VIETNAM GENERAL CONFEDERATION OF LABOR

TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION



FINAL REPORT

IMPACT OF AI ON SHEIN’S
CHANGE MANAGEMENT PROCESS

Instructors: MR. HOANG KIM CHUONG

Group: 2E TEAM
Major: Marketing (High Quality)
Course: 2020 – 2024

HO CHI MINH CITY, MARCH 2024

7
 LIST OF MEMBERS _ 2E TEAM

NO FULL NAME STUDENT ID COMPLETION

1 Nguyễn Trọng Nhân (Leader) 720H0957 95%

2 Nguyễn Ngọc Huế Anh 720H1368 100%

3 Nguyễn Ngọc Như Hạnh 720H0051 100%

4 Quách Bảo Trân 720H0208 100%

5 Nguyễn Như Ngọc 720H0129 100%

6 Tô Hương Giang 720H0891 100%

7 Nguyễn Ngọc Yến Vy 720H0256 100%

8 Nguyễn Ngọc Trâm 720H0205 100%

9 Trần Thị Bảo Hân 720H0048 100%

 TEACHERS’ COMMENTS
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Ho Chi Minh City, March 2024
Instructors
 TABLE OF CONTENTS

ACKNOWLEDGEMENT............................................................................................7

CHAPTER I: AI TO INDIVIDUAL............................................................................8
1.1 Introduction......................................................................................................................8
1.1.1 Overview of SHEIN..................................................................................................8
1.1.2 Overview of AI’s impact on Shein..........................................................................11
1.2 AI effects on the company members..............................................................................14
1.2.1 Overview Effect on: mental health (job displacement), well-being (dependence): 14
1.2.2. Overview of 04 learning preferences + Individuals’ response to each AI’s effect 16
1.3 Company’s Solutions.....................................................................................................19
1.3.1 Behavioral Approaches...........................................................................................19
1.3.2 Psychodynamic Approaches...................................................................................20
1.3.3 Cognitive Approaches.............................................................................................21
1.3.4 Humanistic Psychology Approaches......................................................................23
1.4 Conclusion......................................................................................................................23

CHAPTER II: AI TO TEAMWORK........................................................................25

2.1 Team and Group Differences:........................................................................................25
2.1.1 Definition of “group” and “team”...........................................................................25
2.1.2 Differences between “group” and “team”...............................................................25
2.1.3 Practical Example in the context of Shein Company (for team and for group)......26
2.2 Types of organizational team.........................................................................................27
2.2.1 Work Team..............................................................................................................27
2.2.2 Self-managed Team................................................................................................27
2.2.3 Parallel Team..........................................................................................................27
2.2.4 Project Team...........................................................................................................28
2.2.5 Matrix Team............................................................................................................28
2.2.6 Virtual Team...........................................................................................................28
2.2.7 Networked Team.....................................................................................................28
 2.2.8 Management Team..................................................................................................28
2.2.9 Change Team..........................................................................................................29
2.2.10 Each type of teams in Shein:.................................................................................29
2.3. Five stages of Team Change by Tuckman’s Model (1965)..........................................30
2.3.1. Forming..................................................................................................................30
2.3.2 Storming..................................................................................................................30
2.3.3. Norming.................................................................................................................31
2.3.4. Performing..............................................................................................................31
2.3.5. Adjourning.............................................................................................................32
2.4 Four pitfalls Bion’s Model.............................................................................................32
2.4.1 Stage 1: Dependency...............................................................................................32
2.4.2 Stage 2: Fight or flight............................................................................................32
2.4.3 Stage 3: Pairing.......................................................................................................33
2.4.4 Stage 4:Oneness......................................................................................................33
2.5 MBTI and Team (Individual to Team)...........................................................................33
2.5.1 Theoretical basis......................................................................................................33
2.5.2 Practical implications related to Shein....................................................................34
2.5.3 The advantages and disadvantages of Differences or Similarities in personality...34
2.6 Conclusion......................................................................................................................35

CHAPTER III: AI TO COMPANY..........................................................................37

3.1 Prove Shein belong to Machine Metarphor...................................................................37
3.1.1 Short Definition of Machine Metaphor ?................................................................37
3.1.2 Example of Shein using Machine Metaphor...........................................................37
3.1.3 Limitations mentioned in textbook relating to Shein..............................................38
3.2 Prove Shein belong to Organism Metaphor...................................................................38
3.2.1 Short Definition of Organisms Metaphor...............................................................38
3.2.2 Example of Shein using Organisms Metaphor:......................................................38
3.2.3 Limitations mentioned in textbook relating to Shein..............................................40
3.3 Prove Shein belong to Flux and Transformation Metaphor..........................................40
3.3.1 Short Definition of Flux and Transformation Metaphor.........................................40
 3.3.2 Example of Shein using Flx and Transformation Metaphor...................................40
3.3.3 Limitations mentioned in textbook relating to Shein..............................................41
3.3.4 Pros & Cons of this Metaphor.................................................................................41
3.4 Describe Shein’s Change through Lewin - 3 steps model.............................................42
3.4.1 History of Shein’s Change Management:...............................................................42
3.4.2 Describe Shein Change through Lewin - 3 steps model.........................................42
3.4.3 Pros and Cons when Shein using Lewin’s Change Management Model:..............43
3.5 Desribe Shein’s Change through William Bridges model.............................................44
3.5.1 Describe Shein’s Change through William Bridges model....................................44
3.5.2 Implications.............................................................................................................46
3.6 Conclusion:....................................................................................................................46

REFERENCE..............................................................................................................47

APPENDIX..................................................................................................................48
 ACKNOWLEDGEMENT

The Final Report with the topic IMPACT OF AI IN SHEIN’S CHANGE

MANAGEMENT PROCESS was completed by the 2E TEAM in the best possible way
with the efforts of all members. We would like to send our sincere thanks to Mr. HOANG
KIM CHUONG – Change Management lecturer for providing useful lectures in class,
enthusiastically guiding and answering our questions. during the study process.

In addition, our team would like to thank the Department of Business Administration in
particular and Ton Duc Thang University in general for creating conditions for Marketing
students to have the opportunity to study an interesting and useful subject for future
professions like this.

During the process of researching and carrying out the assignment, we realized that there
were still many limitations and shortcomings. We hope to receive your understanding,
comments and advice.

7
 CHAPTER I: AI TO INDIVIDUAL

1.1 Introduction

1.1.1 Overview of SHEIN

Shein is an e-commerce platform specializing in clothing and accessories from

China, established in March 2008, with its headquarters in Guangzhou, China, and offices
in the United States. SHEIN has quickly become one of the largest online fashion
retailers in the world.

