Major Individual Assessment 1

Name: MURAT KERTIS

ID number: 20761764
Class teacher: GRANT PYLE
Class day: MONDAY
Class Time: 10 am
Case Study 1
Question 1: (max 500 words)
Shutterstock is empowering its employees by investing in a culture of experimentation. What are the benefits
and limitations of allowing lower level employees to have a say in the strategic direction of the business?

Every business aims to perform well and achieve targeted goals, and within this, business strategy comes first. This strategy
can be implemented in all departments, from the lowest to the highest, with coordinated and positive feedback and
applications. In particular, plans and practices related to innovation should be reviewed and should be known and implemented
not only at the highest level but also at the lower level. It discusses how employees at all levels will play an important role in
business efficiency beyond other facilities or organizational expectations, how to do and simplify them, how they will directly
affect their ability to develop work capacity, and what the results will be.

The innovation process of many organizations and businesses and investing in a culture of experimentation, notably
Shutterstock, and the autonomy the organization provides to its employees, including managers, including lower and
middle-level employees, have seriously impacted the company level to try to make it a cultural structure. Research and
previous experience summarized that supporting potential customers, such as job appreciation, could help cultivate

employee success [ CITATION Sak06 \l 3081 ]. The employee engagement concept was first coined by [ CITATION Kah90 \l
3081 ]

and referred to as the cognitive, psychological and sentimental linkage of employees to their own work and workplace. By
incorporating employees actively in strategic direction, Shutterstock managers confirm the worth of their employees.
Customers also get utility when Shutterstock company look for employee input. Front-line employees that interact
immediately with clients frequently have more grip into customer worries and feedback. Employees who have experienced
the power and desire that provide them to display a positive attitude and results in their work. Employee participation aids
them to develop the experimentation and knowledge of full immersion in their work, it is very important to be within the
business. Satisfied lower-level employees try to stay in their posts longer, so, there is less turnover. The fewer new staff is
required to train, which helps to save training time and costs, as well as the confusion caused by continuous quitting. Although
it has many benefits in this way, it also has negative consequences and limitations. Promoting lower-level employee
involvement is one of the risks of blurring the separating line between management level and employee level.

When we consider the issue of empowering employees to invest in a culture of experimentation with the advantages and
disadvantages of cause and effect relationships, it allows lower-level employees to express their opinions and make decisions
pushing boundaries, and trying to take on responsibilities reserved for management levels is a huge risk for the company.
There are pitfalls that give all employees the power to participate and have a say in the strategic direction of the business.
Being involved in the strategic direction can distort employees and lead to the proposition of many unproven opinions. With so
many inputs, managers may find it difficult to find an efficient plan to meet goals. This may result in not selecting a plan or
changing objectives and processes frequently.
Question 2: (max 300 words)
What risks to the organisation do you identify in the initiative Shutterstock executives have taken and what
actions can they take to minimise such risks? (maximum 2 risks)

The important thing is to apply some tests to determine what kind of risks the organization faces and to determine what results
it will bring. One of the two risks that can be found here is the A/B test applied. Like many companies today, Shutterstock uses
A/B testing to evaluate product performance and learn user attitude, lead product development and innovation, and spread this
process to teams and expect results with better engagement as their ideas.

Although the A / B testing yields conclusions that can be viewed with certainty, it poses some difficulties for the company: (1)
the impact of experiments is not scaled up, (2) business Key Performance Indicator (KPI) and team-level estimates and
measures are not coherent, and (3) existent answers are feasible across spaces. it is uncertain whether it is. However, what
most former tests did not achieve is that, while the influence of the experiments is weak, it is a waste of time and money to do
this test with mistakes just to motivate employees, and even the most advanced companies are struggling with how to benefit

[ CITATION Ols17 \l 3081 ]. For, minimise to this risk instead of testing each new idea or program, collecting and

evaluating many ideas at once, selecting the best one by the senior executive and testing them after they are selected, prevents
both time and cash loss.

Concept of collaborative experimentation has advantages, as well as risks for the company. Trying to cooperate continuously
in every subject, can lead to trying to be a leader and stand out among employees. This case can then leak other levels of the
work atmosphere, evoking further tension among the rest of the employees, including people who not involved in the
collaborative effort. Personal disagreements and wrong approaches that will arise during the application of the experimental
culture in every field and everyone will cause frustration and waste of time among employees and between employees and
managers.
Case Study 2
Question 1:
Based on the information available in the case, identify and describe the organisational structure that would
describe Coles structure after the rapid growth following WWII (but before 1993). In your explanation
provide a reasoning as to why that structure was selected.

