation. The pores developed there had been waterproof
thereby. Bill Gore also worked for lattice organization which would continue to turn out
to be company's foundation. Lattice organization has been explained as the company
that would involve direct transactions, natural leadership, self commitment and absence
of assigned or assumed authority of the picture. There would remain successful
organization in the picture that would have lattice organization in the picture underlining
the facade of authoritarian hierarchy. It is therefore believed that this lattice
organizationwould get things done through most delight manner. It is stated that lattice
organization would hold following features.
Commitment is careful prioritized here and there exists multi level hierarchy in the
picture based framework as well. The waterline principle would be affecting the
associates thereby. It has been stated that people working at Gore Company are all
associates, not employees or managers anyway. When it comes to continuous
innovation and the development of surprising new opportunities of varying scales,
however, the company's approach to innovation is to rely on the ingenuity of its
associates, any of whom may come up with a valuable discovery. Gore Company
operates with a concept called “dabble time,” which is a half-day per week reserved for
associates to explore their own ideas for improving existing new products or developing
entirely new products
Recommendations
Following major recommendations can be made for W. L. Gore and Associates on the
basis of their working pattern.
Rooms for innovation: It can be clearly seen that Gore Company requires
room for innovativeness. Higher the level of innovativeness, increased
opportunity this company will obtain. It can be stated that this company's
existence and success is highly dependent upon the innovativeness that it
has to offer to the global market in one way or the next. Hence, it is advisable
that the company work out in such a manner that it will work out for
innovativeness promotion within the company and this can be done through
offering enough rooms for it.
Rewards and Punishment practice: The success of any company is highly
dependent upon the practice over employee's effort thereby. Higher the level
of innovativeness, or higher the level of effort that employees put over their
effort - it will ultimately matter in the long run. It is therefore important that
there be fair evaluation of organizational practices around and the employees
be treated accordingly. Fair treatment will ultimately ensure better
consequences around. Increased productivity can be yield accordingly
through it.
Employee Retention Practice: Today's global world does not just look over
employee's level of satisfaction, but it carefully observes how employees are
retained as well. Good employees’ retention should be of equal priority than
letting them go. This has been major challenge for organizations these days
as the corporate culture does not prioritize the effort and sincerity of one
single employee. There should be better grade system, and reason why
employee should be retained in the organization in order to retain them.
Reshaping Organizational Structure: The case presents the picture where Gore
organization operates with lattice organizational structure. That seems okay, but
there still are spaces for better improvement of the structure. Innovation should not
be blinded, and hence the employees working in the organization should be set free
for their regular dealing activities. If innovation is to be widely practiced, there might
be need of matrix structure as well in the organization to foster further innovation
and creativity within the workplace.
Although, an organization may seem that it is operating at its best in today's tenure; it is
yet unknown about how it will be operating in time nearby. We have been living in
rapidly changing time and the scene one year later cannot be predicted at any point of
time. Considering this, within a single generation business should have adopted entirely
new marketing channel and cope up with the same [ CITATION Dev14 \l 1033 ]. COVID19's
picture was not even imagined. Here are the major organizational challenges that
should faced by the management of both the companies within next five years of time.
Strategic Recommendations
There can be range of strategies that the companies can adopt for being able to the
leader. Following are the major strategic recommendation that can be made to ALDI
and Gore Company.
Determine Core Values: It is important that both the companies make proper
study of their current status, understand or realize what the market has been
expecting and their reality over the picture and ultimately determine their core
values. Once core values are figured out they should shape framework about
what to do and what not to do in the next major phases around.
Proper Resource Allocation: ALDI and Gore Company should both have a
proper business strategy plan which will include about how the resources will be
utilized. It should explain how the resources will be obtained and how will they be
allocated for tasks. ALDI does have strong supply chain network, but Gore
Company might need new form of resources which should be planned
strategically beforehand itself.
Diversification strategy: In order to meet the competition the companies might
have to think over diversification strategy like acquisition, merger etc. Because, if
there are competitors getting stronger it would be appropriate if the companies
think over it before hand and always keep it in backup as alternative option for
business operation.
Managing People: It is important that the people involved within the organization
do matter and count at equal space. So, management of these people is
important. This can be done through various ways, from timely talent recruitment
to training of them. Further, those talent within the organization should be
retained so that competitors can’t keep eye over them.
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