Organisations and behaviour 1

Unit Outcomesthe criteria Feedback Assessor’s decision Internal Verification First attempt work 1.1 Explain how the relationship between an organisation’s structure and culture can impa

Assignment Received By: Date:

BANKING ACADEMY OF VIETNAM BTEC HND IN BUSINESS (ACCOUNTING)

ASSIGNMENT COVER SHEET

NAME OF STUDENT

REGISTRATION NO

UNIT TITLE Unit 3: Organisations and Behaviour

ASSIGNMENT TITLE Berkshire Hathaway

_

Signature Date

-FOR OFFICIAL USE

Unit Outcomes

the criteria Feedback Assessor’s decision Internal Verification

First attempt

work

1.1

Explain how the relationship between an organisation’s structure and culture can impact on the performance of the business

1.2

Discuss the factors which influence individual behaviour at work

in different organisations

2.1

Explain how organisational theory underpins the practice of management

2.2

Evaluate the different approaches to management used by different organisations

2.3

Comments by Assessor

Assignment

( ) Well-structured; Reference is done properly / should be done (if any)

Overall, you’ve

Areas for improvement:

ASSESSOR SIGNATURE DATE / /

NAME:

(Oral feedback was also provided)

STUDENT SIGNATURE DATE / /

NAME :

FOR INTERNAL USE ONLY

VERIFIED  YES  NO

DATE :

VERIFIED BY :

NAME :

Company: Berkshire Hathaway

Founders: Oliver Chace

Industry: Insurance; Financial Services

History:

Berkshire Hathaway is a company that was initially set up as a textile manufacturer in

1839 by Oliver Chace During that time, the company was based in Valley Falls,Rhode Island and operated under the name Valley Falls Company It eventuallymerged with and used the name of another textile manufacturer, Berkshire FineSpinning Associates (originally Berkshire Cotton Manufacturing Company, which wasbased in Massachusetts)

The Hathaway name became part of the company in 1955, when a merger betweenthe Hathaway Manufacturing Company and Berkshire was successfully agreed on.The Hathaway Manufacturing Company was then a textile business that successfullyrecovered from the textile decline and the Great Depression The merger resulted inthe company relocating its headquarters to New Bedford, Massachusetts andinstalling 15 factories that employed over 12,000 labourers However, as the demand

for textile continued to dwindle, seven of these locations eventually closed down withhuge layoffs but not before it surpassed $120 million in revenue.

Warren Buffett, the man who would become Berkshire Hathaway’s CEO, came intothe picture in 1962, when he started purchasing Berkshire Hathaway shares He waseventually able to buy enough shares to allow him to change the management andeventually gain control of the company

During Warren Buffett’s time, he still kept the company’s textile milling business buteventually, the company started investing in the insurance industry among otherthings His purchase of the National Indemnity Company marked the company’s firstventure into the insurance market, which proved to be very successful The lastBerkshire Hathaway plant was closed in 1985 Buffett continued to direct BerkshireHathaway into other investments, which led them to owning brands such as DairyQueen, 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 was $10,254 million in FY2011, a decrease

of 20.9% over FY2010.

The organisational chart is as follows:

Company: Viet Tien Garment Joint Stock Corporation Vtec (Vietnam)

Founders: Sam Bao Tai

Industry: Garment

History:

Originally, the company was a private garment factory for ‘Thai Binduong EngineeringCompany@ - trading as Pacific Enterprise There are 8 shareholder capitalcontributions by Mr Bao Tai Ginseng - a Chinese businessman who acts as director.The factory area of 1,513 meter square with 65 sewing machines and about 100workers

After the complete liberation of the south, the state takeover, nationalised and thenassigned the Ministry of Light Industry (now the Ministry of Industry) to manage In

1977, the Ministry of Industry recognized as state-owned enterprises and renamedthe Viet Tien Garment Factory

In 1979, the factory burn and was a total loss Getting help from other units,enthusiasm attached to workers and with the leadership of Viet Tien, the businesswas put back into operation and increasingly asserted its position on the market

