Strategic Management and Developing Corporate Culture

 

For every individual, it is necessary to possess some personal and professional skills to
enhance their knowledge and to perform well in the organization and in their daily life.
To identify or justify yourself, and to know where you stand, answer all the questions
below related to your professional development in the organization where you are
currently working or familiar with it.
Choose the organization where you are currently working or familiar with. It is
recommended that students choose their own place of work. It is vital that students
identify and understand the needs of stakeholders in their chosen organization.

 

Introduction:-

 

 

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The company that has been selected for the discussion is DHL Logistics Company. It is an American company that also operates in the UAE. The company deals with transport services worldwide and it has employed thousands of people from the UAE alone. 
1.1 The two organizational models suitable for the DHL’s strategic goals are Hofstede’s Organizational Culture Model and Deal and Kennedy’s Model. Hofstede’s Culture Model has considered various aspects such as power distance which is high in the Middle Eastern countries, Individualism vs. Collectivism which refers to the consideration of “I” or “We”. If western civilization is considered, “I” is more evident than the presence of “We” in Middle Eastern countries. Uncertainty Avoidance is another dimension where the society or the organization understands the uncertainty and tries to avoid them. The second model, Deal and Kennedy’s has majorly identified four cultures, namely, work hard/play hard, tough guy (macho), process, and bet-your-company. Work Hard/Play Hard refers to the culture where people focus on maintaining high energy level and the top sellers are seen with respect. Tough Guy refers to the culture where people prefer taking risks but immediate feedback is mandatory. Process culture is where low risks are taken and mistakes are not taken lightly. 
1.2 There are certain differences between the culture of DHL and the culture of the UAE as a country. If the Hofstede Culture Model is taken into consideration, then it can be stated that being an American company, it has a low power distance than the country. The PDI value of the company is around 40 however PDI of the country is 80. This means that the hierarchical structure works far better in UAE than in DHL’s home country USA. Moreover, as per individualism is concerned, the company’s culture is oriented towards more individualism where employees are less connected with each on a personal level. However, the country shows more collectivism orientation that is the people of the country are personally connected to a deeper level. 
1.3 The DHL has a different corporate culture profile. The individual employees within the company spend extra effort in helping the organization achieve its objectives. The existing corporate culture of the company is very open and the hierarchy is not strict. The employees at the lower level rarely face any issue while working with the top management on most of the occasions. 
1.4 The UAE has witnessed a variety of cultures due to the increased migration of the workers. This has led the DHL to work with multi-cultural groups. The company has reduced the cultural barriers by various initiatives. For instance, it respects the religion of the people belonging to the local religious community and provides proper leaves, and the company considers all the needs of the employees as and when required. Moreover, the open culture allows people to actively interact openly with all the levels. The company ensures that employees are healthy and ready to work at all times and, therefore, periodic health assessments are done. These have helped DHL to become one of the most sought after organizations in the country. 
2.1 As stated earlier, that DHL has open organizational culture. Therefore, the organizational climate is free from any specific aristocratic control and the opinions of the employees are accepted at all levels. The DHL culture has the presence of subtle formal structure and there is more presence of informal methods. The employees at the bottom have options to switch between available shifts based on their needs and requirements. The atmosphere of DHL is conducive to respectable career growth. The transportation business sometimes puts unnecessary stress on the staff community who are employed at the bottom. The company accepts suggestions in the field of supply chain management from the employees which can help in reducing the travel time and improve profitability. Individuals with great ideas receive appreciation and monetary rewards. 
2.2 Corporate climate of DHL has been well documented in the company manifesto; however, there are various that have not been implemented properly on the ground which needs improvement. The open culture pattern is less utilized for the benefit of the organization. Moreover, the employees hesitate indirectly with the top management despite of the open culture. The discrimination on religion can be witnessed among the employee groups that hamper the goal achievement of the organization to some extent. DHL can introduce awards for the employees who actively take part in interacting with senior, junior and same level employees. Moreover, DHL can open a counseling department to handle discrimination issues by identifying the key problem creators and providing them proper counseling. 
2.3 The work environment of DHL is cluttered to some extent on the ground as usual miscommunication arises in good delivery. Moreover, employees are less motivated, entrepreneurial spirit is scarce, change is rarely embraced, and employees are provided less freedom in acting beyond what is in process. Some of these factors need improvement in DHL’s corporate climate. The company can act towards improving communication and removing the clutter from daily schedules. This will allow employees to feel motivated as they will have clear goals in their minds. The company can allow each department within the organization to keep whatever extra profit that department earns due to the innovative idea of that department. This will likely to foster an entrepreneurial spirit among the individuals. Moreover, the company needs to improve the perception of the employees towards change. As the company is operating for long therefore people are accustomed to one method of doing the work. Therefore, deciding a particular quarter towards understanding the procedures that need change and installing them every year will bring less resistance for change and improved work culture.
3.1 The internal stakeholders of the company are the employees who are working for the company. These employees refer to the individuals working as drivers, fleet coordinators, department managers, accountants, marketing managers, and others. The entire management team and the board of directors of DHL also come under the internal stakeholders. The external stakeholders of the company are the clients who provide goods for transportation (customers), and the suppliers who provide vehicles and other related components to conduct the activity.
3.2 The identification of the associated internal and external stakeholders has been done by DHL and through its periodic communication, the company has ensured that all the stakeholders understand the goals of the company and what they can expect from the organization as an individual or a group. The clients who provide goods for transportation are the major stakeholders of DHL and it has established an online communication system that helps the client get constant information. The current communication strategies of the DHL are somewhat effective and are allowing the company to conduct business effectively. However, there are various areas that can be improved.
3.3 There are two major stakeholders of the company, employees and clients. The employees inducted within DHL hail from various cultures and, therefore, it is imperative for the company to improve communication plan so that the new employees understand what the goals are and objectives that individuals need to achieve. Weekly meetings, conference calls, and newsletters can be the best-suggested method. For the clients, DHL needs to install online conference calls and newsletters and personal emails for constant and effective communication requirements. Though these are under company policies however not followed diligently which needs management attention.

 


References

 


Cameron, K. S., & Quinn, R. E. (2005). Diagnosing and changing organizational culture: Based on the competing values framework. John Wiley & Sons.
Carbone, V., & Stone, M. A. (2005). Growth and relational strategies used by the European logistics service providers: Rationale and outcomes. Transportation Research Part E: Logistics and Transportation Review, 41(6), 495-510.
Denison, D. R. (1990). Corporate culture and organizational effectiveness. John Wiley & Sons.
Denison, D. R., & Spreitzer, G. M. (1991). Organizational culture and organizational development: A competing values approach. Research in organizational change and development, 5(1), 1-21.
McSweeney, B. (2002). Hofstede’s model of national cultural differences and their consequences: A triumph of faith-a failure of analysis. Human Relations, 55(1), 89-118.
Patterson, M., Warr, P., & West, M. (2004). Organizational climate and company productivity: The role of employee effect and employee level. Journal of Occupational and Organizational Psychology, 77(2), 193-216.
Ulrich, K. (2011). DHL Open Innovation: Program for the Development, Deployment, and Promotion of Innovative Solutions in Logistics. In Strategies and Communications for Innovations (pp. 305-317). Springer Berlin Heidelberg.
 

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