Organizational Culture of Pandora Samples †MyAssignmenthelp.com

Question: Discuss about the Organizational Culture of Pandora. Answer: A recent media event hinted at Pandoras lay off 5 percent of its employees in order to save $45 million annually as reported on January 4, 2018, in Variety online portal. The massive elimination has no doubt set a particularly bad example to the other employees aspiring to start off their careers with Pandora (Spangler, 2018). Market analysts have pointed towards their poor management system which is propelling them to incorporate the step in order to save operational costs. One of the most revolutionized aspects would be that the company would now be concentrating more in technology and innovation. One of the essential concepts illustrated as a result of Pandoras decision is restructuring of employees in order to adjust to the first changing pattern of consumer demands. However, the restructuring of employees would help them to partner and promote their products in a more efficient manner to increase its global sale. According to researchers, employee restructuring can have an adver se impact on employer branding which conveys career expectations to the outer community in the light of work, employer relationships and the like. It is also a breach in the organizational commitment. The concept restructuring of employees is inter-related with the organizational theory which is concerned with the internal proceedings of an organization for instance whether it is acting in sync with its long-term organizational goals (Shah, Irani Sharif, 2017). Results have shown that restructuring is crucial to implement new programs and reshuffle priorities, modify growth strategy and grow revenue. A number of HRM issues come to the forefront at this stage in the organizational culture of Pandora which is the de-motivation of the remaining employees and a diminished sense of commitment towards the organization. However, the same can led to a number of unfavorable results like employee disagreement and intolerance to adapt to the new change. It can shrink the morale of the employees, the operation of which ensures for excellent employee performance eradicating hindrances like absenteeism from job and etc. the Resource Based View nonetheless emphasizes on the need for restructuring in order to provide the organization with a competitive advantage in the market (Hitt, Carnes Xu, 2016). The resources are after all allocated to a firm in order to add profit and make the performance more success driven. Organizational restructuring that has taken place inside the organizational structure of Pandora was implanted to improve the productivity and effectiveness. Organizational restructuring within Pandora gave birth to a swift organizational re-design and the prevention of loss of amenities. The strategy has a resounding global success especially in the U.S market, where it is reported that around 3 million jobs have been eliminated annually to gain competitive market. Likewise, senior officials at Pandora hope the restructuring will help them to invest more to facilitate growth and adapt strategic policies to act swifter in times of crisis. It is the responsibility of the HRM to ensure that the current action of downsizing the company is not affecting the brand image or the productivity rate of Pandora. It has a crucial impact on the internal branding and on the intricate relationship between individual career needs and organizational relationships. The concept of restructuring also has an impact on the relationship between the employer and the employee which misbalances the implied obligations on the part of both parties. However, the fact that Pandoras revenue growth has been a sprawling success, as Pandora has witnessed improvement in market share by 1.89 percent only hints at the organizations efficient HRM practices and strategies (Forbes Welcome, 2018): Effective two-way communication- a two way communication process fosters communication as it ensures a prompt response of employee feedback and complaints by the management authorities. The flow of information and adequate response between the seniors and subordinates gives room for clarification and respect from the end of both parties. Employee motivation- employee motivation is directly proportional in increasing productivity, after all they are the firm pillars on which the success of an organization depends (Omolo, 2015). According to Maslow theory of motivation, he has developed a hierarchy that influences an employees productivity, they are physiological, security, social needs, respect and trust and personal development (Anderson, 2014). Pandora has implemented these strategies to extract the best possible results as a consequence of restructuring of employees. The above stated practice of restructuring can indeed have a controversial outcome if the above theories are not properly implemented in the organizational framework. It can cause the company a loss of talent, loss in key information and knowledge due to downsizing and a possible breakdown of trust and confidence. Eliminating manpower should be a last resort of company in order to maintain its brand image and employee loyalty. References: Anderson, A. (2014). Maslow's Hierarchy of Needs. The Prairie Light Review, 36(2), 7. Forbes Welcome. (2018). Forbes.com. Retrieved 5 February 2018, from https://www.forbes.com/sites/greatspeculations/2014/07/22/pandora-earnings-preview-growing-market-share-and-improving-monetization-in-focus/#23eab2adada3 Hitt, M. A., Carnes, C. M., Xu, K. (2016). A current view of resource based theory in operations management: A response to Bromiley and Rau. Journal of Operations Management, 41(10), 107-109. Omolo, P. A. (2015). Effect of motivation on employee performance of commercial banks in Kenya: A case study of Kenya Commercial Bank in Migori County. International journal of human resource studies, 5(2), 87-103. Shah, N., Irani, Z., Sharif, A. M. (2017). Big data in an HR context: Exploring organizational change readiness, employee attitudes and behaviors. Journal of Business Research, 70, 366-378. Spangler, T. (2018). Pandora Laying Off 5% of Its Employees. Variety. Retrieved 5 February 2018, from https://variety.com/2018/digital/news/pandora-layoffs-5-percent-workforce-1202683446/