impact of change on an organisation

Based on:
Friday, 18 May 2018
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2200 words ± 10%
Modules 1-10
Learning outcomes 1-3
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questions, please do not hesitate to contact the lecturer.
Ensure you understand the assignment question(s) and/or tasks. Once again, consult your
lecturer should you be unsure of any matters.
Note: All students are required to submit this assignment to be eligible to undertake the final
unit examination.
Task description & requirements
Preliminary preparation:

Select any company involved in the Transport and Logistics industry, preferably your own
organisation or one you are familiar with upon which to base your answer. It can be the
same organisation that you used for Assignment 2. As the nature of the information may
be industry sensitive you can be assured of our care to maintain confidentiality.

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Should you select the same organisation as for Assignment 2 you will still need to provide
the organisational information in this assignment even though you have provided it
previously. You must clearly identify the company, providing the full and real name of the
organisation in your answer.

Provide a brief description of the company, the nature of the business and the approximate
number of persons employed by the company. Include an organisational chart if available
(please do not spend time reproducing the chart – a scanned copy or one from the website
included as an Appendix is acceptable). This section should not be calculated in your word
count as it provides the assessor with background information.

Department of Maritime and Logistics Management â?? JNB517 Management 19

Should you not have a suitable organisation upon which to base your answer please
contact the Unit Lecturer.

Identify a situation in your organisation, department or work group where you would like
to make a change. You are encouraged to contact the Unit Lecturer to discuss your topic
choice before starting the assignment.

Assignment tasks:

Identify clearly and specifically the change that you wish to introduce, explaining why it is
[5 Marks]

Provide a brief analysis of the current organisational conditions including but not limited to
the following areas of interest:

ï?· Impact on culture

ï?· Likely resistance

ï?· The pressure for change

ï?· The stakeholders involved and their likely reactions

ï?· Impact on motivation and use of teams
[10 Marks]

On the basis of your analysis, provide recommendations for the implementation of the
change. Your answer must address strategies and leadership matters to overcome
resistance to change and to encourage engagement throughout the change process.
[10 Marks]

Required (supporting your response/answer):
Throughout your answer use examples, either real or hypothetical to illustrate your
understanding. If you are or have been employed in a suitable organisation, you are
encouraged to use your work situation where appropriate to explain the ideas.
Primary resources and readings provided in the study guide or ones you have independently
sourced must be accessed to support your position.
See the Essay/report assessment criteria sheet on the following page for information about the
criteria and the standards by which your work will be judged.
Department of Maritime and Logistics Management â?? JNB517 Management 20
Unit code: JNB517
Assignment 3 feedback form: Essay
Date: Grade/Mark:
Unit title: Management


High Distinction*





1. Depth &
breadth of

All relevant
concepts clearly

Evidence of wide
reading &

Main concepts
covered and clearly

Range of resources
used with

Main concepts
covered but some
not clearly

Reasonable use of
some quality

A number of
important concepts
overlooked or

Limited use of
some quality

Majority of key
concepts not
addressed or

evidence of use
of resources

2. Quality of thinking in evidence

2.1. Application
of theory to

All theory applied
with precision

Most theory
applied proficiently

Some important
theory not

Limit application of

No theory

2.2 Depth of
analysis &/or

Identifies the
significance of all
relevant factors

Critically &

Identifies most
factors & their

To good depth,
evaluates core

Identifies most
factors but some

evaluation of

Overlooks a
number of
important factors
&/or inter-

Shallow evaluation
of evidence,

Most factors and
their inter-

Little attempt to

3. Quality of communication

3.1 Logical
structure &

effectively used to

Very Clear &
coherent flow of

organised to

Mostly clear &


Basically clear and



No meaningful

illogical &

3.2 Clarity &
succinctness of

Crystal clear,
precise &

Technically error-

Mostly very clear &

Technically, mostly

unclear or

Some technical

Frequently unclear
&/or inappropriate

technical errors

unclear &/or

deficient to the
point of

4. Conformance to referencing standards and MLM formatting guidelines

4.1 Referencing


Sources in the main

Some important
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Significant lapses in

