Cercetări calitative privind Comportamentul Organizațional al Angajaților în [628118]

UNIVERSITATEA TRANSILVANIA DIN BRAȘOV
FACULTATEA DE ȘTIINȚE ECONOMICE ȘI ADMINISTRAREA
AFACERILOR
Programul de studii Administrarea Afacerilor (In Limba Engleza)
Comportamentul Organizațional al Grupurilor
Cercetări calitative privind Comportamentul Organizațional al Angajaților în
Arvato Bertelsmann Brașov
Conducător științific, Absolvent: [anonimizat] 2019
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TRANSILVANIA UNIVERSITY, BRAȘOV
FACULTY OF ECONOMIC SCIENCES AND BUSINESS
ADMINISTRATION
Study program: Business Administration
Organizational Behavior of Groups
Qualitative Research about Organizational Behavior of Employees in Arvato
Bertelsmann Brasov
Coordinator, Graduate:
Lecturer Dr. Lupsa Tataru Dana Shaban Sariya
Brașov 2019
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Contents
Chapter 1 – Theoretical aspects………………………………………………………………………………….. 4
Chapter 2 – Company presentation ………………………………………………………………………… 7
-2.1 History……………………………………………………………………………………… …………… 7
-2.2 Facts………………………………………………………………………………………………………… 8
-2.3 Solution groups………………………………………………………………………………………… 9
-2.4 Strategic framework…………………………………………………………………………………… 12
-2.5 Annual report…………………………………………………………………………………………… 14
-2.6 Financial solutions…………………………………………………………………………………….. 15
-2.7 Innovation and Growth………………………………………………………………………………. 17
-2.8 Entrepreneurship and creativity…………………………………………………………………… 19
-2.9 Key Findings & Highlights…………………………………………………………………………. 20
-2.10 Healthcare……………………………………………………………………………………………… 21
-2.11 Bertelsmann's Strengths and weaknesses…………………………………………………… 23
Chapter 3 – Study case about Arvato Bertelsmann Brasov ……………………………………….. 25
Chapter 4 – Conclusion and Proposals …………………………………………………………………….. 27
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Chapter 1 – Theoretical aspects
Organizational Behavior , the study of human behavior in an organized environment, the
connection between human behavior and the organized environment, and also the organization
itself.
Researchers are looking into the behavior of individuals, primarily in their organizational roles.
The main goal of the organizational behavior is to replenish the organizational theory and develop a
better concept of organized life.
As a flexible field, organizational behavior has been manipulated by developments in a number of
allied disciplines including sociology, psychology, economics, and engineering as well as by the
experience of practitioners.
The origin of the Organized Behavior can trace its roots back to Max Weber a well known German
economist and sociologist and earlier organizational studies.
The Industrial Revolution represents a period from approximately 1760 when new innovative
technologies resulted in the adaptation of new manufacturing techniques, including increased the
use of mechanisms.
The industrial revolution cleared the path to a significant social and cultural change, with new forms
of organization. Analyzing these new forms of organization, Max Weber described bureaucracy as
an great organization type that rested on rational-legal principles and maximized technical
efficiency.
1890 , the year of the arrival of scientific management and Taylorism, Organized Behavior Studies
was forming it as a discipline used in academics.
Misstep of scientific management led to the birth to the human relations movements which is
defined by a hard emphasis on employee cooperation and morale.
Studying human and organized behavior requires a statement of the human and organizational
variables that interact together. The result of this interaction, the behavior of individuals in business
organizations arises. Organizational behavior is a process of behavior.
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Organizational behavior is directly concerned with the understanding, prediction, and control of
human behavior in organizations.” — Fred Luthans.
Mahmoud S. AlAmian (2010) B.A Professor at the Jordanian university of Amman – Organizational
Behavior in Business Organizations Study:
Human behavior and organizational behavior are in fact psychological and social principles that
interact together. The process of behavior and behavior of individuals in the organization is linked
to some psychological and social factors. Psychological factors are called internal factors and social
factors. External factors. Psychological factors interact with social factors. Behavior of the
individual and organization.