Thanks to great efforts, the 103/CNN/TCLD discretion was given by the Ministry ofIndustry Enterprise The Ministry of Industry Enterprise accepted and upgraded Tiengarment company statues In 1991, the Ministry of foreign economic relations ofimport and export license directly with foreign name is VIET TIEN GARMENTIMPORT-EXPORT COMPANY, abbreviated as VTEC (by license number on 10257005/02/1991) In 1993, the company establishment licensing number 214/CNN-TCLDwas given

Before 1995, the direct management the company is producing the nation’sgarments In May 1977, it was rename Viet Tien Garment Enterprise With thedevelopment of the garment sector, the enterprise was change into a company andlater a corporation The name Viet Tien (Vietnam advancing forward) was kept underthe wishes of the staff

At the request of the Vietnam Textile and Garment Group in Report No 01 TCLD in 2007 and the scheme of establishment of the company's proposed MayVietnam Tien.Theo Organization Department - Personnel decisions to: EstablishVietnam Tien Garment Corporation on the basis of reorganisation Vietnam TienGarment Company under the Vietnam Textile and Garment Group

28/TDDM-Vietnam Tien Garment Corporation operating as a parent company - subsidiarylocated in the structure of the Vietnam Textile and Garment Group The Vietnamese

name given as Corporations Vietnam Tien Garment Joint Stock and the InternationalTrade name: Viettien Garment Corporation (VTEC).

At present VTEC has six enterprise and 14 affiliates over 20,000 workers Itspecialises in the manufacturing of garments and the trading of maters andaccessories for the garment sector, equipment and components, and import-exportservices Its products are diverse and are sold at over 20 shops and 300 agentsthroughout the country

Note: As of 2012:

Viet Tien garment Joint Stock Company established since 1976, is presently a production and trade company belonging to VINATEX, specialising in garment manufacture, trade of equipment, materials & accessories for garment industry The company presently carries out business transactions with more than 60 customers in 20 countries over the world: Asia, Europe, USA, Australia and North America, etc.

Specialises in shirts, trousers, suit, blouses, jackets, denim suits, coats, sweaters, trading in industrial garment Trading in electric, audio, light equipment, Forwarding, Shipping agency.

With reference to the above case (you are strongly advice to research into the above

company), you are to research and correlate to Viet Tien Garment Prepare a brief

report, citing relevant research, which addresses the following tasks:

Task 1

• Compare and contrast the different organisational structures and culture

• Explain how the relationship between Berkshire Hathaway structure andculture can impact on the performance of the business 1.2

• Discuss the factors which influence individual behaviour at Berkshire

This part of your report should not exceed more than 1,000 words Diagrams, charts, tables and appendixes are not to be included in the word count.

Task 2

Using research and the facts presented in the case:

• Compare the effectiveness of different leadership styles with Berkshire

• Explain how organisational theory underpins the practice of management for

• Evaluate the different approaches to management used by two organizations

This part of your report should not exceed more than 1,500 words Diagrams, charts, tables and appendixes are not to be included in the word count.

Pass is achieved by meeting all the requirements defined in the assessment criteria (Refer page 2 of the assignment brief)

Merit Identify and apply strategies to find appropriate solutions (M1)

Characteristics / Possible Evidence – Use of comparative charts and sufficiently

detailed to show that an effective approach to study and research has been applied

to Berkshire Hathaway

Select and apply appropriate methods (M2)

Characteristics / Possible Evidence – relevant theories and techniques have been applied in

leadership style and approaches to management especially related to Berkshire Hathaway sources sources are justified

Distinction Use critical reflection to evaluate own work and justify valid conclusions (D1)

Characteristics / Possible Evidence – creation has been used to generate and justify

valid comments on approaches to different management and style of leadership of Berkshire Hathaway

Demonstrate convergent, lateral and creative thinking (D3)

Characteristics / Possible Evidence – report has been prepared with

care and clearly demonstrates the learners thinking, innovation andcreative thought used

1 The assignment should have a cover page that includes the assignment title,assignment number, course title, module title, Lecturer/tutor name andstudent’s name Attach all the pages of assignment brief/cover sheet with yourreport and leave them blank for official use