However, in recent years, SHEIN has rapidly gained popularity in the Western
world. With the motto "everyone can enjoy the beauty of fashion," SHEIN offers a
variety of fashion products for women, including clothing, shoes, accessories, and
jewelry. In addition, Shein has developed a vast collection of Plus Size models for
customers - a fashion niche that is still relatively rare in the market. Furthermore, Shein
also has categories for men and children, as well as a new section featuring small utilities
and home decor.

With a focus on the latest fashion trends, Shein continuously updates thousands of
new products every day, keeping consumers in sync with market trends. Not only does
Shein introduce fresh trends, but it also stands out with a global warehouse network,
enabling them to ship products to over 200 countries and regions worldwide. Shein has
become one of the rapidly growing fashion brands, catering to the diverse needs of global
customers.

1.1.2 The main features of the SHEIN app include

● Diverse Range of Products: SHEIN offers a variety of fashion products, catering

to the needs of every customer.

● Affordable Prices: Most products on the app are priced under $50.

● Latest Fashion Trends: SHEIN focuses on the latest fashion trends, with thousands
of new products updated daily.
 ● Promotions and Discounts: SHEIN regularly runs promotional programs and
discounts, helping customers save on their shopping expenses.

History of Formation and Development

SHEIN was founded by Chris Xu in 2008. Initially, SHEIN focused on selling

fashion products for women. However, in recent years, SHEIN has expanded into fashion
products for men, children, and families.

In 2015, SHEIN began expanding into the international market. Currently, SHEIN
is present in over 200 countries and territories worldwide, earning $15.7 billion in 2021, a
60% increase from 2020. Shein's app was downloaded more than twice as much as
Amazon's app in 2021, making Shein one of the top 5 popular shopping apps globally. As
of 2023, SHEIN has over 150 million active users globally, with over 26 million
followers on Facebook and 24 million on Instagram.

Over the past 5 years, Shein has witnessed a significant surge in its valuation upon
entering the U.S. and European markets. Its valuation increased from $5 billion in 2019
to $100 billion in early 2022, although this figure decreased to $64 billion in 2023.

Key Statistics of Shein

● Shein generated $22.7 billion in 2022, marking a 44% increase from the $15.7
billion earned in 2021.

● It's estimated that there are about 88.8 million active shoppers, with 17.3 million
based in the United States.

● Shein's app was downloaded 200 million times in 2022, becoming the most
downloaded shopping app of the year.

● Recently, it was valued at $68 billion ahead of a potential IPO slated for late 2023.
 Figure 1. Annual Revenue Shein from 2016 to 2022

Organizational Structure

Traditional manufacturing companies often collaborate with large and stable supply
partners, while Shein has opted for a different approach by primarily partnering with
smaller suppliers, commonly referred to as "workshop factories." This decision reflects
flexibility in addressing small orders and quick return requirements, challenges that larger
factories often struggle to meet. Despite facing risks associated with dependence on a few
large suppliers, Shein has leveraged opportunities by collaborating with numerous
smaller factories.

However, managing multiple small-scale suppliers also presents its own set of
challenges. To address these issues, Shein has established a unique system known as the
"cloud factory." This is a digital supply chain platform that utilizes bidding features to
streamline the collaboration process with its suppliers effectively.

Furthermore, Shein cleverly utilizes the services of hundreds of fabric and accessory
suppliers, creating an online B2B platform. This platform not only rationalizes the
onboarding process for suppliers but also provides a professional and convenient
shopping guide, meeting the specific design needs of clothing.
 Figure 2. Shein’s corporate structure

1.1.2 Overview of AI’s impact on Shein

With the proliferation of marketing activities on social media and live streaming,
Shein is increasingly focusing on three crucial areas: social media platforms, influencers,
and its recommendation algorithm.

In today's challenging economic landscape, both B2B and B2C companies face
budget constraints. Therefore, it's not surprising that AI has become a promising choice
to unlock new revenue sources and enhance profitability. However, as of now, there
hasn't been any standout AI product with significant impact. Despite the emergence of
numerous prominent models in the past year, their effective exploitation for revenue and
profit generation remains unclear. Some reasons may stem from the depth of the AI field,
with founders often having academic backgrounds, making product and business
development capabilities weaker.

Moreover, the research and development costs in this field are substantial, putting
significant financial pressure on AI companies and startups. The high expenditure ratio
makes them financially vulnerable without breakthroughs.
 Shein has presented a strong case by deeply understanding the business context and
cautiously applying AI to business situations. While legal challenges may arise, Shein's
success is evidence that when AI is applied correctly, it can play a crucial role as a
powerful driver for commercialization and revenue generation. Shein has succeeded in
utilizing AI extensively, applying it in various aspects of business operations to improve
efficiency, increase accuracy, and reduce costs.

 Design and Product Development

Shein utilizes AI to create new fashion design patterns. The company gathers data
from various sources, including social media platforms, e-commerce platforms, and
traditional fashion stores. This data is used to train AI models that can predict future
fashion trends. Shein's AI models are also employed to optimize the product development
process. The company uses AI to identify suitable suppliers, select high-quality materials,
and streamline the production process.

 Product Repurchase Capability

Shein's data-centric model has demonstrated high performance, reflected in annual

revenue growth. The company's use of AI not only helps attract customers but also
reduces acquisition costs for a rapidly growing business. Customer attraction is not solely
based on the frequency of purchases but is combined with data collection from website
users, including those not registered, to improve service and build the brand.

This enhancement, coupled with extensive data collection from increasing demand,
enables Shein to make smarter decisions, reduce costs, create a superior user experience,
enhance loyalty, and generate larger income streams from marketing strategies. This
establishes an increasingly efficient cycle, placing Shein in a competitive position that is
challenging for rivals in the retail industry to match.

 Marketing and Sales

Shein applies AI to personalize the customer shopping experience. By using data on

shopping history, preferences, and customer behavior, the company suggests relevant
products. Shein also uses AI to run effective marketing campaigns. The company
leverages data on online searches, social media posts, and other customer behaviors to
target more accurate marketing campaigns.

 Backend and Logistics

To optimize backend operations and logistics, Shein uses data on shopping history,
customer locations, and inventory status to determine the most efficient transportation
routes. Shein also applies AI to automate backend and logistics processes. This helps the
company reduce costs and improve efficiency.

 Achievements and Challenges

SHEIN has achieved significant milestones in recent years, including:

- Becoming one of the world's largest online fashion retailers.

- Expanding into the international market.

- Implementing multi-channel shopping.

- Attracting a large number of young customers.

- Developing new products and services and enhancing the customer experience.

However, SHEIN also faces several challenges, including:

- Ethical concerns in production and supply chain.

- Cultural insensitivity in Western markets.

- Common complaints about excessive advertising and notifications.

- Competition from other online fashion retailers.

- Shifting consumer preferences.

 Conclusion

SHEIN is a rapidly growing online fashion company, and the application of AI has
had a profound impact on the Shein brand. The company has achieved remarkable
successes in recent years and has the potential to become one of the world's leading
online fashion retailers. However, to truly shine, the business needs to address significant
controversies such as copyright issues, product quality, delivery times, and environmental
sustainability.