The objective of the study of human and organized behavior is to improve the performance,
productivity, administrative efficiency and job satisfaction of employees in order to reach for
common objectives desired by the employee as an individual and the organization in which he
works – whether governmental or private, such as companies and others.
The field of organized behavior is one of the modern fields that have been studied by researchers in
the field of management. It highlights the need and importance of this field as an interface that
entwines theory and practice. It is not only the evocation of the principles and the scientific
foundations related to the behavior of individuals and groups within organizations, science that can
be used in the treatment of organized problems.
A significant responsibility in terms of their organizational behavior have managers. They take the
decisions that affect many of their employees. The administrative system is represented by the
Directors in a fundamental way. In organized behavior, their role is to combine between the social
system and the technical system to improve relations. Individuals in organizations.
The study of organizational behavior is related to the way individuals and groups interact within
organizations and is even more interesting than that, the comportment interrelation is under the
influence of situational factors.
Managers, must be able to explain, predict, evaluate and modify organizational behavior according
to their own experience, knowledge and abilities to manage groups of individuals in different
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contexts. Thus, organizational behavior covers aspects such as: personality impact on work
performance, motivation of employees, leadership, formation of groups and working teams,
organizational structures, values, attitudes, behavior and learning, the impact of culture on
organizational behavior, perception and attribution, conflict and stress management, transactional
analysis, group behavior, strength and politics.
The case of study is about Arvato Bertesmann S.R.L, Arvato represents an international service
provider with a number of 70,000 employees in more than 35 countries world wide . They scheme
and equip innovative solutions for clients from all over the world. Including, for example, smart
customer service offers via all contact channels in the CRM sector, end-to-end e-commerce services
for retailers and brands in the field of SCM, prevention of fraud and payment services in the
financial industry, and IT services in the cloud. By developing innovative solutions, they place a
strong focus on automation and data analysis.
Clients from all over the world and with a wide range of industries depend on Arvato’s portfolio of
solutions and answers, from telecommunications providers and utilities companies through banks
and insurance companies to e-commerce, IT and internet providers. With locations in more than 40
countries and a very flexible and dependable infrastructure, Arvato is creating an settled sales
network and the international marketing channels of a global corporation at the service of its
customers. Arvato presents this international practice into play at a local level. By the same token,
its employees are good at translating their wealth of local experience into global action.
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Arvato owns around 200 sites in more than 40 countries around the globe. From here, their 70,000
colleagues provide scalable explanations that combine their deep industry and market know-how
with our ability to ensure global delivery.
Chapter 2 – Company presentation
This chapter speaks about the history of Arvato and how it began and about the facts that this
company deals with as also the strategic groups that it has and the strategic frame work.
2.1 History
The beginning of Arvato can be traced back to one such visionary idea: a consistent focus on how
a company can support its clients. Promising ideas are the driving force behind social development.
They provide motivation and guidance, and tap undreamed-of potential The history of Arvato
began over 175 years ago, when Carl Bertelsmann opened a lithographic printing shop in the East
Westphalian town of Gütersloh. This was the first step in the development of a corporate division
that today accounts for more Bertelsmann employees than any other.
Arvato subsequently grew larger, became involved in new industries, developed innovative
products, and expanded into other countries and continents − until it became what it is today: a
unique international service provider that occupies a leading position in numerous market segments
and serves the world‘s most dynamic and admired companies
During the first years, Reinhard Mohn was the sole owner of the Kommissionshaus Buch und Ton.
In 1968, the company became part of the newly founded Vereinigte Verlagsauslieferung ( VVA) Its
purpose was the delivery of printed materials and records "in the name and on behalf of its clients."