2 Ensure that authenticity declaration has been signed

3 This is an individual assignment

4 Content sheet with a list of all headings and page numbers

5 A fully typed up professionally presented report document Use 12 point Arial

or Times New Roman script

6 Your assignment should be word-processed and should not exceed from2,500 to 3,000 words in length

7 Use the Harvard referencing system

8 Exhibits/appendices are outside this limit

9 The assignment should be not contain a bibliography – but should contain alist of any references used in the assignment

NOTES TO STUDENTS FOR SUMMISSION

• Check carefully the submission date and the instructions given with theassignment Late assignments will not be accepted

• Ensure that you give yourself enough time to complete the assignment by thedue date

• Do not leave things such as printing to the last minute – excuses of this naturewill not be accepted for failure to hand-in the work on time

• You must take responsibility for managing your own time effectively

• If you are unable to hand in your assignment on time and have valid reasonssuch as illness, you may apply (in writing) for an extension

• Failure to achieve a PASS grade will results in a REFERRAL grade beinggiven

• Take great care that if you use other people’s work or ideas in yourassignment, you properly reference them in your text and any bibliography

• NOTE: If you are caught plagiarizing, the University policies and procedures will apply.

Prepared by:

Đào Thị Thu Hiền – Sunny Registration No: F06–042 Class: F06A

No of world: 3,000 Submission Date: 9th December

Table of contents

Introduction 2

TASK 1: Understand the relationship between organisational structure and culture 3

1.1 Compare and contrast different organisational structures and culture 3

1.1.1 Berkshire Hathaway 3

1.1.2 VietTien Garment Joint Stock Corporation Vtec ( Vietnam ) 4

1.2 Explain how the relationship between an organisation ‘s structure and culture can impact on the performance of the business 7

1.2.1 Relationships between structure and culture : 7

1.2.2 How that can impact business performance 7

1.3 Discuss the factors which influence individual behavio 11

1.3.1 Internal factor 11

1.3.2 External factor: 11

Task 2: Understand different approaches to management and leadership .13 2.1 Compare the effectiveness of different leadership styles in different organisation 13

2.1.1 Berkshire Hathaway 13

2.1.2 Viet Tien Garment: 14

2.2 Explain how organisational theory underpins the practice of management 14

2.3 Evaluate the different approaches to management used by different organisations 15

Conclusion 17

Berkshire Hathaway is diversified holding company engaged primarily in the provision of

insurance and reinsurance product and services Additionally, the group is engaged in insurance businesses including utilities and energy, finance, manufacturing, service and retailing Berkshire has overall 76 operating businesses

Viet Tien garment Joint Stock Company established since 1976, is presently a production and trade company belonging to VINATEX, specialising in garment manufacture, trade of equipment, materials & accessories for garment industry The company presently carries out business transations with more than 60 customers in 20 countries over the world

The ultimate purpose of the report is bring relationship between structure and culture of Berkshire Hathaway and Viet Tien Company, the difference approaches to managerment and leadership of them The scope of the report includes:

• The nature of and influences on both formal and informal organization

• Different organization structures and networks, organization charts

• Organization culture

• The features of power, role, task and person cultures

• The development of culture and how it can be managed in the interest of

organization performance

• Basic theories of personality, perception, attitude

• The different between manager and leader

2

TASK 1: Understand the relationship between organisational

structure and culture

1.1 Compare and contrast different organisational structures and culture

Berkshire Hathaway Viet Tien

Garment Organizational

structure

a) Span of control Flat structure

(Wide span of control)

Tall structure (Narrow span of control)

b) Departmentatio n

a) Berkshire has overall 76 operating businesses The group primarily operates in the

US It is headquartered in Omaha, Nebraska and employs 270,858 people Berkshire

Hathaway is a company that was initially set up as a textile manufacturer Warrent Buffet becomes Berkshire Hathaway ‘s CEO and keep eventually gain control of company Firstly,

he still kept the company ‘s textile milling business but then the company started investing in the insurance industry and provided seccessful Buffett directed Berkshire Hathaway into other investments

This is a flat organisation having few levels of hierarchy and a wider span of control

where managers will be responsible for many subordinates and many management functions will be delegated

3