1.2 AI effects on the company members

1.2.1 Overview Effect on: mental health (job displacement), well-being

(dependence):

One of the key benefits of AI for Shein is the ability to recommend clothing colors
and styles based on customer analytics, from that increasing buyer trust and reducing
return rates. However, this can affect change in both positive and negative directions for
each member of Shein.

 Risks affecting mental health

- Increased work pressure:

AI technology may unintentionally increase work pressure for each of Shein's

employees when they have to increase and adapt to a fast working pace. According to
Vox, they called Shein's business model “real-time retail” because it can create new
designs in as little as three days, and the BBC also reported that Shein's website has
recommended up to 600,000 items at any given time. Because of this, countless press
reports reported that workers at Shein's factory had to work more than 12 hours a day to
keep up with the pace of ordering and shipping products to customers in different
countries. Although Shein has denied the allegations are fabricated, the overload of
orders due to the speed of production of designs is likely real and the high pressure
workers are under is also real.

In addition, the further development of AI also means that Shein employees have to
learn and endure higher requirements for skills in using technology to be able to continue
to maintain their jobs in the future.

- Lack of person-to-person interaction:

 When AI replaces certain jobs, it can reduce interactions between colleagues. This
can reduce social connection, cause feelings of loneliness, and in the long run can affect
the mental health of Shein employees.

- Being replaced and facing employment risks:

According to the "Future Jobs Report 2020" of the World Economic Forum, by
2025 AI can replace about 85 million jobs in many fields currently performed by
humans.. This can threaten Shein’ employees. For example, the online customer care of
Shein websites/applications all use Chatbot technology - technology that can support
Shein support helps customers answer questions 24/7 in any country without the need for
human presence.

Besides, Shein is currently applying AI as a tool to recommend products based on

customer insight. However, it may switch from "tool" to "employee" instead of Shein's
real employees in the future thanks to the optimization of the development of AI.

 The risk of depending on AI for each individual:

Applying AI technology to the work system can support Shein in general and
employees in particular with jobs that do not require too much creativity and are highly
repetitive. This helps the company optimize working time but still bring maximum
efficiency. Currently, Shein is operating in more than 220 countries around the world. AI
has helped Shein manage this step with algorithms that analyze order and inventory data
to automate delivery management and scheduling, making logistics operations more
efficient and accurate. In addition, AI also analyzes users' habits and behaviors to find
their insights and from there can help Shein's design team quickly create new and creative
designs that suit their needs. customer demand to increase sales. Although AI can do
things that many ordinary people can hardly do, professional and creative jobs still
require human intervention to monitor, adjust, and perfect the work. However, due to that
strong development, some Shein individuals may depend on the intelligence of this type
of artificial intelligence and in the long run lead to a loss of self-control in thinking,
laziness in brainstorming and having difficulty working patiently for too long.

1.2.2. Overview of 04 learning preferences + Individuals’ response to each AI’s

effect

 Overview of 04 learning preferences

Based on the theory of four approaches to personal change, we can consider how
applying AI to Shein activities has affected four aspects of human resources.

Firstly, the behavioral approach is about changing the behaviors of others in Shein
through reward and punishment. This leads to behavioral analysis and use of reward
strategies. It is the influence on the behavior and conduct of Shein members to achieve
the best working results. In theory, Shein can offer rewards or punishments to make
employees strive to complete the job. Rewards can be money, praise, or group
recognition to motivate employees. As for punishment, it can be private discussions
between managers and employees to encourage, find out the cause and come up with
solutions instead of scolding, reprimanding, or dishonoring employees in a large group.

Secondly, the cognitive approach is about achieving results through positive

reframing. Associated techniques are goal setting and coaching to achieve results. It is the
influence on the self-awareness and work acceptance of members of Shein. When
employees understand their values, roles and responsibilities in the company, they will
understand clearly that the purpose of their work is to complete and achieve the best work
results, thereby achieving great achievements, receive recognition from everyone, not
only for money.

Thirdly, the psychodynamic approach is about understanding and relating to the

inner world of change. This is especially significant when people are going through
highly affecting change. It is the influence on the psychology of individuals in the Shein.
According to theory, managers need to clearly grasp and understand the psychological
developments of employees from the stages of protest, anger, negotiation, disappointment
and acceptance. From there, the manager will be most helpful in connecting personnel
and maintaining a healthy organization for Shein.

Finally, the humanistic psychology approach is about believing in development and

growth, and maximizing potential. The emphasis is on healthy development, healthy
authentic relationships and healthy Shein. It is the influence on individual needs and
desires based on Maslow's hierarchy of needs. From there, each individual in the business
can understand their own personality, understand the differences between themselves and
others, and understand what leads to contradictions, conflicts and harmony between
members in Shein together.

 Individuals’ response to each AI’s effect

Overall, the development of AI puts pressure on individuals within

organizations.Here based on Schein's model to analyze individual feedback at Shein.
Schein built on Lewin's (1952) model by drawing on other disciplines such as clinical
psychology and group dynamics.

The impact of AI at Shein causes individuals within the company to adopt this
change in three stages:

● openness: creating motivation for change;

● learn new concepts of AI and new meanings from old concepts;

● absorb the concepts of AI and new meanings.

During the initial openness phase, employees at Shein need to learn certain things
before they can fully focus on learning new things. Therefore, the reaction of most
individuals mainly response around the fear of being replaced or left behind.

There are two forces at work within each individual undergoing change. The first
force is learning anxiety. This is the anxiety associated with learning something new.
Will I fail when learning about AI? Will I be exposed? The second competitive force is
the concern for survival. This involves pressure to change. What if I don't change and
apply AI to my work? Will I be left behind by AI? These worries can take many forms.

Four related fears:

● Fear of temporary incompetence: the perception of overestimating one's own lack

of ability to handle new situations with AI.

● Fear of being punished for incompetence: fear that you will somehow lose out or
be punished when this incompetence is discovered or judged by the boss or customer.

● Fear of loss of personal identity: inner turmoil when the usual way of thinking
and feeling when solving a problem or task is no longer necessary or when the sense of
self is defined by a role , the organization's acknowledged and defunct position due to AI
intervention.

● Fear of losing group membership: in the same way that identity can be defined
by individuals' roles, for some people that identity can be deeply influenced by networks
of associations that you have at work. Similar to the way that the stable balance of a
group or group membership can promote health outcomes, instability due to changes in
group roles or the disintegration of a particular group can have an impact. extremely
worrying. => Simply put, the job roles and tasks of individuals in a team or organization
can be replaced by AI.