Sources poorly


application of
prescribed style

prescribed style
applied with
occasional errors

prescribed style
basically applied
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application of
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Incorrect style

* Please note that the criteria listed above are not necessarily of equal weighting, nor are they all-inclusive; they give an indication of
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Unformatted Attachment Preview

Name: Michelle May Nasaruddin
Student ID: 464915
Unit Coordinator: Ian Newman
Unit Code: JNB517
Unit: Management
Course: Master of Business Administration
(Maritime and Logistics Management)
Due date: 20 April 2018
Word Count: 2419
Culture and Its Impact on an Organization
This report mainly discusses how an organizational culture can influence organizational
performance in terms of effectiveness and efficiency in the longer term. A viable
organizational culture that is backed by effective leadership styles can certainly result in
enhanced organizational performance, as well as the attainment of sustainable competitive
advantage in a highly volatile operating environment. Nevertheless, it is important to note
that an organization also contains subcultures that are distinct from its core culture. Due to
such complexities, it is essential that values and norms held by subcultures are aligned with
an organizationâ??s dominant culture in order to avoid organizational dysfunction.
Hence, this report suggested that Von Bundit Co., Ltd.â??s (â??The Companyâ?) weak hierarchy
corporate culture has resulted in deteriorated organizational performance, mainly due to the
lack of employee motivation and retention as a result of poor leadership and managerial
practices. Such practices include unethical behavioral and decision-making in Human
Resources management and improper handling of export documentation. Besides, the Thai
socio-cultural values system that coincides with the Companyâ??s corporate culture have also
impeded rapid strategic change and implementation, mostly due to the lack of assertiveness
and competitiveness, emphasis on status and power, face-saving characteristics, and
Lastly, subcultures and cultures within the Company have resulted in the misalignment of
values and norms when compared to the Companyâ??s core hierarchy culture (in line with Thai
values and beliefs). Such misalignments have hampered proper communication flows across
all levels within the Company. That said, family-owned Von Bundit is gradually diverging away
from its rigid corporate culture and structure, as the younger generation is starting to get
involved with strategic management and direction of the Company going forward.
Michelle May Nasaruddin
Assignment 2
Culture and Its Impact on an Organization
Table of Contents
Abstract___________________________________________________________________ ii
Table of Contents___________________________________________________________ iii
Introduction________________________________________________________________ 1
1) Von Bundit Co., Ltd. â?? Ethical and/or Attitude to Social Responsibility Issues __________1
2) Hierarchy Corporate Culture Impacting Decision-making Process and Performance_____4
3) Hierarchy Corporate Culture and Strategic Management _________________________ 8
Conclusion________________________________________________________________ 12
References________________________________________________________________ 13
Appendix A ________________________________________________________________ 17
Appendix B ________________________________________________________________ 19
Michelle May Nasaruddin
Assignment 2
Culture and its Impact on an Organization
An organizational culture, which is imperfectly imitable and backed by effective leadership
styles, can motivate employees to achieve higher-level organizational goals, and ultimately
result in a firm achieving sustainable competitive advantage in the longer term (Barney 1986).
1. Von Bundit Co., Ltd. (â??Von Bundit or the Companyâ?) â?? Ethical and/or Attitude to Social
Responsibility Issues
Von Bunditâ??s (see Appendix A) overall dominant organizational culture is centered on strong
hierarchical corporate culture based on well-defined corporate levels and structures, which is
a common management practice in most Thai organizations today. On the back of strong
religious values and traditions embedded within Thai socio-cultural value systems, the
Companyâ??s bureaucratic organizational culture has impacted managerial practices â?? class
distinction and ranking, stringent protocols, respect for authority, and building reciprocal
organizational relationships. This was largely supported by Lund (2003), who suggested that
firms with a hierarchy corporate culture mostly comprise management that emphasize strict
formalities and policies together with extensive control and coordination in organizational
Being a Thai family-owned business carried down from generations, immense family-relations
