Analysis of Magdi’s Proposed Idea Using the Organizational Alignment Model

INTB 6216

Week 3 Assignment 2

By Olufemi Fasanya

Analysis of Magdi’s proposed idea using the Organizational Alignment Model

Environment: The social, cultural assumptions, political, economic institutions and the technology that affects them in a particular society are factors that comprises of the environment that a firm functions in. Of all those cultural assumptions especially about “how things are done” or the “right way to manage” tend to pose the biggest challenges when it comes to organizational alignment. The Malaysian factories are performing better that the others in Asia and Africa. The factors have grown and now employ 4000 people most of which work at the six multi product factories based in Malaysia. The factories are running smoothly achieving between 75 – 90% of their target KPI

Structure: This describes how the organization is organized.  This includes roles, responsibilities and accountability relationships. Nestlé Asean implemented an industrial structure, strategically shifting production among plants so that ingredients and products were each produced in larger batches in fewer plants. As a result, Nestlé Malaysia had shut down some operations in two factories and increased volumes in other operations.

Systems: This is the business and technical infrastructure that employees use on a day to day basis to accomplish their aims and goals. Nestle Malaysia has a sound product development and branding policies, and strong IT support.

Strategy: This is the organization’s alignment of resources and capabilities to “win” in its market. It encompasses such things as the firm’s chosen niche in its industry and the control of critical factors for competing successfully. The current strategy involved the shifting of production among plants so that ingredients and products were each produced in larger batches in fewer plants. As a result, Nestlé Malaysia had shut down some operations in two factories and increased volumes in other operations

People: This is the human resources, the employee base. It can be inferred that overall the employees have a favorable view of their company. Due to recent strategy changes the company had shut down some operations in two factories and increased volumes in other operations and as a result of the impending displacement the company offered its employees transfers to other operations to minimize permanent layoffs. This and other actions helped the company develop a reputation for being a “trusted employer” not just by the employees themselves, but by other workers in the country who aspired to work there as well.

Tasks: Because of the complex nature of organizations there are many tasks that needs to be completed. Tasks are subject to the unique work systems of the specific firm’s business and industry. To ensure the proper execution of this tasks it is imperative that people with the right skills and knowledge base are hired. At Nestle Malaysia, many supervisors and managers maintained a belief that the abilities and predispositions of the frontline employees limited the performance potential of the factories while many frontline employees are of the view that their supervisors and managers do not understand the difficulties they often encountered on the front line.