Bertelsmann was founded as a publishing house by Carl Bertelsmann in 1835. In the following
decades, the company grew steadily. After the Second World War , it developed from a mid-sized
business to a large enterprise. To meet the demand from the book club and the record club
Schallplattenring, Bertelsmann massively expanded its warehouse and shipping capacities in the
mid-1950s. In 1959, the Kommissionshaus Buch und Ton was established to make the production
and service infrastructure available for other publishing and printing companies. Bertelsmann
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benefited from this due to economies of scale A punch-card index at the Lesering headquarters was
acquired from Lufthansa, which later became the basis for the information technology expertise of
Arvato.
2.2 Facts
These solutions include financial services, customer relationship management, supply chain
management and IT services. In other words, whenever you download software, shop online, or
have your smart phone repaired, there’s a good chance that we were active behind the scenes as a
service provider. You may not know it, but Arvato is behind a great number of the products and
services you use. On average, every consumer in Germany comes into contact with us eight times a
day. Arvato is a leading international service provider that lives and breathes digital technology.
More than 70,000 employees in over 40 countries are helping our customers succeed on the market
as you can see below in figure (1.2 and 1.4) also they design and implement customized solutions
covering a wide range of business processes along integrated service chains, with sales at €3.8bn”
Figure 1.1 Figure 1.2 Figure 1.3
Figure 1.4 Figure 1.5 Figure 1.6
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According to Karin Schlautmann. (Executive Vice President Corporate Communications of
Bertelsmann).“Arvato is a high-performing, strong service provider and a leader who provides a
wide range of solutions for the most successful and attractive companies around the world. Our goal
is to be the solution partner for our clients, and our key business goals are to offer scalable
operations, cutting-edge solutions powered by the latest technology, and to maintain and improve
strong client relationships
2.3 Solution Groups
Arvato is defined by four Solution Groups as you can see in the figure 1.7 below:
Figure 1.7

Arvato CRM Solutions: Customer service demands experience, because service is one of your
most valuable brand assets and becoming more complex to deliver. Differentiated by our
experience, we are global, have know-how across the customer journey and, backed by
Bertelsmann, we take a long-term perspective. Driven by technology, differentiated by experience,
powered by people We design, deliver and differentiate customer service on behalf of some of the
world’s most respected brands. Customer service is about technology, because constantly evolving
technology is driving up customer expectations and has the power to simplify service delivery for
you. So naturally we support your customers and your need for competitive advantage. .So we’re
your partner for the duration. Above all, customer service is about people, because service is a
human thing even if it’s delivered by a robot. And it’s people that apply technology, draw on
experience, and add value.
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Arvato SCM Solutions: Our enterprising spirit means we’re defined by our people, who deliver
effectively in the face of the unpredictable, shape the future, drive global consistency as well as
individual nuance. Driven by technology and differentiated by experience, we will ensure you
perform. But powered by people we will also help you transform. Arvato CRM Solutions employs
approximately 45,000 people at more than 100 locations in 27 countries speaking 35 languages.
Whatever you need – we find the solution. Our industry specialists, more than 14,000 employees
worldwide, and not least our passion to keep inspiring our clients and their customers, are here to
make sure of it.
Arvato SCM Solutions offers supply chain management and beyond. Our focus is on consumer-
oriented industries such as automotive, banking and insurance, consumer goods (FMCG) and
fashion, healthcare, high-tech and entertainment, publishers and telecommunications. For all of
these sectors, we provide tailor-made, sustainable and innovative solutions that meet the individual
needs of our clients and enable them growth and transformation. We rely on advanced technologies
to turn omnichannel, digital and hybrid business models into reality. Thereby we place a particular
priority on aspects such as global availability, visibility of the supply chain, automation and
digitization of processes. Our strategies for you base on deep industry know-how and IT expertise,
always taking advantage of economies of scale across industries. Whatever you need – we find the
solution. Our industry specialists, more than 14,000 employees worldwide, and not least our passion
to keep inspiring our clients and their customers, are here to make sure of it.