The best Organisation Structure that would identify and describe Coles company is the Matrix Organisation structure. This
structure is quite helpful in taking innovative verdicts and accepting evolve within the company. This structure was created in
the 1960s as the Matrix Organization, as this intersection of organizational lines can be easily represented by a matrix grid

when shown on paper[ CITATION Kni77 \l 3081 ].

The matrix structure is broadly seen to be convenient for rapid creation and innovation projects, procedures and activities,
as its purposes to seize both the proficiency and expertise of a functional organization, as well as the customer-centred and
flexibility of a multidivisional organization. It means strategically removing narrow-mindedness, growing liaison and placing
resolution-making in the social fabric of the business, while coordinating a corporation's processes across functions, divisions,
and expansions. Compared to other organizational structural forms, a matrix organization is a mixed form in which the
traditional hierarchy is mixed with some kind of authority, influence and connection. In perfect matrix structures, the two
structures share facilities equally without regional effort and placed in a matrix, this overlay creates two-directional chains,
one
along functional lines and the other along project lines. When considering the complexity of project management in the
actual business world, the matrix organization is frequently benefited when powerful technical assistance is required in many

spaces [CITATION ElN97 \l 3081 ]. The researches and reports published by a private sector firm in the

engineering sector in the matrix structure revealed that transmission and flexibility improved while maintaining organizational
accountability, increased productivity in multi-project design works, and also enterprising constancy for the company,
advanced marketing applications continued steadily and decreased invoice time (Cardinal, 1981).

The reason for choosing this organizational structure is that the purpose of the Coles company is to focus on customer-
oriented importance and to turn to fast self-service and logistics and retailing applications to become Australia's best food
retailer, so they used the Matrix management system. However, the effects of World War II changed Coles and its customers
in many ways. Many married women became part of the workforce, which concluded that they had to spend less time at
home preparing meals for their families. As a result, people began to buy more convenience foods and delicatessen
products, which led to an increase in these lines at Coles stores, which triggered the diversity, acceleration and expansion of
the product range more effective and wider than the classic grocery sales position.
Question 2:
Based on the information available in the case, identify and describe the organisational structure that would
describe Coles structure following the adoption of modern technologies (such as Internet) and diversified
products (such as service stations). In your explanation provide a reasoning as to why that structure selected.

The best organizational structure to define Coles company is the Matrix Organization structure again because this structure
is very beneficial for the company to follow and adapt to technological developments, as well as to make innovative decisions,
such as diversifying products and to accept change. The 90s were the year of the acceleration emerging from the fast
enhancement in technology and the coming of the World Wide Web system. For Coles, the '90s meant accepting, adopting,
and applying new technology that updated inventory monitoring.

Widely used by large companies around the world, Matrix has also helped to achieve overall success in companies serving at
the national level. With the globalization of this internet network and the increasing number of users, more people have
been reached at the same time and in a short time, and the promotion of new products has offered the opportunity to go
directly to their target audience and evaluate the product. Thus, it has succeeded in expanding its own network with new
programs and promotions by placing the fast shopping slogan like flybuys in memory. For most companies, Internet
technologies simply offer tools, occasionally quite strong tools, which can improve their achievement through them
conventional resources of competitive superiority be that low cost, perfect customer service and high supply chain
management.

[CITATION Por85 \l 3081 ] distinguishes between core activities and supporting activities. Key activities are directly related to

the production or delivery of products and services. These are covered in five parts: Inbound Logistics, operations, outbound
logistics, marketing method, sales operations and transportation network. Each of these essential activities is addicted to
reinforcement activities that help develop their work and performance. There are four major fields of support activities:
purchasing, technology growth, human resource management, and substructure. Product diversification activities such as
service station or other diversification methods are very consistent and part of the Matrix structure and is the expansion into
new product markets for a company. It is one of the applications that is constantly applied for both national and

international companies and recommended by experts in the business world [ CITATION Ber75 \l 3081 ]. For several decades,
product
diversification has been an extremely popular and effective strategy among great and thriving companies in the United

States, Europe, and other parts of the industrialized world [ CITATION Dya76 \l 3081 ].
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