Value Proposition in Functional Structure
Question:
Discuss About The Moral Degradation Business Ethics Corporate?
Organizational value proposition refers to the values of the organization that are communicated or delivered to its internal and the external stakeholders. The organization applies value proposition that can be applied to its entire organization, or it can also be applied to any particular services or products. Value Proposition Canvas is one of the popular business models that are used by many organizations that mainly focus on customer’s requirements. To create an effective value proposition, organization need to identify the types of benefits, that customer expects, and accordingly the amount customers willing to pay (Aremu and Bamiduro 2012). The main goal of the value proposition in an organization is to convince buyers that the organization will provide better benefits and values than other organization. The chosen organization for this essay is Australia’s one of the largest waste Management Company, “Waste Gobbler.” The organization aims at providing better waste management and end-to-end management solutions. The chosen organization for this essay will help to understand how it promotes its value and services to its internal and the external stakeholders. The essay will elucidate on the significant aspects that include understanding of the current organizational design, and various ways to promotes services to the internal and the external stakeholders with the help of organizational and the management theories.
Value proposition related to organizational structure is essential for any organization as it offers different types of benefits and values to its internal and the external stakeholders. Being one of the leading waste management companies in Australia, Waste Gobbler follows a functional structure of organization. In functional organization structure, employees are classified as per their job roles. Value chain proposition is implemented by organization, so that it could stand ahead from all its competitors. Waste Gobbler planned to align its value chain proposition in its functional organization structure by creating marketing strategies, human resource planning and more. However, it should be noted that in Waste Gobbler, every department has their own departmental head that is responsible for the functions of their departments. Accordingly, skilled employees in Gobbler are grouped under one functional head. Among all the functional departments in the organization, the management acts as a process of communication (Cardwell, Williams and Pyle 2017). The functional structure also helps in sharing of ideas and knowledge within the respective department. Waste Gobbler follows this functional structure as it provides various benefits and advantages to earn higher revenues and profit for the organization. (Dosi and Marengo 2015). However it should be noted while applying value proposition chain for better benefits of the employees and customers, different management levels of the functional organization structure of Gobbler plays a major role. Hence, different departmental levels of this structure are mentioned below:
Board of Directors: In Waste Gobbler, as the Board of Directors are answerable to the major stakeholders, therefore the directors should keep the communication transparent in order to maintain a healthy relation. Moreover, the Board of Directors are also answerable to the shareholders.
Levels of Functional Structure in Waste Gobbler
Shareholders: In functional structure, shareholders are not directly mixed up with the organization, but play a major role in selecting the board of directors. Shareholders boost the organization’s confidence by operating in the company’s shares.
CEO: In Waste Gobbler, CEO represents the top head of the organization, and is responsible for taking major strategic decisions. Major decisions regarding implementing of new policies and value proposition strategies are taken by the CEO.
Supervisors: Supervisors or the managers comprise of the first line managers in Gobbler, and their main role is to guide the employees for maintaining proper work flow. In relation to value proposition, supervisors benefit the employees through motivation and appreciation to increase their performance level.
Human Resource Management: HR Manager in the organization identifies processes for attaining major goals through effectiveness and value chain proposition. The major role of HR is to identify the key players in the business through pain and gain. Pain will identify what annoys the employees and the clients, and according with effective measures it can be removed. Whereas gain deals with the positive outcomes, that are received by the customers and clients.
CSR Management: It should be noted that to become the leading waste management company in Australia, Waste Gobbler has analysed the benefits of Corporate Social Responsibility that will help the company to earn high profits (Jiang and Wong 2016). As part of the CSR activity, Gobbler introduced educational programs in school, elucidates the importance of sorting of waste products to make a sustainable environment. Therefore, Gobbler has introduced a separate CSR team that communicate directly with the directors and the CEO, for initiating CSR activities. This approach helps them to keep the employees motivated, as they get chance to participate in those initiatives.
In relation to the functional structure of Gobbler Waste Management, the internal stakeholders of the organization consist of the employees and the inside stakeholders. (Henisz 2017).
Employees: Employees are considered as the important stakeholders of any organization, therefore it is the responsibility of the organization to offer better services to its employees. Accordingly, Waste Gobbler aims to become the leading waste management company in Australia; therefore, the organization should emphasis more effort on the employees through various training programs. To keep the employees motivated, Gobbler can also introduce motivational rewards policy through monetary and non-monetary schemes. Monetary schemes include incentives based on the performance of the employees, higher pay for higher work and more, whereas the non-financial schemes motivate the employees through appreciation. As Gobbler follows functional structure, where employees are headed to separate departments as per their skills and knowledge, therefore employees should be motivated to perform effectively in the organization (McDonald 2016). It should also be noted that as the company deals with managing waste materials through recycling and reuse, the safety of the employees is a major factor that the company should look after. To make the employees feel safe and secure, Gobbler should provide a better work environment to its internal stakeholders.