If they can control their fears at the opening stage, have a positive outlook and
accept change, then specifically the responses that take place in the 4 learning changes
are as follows:

● Behavioral change:

Phase 01: Individuals will be in a limbo stage, not in a hurry to learn how to use
these tools because the impact of AI is unclear.
 Phase 02: Receive new regulations to improve the company's development in terms
of rewards and punishments, follow to further develop your work and position. Learn
about AI in a way that you want to apply, not eliminate.

Phase 03: Apply your knowledge to work (apply AI to support and improve
productivity)

● Cognitive change:

Phase 01: Individuals will reflect on themselves and see if their position and role are
related or can be applied to AI?

Phase 02: Accept AI, learn about this new tool.

Phase 03: Set specific goals for yourself associated with applying AI to work.

● Psychodynamic Change:

Phase 01: Individuals can resist and object to change and the emergence of AI, so
they need to control their emotions and psychology, and accept change to develop
together with the company.

Phase 02: Begin to open up, accept change and learn about AI.

Phase 03: Apply to work in your position.

● Humanistic Psychology Change:

Phase 01: Learn about your own personality, understand the difference between
yourself and others in the group when AI appears.

Phase 02: Determine your role in the group, thereby understanding conflicts or
conflicts when AI appears.

Phase 03: Apply AI to your work process. Coordinate with other individuals in the
team to complete the job in the best way.

1.3 Company’s Solutions

1.3.1 Behavioral Approaches

 Performance management

● Create a flexible and multi-dimensional performance evaluation system through

AI

● Set specific performance goals for employees, such as understanding technology,

applying AI in daily work, dealing with the challenge of automation, etc.

● Regular feedback and support so employees can adapt and improve their
performance.

Reward Policies

● Offer flexible reward policies based on employee achievements and performance,

with priority given to AI-related contributions

Management competencies

● Implement measures to promote a proactive management style, including creating

opportunities for employee contribution and creativity in the use of AI.

● Reduce pressure and create favorable conditions for employees' learning and
adaptation to AI.

Skills training

● Design training courses that focus on developing the skills necessary for
employees to work effectively with AI technology.

● Provide online and in-person learning materials to support employees in self-

learning and improving their skills.

Management style

● Organize training courses for leaders to develop management capacity, focusing

on understanding and supporting employees in the process of adapting to new
technology.
 ● Set leadership goals, such as creating a work environment that encourages
creativity and adaptation to change.

1.3.2 Psychodynamic Approaches

The psychodynamic approach is useful for managers who want to understand the
reactions of their staff during a change process and deal with them. These models allow
managers to gain an understanding of why people react the way they do. It identifies what
is going on in the inner world of their staff when they encounter change.

● Shock and/or surprise: Some employees may feel shocked and surprised by
Shein's application of AI technology to its business model. AI technology can bring about
significant changes and no one previously expected that companies would use AI so
extensively.

● Denial: Some employees may not accept the change and may deny that adopting
AI can bring real benefits. They may think that AI technology can replace their role in the
company or cause negative impacts on their work.

● Anger: Some employees may experience anger and frustration because the
company decided to use AI extensively. They may feel like the adoption of AI
technology threatens their job and stability within the company.

● Bargaining: Some employees may try to negotiate and find ways to avoid
inevitable changes. They can suggest smaller adjustments or changes in the adoption of
AI technology to minimize the impact on their work.

● Depression: Some employees may become depressed and react with apathy or
sadness. They may feel like their work is no longer valued or contributes less due to
changes in AI technology.

● Acceptance: Some employees may accept the reality of the situation and look at
the opportunities and benefits that can come from adopting AI technology. They may find
that AI technology can improve their performance and benefit the company as a whole.
 ● Explore: Some employees may find a new world opens up with this change. They
may be curious and want to explore new opportunities that AI technology can bring to
their company and to their personal growth.

1.3.3 Cognitive Approaches

Achieving results

Organize workshops and personal interactions to help employees clearly understand

how AI works and affects their work and values.

Organize meetings and sharing sessions to help individuals share and propose ideas
to motivate and promote employee confidence.

Provide training programs to increase awareness, skills and understanding of

artificial intelligence for employees.

Setting goals

Develop personal goals for each person and establish metrics to track progress.

After clearly understanding the goals, employees need to set specific goals for
themselves. Goals should be specific, measurable, actionable, relevant and time-bound.
When they have specific goals, employees will have appropriate direction to adapt to AI
and achieve results.

Making sense of results

Employees need to track the results of applying AI. By tracking results, employees
will be able to identify what is working well and what needs to be improved.

Each individual needs to focus on the process of self-assessment and evaluating

their own results to change and develop to suit working with AI at work.

Techniques for change

Create a creative, dynamic working environment and use AI effectively

 Create a platform to share knowledge and experience about AI. This platform will
help employees communicate with each other about AI applications at work.

Encourage employees to participate in AI testing projects, use AI in the work

process and ensure the effectiveness AI brings to each individual.

Build a community where individuals can share knowledge and experiences about
AI and learn about how to adapt AI in their work.

1.3.4 Humanistic Psychology Approaches

Living the values

Learn and grow: Employees need to actively learn and develop new skills,
especially those related to AI. This will help them adapt to the changes brought about by
AI and have more job opportunities in the future.

Developing the learning organization

Participate in training and development activities: Employees should participate in

training and development activities provided by the company. This will help them keep
up to date with new knowledge and skills, as well as develop the soft skills needed to
work in an AI-powered environment.

Addressing the hierarchy of needs

Proactive communication and sharing: Employees should actively communicate

and share with superiors and colleagues their worries and concerns. This will help them
get support and guidance from the company.

Addressing emotions

Actively develop communication and conflict resolution skills: Individuals should

learn to control emotions and express emotions in a healthy way, building positive
relationships with colleagues and superiors.

Fostering communication and consultation

 Contribute ideas and build stances: Individuals should be equipped with in-depth
knowledge of the field of AI, and participate in meetings, open communication channels
in the company to give feedback and discussion. This will help them look for
opportunities to learn and grow, as well as find new job opportunities in the future.

1.4 Conclusion

- Summary Takeaways:

● The profound impact of AI to the employees’ mental health, well being can not be
overlooked.

● Each group of 4 learning approaches in the model is not suitable for all employees
=> carefully consider when implementing the right strategy to make the right change to
the right person.

- Lessons learned:

● Invest in continuous program

● Promote a culture of innovation

● Facilitate human - machine collaboration

● Prioritize employee well-being

● Empower employees with the decision making process

 CHAPTER II: AI TO TEAMWORK

2.1 Team and Group Differences:

2.1.1 Definition of “group” and “team”

“Group” is any number of people who interact with each other, are psychologically
aware of each other, and identify themselves as a group, possibly according to certain
criteria, such as age, gender, interests. (Schein and Bennis (1965)). In addition, "group"
consists of members who simply gather, contribute ideas or do their work relatively
independently, and finally gather to produce results. Members' activities are relatively
unaffected by each other.

