Organizational Culture and Berkshire Hathaway - 5269 Words

BANKING ACADEMY OF VIETNAM BTEC HND IN BUSINESS (ACCOUNTING) ASSIGNMENT COVER SHEET NAME OF STUDENT Hoang Nang Le Minh REGISTRATION NO. F06 - 090 UNIT TITLE Unit 3: Organisations and Behaviour ASSIGNMENT TITLE Berkshire Hathaway ASSIGNMENT NO 1 of 2 NAME OF ASSESSOR Ms Le Thu Hanh SUBMISSION DEADLINE I, ___________Minh_______________ hereby confirm that this assignment is my own work and not copied or plagiarized from any source. I have referenced the sources from which information is obtained by me for this assignment. _______________Minh_________________ _________________________ Signature†¦show more content†¦His purchase of the National Indemnity Company marked the company’s first venture into the insurance market, which proved to be very successful. The last Berkshire Hathaway plant was closed in 1985. Buffett continued to direct Berkshire Hathaway into other investments, which led them to owning brands such as Dairy Queen, Clayton Homes and MidAmerican Energy Holdings. Currently, Berkshire Hathaway stands as the most respected company (Forbes 2007) and currently has the world’s richest man as its CEO and largest shareholder. Berkshire Hathaway is also one of the few companies that have reached the $100,000 share price. Note as of 2012: Berkshire Hathaway (Berkshire or the group) is diversified holding company engaged primarily in the provision of insurance and reinsurance products and services. Additionally, the group is engaged in non-insurance businesses including utilities and energy, finance, manufacturing, service and retailing. Berkshire has overall 76 operating businesses. The group primarily operates in the US. It is headquartered in Omaha, Nebraska and employs 270,858 people. The group recorded revenues of $143,688 million in the financial year ended December 2011 (FY2011), an increase of 5.5% over FY2010. The operating profit of the group was $15,314 million in FY2011, a decrease of 19.6% over FY2010. The net profit wasShow MoreRelatedThe Background And Organizational Framework Of Berkshire Hathaway1850 Words   |  8 Pages ORGANIZATIONAL DIVERSITY OR LACK THEREOF Berhshire-Hathaway is owned by one of the richest men in America. Berkshire-Hathaway is a holding company that owns many different companies. According to Reuter (2015), Berkshire Hathaway is made up of companies that if they were independent, nine of them would be among the Fortune 500. So, it is hard to believe that this company is the worst company on diversity efforts as of 2013! This paper will describe and examine the following: the background andRead MoreSwot Analysis Of Warren Buffetts Company1932 Words   |  8 PagesThe company started in 1888 by Horatio Hathaway, he traded items from China and having profits in the pacific. 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Essay1333 Words   |  6 PagesChanging the previously established culture of men working and women maintaining the family and home is a slow process, but it has not been completely in vain. Today, women make up 104 members of the United States Congress and 26 CEOs of Fortune 500 companies. However, the 104 members make up only 19% of Congress and the 26 CEOs represent approximately 5% of the Fortune 500 companies. Evidence such as this is indicative that women in the workplace continue to struggle with the metaphorical glassRead MoreBusiness Ethics, Corporate Social Responsibility, Integrity, And Integrity1318 Words   |  6 Pagesoutlined so as to create a guideline for action within. These goals allow employees to act within a larger organizational structure in order to fully contribute not only on a departmental level, but also on the larger organizational level. 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Southwest Airlines Organizational Commitment and Communication Free Essays