Financial Management: Employee value proposition through financial services promotes employees with different monetary schemes to keep them happy and motivated. With strong financial implications employees will stay happy, and thus organization can spend less money and time on finding new employee (Gittens and Pilgrim 2013). Moreover, marketing practices through EVP can be proved beneficial as employees will agree to join at low salary if the EVP remains attractive.
Internal Stakeholders
External stakeholders are the people who are not directly associated with the employees but are indirectly associated with it. Waste Gobbler Company mainly deals with recycling and reusing of waste materials, therefore its external stakeholders are the customers, suppliers and the Government.
Customers: Customers tend to be the vital stakeholders for any organization, as the profit and growth of the company depend largely on the number of targeted and potential customers that an organization posses. The main aim of the organization is to provide better customer satisfaction by promoting better quality product and services to the customers. From time to time to assist customers in an effective ways, Gobbler came up with innovative techniques such as converting household waste in to the nutrient soil (Charles 2012). As per the value proposition canvas, company puts his major focus on understanding the major requirements of the customers. Furthermore, pain and gain method through value proposition strategy, Gobbler tried to identify what annoys or makes the customer satisfied. Through pain, the organization tends to find what annoys the customers such as the pricing factors, product quality. On the other hand gain is the positive expression that customers receive after buying the products or services.
Suppliers: Suppliers are also important external stakeholders that help in providing raw materials and various other services to the organization. To maintain a healthy relationship with the suppliers, Gobbler waste management company should implement management strategies such as inviting suppliers to parties and its important meetings, providing them information regarding company’s details, new products or promotions (Servaas et al. 2015). Therefore, it is necessary for Gobbler to maintain the proper level of transparency with the suppliers by paying on time, being loyal to the suppliers and by maintaining a strong relationship.
Governments: Governments plays a vital role in managing the business environments by introducing new policies and regulations. As Gobbler acquires a market leadership place in the Australian market and is one of the leading waste management companies, it has tied up with many Government entities such as the Australian Council of Recycling (ACOR), The Waste Management Association of Australia (WMAA) and the Australian Packaging Covenant (APC). As customers in the recent days are more environmentally conscious, therefore Government plays a vital role in promoting the waste management business (Tantalo and Priem 2016). On the other hand, to comply with the governmental entities, Gobbler should follow the terms and regulations that have been implemented by each of the Government entities.
To promote better services and products to its internal and the external stakeholders, it is important for Gobbler to understand the Economic value proposition (EVP) and the customer’s value proposition (CVP). With the help of economic value proposition, the organization can offer various benefits to its current and existing employees, in return for positive results. (Stadtler 2015). On the other hand, Customer value proposition deals with the strategies, to make the products appealing to the customers. However, it should be noted that implementing System Theory in the organization, the Managers and the head of every department can help in providing better facilities to the employees and thus it will help to increase employee retention. With the help of system theory, departments of Gobbler could implement employee- relation strategies for better understanding of the employees (Ture and Qahri-Saremi 2016). To promote employee value perception, system theory plays a major role as it helps in the interdependency of the employees, where employees in the organization can rely on each other for better performance. Synergy is also a part of the system theory through which the organization can promote better working conditions for its employees. Furthermore, the better working environment will encourage and motivate employees to work more for the organization (Reddy and Abidin 2015).
Employees
As per the Service-Profit chain theory, every organization tends to increase the satisfaction level of the customers, in order to higher their profit levels. For instance, consumers who are satisfied by utilising the products and services of Gobbler can recommend others to avail those services, hence increase the consumer level. Therefore the organization emphasis more on the customer satisfaction level by introducing a campaign for creating awareness regarding utilising of old products into valuable one, by providing the free education program to students on the importance of waste management and more (Lin 2015). From time to time the organization also emphasizes on offering better quality products to all its customers.
Different organizations follow different types of margin profit through principles of cash flow, and accordingly organization will aim to maximize their expenses by implementing attractive value proposition strategy to increase employee retention and to target customers (Bovee and Thill 2015). However, in order to check the cash flow, Gobbler has implemented Expense Reduction Analyst (ERA), to recover the extra flow of cash, without altering the quality and the services. This will help the organization to put extra money in the business and thus will increase their growth.
From the above essay, it could be deduced that Waste Gobbler being one of the leading waste management company in Australia mainly thrives on providing sustainable environment to all its employees and customers. As internal and the external stakeholders are the major part of the organization, therefore Waste Gobbler implemented various reward policies to motivate or encourage the employees. As per the organizational value proposition, Waste Gobbler tends to provide better services to its customers and employees in order to increase the overall growth of the company. However, it should be noted that in order to provide better waste management solutions, it has introduced new innovative technology to convert household waste into nutrient soil. Furthermore, as the organization follows functional structure, it becomes easy for the company to divide employees as per their skills and knowledge that helps the organization to earn higher revenues and profit. Accordingly, with the help of certain theories such as the system theory, confirmation model and the supply- chain profit, Waste Gobbler tends to implement its value proposition strategies for its internal and external stakeholders. Hence, Waste Gobbler is putting more emphasis on its employees and customers to become the leading waste management company in Australia.
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