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BUSM2301 - Organizational AnalysisSemester 1- Title of Assignment Assignment 2: Group reportName and Student IDNguyen Tran Tu Thao – s Ha Vu My - s Pham Hoa Dung - s Hoang Le Thanh Mai - s Dinh Le Kim Phung - s Location Saigon South Class Group SG-G0 5 Lecturer Qui Nguyen Ngoc Word Count 3516 wordsF...

Description

BUSM2301 - Organizational Analysis

Semester

1-2021

Title of Assignment

Assignment 2: Group report Nguyen Tran Tu Thao – s3818027 Ha Vu My - s3878180

Name and Student ID Pham Hoa Dung - s3894292 Hoang Le Thanh Mai - s3760614 Dinh Le Kim Phung - s3760614 Location

Saigon South

Class Group

SG-G05

Lecturer

Qui Nguyen Ngoc

Word Count

3516 words

FOR SUBMISSION WITH THE GROUP ASSESSMENT

EQUITY OF CONTRIBUTION It is agreed by all group members that individual group members contributed equally to the work required for the group assignment.

Date of agreement: Name of group members

Signature

Nguyen Tran Tu Thao

Ha Vu My

0

Pham Hoa Dung

Hoang Le Thanh Mai

Dinh Le Kim Phung

Table of Contents I.

INTRODUCTION...............................................................................................1

II. PROBLEM STATEMENT..................................................................................1 III. LITERATURE REVIEW....................................................................................3 1.

ORGANIZATIONAL STRUCTURE.........................................................................3

2.

PROCESS MODEL.................................................................................................5

IV. SOLUTIONS DEVELOPMET AND PROPOSAL...........................................6 1.

LINK BACK TO THE PROBLEM STATEMENT........................................................6

2.

PROPOSED SOLUTIONS........................................................................................8

3.

DESCRIPTION OF PROCESS MODEL.....................................................................8

V. DISCUSSION.......................................................................................................9 & LIMITATIONS.............................................................................9

1.

STRENGTHS

2.

HOW DO THESE PARADIGMS HELP?.................................................................10

3.

HOW DO THEY HINDER?...................................................................................10

4.

THE CONSEQUENCES OF DRAWING ON ONLY TWO PERSPECTIVES.................10

VI. CONCLUSION..................................................................................................11 VII.

REFLECTION...............................................................................................11

VIII. REFERENCES...............................................................................................12

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I.

INTRODUCTION

Astral Consultancy may be a company with numerous a long time of ability in abusing, refining, and undertaking of characteristic minerals. In order for a corporation to change, its executives and managers must learn to deal with new situations and problems, become more professional and knowledgeable, resulting in increased corporate governance and pressure on the firm to behave in socially conscious ways. The aim of this study is to assist the company in achieving the objectives and accomplishment. Specifically, we highlight the firm's obstacles in the problem statements section by asserting the impact of Quality of Corporate Social Responsibility (CSR), CSR practice, and CSR responsibility at the board level of the mining business production. Moreover, we provide a literature review to obtain a better understanding of the major issues and to demonstrate the potential to overcome obstacles by approach design. By improvement of thoughts and proposition, we point by point how to bargain with issues by means of charts and models. In expansion to address the Swim Land show, this study contrasts social relativism (SR) and functionalism (FU) standards in organizational structure to perform the results. Besides, we endeavor to characterize the perspectives of concerns that the company may have and how it makes both the firm and the community energize understanding sharing and provides long-term application awareness-sharing frameworks in natural supportability. Finally, we address the report's restrictions and propose recommendations for subsequent reports, as well as advise the organization how to manage challenges with Corporate Social Responsibility.

II.

PROBLEM STATEMENT

According to Gomory and Baumol (2009), the fast-growing-pace organization has to face problems that relate both ineffectively operational processes to global transparency and inappropriate with the higher multinational stakeholders’demand. In the Astral Consulting case, the company has been suffering the stakeholders’demand about the quality of their corporate social responsibility (CSR) practice. The survey proposed by de Villiers & van Staden (2010) shows that the stakeholder tends to understand the vital role of publishing the environmental information and reports of the company. It means they had more awareness of climate change and anticipated the company follows the framework and policies about the sustainability of the environment. However, Loechel, Hodgkinson & Moffat (2013) recognize

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that the predominance mining company has not attended to the climate change risky, leading to the amount of complaint on environmental protection. Additionally, there is some evidence of failure to achieve the intentions stated that CSR initiatives developed by mining companies to resolve their negative impacts are ineffective (Frynas 2005). Therefore, Astral Consulting’s stakeholders put pressure on the company to deal with these issues. Frankly, the case reveals that familiar shortcomings belong to the environment department, in which activities performed by mining companies negatively affect the affected local, regional, and national societies (Yakoleva 2005). There are 2 fundamental functions related to the factors, which are air quality and land and rehabilitation management. Firstly, mining activities are responsible for air pollution, according to Asif and Chen (2016). Air quality is highly vulnerable as air cannot be reprocessed for reuse (Jain et al. 2012). Thus emission sources need to be controlled and reduced to leverage negative impacts on the environment and affected communities. However, in conjunction with the case, due to the lack of credibility in information disclosure and strict supervision, stakeholders criticize that the mining company overlooked CSR practices. Secondly, despite the urgent demand that the company implements sustainable mining, there are significant challenges that hinder land rehabilitation success. Systematic monitoring is an essential factor that “offer valuable feedback to improve restoration methods and define restoration goals” (Barr et al. 2017). In reality, lower-quality production monitoring (McDonald et al. 2016) and inadequate systematic knowledge (Gastauer et al. 2018) have resulted in the domination of trial-anderror restoration practice.