“Team” is a distinguishable set of two or more individuals who interact

interdependently and adaptively to achieve specific, shared, and valued goals (Morgan et
al (1986) ). Team members have certain roles and tasks, require mutual coordination and
have a great influence on future results.

2.1.2 Differences between “group” and “team”

GROUP TEAM

Indeterminate size Restricted in size

Common interests Common overarching objectives

Sense of being part of something or Interaction between members to

seen as being part of something. Work accomplish individual and group goals
independently.

Interdependent as much as Interdependency between members to

individuals might wish to be. Work accomplish individual and group goals
independently.

May have no responsibilities Shared responsibilities

 other than a sense of belonging to the group

May have no accountabilities other Individual accountabilities

than ‘contractual’ ones

A group does not necessarily have The team works together, physically
any work to do or goals to accomplish or virtually

2.1.3 Practical Example in the context of Shein Company (for team and for
group)

SHEIN was founded in 2008 in China, operating with a domestic production model
and prioritizing sales abroad, mainly through the online environment. Due to its wide
scope of operations, SHEIN is required to have a strict organizational structure to help its
business develop and be safer.

SHEIN has different departments to support the smooth running of work.

Departments with the same major goal/mission can be called a "group". To make it
clearer, we can take a typical example at SHEIN as follows:

The Marketing Department has the general task of building and implementing
marketing strategies to enhance brand recognition and increase SHEIN's sales, and they
are called a "group". In order for the task to go according to plan, the Marketing
department will divide members with strengths into the same "team" to carry out small
tasks to contribute to the success of the initial goal. Currently, SHEIN has the following
small teams in the large Marketing group:

Brand Marketing Team: This is a team consisting of members with strengths in

building and managing SHEIN's brand image. They are responsible for implementing
projects related to building SHEIN's image in the eyes of users and suggesting trends that
are beneficial to the business. The team is managed by Brand Manager Specialist and
Brand Marketing Project Manager.
 Social Marketing Team: This is the team responsible for shaping and
implementing online advertising campaigns and on social networking sites. They are
responsible for developing creative content and building relationships with media
partners.

Digital Marketing Team: This team is responsible for managing digital marketing
strategies on social networks. They create and manage social media channels, analyze
user data, measure customer interactions to develop plans to deploy appropriate
communication team advertising campaigns as well as improve marketing results.

Team Events: They are responsible for planning and organizing advertising events,
press conferences and other promotional activities of SHEIN. In addition, they are also
responsible for building and managing relationships with.

2.2 Types of organizational team

2.2.1 Work Team

They are usually part of the normal hierarchical structure of an organization. One
person manages a group of individuals, and is responsible for delivering a particular
product or service either to the customer or to another part of the organization. Normally
focused on maintenance and management of what is. This is a combination of existing
processes and operational strategy.

2.2.2 Self-managed Team

Is a sub-set of the work team.The self-managed team has the attributes of the work
team but without a direct manager or supervisor.This affects the way decisions are made
and the way in which individual and team performance is managed.

2.2.3 Parallel Team

They are not part of the traditional management hierarchy. They are run in tandem
or parallel to this structure.They are often of a consultative nature, carrying limited
authority. Although not necessarily responsible or accountable for delivering changes,
they often feed into a change management process.

2.2.4 Project Team

Formed for the specific purpose of completing a project. Project teams are very
much associated with implementing change. However, although change may be their
very raison d’être it does not necessarily mean that their members’ ability to handle
change is any different from the rest of us.

2.2.5 Matrix Team

Matrix teams generally occur in organizations that are run along project lines. Each
project has a project manager, but the project team members are drawn from functional
areas of the organization. The team members have accountability both to the project
manager and to their functional head.

2.2.6 Virtual Team

Groups of geographically and/or organizationally dispersed co-workers that are

assembled using a combination of telecommunications and information technologies to
accomplish an organizational task.Change creates an increased need for communication,
clear goals, defined roles and responsibilities, and support and

recognition processes but more difficult to manage.

2.2.7 Networked Team

An attempt to add a greater cohesion to their organization, which would not

otherwise be there.Might have grouped virtual and networked teams under the same
category. The networked team was similar to a parallel team. An important anchor for
organizations in times of change.They can be seen as part of the glue that gives a sense of
cohesion to people within the organization.

2.2.8 Management Team

 Ultimately responsible for the overall performance of the business unit. In itself it
may not deliver any product, service or project, but clearly its function is to enable that
delivery. Pivotal in translating the organization’s overarching goals into specific
objectives for the various sub-units to do their share of the organization task. Spend less
time on ‘business as usual’ matters and more time on the change agenda.

2.2.9 Change Team

Often formed within organizations when a planned or unplanned change of

significant proportions is necessary. Sometimes the change team is a special project team
set up to implement change. More and more organizations also realize that the
management of change is more likely to succeed if attention is given to the people's side
of change.

2.2.10 Each type of teams in Shein:

Current team types at Shein can be:

● Work Team: Includes basic departments such as: Supply Chain, Marketing &
Sales, Payments,...

● Matrix Team: I think Shein uses this team to carry out a number of projects and
campaigns for the brand, for example: digital marketing, affiliate with KOL/LOC,...

● Management Team: Any company will almost always have this type of team, so
will shein. The management level at Shein includes details according to the following
link: https://theorg.com/org/shein/teams/leadership-team

● Virtual Team: Maybe at Shein also has this type of team because of the
continuous development of AI and Shein is present in many countries, this type of team
maybe helps brands to connect their workers. They can also easily apply AI to some of
their departments such as: Creative, Marketing like mentioned in the previous
presentation.

The remaining types of team will probably be in shein:

 ● Project Team: This team will probably be created in parallel with the matrix team
in order to carry out Shein's important projects.

● Change Team: With the constant changes in technology, industry structure,

economy,... having this team in the company is extremely important that any company
needs to carry out its tasks. Innovation plan for your brand. Shein has also applied AI to
improve productivity in product creation, customer care, marketing and advertising,...

Partners to create marketing opportunities.

2.3. Five stages of Team Change by Tuckman’s Model (1965)

2.3.1. Forming

Shein is a famous online fashion brand, founded in China in 2008. Initially, Shein
focused on the Chinese market, but since 2014, they expanded their operations
internationally and served customers goods globally. In 2020, Shein has achieved success
and become one of the most popular online fashion brands in the world.

Shein was founded with a specific business goal and formed from a group of
founders. During this phase, the team will focus on defining the company's goals,
strategy, and operations.

As an e-commerce company, Shein will assemble a team of employees with

different titles and roles, including sales staff, marketing staff, product management staff
and support staff clients. During the formation stage, members will need to clearly define
their missions and cooperate to achieve company goals.

Shein will focus on determining its specific business goals, such as creating fashion
products that match trends, serving customers around the world with high quality and
reasonable prices. Teams within the company will need to work together to shape and
achieve this goal.
 Shein's leadership will play a key role in determining direction and providing
guidance to the team. They will create a positive work environment and encourage
collaboration among members.