hold top managerial positions in the Company. Sharma, Chrisman & Chua (1997) defined
family-owned firms as sustainable businesses that are possibly cross-generational, where
organizational vision is held by members of the same family (or small number of families) to
pursue. Indeed, Von Bunditâ??s controlling familyâ??s influence and values who have developed
profound expertise and capabilities in the rubber business over the many years coupled with
strong reciprocal relationships with its business partners have resulted in the longevity of the
business operating in a competitive landscape.
Michelle May Nasaruddin
Assignment 2
Culture and its Impact on an Organization
Samson, Donnet & Daft (2018) described ethics as the code of moral standards that shapes
good or bad decision-making and conduct, while corporate social responsibility is very much
related to managerial practices within organizations that contributes positively to both
welfare of the society and the organization. There is no doubt that management play an
essential role in shaping organizational behavior, which is largely supported by the practice of
ethical leadership styles â?? leaders who are trustworthy and honest, perceived as principled
and fair decision-makers who value its employees, and who instill ethical values in both their
personal and professional lives (Brown & Trevino 2006). Von Bunditâ??s rigid corporate culture
has been considered a source of various unethical leadership styles to social responsibility
issues, largely due to personal moral/ethical philosophies concerning the significance of both
positional power and status by Von Bunditâ??s leaders and in line with cultural-religious values
in Thai societies. Examples of ethical violations in Von Bunditâ??s case include improper handling
of export documentation and poor human resource management in terms of employer
Moreover, Schwarz (2016) argued that teams or divisional units within an organization have
their own subcultures, which require effective skills to work across cultures within an
organization. Subculture is defined as departmental designations, which holds a set of shared
values, and norms that differs from an organizationâ??s distinctive core culture and are mostly
apparent in large organizations as a reflection of common issues and situations experienced
by a certain work group (Khatib 1996). In Von Bundit, this particular group culture was most
prevalent in the International Sales and Marketing (Trading) department as it was the only
department in the Company that had expatriates working with Thai employees. Besides, its
own unique culture is able to influence decision-making and strategic intent of top
management, especially in the trading aspect. This is mainly because the International Sales
and Marketing department is responsible for day-to-day trading strategies and decisionmaking, which contributes significantly to overall profitability of the Company. Sales and
Marketing managers were also less paternalistic and rarely stressed the importance of
Michelle May Nasaruddin
Assignment 2
Culture and its Impact on an Organization
hierarchy due to its group cultural diversity when compared to the distinctive overall hierarchy
core culture of Von Bundit.
However, this particular subculture was viewed as a misfit between Von Bunditâ??s weak core
hierarchy corporate culture, which is largely in line with socio-cultural values in Thai societies.
With this regard, strong collectivist and â??face-savingâ?? behavioral characteristics among other
employees across all levels led to inter-division conflicts, which deteriorated organizational
effectiveness in the Natural Rubber (â??NRâ?) processing industry.
Michelle May Nasaruddin
Assignment 2
Culture and its Impact on an Organization
2. Hierarchy Corporate Culture Impacting Decision-making Processes and Performance
Regarding effective decision-making in an organization, top managers are ultimately
responsible for formulating and prominently communicating clear strategic goals and plans
through each management layer in an organization, which largely reflects an organizationâ??s
vision and mission statements. An effective and well-defined mission essentially guides
organizational values and serves as a purpose for employees with regard to day-to-day
operations and as a foundation for future decision-making. Samson, Donnet & Daft (2018)
have indicated that effective design of organizational goals across all levels (divisions, teams,
individuals) are interdependent, mutually supportive and cross-functional, whereby the
attainment of lower-level goals (tactical and operational) in turn facilitates with the
achievement of higher-level strategic goals. These initiatives are certainly the key to
enhancing organizational performance in terms of efficiency, foster effective decision-making,
and fulfilling an organizationâ??s mission in the longer-term.
Apart from aligning organizational goals with strategies, Coleman (2013) argued that
organizationâ??s vision and mission statements needs to be authentic and fundamentally backed