Southwest Airlines’ strong organizational culture is reflected in its mission as shown in its website: â€Å"dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. † Southwest is a company that not only excels in customer service and profitability but also in employee development. Its organizational commitment is not reduce to the organization; it is actually expand it to an ongoing relationship with the employees where they have the opportunity to express their ideas, suggestions and concerns. We will write a custom essay sample on Southwest Airlines: Organizational Commitment and Communication or any similar topic only for you Order Now This organizational culture has made Southwest Airlines one of the companies with the fewest customer complaints, and an employee turnover ratio of less than 10 percent (D’Aurizio, 2008). The same strong culture Southwest Airlines has built over the time is supported by every employee who has in mind that they have to deliver a warm and friendly assistance to their customers. Southwest management’s strategy could not be any better; the management treats employees as family, expecting from the employees to treat customers like family as well. The company is characterized for having a decentralized structure. In between the CEO and the frontline supervisors, there are only a few levels. Their philosophy on structure is very relaxed. Any employee who feels the need is welcomed to contact someone above their supervisor. The president has three executive vice presidents who each have five or six vice presidents who report to them. There is one vice president of Internal Audits and Special Projects who reports directly to the president. (Rivera, Cornwell, Abenes, 2003) The Southwest culture creates and integrates a dedicated and motivated workforce that succeeds together. The owners’ leadership style is led by example; that is how Kelleher treats his employees, like family, he is open to communicate and he also knows the vital role in forming this unique culture. Before people become employed at Southwest, the managers in charge of the hiring interview make sure they embed the organizational culture in the candidates. When they become part of the Southwest family, then they are treated like part of it. Any event in the lives of the employees are acknowledged and celebrated by everyone, everyone cherish for the success and happiness of the members of the family. The company establishes special programs for families of employees. The company listens to comments and feedback, not only from employees, but also employees’ families, customers, and vendors (D’Aurizio, 2008). This company has become profitable by putting into practice the philosophy of an open communication. Southwest does not have the culture only in paper, they actually live it. The managers start giving the example to the employees, and they follow their leaders. Southwest strategically generates satisfaction to their employees, this needs satisfactions will later reflect and convert into satisfaction to the customer and shareholder value via organizational capabilities I believe the success of Southwest Airlines comes from the combination of different sources of power. Part of it comes from the expert power, and also from the reward power. Southwest management had has the ability and knowledge to create such an amazing organizational culture, this ability is the expertise power. Now the way they have applied the idea into real actions, the fact that they led by example and treat the employees as family is the reward power. The management has gained the respect, trust and loyalty from their employees. This is because of what they have done not only with words but more important with actions. Concerning the communication aspect, this plays an important role in the organizational culture of Southwest Airlines and the way the employees perceive that culture. The website Reference for Business (2009) explain how the contend of a message send will be perceive in different way by every individual. Each person gives their own personal meaning to the message received. This also happens due to the experience, the receiver makes sense out of a message based on experience. No one can perceive experiences in the same exact way as another does. Each individual has a unique set of experiences, a unique perceptual â€Å"filter,† that helps them to understand or interpret messages received. These filters are built over time by each individual person according to their childhood background, and the life experiences. Finally, we can say that the combination of the message received and he experience of the receiver is what makes an interpretation of the message. This is the reason why Southwest management emphasizes in a clear and concrete communication. They know how some messages can be easily misunderstood or twisted on the way. And this is the reason why they keep an open communication to the employees. Allowing questions when the message was not clear, as well as allowing suggestions when the employees do not agree. The challenge for every organization is how to create a great channel of communication that will enable employees to comprehend messages in the way they were originally intended to be transmitted. According to Beebe and Masterson, â€Å"conflict in a group occurs when members disagree over two or more options that a group can take in trying to make a decision, resolve a problem, or achieve a goal† (Chapter 7, p. 69). Other types of conflicts can occur as a result of differences in goal. Now, the good news about conflict is that it can be use in a positive way contrarily to the popular belief that states that a conflict should always be avoided. Southwest Airlines, for example, could use conflict to challenge their employees to research, or come up with ideas of how to resolve some specific issues, problems. Additional researches will help to determine a better way to fix problem that are costing a lot of money to the company. The commitment of Southwest airlines is to a culture that motivates, empowers and promotes employees to make the company one of the best companies to work for, as well as one of the most profitable one. One of the most important tools this company uses is the open communication and the in-house advancement that encourages a positive perception of company culture, allowing employees the opportunity to express ideas, suggestions, concerns that Make them believe they are part of the Southwest â€Å"family†. Southwest best strategy is the commitment not only to the organization itself but also to the employees. Everyone there is part of a big family who works hard to keep harmony n within the family. They use great leadership styles where the managers led by example and they are always open to any communication. This company should be use as example as what it is to build a great culture and a great organizational commitment. How to cite Southwest Airlines: Organizational Commitment and Communication, Essay examples

An Idea free essay sample

I remember career day back in my old elementary school. The teacher told us to pick our future career and to come in dressed up. There were firefighters, astronauts, and doctors as far as the eye could see. My career choice back then was to be a veterinarian, like so many of many fellow classmates. A veterinarian was a popular, almost fashionable choice for a future career. Yet as I got older, the answer to the career choice got harder and harder. It was no longer about which career was the best sounding answer to the teacher. It was about which career would be best for me. My answer changed throughout middle school and through high school as my peers and myself grew. Some of my friends have found their purpose or â€Å"dream jobs† as like the rest of the graduating class. I, however, feel like an exception to this. Even now when asked about my future, I have no reply. We will write a custom essay sample on An Idea or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Right now I am at the point when I’m supposed to have a decisive goal and objective for the rest of my life. Although countless amounts of students have made this choice before me, it is not an easy one. It is difficult to imagine myself in the future because I cannot predict what the future will hold. I am only 17 years old. I have not experienced the world yet. The seven year old me that had chosen so quickly, did not know about the world and its ways. I have lived in my â€Å"safety bubble† for 17 years, my friends and family to guide me through tough choices and issues. But this choice is not something I can ask them to do. The only person I could trust this decision to is myself. I have to find my own path and decide my own future. Regardless of the fact that I am not definite about my career, I have an idea. An idea that will develop and change over time but the basis will remain the same. I want to help people and the earth simultaneously. Helping human society advance but without destroying the environment that we live in. Yet even as I am certain that is the path I will follow, I do not know what exact that will lead to career is best for me. I want to research and study the environment but not find myself in a lab all day. I want to help advise people about decisions regarding the environment but not be stuck in an office all the time. I want to have choices in my occupation, moving from place to place and meeting new people. This is my idea, something that will both help the human and natural world. My idea is not fully developed but studying the environment and human impact is the path I want to follow. I may not end up with the popular career, but I know that it will fit me perfectly.