26 Jun Questions: 1. Discuss the c
Questions:
1. Discuss the changes made in the area of communication within COS – what benefits have these brought and how have they done so? What can be gained from conducting an organizational climate or employee opinion survey?
2. What impacts could Doms childhood experiences and background have had on his business? Speculate on the impact of two such different national cultures coming together. What aspects of culture should Dom be aware of and respond to as his company continues to grow?
Read case study attached below ( only need question 1 and 2 )
Case study: Complete Office Supplies (COS)
The Industry
The stationery industry is competitive, with thin margins. The small number of major suppliers and large number of small suppliers have rationalised in the past few years. Complete Office Supplies (COS) is one of just four major players in the contract channel. As aggregators they buy stationery products from many local and overseas sources and sell to other businesses. ‘We store the supplies for the shortest amount of time and despatch them to our customers as quickly as possible. In the door then out the door.
COS in the Industry
COSs customer base is corporate and government. Much of their business is under contract, as the sole or preferred stationery supplier for a business for an 18- or 24-month period. However, most customers are casual and can be snatched away at any time by a competitor. To gain and retain customers, COS must offer flexible solutions to reduce customers costs. Analysing customers end-to-end stationery needs from needing stationery to paying the bill is core to keeping corporate clients. In the quest to tighten supply chains, corporate clients are increasingly demanding the fewer but more meaningful single sourcing relationships. Services never previously thought to be the domain of stationery suppliers, such as forms and print management, toner refill management, office furniture and design consultation, and management of promotional products, are provided. COS boasts ‘smart, flexible solutions for ordering systems, billing methods, reporting structures, logistics and product choice to ensure [clients] receive maximum cost reduction and efficiency. COS has been recognised for its IT innovations and industry-leading website uptake by being named as a finalist in the 2003 Western Sydney Industry Award for Excellence and Innovation.
The Founding of COS
Complete Office Supplies was founded in 1976 by Dominique Lyone, the son of an Egyptian immigrant to Australia. Doms father had run a typewriter repair business in Egypt, and fled that country after the 1967 Six Day War threatened the lives of his family. Dom started learning English on arrival in Australia at age 13. He finished school at age 15 to become a telegram delivery boy, then followed his fathers footsteps into the typewriter repair business as a mechanic. Attracted to the sales environment, he was soon selling consumables in that business. After a few years he started out on his own, selling a wider range than just the typewriter consumables to which he had previously been restricted.
Growth
The business grew so well in the first ten years until expansion into retail took the business to the brink of liquidation in the mid 1980s. Dom recalls, ‘The business was overstretched, I took my eye off the ball, and we had few reporting systems. Doing a deal with creditors to repay outstanding debts, it took four years to trade through. Many employees from that time have stayed with the company.
In the early 1990s, COS began a national expansion program, and now the company has a presence in every Australian state. It distributes more than 8500 SKUs (individual stock items) from six distribution centres and has more than 120 employees. The business is structured along functional lines with managers of Sales and Marketing, Finance and Administration, Procurement, Logistics and IT. In 2002 COS joined the global strategic alliances of American Office Products Distribution Inc., with multiple dealers linked for global customers. The AOPD groups combined turnover is in excess of $3 billion a year. Dom and the management team plan to continue the current rate of growth – to double the business every three years.
Leadership
While Dom retained full ownership and control of the business, many members of his immediate and extended family were employed in the business. In the past, these intimate loyal contacts in the organisation have supported Doms leadership and strengthened his ability to stay in touch with employees. However, he realised he was not in touch with employees when the business started national expansion. ‘Suddenly I wasnt there. I wasnt seeing everything that was happening every minute of the day. I had to rely on others to run my business in my absence. It was no longer a small business operation.
Since that expansion, Dom has realised the value of training and developing managers and employees. COS supports employees through performance review outcomes and recognition awards. Induction programmes, self-study support, national conferences and on- or off-site training are some of the professional development opportunities now available.
Employee Characteristics and Culture
The culture at COS could be described as conservative and autocratic. A classic example of Doms past style is when he initiated a major IT change. Employees found out about it when they powered up their computers one morning. Dom was used to seeing what needed to be
done, and going ahead and doing it. He hadnt needed change management principles or communications programmes when the company was small. But now his impact is wider. Employees must still wait and depend on him, as Doms approval is required for most decisions. This causes a potential motivation problem among senior management – others dont see any possibility of being able to lead the organization. The answer to the question ‘Can someone get from the bottom to the top of the organization? is simply ‘Not while Doms in charge. While his sales approach is professional and innovative, Doms management approach is conservative, with low risk taking. For example, he wants to ensure the last recruits are paying for themselves before recruiting more. He has lost his family home before, and hes not going to lose it again.
Cultural rites and rituals within COS include personal as well as business events. Respecting high family values, all employees are given the day off for their birthday, family social BBQs are held on site, ‘show where you work family days are held each year, and special days such as Melbourne Cup and Halloween are celebrated throughout the organisation. Employees partners are invited to the staff Christmas parties, where a thoughtful exchange of gifts reflects the family culture.
The workforce is stable, with key people working in the same role for many years. There is low staff turnover; however, few return from maternity leave. Multiculturalism is taken for granted at COS. There are very low levels of inter group conflict, reflecting COSs history of diversity.
An Opportunity for Employee Opinion Surveying
When planning for growth in 2002, Dom wanted to ensure his employees were prepared. He had always assumed he knew how they felt, and had never really asked them what they thought of their jobs, their teams and the organization. He knew large organizations regularly surveyed their employees, but he hadnt thought to do it himself before.
He contracted Macquarie Universitys Voice Project (from their Psychology Department) to conduct an organizational climate survey – often known as an employee opinion survey. This was his opportunity to professionally evaluate how the organization was performing, and to compare their results with those of other organizations. The survey consisted of 115 questions in the broad categories of Leadership, Direction, Relationships, Human Resource Management, Non-Financial Outcomes, and Financial Outcomes. Three open-ended questions were asked of employees to canvas opinions in their own words. The survey was designed to capture a comprehensive snapshot of employee opinions. The survey was sent to each employee and the responses were analyzed when more than 70 per cent were completed and returned, anonymously, to the consultants.
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