Figure 1: Information Systems Development Paradigms

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To demonstrate the issues, the combination of organization entities is organized to orienting in dimension "stability, integration, consensus, and functional coordination" that in this scenario - quality management system internationally. In the objectivism aspect, a company has a lower quality management pattern to determine the organization's strengths and weaknesses to correspond with the multinational's market, which impacts the relationship between stakeholders and the company. Being a cross-border organization, Astral Consulting should build multiple solid stakeholder demands, both the comprehensive regulation about the environment in the mining industry and ethical framework disclosure on human rights and environment, from ethical customers, environmentalists and investors (Richards 1997). For instance, the management team can integrate safety and eco-friendly mining solutions and avoid natural disasters as deep-horizontal. It is similar to the Functionalism paradigm, which is "seeks to provide essentially rational explanations of social affairs" (Hirschheim & Klein 1989). When it comes to Social relativism is defined as "understand social phenomena and is primarily involved in explaining the social world from the viewpoint of the organizational agents who directly take part in the social process of reality construction" (Hirschheim & Klein 1989). From the objectivism perspective, the quality management did not succeed in delivering and creating the customer demands to adjust and optimize the company profit equilibrium eliminating the stakeholder over-expectations. Garces, Rivera & Murillo (2012) pointed out that stakeholder expectation related to organization decisions, social transform, CSR engagement, community involvement, influences the environment or environmental disclosure. Hence, the mining company should justify a different methodology that enhances interaction and communicates the relationship among multiple stakeholders and organizations to create social-value demand and corporate capital, which is the foundation of company equilibrium.

III.

LITERATURE REVIEW 1. Organizational structure

According to Kotarbiński (1983) & Przybyla et al. (1995), organizational structure is one of the management tools for corporations and is defined as the unification of organizational cells and business processes associated with technological, hierarchical, organizational, and other linkages. For mining corporations, its organizational structure is the interrelation of dynamic and static structure, which dynamic structure comprises technological processes that carries 5

out the corporation’s operation functions in mineral mining and processing, while static structure includes in technological processes infrastructure and organizational units that serves the corporation’s managerial and administrative functions (Jan Kudelko, 2016). Next, Tilt & Symes (1999) stated that there were some social changes affecting the mining industries, which were the limit of non-renewables, the extraction and utilization of mining companies affecting the ecosystem, the economic importance, and the social impacts on local communities (stakeholder). Consequently, these social changes led to an on-going conflict between mining corporations and communities, specifically widespread and numerous criticism (Heledd Jenkins, 2004). In response to this issue, companies took action, paying serious attention to corporate environmental and social responsibility (Cowell et al., 1999). Based on Wheeler et al., 2002, corporate social responsibility is a conceptual framework with the purpose of exploring corporation’s relationship, strategies and attitudes toward stakeholders, helping companies balance the various community demands, the imperative to preserve the environment with profit-making demand (Guerra, 2002). Furthermore, CSR policy in the mining industry: Gutiérrez & Jones (2005) revealed that CSR policy of mining, nowadays, companies mainly comprised everything from social investment, philanthropic donation to the direct integration of local people, especially the vulnerable into company’s business practice. Moreover, CSR policy was applied as a tool for corporations to maximize the benefits of the investment, and to decrease the negative impacts of corporations on social and environmental issues, according to Utting, 2005. After that, CSR policy will apply into CSR reporting and practice, and managed by the board supervisors. However, because of the acquisitions of several companies of the Astral Consulting company recently, which results in these companies have not had proper integration into the organization. Therefore, it leads to a weak, inconsistent management, specifically the Management of Air Quality and Management of Land & Rehabilitation department. Additionally, mining corporation has weak, limited collaborative will to move CSR reporting & practice forward (Heledd Jenkins & Natalia Yakovleva, 2004). As a result, with the ineffective of CSR board supervision level, reporting and practice, the project performance of CSR eventually becomes weak and inefficient, thus, our client is facing an issue, which their operation impacts negatively on the environmental health, leading to the pressure and criticism from stakeholders, specifically the local community. 2. Process Model