2.3.2 Storming

During Shein's use of AI, some conflicts may arise within the organization.
Typically as:

Threatens team commitment and focus on goals: There may be people in the team
who do not trust AI's capabilities and are concerned that it could replace humans at work.
This can reduce confidence and cooperation within the team.

Question the preparation and management in using AI: There can be dissatisfaction
and difficulty in achieving goals when implementing AI without proper preparation and
management. This can cause dissatisfaction and reduce team effectiveness.

Causes doubt and dissatisfaction within the group: There may be different views
and values about the use of AI, leading to doubt and dissatisfaction within the group. This
can weaken trust and team spirit.

Additionally, the implementation of AI can also raise questions about responsibility

and ethics. AI technology can encounter issues related to privacy, information security,
and discrimination. Conflicts of opinion and values may emerge in deciding how to use
and deploy AI within an organization.

To minimize conflicts in the use of AI, it is important for organizations to ensure an

adequate process to train employees on AI, create an environment of open discussion and
promote participation of all parties. relate to. At the same time, identifying and adhering
to ethical regulations and principles in the use of AI is necessary to ensure that the
technology is applied in a trustworthy and responsible manner.

2.3.3. Norming
 At this stage, the AI project team at Shein begins to build common rules and
standards when working in groups. They find something in common with each other and
team members talk and share each other's strengths and weaknesses to understand each
other better and create bonds when applying AI to common work. Their cooperation can
become smoother, create a good working environment and the whole team strives to
work towards a common vision and achieve results for each project and AI activity.

2.3.4. Performing

After the group members have clearly understood each other and established group
work goals. At the performing stage, the AI project team at Shein enters the
implementation process and works on Shein's projects with the support of AI. Each team
member should take advantage of their strengths and coordinate well with each other to
achieve common goals at work. Shein's teams will make positive contributions to the
company if each team operates at high performance and takes advantage of team
cohesion.

2.3.5. Adjourning

When the team has achieved achievements or success, at this stage Shein's AI
project team may encounter problems such as AI doing absolutely all the work causing
team members to leave, disagreements in opinions and the team having to be dissolved.
Each member of the company's team after finishing an activity or project working with
AI needs to comment and evaluate their work performance. Moreover, the group needs to
come up with plans to improve and help the group achieve high efficiency while working
together.

2.4 Four pitfalls Bion’s Model

Take an department/team handling AI Project in Shein Company as the example for

describing all 4 stages (dependency, fight or flight, paring and oneness) - The Leadership
issue in Team Change

2.4.1 Stage 1: Dependency

 Normally, in any department of a business, employees are always in a passive
position, waiting to be told what to do and then they will do it. In order for them to not be
completely dependent on the leader's requests in a passive way, leaders need to take care,
concern and support so that employees feel more comfortable and proactive when
completing tasks. In addition, a leader not only directs and manages the team with his/her
responsibilities, but also knows how to assign tasks and empower other individuals, so
that they feel responsible and play an important role in the group's overall work.

2.4.2 Stage 2: Fight or flight

Because employees tend to depend completely on the leader. Therefore, when the
working environment changes, for example a new leader is replaced, instead of
employees having to consider who the new leader will be, they will tend to worry and not
accept it. Accept or even oppose change. The leader's task in this stage is to discuss
frankly with employees and achieve the most satisfying results.

2.4.3 Stage 3: Pairing

After going through the fight or flight phase, team members begin to understand and
respect each other. They began to work closely together to complete the project. During
this period, leaders need to encourage members to cooperate and share knowledge and
experience with each other. Leaders need to create a positive work environment where
members feel comfortable sharing their ideas and thoughts.

2.4.4 Stage 4:Oneness

Once the team members have worked closely together, they begin to form a unit.
Have the same goal, vision and perspective. During this period, leaders need to continue
to support and motivate members so that they continue to promote the spirit of solidarity
and cooperation. Leaders need to create a professional working environment where
members can maximize their abilities.

2.5 MBTI and Team (Individual to Team)

2.5.1 Theoretical basis

 MBTI (Myers-Briggs Type Indicator) is a personality inventory developed by
Katherine Briggs and her daughter Isabel Myers. The MBTI™ identifies eight different
personality "preferences".

When undergoing team change, individual team members will typically react in one
of four ways:

● Some will want to ascertain the difference between what should be preserved and
what could be changed. There will be things they want to keep.

● Some will think long and hard about the changes that will emerge internally from
their visions of the future. They will be intent on thinking about the changes differently.

● Some will be keen to move things on by getting things to run more effectively and
efficiently. They will be most interested in doing things now.

● Some will be particularly inventive and want to try something different or novel.
They will be all for changing things.

2.5.2 Practical implications related to Shein

Extraverted individuals at Shein may love social contact and have great
communication abilities. These groups can swiftly voice their perspectives and encourage
innovation in decision-making, particularly when generating new concepts for fashion
goods. Introverts, on the other hand, may do better when they focus separately and
provide their thoughts.

Personality types also determine how employees deal with challenges and pressure
in a high-energy fashion setting. For example, individuals with Judging personalities may
want to arrange their work clearly and make careful plans, but those with Perceiving
personalities may be more adaptable and inventive when dealing with uncertainties in the
fast-paced fashion sector.
 Overall, Shein's personality variety contributes significantly to creating a diverse
workplace and promoting innovation. This is critical for the brand to quickly adapt and
advance in the dynamic and demanding fashion business.

2.5.3 The advantages and disadvantages of Differences or Similarities in

personality

Differences Similarities

- Creating a sense of community,

- Balances the Strengths and
unity, and family can occur.
Weaknesses of Your
Workplace - Provide smooth working
conditions and transitions.
- Diversifies Your Workplace
Advantages - People may work similarly, then
- Improves Decision-Making
make the work efficient
- Increases Team Production
- There is less need for discussion.
and Efficiency
- Bring a positive attitude to a
- Boosts Workplace Morale
productive group.

Disadvantages - Decrease productivity in both - They may not be able to think of

individuals and teams.
- Disrupt teams, make them
miss deadlines, create general
chaos and create an unhealthy
work environment.
- The more disparate the
team members, the longer
it takes for understanding
to occur
solutions to problems because they
do not have a difference of opinion,
knowledge, or way of thinking.
- Sometimes it causes conflict. If
there are a group of people who all
like to lead then this is an issue that
can cause stress.
- The more similar the team
members, the quicker the decision
will be made, but the greater the
possibility of error through the
 exclusion of some possibilities

2.6 Conclusion

About Structure:

● Whatever the company structure is, group or teamwork also leads to a more
significant and efficient result in solving tasks related to AI issues than individual work.

● Teamwork can be more effective if we consider the type of team and use a suitable
strategy to enhance the work.