by good corporate culture. This is due to the fact that organizational culture is mainly driven
by core values and beliefs stemming from a particular society or cultural context, which can
shape organizational behavior and mindsets required to accomplish an organizationâ??s mission
and vision. Likewise, Komin (1990) also stressed that effective overall organizational
functioning is mainly attributable to ethnic practices stemming from a specific cultural context
of a particular society, while considering strengths and weaknesses of socio-cultural aspects
impacting organizational processes. Hence, it is vital that top managers strike a balance
between the strengths and weaknesses of their respective corporate cultures while leveraging
on organizational core competencies to achieve improved profitability and competitiveness
(Aktas, Cicek & Kiyak 2011).
Michelle May Nasaruddin
Assignment 2
Culture and its Impact on an Organization
Hofstedeâ??s cultural dimension framework revealed that the Thais are generally collectivist,
feminine, characterized by high power distance and uncertainty avoidance societal cultures
(Ralston et al. 2005; Pimpa 2012). These cultural characteristics are embedded in Von Bunditâ??s
organizational culture. Being the largest NR manufacturer and exporter in Thailand, Von
Bunditâ??s mission and philosophy are as follows:
Figure 2: Von Bunditâ??s Vision & Mission (Von Bundit n.d.)
Despite having prominently displayed its organizational mission and vision statements, the
Company failed to reinforce these values amongst employees, which hampered its
organizational performance due to poor employee motivation and commitment; even
negatively affecting both customersâ?? and suppliersâ?? perception about the Company. This was
also due to decision-making being highly centralized at top-levels, whereby lower-level
management and employees only received orders and are not actively involved in decisionmaking processes. Yukongdi (2001) further reiterated that the lack of participative
management style (decision-making processes) by Thai employees was largely in line with the
large power distance distribution in Thai societies. Besides, managers are hesitant to involve
lower-level employees in decision-making processes due to the fear of losing control and
vulnerability, which is common practice in Thai Organizations such as Von Bundit, which has
strict policies and controls in place. It is noteworthy that the lack of involvement can
deteriorate employeesâ?? motivational levels and consequently hurt organizational
performance (Spreitzer & Mishra 1999).
Michelle May Nasaruddin
Assignment 2
Culture and its Impact on an Organization
Von Bunditâ??s bureaucratic corporate culture mainly stresses strong maintenance of family
control and decision-making centralized at top levels, whereby managerial leadership styles
held mostly transactional characteristics, often stressing on leader-follower relationships
based on sequential exchanges in the form of rewards or punishments (Howell & Avolio 1993).
Transactional leadership styles can result in unethical influence on organizational decisionmaking, often adversely affecting organizational performance. Ralston et al. (2005) also
suggested that unethical decision-making and the use of coercive influence strategies in high
power distance cultures (such as Thailand) are more prevalent when compared to low power
distance cultures (such as United States). In contrast, Waldman et al. (2001) argued that
transactional leadership styles are somewhat fundamental for strategic leadership styles, as
top-level management strives to enhance organizational performance by reinforcing existing
corporate cultures within organizations.
Buckley et al. (2001) suggested that ethical corporate cultures is a source for sustained
competitive advantage and can boost appropriate decision-making and organizational
behaviors. In line with collectivist characteristics reflected in Thai societies and traditional
businesses, Von Bunditâ??s management has engaged in ineffective decision-making for Human
Resource (â??HRâ?) policies and practices, particularly in the area of expatriate employee
entitlements while prioritizing Thai employees instead. Kamoche (2000) also stated that
traditional Thai business models do not stress the importance of HR management practices.
A prominent example would be Von Bunditâ??s management intimidating/exploiting expatriate
employees with long working hours (even on weekend and Thai public holidays), based on the
assumption that expatriate employees are being sponsored a working visa by the Company.
Such working hours arrangement violates employee work entitlements and is against
international labor law standards. Additionally, the Company also has poor HR policies and
practices in place that restricts time available for expatriates to return home, which led to high
employee turnover rates as a result of dissatisfied employees.
Michelle May Nasaruddin
Assignment 2
Culture and its Impact on an Organization
