Organizational Behaviour

Topics: Organizational studies and human resource management, Employment, Organizational studies Pages: 13 (3267 words) Published: November 17, 2014

Consulting Report - Shentong Express
GMGT 2070 - Introduction to Organizational Behavior
Professor Raymond Lee
May 27th, 2014

Student name: Chunting Zhao
Student #: 7713972

Introductory Comments
Thanks to consistent growth of economy and multidomestic exchange, the logistics industry has been witnessing buoyant growth and will continue this growth momentum in years to come (Rajaram, 2011). The demand for logistics services in China has been largely fueled by consistent growth of economy, and key industries such as automotive, engineering, pharmaceuticals and food processing. Similarly, individuals’ demand for logistics service has been also dramatically increased because of the convenience provided by modern technology such as online shopping. As a result, express companies were founded and promptly expanded to fulfill the customers’ demands for a rapid, efficient and secure shipping service. In China, there are currently more than 1,000 registered express companies operating and offering logistics services to either individuals or organizations. However, it is true that various problems are existing within those companies, which lead to significantly negative impacts on organizational effectiveness and relationship with clients. This report will focus on one representative express company in China, which is called Shentong Express and investigate the company’s problems and underlying causes behind them. This report will also recommend solutions that address the symptoms and causes to improve the organization’s performance and productivity. Overview of Shentong Express

Shentong Express is a large-scale company that was founded in 1993, and the company has been committed to construction and development of national brand, constantly improving its comprehensive operational system consists of terminal network, transport network and information network. Shentong Express has a quite clear mission statement, which is that the company will keep striving to 1) make customers benefit from contemporary express service, 2) make employees realize personal value and 3) make enterprise undertake social responsibility (Shentong Express, 2013). Also, the company has a well-developed corporate culture that celebrates achievement, creativity, and morality. In terms of organizational goals, the chief executive, Dejun Chen pointed out that Shentong Express aimed to be the benchmark in the express industry and to be a national brand recognized by the community. Overall, Shentong Express developed a functional organizational structure with vertical flow. Moreover, the company adopts franchising as business model and there are more than 4,000 franchisees that cover most of areas in China. To well fit the organizational structure, the board of directors established explicit roles for every department. Except for those managers in charge of finance, human resource and supply chain, the company has a high demand for employees to fulfill routine operations such as warehouse management and more importantly, delivery service. In other words, they are fundamentally indispensable parts of the organization as a whole. Therefore, in the report, most of description and analysis in terms of organization’s problems are drawn from front-line operating process. Problems

A geographical division of Shentong Express has recently started its business in Shanghai, China and a series of issues regarding daily operation and employees’ working performance in the division’s subordinate franchisees were identified and reported. Firstly, the quality of delivered items cannot be guaranteed. For instance, many of customers experienced similar situations in which they received damaged or broken parcels, which is apparently not the sellers’ mistake. However, the customer service usually shirks responsibility and refuses to compensate for the damage. In that case, the problem cannot be properly resolved...
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