About Strategy:

● Tuckman’s Model helps map out the journey of team change allowing us to have a
clearer and wider vision when first launching a team.

● Bion’s model helps us predict the risky side of leading a team and well prepare

About Individual to Team:

In the AI Stage, a well-rounded team, which includes different perspectives of

what’s upcoming (uncertainty) can be more inclusive and safe.
 CHAPTER III: AI TO COMPANY

3.1 Prove Shein belong to Machine Metarphor

3.1.1 Short Definition of Machine Metaphor ?

Gareth Morgan says, ‘When we think of organizations as machines, we begin to see

them as rational enterprises designed and structured to achieve predetermined ends.’

An organization implies routine operations, well-defined structure and job roles, and
efficient working inside and between the working parts of the machine (the functional
areas). Procedures and standards are clearly defined, and are expected to be adhered to.

3.1.2 Example of Shein using Machine Metaphor

Employee roles are also clearly divided and/by having specific departments.

Figure 3. Example of Shein using Machine Metaphor 1

The departments at Shein are clearly divided with a top manager and then divided
into small team leaders to manage employees.
 Figure 4. Example of Shein using Machine Metaphor 2

3.1.3 Limitations mentioned in textbook relating to Shein

This approach works well in stable situations, but when the need for a significant
change arises, this will be seen and experienced by employees at Shein as a major
overhaul

That is usually highly disruptive and therefore encounters resistance.

Change when approached with these assumptions is therefore hard work. It will
necessitate strong management action, inspirational vision, and control from the top
down.

3.2 Prove Shein belong to Organism Metaphor

3.2.1 Short Definition of Organisms Metaphor

The Organisms Metaphor is a conceptual framework that views organizations as

living entities, drawing parallels between their structure, functions, and behavior with
those of biological organisms. This metaphor suggests that organizations, like living
organisms, adapt to their environment, evolve over time, and consist of interconnected
components that work together for a common purpose.

3.2.2 Example of Shein using Organisms Metaphor:

Organizational Structure:
 Shein, a fast-fashion e-commerce giant, exhibits adaptability akin to an organism by
embracing a flexible, dynamic organizational structure. The company is known for its
ability to swiftly respond to changing fashion trends and consumer demands, adjusting its
internal structure accordingly.

Workflow:

Shein's workflow mirrors the organisms metaphor as it emphasizes agility. The

company's operations are designed to quickly gather and respond to market feedback.
This adaptable workflow allows Shein to stay attuned to the ever-changing fashion
landscape.

Environmental Adaptation:

Shein, the global fashion retailer, exemplifies the Organisms Metaphor by

showcasing adaptability to its environment. Just as organisms evolve to survive in
different climates, Shein rapidly adjusts its product offerings and marketing strategies
based on the ever-changing trends and demands of the fashion industry. This adaptability
mirrors the way living organisms evolve to thrive in diverse ecosystems.

Communication Systems:

In the context of the Organisms Metaphor, Shein's communication systems can be

compared to the nervous system of a living organism. The rapid flow of information
between different departments and teams within Shein ensures quick responses to market
signals and customer feedback. Similar to how a nervous system relays messages for
coordinated action in organisms, Shein's communication facilitates synchronized efforts
across the organization.

Lifecycle and Innovation:

The lifecycle of Shein's product lines reflects the continuous innovation seen in
living organisms. Just as species evolve and diversify over time, Shein introduces new
styles, trends, and collaborations to stay relevant in the fashion ecosystem. This constant
cycle of creation and adaptation is akin to the lifecycle and evolutionary processes
observed in biological organisms.

3.2.3 Limitations mentioned in textbook relating to Shein

The textbook underscores drawbacks of the Organisms Metaphor, cautioning

against its tendency to oversimplify complexities and neglect individual agency in
organizations. For Shein, this may lead to challenges like employee burnout and
oversight of ethical considerations due to the company's fast-paced, adaptive nature.
Moreover, the metaphor might not adequately address external influences, such as
geopolitical events impacting Shein's operations. This highlights the importance of a
more comprehensive approach beyond the metaphorical framework for a nuanced
understanding of organizational complexities in real-world scenarios.

3.3 Prove Shein belong to Flux and Transformation Metaphor

3.3.1 Short Definition of Flux and Transformation Metaphor

This metaphor is the only one that begins to shed some light on how change
happens in a turbulent world. This view implies that managers can nudge and shape
progress, but cannot ever be in control of change. Gareth Morgan says: ‘In complex
systems no one is ever in a position to control or design system operations in a
comprehensive way. Form emerges. It cannot be imposed.

3.3.2 Example of Shein using Flx and Transformation Metaphor

- Shein uses sales and social media data to predict the latest fashion trends.

Firstly, Shein analyzes sales data from millions of customers to determine what
items are selling well and what trends are popular, and follows social media trends,
hashtags, and influencers to predict emerging fashion trends. and finally Shein uses
artificial intelligence to analyze data and make more accurate predictions about fashion
trends.
 - Shein collaborates with designers and manufacturers around the world to create
new products quickly.

Shein collaborates with a vast network of designers worldwide to create new

designs continuously.

Shein uses an "on-demand" manufacturing model to produce products according to

market demand, helping to minimize production time. Shein uses advanced technologies
such as automation and robotics to speed up production. export.

3.3.3 Limitations mentioned in textbook relating to Shein

Applying the Flux and Transformation metaphor brings many benefits to Shein, but
also comes with certain limitations for managers. Difficulty in managing and controlling
the process of continuous change can lead to errors in decision making and lack of
stability in the organization. The constantly changing environment also puts pressure on
employees, making it difficult for them to adapt and leading to burnout and reduced
productivity.

Furthermore, constant change can cause confusion among employees, making it

difficult for them to keep up with the latest changes and losing trust in the company. Lack
of employee engagement in the change process can also lead to decreased productivity
and increased resistance to change.

3.3.4 Pros & Cons of this Metaphor

 Pros

+ Helps leaders and employees understand the ever-changing nature of organizations

and the importance of adapting.

+ Encourage creativity and innovation to help your organization grow.

+ Minimize resistance to change by helping people understand that change is

necessary and can be beneficial.

 Cons
 + Can be difficult to apply to organizations that require a high level of stability and
consistency.

+ Can make employees feel anxious and insecure.

+ It can be difficult to manage the change process effectively.

3.4 Describe Shein’s Change through Lewin - 3 steps model

3.4.1 History of Shein’s Change Management:

SHEIN began as a small online women's clothing retailer and was initially
compared to a drop shipping business, as it was not involved in design and
manufacturing, instead sourcing products from the wholesale clothing market in
Guangzhou in 2008. However, Chris Xu wanted to change the vision, strategy , and re-
identified their target customers. So, he decided to transform SHEIN from a drop
shipping business to a fully integrated retailer. To make it happen, AI was determined to
be used in Shein's organizational system to analyze insights, visualize design images,...
This has changed SHEIN's operating system and forced employees to change the way
they work.