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According to Rosa et al. (2011), the process model represents a series of activities in a graphic format, which contributes to business-oriented purposes for understanding, analysis, decision-making. Firstly, with the issue our client is facing, we have given some suggestions, along with the application (the perception) of functionalism and social relativism. Firstly, according to Hirschheim & Klein (1989), Functionalism is about giving explanations of the status quo, social order/integration, concurrence, fulfillment, and rational decision to interpret how individual units of a social system do to form an integrated whole. Furthermore, they stated that the objective of functionalism is to rebuild the entire corporation into a homogeneous system with the standardization in each department and office globally. For instance, written by Tata J & Prasad S (2015), “National cultural value, sustainability beliefs, and organizational initiatives'' is a good example of Functionalism, which showed how sociocultural value influence organizational sustainability through sustainability belief and perception, and give organizations the guide of implementing sustainability initiatives globally. Therefore, before developing the solution, our client needs to research deeply from the employees’ cultural value to the agencies acquired and located in different countries. Secondly, Social Relativism includes seeking interpretation of the social world but from the perspectives of individual and subjectivity (Hirschheim & Klein, 1989). As a result, our client should observe and examine further and deeper the subjective perspectives of managers and employees of departments relating to the issue, specifically Management of Air Quality and Management of Land & Rehabilitation. By doing that, the problem can provide information more clearly in various forms, helping the company understand clearly the issue for better decision-making (Hassard

2016; Gioia 1990). Thus, with Functionalism and Social

Relativism, our client needs to focus only one belief (objective), but also understand clearly the socio-cultural value of agencies located in different countries, also, put employees’ point of view in consideration but selectively for better solution development.

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Figure 2: Conceptual Framework of Organizational structure IV.

SOLUTIONS DEVELOPMET AND PROPOSAL 1. Link back to the problem statement

Figure 3: Organizational Structure of Astral Consulting

The functional structure is provided to better demonstrate how the mining company practices CSR. First of all, the environment department, which has 2 key factors, involves land and rehabilitation and air quality management. As mentioned before, waste from mining negatively affects the surrounding air commission and soil commission, which directly leads to water pollution (Australian Bureau of Statistics 2003). Therefore, this department may organize and supervise the situations related to these factors to assure the quality of the environment in the mining sites. Next, the company attempts to raise awareness on protecting the culture and heritage to avoid impacts on national and community culture, which means 8

directly taking responsibility for the department of community and external stakeholder relations. Also, they need to prepare carefully to deal with various situations that may occur in the mining sites as explosions in the mining shaft (Badzenhorst & Van Schalkwyk 1992). It means the department needs strategies and seeks remedies to prevent these incidents. The department of business management and compliance takes care of required legal documentation for mining production, it also holds the responsibility of board management supervision and reporting, which plays a key role in the organization structure. It can be derived from the problem statement, the organizational structure and the conceptual framework that our client’s functioning process model is facing a number of issues in many aspects. The board management department is lacking transparency in the quality of CSR reporting, which is rooted in the ignorance of stakeholders' requirements and cultural knowledge about the affected local community. The IT services department does not provide sufficient IT infrastructure to support the whole production process. Besides, the Chief Executive Officer (CEO), without the support of a consultation department, is the sole advisor of all of the three key departments. This means there is one-way communication from the strategy and planning department to the others.

Figure 4: Original process model

2. Proposed solutions

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Businesses, especially global businesses, have to process an enormous amount of new data, information and knowledge at a dramatic pace (Maier & Ronald 2007). Knowledge Management System (KMS) therefore is advised to be implemented as a solution to the organizational restructuring. This system is considered to provide substantial support for companies, considering the economy has shifted from “product-based strategy” to “knowledge-focused business”, and knowledge is a major source of competitive advantage (Lee & Hong 2005). Organizations cannot survive without the help of advanced information technology (IT) to collect, store and process gathered data. By implementing KMS, the mining company can enhance its quality of CSR reporting, improve communication between departments and provide better knowledge sharing tools for the whole organization, thus the problem of one communication and the centralized hierarchy is leveraged. 3. Description of process model According to the process model, a number of new sub-functions of the IT services have been added. The initial step of the mining process model is that the Strategy and Planning department develops a business strategy along with road maps, with the help of IT consulting services. Next, the Exploration department conducts investigations on different potential locations that could be deposited. When a suitable site is found, the team proceeds by applying for mining permits. The Legal department receives the application and creates a contract with the regional office. If parties agree with the legal statements, production activity is initiated. If the contract is not in effect, the process goes back to the exploration of a different mine site. While the mining process is being operated, KMS is applied, the administrator works with the manager to continuously update the progress and statistical data to the data storage web page developed by the IT Services department. From that, the data is better presented, calculated and organized in order to help the Mine Operations team to provide information more clearly to enhance transparency. Then the Business Management department makes sure the process is complying with the production standard as well as the quality of environmental protection. There is also the addition of a web-based discussion group so that communication between the Mine Operation the Business Management and the Community and External Stakeholder Relations departments is established. Thanks to that, stakeholders can supervise the mining process and thus acquire assurance that the company is balancing CSR and profit maximi...