Organisational Culture of COMZ Group - Essay Example

? COMZ STUDY GROUP Contents QUESTION 3 QUESTION 2 4 QUESTION 3 5 QUESTION 4 6 Reference 7 QUESTION Draw on the relevant theory and evidence from the case study to explain the organisational culture of COMZ Group. Culture is often defined as values, behaviour, expectation and perspective which are shared by the participants in the organisation. Organisation culture determines how the members tend to learn from the expectations of organisation and subsequently behave. The organisation culture of COMZ follows the Clan Culture and this is because the organisation follows a culture where the Managing Director, Pedersen follows a principle of people oriented and not profit oriented. Pederson has developed a listening skills which his staff needs to develop he acts as the role model of the organisation. The Clan culture focus mainly on the participation and involvement of the members of the organisation. More than any other, the clan culture mainly focuses primarily on the needs and requirements of the members or the employees and believes that if the performance is satisfactory, profit would follow the organisation (Draft, et.al, 2010, p.411). In a similar manner Pedersen also believes that by delivering good services to the customers and by motivating the employees to do so, profit will follow them. He believes that it is important to image how the employees feel and in turn develop a relationship building skills. Pedersen is committed towards team approach which according to him is essential for the communication industry where creativity is everything. Just as the clan culture suggest of taking care of the employees and make sure that the employees are surrounded by everything which are required by them, so does Pedersen for its employees. QUESTION 2 Using the PESTLE framework, identify ONE external factor and explain how it has affected COMZ Group. (150) PESTEL Analysis tends to covers the macro environment. The PESTEL covers the Political, Economical, Social, Technological, Environmental and Legal factors of an organisation (Lorat, 2009, p.6). COMZ Group was highly affected by the economic factors as stated in the case study. COMZ Group which began its operation as promotional video production company but latter shifted to event management mainly for the travel industry, the airlines and travel agencies. After the 9/11 attack, the tourism business was affected highly and also had an adverse affect on the COMZ Group. The company had lost about 60% of its business overnight for which the company COMZ had to reposition itself completely. The 9/11 attack had affected the business badly so the company was forced to shift into a new dimension. COMZ Group is now a communication agency which offers a range of products and services to both local and large MNCs. Identify ONE other external factor and explain how it could affect COMZ Group in the future Other than the Economic factor, the company is affected by the rivalry among the industry. Since the communication industry is a competitive industry, the company needs to provide effective and better services to gain a competitive edge over its competitors. The COMZ Group continues to face challenges because the communication is often regarded as a luxury by businesses which cannot be afforded during economic downturn. There may be other communication firms which might offer great services at a less amount affecting the business of COMZ Group. Therefore the competition among the established firm within the same industry is usually high and that to in the communication industry (Hills & Jones, 2009, p.43). QUESTION 3 Identify TWO COMZ Group stakeholders (excluding shareholders) and describe their likely interests in the performance of the company. Two COMZ Group stakeholders are the customers and the employees who act as core members and are interested in the performance of the company. The customers are the key stakeholders that the organisation needs to satisfy. A customer is someone who is involved in the decision making to acquire a product or implement a service. Employees are also essential part of the company. When a company performs positive result the employees are motivated to work for and for the betterment of the organization. It is important for the company to understand the goal of stakeholders in order to determine the value of requirements (Kroll, 2000, p.137). Explain the potential conflict between the likely aims of the COMZ Group shareholders and the Managing Director Damon Pedersen’s aims for the company. Damon Pedersen aim is not only to earn profit but it’s about the people, the customers, employees, suppliers and others. But the shareholders aim to generate profit and increase in market share. But Pedersen looked at performance and believed that with good performance profit would come hand in hand. Thus there might be a likely conflict between the shareholders and Pedersen with respect to earning profits and the growth of the organisation. According to the theory of growth maximization, the shareholders aims at earning profit whereas the mangers aims to get a better salary, good performance and growth (Hardy, 1978). QUESTION 4 Explain how Damon Pedersen views the role of business in society and how this may differ from other perspectives on business responsibilities Pedersen views the role of the business in the society in a way to protect the environment and create sustainability. The company sustainability statement states that the company recognise the daily operation and also even related activities which impact the environment and also the local community and the company are committed to minimize the effects that arise from the activities held especially from the events. Thus the company tries to use local food suppliers and also hire the waste management companies to recycle the waste products and safe the environment. This is because sustainability is one of the major concerns with respect to the organisations. COMZ group was awarded the creative communication awards for three of its clients Tesco, Thomson Holidays and NatWest Bank. The company is concentrating on the environmental issue but at the same time it should not forget its other responsibilities as a business towards its customers, shareholders, employees and all the stakeholders who are related to the company. The company should deliver effective result both in terms of profit and also sustainability as both are major issues and are of highly concern for the stakeholders and organisation. According to Pedersen, it is important to concentrate on the employees and their requirements and to attain sustainability through its work but the society also demand profit for the betterment of the stakeholders to understand what is going about the company and so on. The company COMZ focus mainly on people and not on profits which is important to survive in the competitive world. Reference Draft, R. L. Murphy, J. and Willmott, H., 2010, Organization theory and design. United Kingdom: Cengage Learning EMEA. Hardy, C.C., 1978, The investor's guide to technical analysis. Tata McGraw-Hill Education. Hill, C. & Jones, G., 2009, Strategic Management Theory: An Integrated Approach. Cengage Learning. Kroll, P., 2000, Agility and Discipline Made Easy: Practices from Open up And Rup. South Asia: Pearson Education India. Lorat, N., 2009, Market Audit and Analysis. GRIN Verlag. Read More