3.4.2 Describe Shein Change through Lewin - 3 steps model

Figure 5. Lewin’s Change Management Model

Step 1: Unfreeze
 Bringing AI into Shein operations will lead to many new changes that employees do
not know about. Therefore, in the first step managers need to clearly convey to
employees the reason why this change is happening. It could be a meeting to talk about
Shein's vision and strategy for the future when AI is involved. When employees
understand the reason for the change, they will easily accept cooperation without
resistance.

Step 2: Make move

In the second stage, when the change has taken place. Although employees will not
fully accept it at first, they will gradually change the way they work to adapt to the new
environment. Managers must always maintain interest in employees, explain and show
them the benefits of new changes. At the same time, support employees as they try to
change in a new working environment.

Step 3: Refreeze

The change has fully happened at this stage and all the Shein’s team are currently
working in the new way - accepting that AI is one of a part in Shein operations. However,
managers must still follow and support their employees, and identify the challenges when
they are operating AI in the system. Besides, Shein’s managers should encourage their
employees to provide feedback and praise them in case of doing well to make them feel
positively about the continuing success of the organization.

3.4.3 Pros and Cons when Shein using Lewin’s Change Management Model:

Pros Cons

If the change is successful, Shein’s It can be hard for individuals to accept

employees can be boosted their and make a change.
confidence and they are willing to make
a change in the future.

The employees can learn more Some individuals may have difficulty
knowledge and useful skills. learning and applying new skills instead
of using old work systems.

The successful change can help the

company increase sales, raise awareness
and increase market share.
 3.5 Desribe Shein’s Change through William Bridges model
3.5.1 Describe Shein’s Change through William Bridges model

The Bridges Transition Model is a model developed by William Bridges that helps
organizations and individuals understand and manage and work more effectively through
the personal and human aspects of change.

Model with 3 stages of the transition process, which employees go through. They
are:

+Stage 1: Endings

+Stage 2: Neutral Zone

+Stage 3: New Beginnings

● Endings

If Shein implemented AI in their sales process, they would need to identify who is
losing what, expect a reaction, and acknowledge the losses openly.

Shein would need to identify the stakeholders who might experience losses or
changes as a result of implementing AI in their sales process. This could include
employees whose roles might be affected or customers who might have a different
purchasing experience.

Shein should anticipate that there may be reactions from both employees and
customers. Some employees might be concerned about job security or changes in their
responsibilities, while customers might have questions or concerns about how the AI
system will impact their shopping experience.

Shein should openly acknowledge and address any losses or changes that result
from implementing AI. They should communicate with employees and customers,
explaining the reasons for the change, addressing concerns, and providing support or
training where necessary.
 It's important for Shein to repeatedly communicate the details of how AI will be
integrated into the sales process. This helps ensure that everyone involved has a clear
understanding of the changes and how they will be implemented. Repetition allows the
information to sink in and reduces the chances of misunderstandings or confusion.

Shein should recognize that it may take time for employees and customers to adjust
to the new AI-driven sales process. Patience is important, and ongoing communication
and support should be provided to facilitate a smooth transition.

● Neutral Zone

Shein's management would need to understand that during the implementation of AI

in the sales process, employees may feel disoriented, and motivation may decrease while
anxiety increases. They should recognize this as a natural part of the change process.

Shein's management should communicate to employees that the neutral zone is an

expected phase and is necessary for the change to take place successfully. They should
emphasize that it is temporary and that the organization is actively working towards a
new and improved sales process.

To navigate the neutral zone effectively, Shein's management might consider

establishing temporary structures such as task forces or smaller teams. These structures
can help provide a sense of stability, focus efforts on specific tasks related to integrating
AI, and foster creativity and collaboration.

Shein's management should regularly assess the organization's pulse during the
change process. This can be done through various means, such as surveys, feedback
sessions, or one-on-one meetings. By actively seeking input and listening to employees'
concerns, management can address issues promptly and provide support where needed.

● New Beginnings

At the final stage, Shein's teams begin to adapt to change and progress in the
transformation process when applying AI to work. They embrace change and integrate AI
with new ways of working. Shein uses AI for customer care activities. With advanced
natural language processing (NLP) and chatbot systems, Shein can quickly respond to
user questions with detailed answers and customer-satisfying suggestions.

They become more proficient in using advanced AI tools and techniques, leveraging
them to support and improve work efficiency such as suggesting new ideas for products,
customer services or other aspects.

Team members feel more excited and committed to the new way of working, and
productivity increases as they adapt to the new changes. The team began to realize the
positive impact AI could have on their projects and the organization as a whole.

Continuous learning and adaptation when applying AI to work brings positive

changes and helps Shein's teams keep up with the latest developments in AI technology
and its applications.

3.5.2 Implications

For AI teams at Shein to function well with AI support, leaders need to manage the
emotional aspects of change well and ensure that team members feel supported in their
efforts throughout the process. Strong leadership is needed to help members adapt well to
the transition and to be available to help them navigate changes in their work processes.

Shein should focus on sustaining the momentum of change, continuously improving

processes and integrating the new practices into the organizational culture. Leadership
support and employee participation are very important in applying AI to create efficiency
and convenience in Shein's change process according to the William Bridges model.

3.6 Conclusion:

● Applying those organizational metaphors of Gareth Morgan is always the first

step that should be done by any company ready and determined to face the changes.

● None of the metaphors tells the whole story

 ● These models are represented for the creation of the HR role, but to let these
models workout, other manager levels of other departments need to be included in these
change processes.
 REFERENCE

1. https://www.statista.com/forecasts/1241197/shein-fashion-online-shops-brand-
profile-in-the-united-states

2. https://prioridata.com/data/shein-revenue-statistics/

3. https://research.contrary.com/reports/shein

4. https://kr-asia.com/unveiling-sheins-secret-artificial-intelligence-and-the-
complexities-behind-its-usd-66-billion-valuation

5. https://www.mirror.co.uk/money/dark-side-80bn-shein-workers-30011389

6. https://afterschool.fpt.edu.vn/ai-tac-dong-den-thi-truong-viec-lam-ra-sao/

7. https://www.sheingroup.com/our-business/our-business-model/

8. https://vnexpress.net/phan-biet-group-va-team-3342030.html

9. https://rocketreach.co/person?start=1&pageSize=10&employer%5B%5D=
%22SHEIN%22&department%5B%5D=Brand%20Marketing

10. https://theorg.com/org/shein/teams/leadership-team
 APPENDIX

Figure 1. Annual Revenue Shein from 2016 to 2022..........................................................3

Figure 2. Shein’s corporate structure.................................................................................4
Figure 3. Example of Shein using Machine Metaphor 1...................................................30
Figure 4. Example of Shein using Machine Metaphor 2...................................................31
Figure 5. Lewin’s Change Management Model................................................................35