In times of crisis, corporate ethical failures become more common, resulting in unethical
decision-making among managerial levels and influencing employeesâ?? behavior (Graham
2015). At Von Bundit, a case to demonstrate this unethical behavior was the improper
handling of export documentation – where lower-level employees succumbed to the
backdating of bills of lading (â??B/Lâ?) due to delayed presentation of export documentation and
Letter of Credit (â??L/Câ?) expiriesâ??. In such cases, shippers request for B/L to be backdated in
accordance with L/C deadlines, although the cargo was loaded and the vessel only departed
after its deadline. In fact, this sort of ineffective decision-making and ethical violation were
approved and condoned by top management and sometimes, consignees. That said, improper
handling of export documentation is a common practice in trading businesses like Von Bundit
(especially in Thailand). This was largely reiterated by Komin (1990), who argued that Thais
are generally not law-oriented, as often people with power and status do not uphold to
agreements, rules, and policies despite extensive personal relations.
Von Bunditâ??s weakening mission and vision focus on the back of its weak corporate culture
have not only led to unethical behavioural decision-making among employees, but also
created a negative workplace comprising dirty politics and complicated hierarchies. This
scenario has resulted in the Company facing poor employee retention, which in turn affected
Von Bunditâ??s organizational performance in terms of effectiveness and efficiency. On the
contrary, reinforcing ethical corporate cultures can instill trust internally and outside the
organization, which can promote appropriate risk-taking, innovation, and superior
organizational performance in terms of profitability (Koonmee et al. 2010). Nonetheless, the
Company has embarked on other corporate social responsibility (â??CSRâ?) initiatives, which are
aligned with the Companyâ??s CSR policies (See Appendix B).
Michelle May Nasaruddin
Assignment 2
Culture and its Impact on an Organization
3. Hierarchy Corporate Culture and Strategic Management
From a strategic management perspective, effective decision-making and managerial actions
are crucial for the planning and formulation of strategies in light of pursuing its organizational
goals. As discussed by Chan, Shaffer & Snape (2004), an organization that continuously scans
its external environment in terms of opportunities and threats, while leveraging on its core
competencies, and allocating resources effectively enables achievement of sustained
competitive advantage in a volatile operating environment. In this regard, managerial choices
are fundamental towards the achievement of superior organizational performance, as their
decisions pave the way for achieving strategic objectives and future direction of an
Figure 3: Strategic Management & Planning Process Infographic (Jurevicius 2013)
Michelle May Nasaruddin
Assignment 2
Culture and its Impact on an Organization
To achieve sustainable competitive advantage, it is important to have a dynamic
organizational culture that can sustain new strategic initiatives. Although organizational
cultures can be powerful for initiating strategic management processes, it can sometimes be
disruptive and complex, especially when strategic shift arises in organizations. In fact,
respondents participating in the Economic Intelligence Unit (â??EIUâ?) Survey initiated by
Brightline have indicated that corporate culture was a major barrier towards new strategic
implementation ( 2017). The infographic (Figure 4) below depicts the
importance of organizational culture towards supporting rapid strategy implementation
amidst a volatile operating environment.
Figure 4: EIU Survey Report â?? Culture and Rapid Strategy Implementation
According to Johnson (1992), the Paradigm is an ideational culture held by members of an
organization with operations carried out in an unconscious and unappreciated manner, mainly
based on their views of the organization and its operating environment (See Figure 5). With
such mindsets, managers tend not to consider external factors or changes within the
organization that can affect strategies and organizational performance in the long run. An
Michelle May Nasaruddin
Assignment 2
Culture and its Impact on an Organization
example would be organizations that were succeeded earlier, but now facing maturing
markets and competitor substitution, which was largely evident in Von Bunditâ??s overall
deteriorating competitiveness in the global NR market. This was mainly due to managers
handling organizational situations in line with the Companyâ??s bureaucratic values, ritualism,
and political norms, which can be detrimental towards managing strategic change.
Figure 5: The Paradigm â?? Ideational Culture (Johnson 1992)
Additionally, top management decided to outsource its logistics operations to a third party
logistics (â??3PLâ?) provider, particularly with the handling of export documentation. Despi …
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