Arvato Financial Solutions: At Arvato Financial Solutions more than 10,000 employees manage
around 10,000 clients, specializing primarily in the retail/e-commerce, telecommunications,
insurance, banking and healthcare sectors. Our aim is to make financial transactions as convenient
as possible and our philosophy is grounded in the belief that close, long-term partnerships are the
key to successful outsourcing. This approach has turned us into Europe’s third largest integrated
financial service provider. Your one stop shop for financial services. Professional. Reliable.
Efficient
As part of this, we focus on minimizing default rates in the business initiation phase and during the
collection process. As a result, our services also include optimizing the selection of payment types
internationally.
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In every transaction Arvato Financial Solutions is synonymous with professional financial
outsourcing services centering on cash flow in all phases of the customer lifecycle. The portfolio
covers a complete range of stand-alone solutions – from fraud prevention and risk management to
invoicing and debtor management, the sale of receivables and debt collection, as well as fully
integrated end-to-end order-to-cash solutions. We leverage deep domain expertise, global talent,
technology and process engineering to design innovative solutions with a strong focus on business
outcomes. As part of this, we focus on minimizing default rates in the business initiation phase and
during the collection process. As a result, our services also include optimizing the selection of
payment types internationally.
Arvato Systems: Their business relationships are personal, they work with their clients as partners,
so that together they can achieve long-term success.
Working as a team, they develop innovative IT solutions, transition their clients into the Cloud,
integrate digital processes and take on IT systems operation and support
Empowering digital leaders Global IT specialist Arvato Systems supports major companies through
digital transformation. Around 3,000 staff at over 25 locations deliver in-depth technology expertise,
industry knowledge and a firm focus on customer requirements. Working as a team, we develop
innovative IT solutions, transition our clients into the Cloud, integrate digital processes and take on
IT systems operation and support They provide:
• Comprehensive IT solutions for retail and media industries as well as for utility companies and the
healthcare sector
• Long-term experience in Digital Transformation
• Competence in key areas like Cloud Computing, CRM, Customer Experience, Enterprise
Information Management (BPM, ECM…), Omni-Channel- and E-Commerce
• A broad spectrum of IT-Outsourcing and Infrastructure Services, including Managed Services, and
an according Application Management
• Strong technologies and partners, including Microsoft and SAP
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2.4 Strategic Framework
Listening to Sarah Michele Divan faculty of the Department of Public Policy & Administration
Organizations committed to the framework value innovation but are subjected to external pressure
and are routinely constrained by external forces that limit risk taking. Constructed from the six
components identified in Chapter 3 and depicted in Figure 4.1, each characteristic is distinct and can
exist independently; however, developing synergy between each characteristic is recommended.
Furthermore, the order in which the six components are presented in this paper is intentional. Like a
carefully constructed game of dominoes, subtle momentum is generated when each piece is
deliberately developed. Starting at the top of Figure 4.1 and moving clockwise, the interrelated
components begin with value-based characteristics and move towards more process-based factors
that drive continual culture development.
The overarching value-based elements drive the underlying assumptions and behaviors of the
agency to generate an entity more responsive to changing demands and better able to quickly apply
feedback and problem solve finally, this framework takes an integrative view on culture
development. While representing retooled application of existing theory, the Strategic Culture
Framework is intended to be proactively implemented by administrators seeking to institutionalize
strategic decision-making. While subcultures are likely to exist across units and mechanisms for
communicating culture might differ based on the unique responsivity factors of each county
department, the six recommended components should act as the overarching values driving
behaviors and decision-making. Culture is a powerful and contagious tool to sustain an effective
agency only when the associated values are common, consensual, and integrated (Cameron and
Quinn, 2011)
A strategic and adaptive integrated organizational culture can help overcome the fragmentation,
ambiguity, and changing nature of the distinct challenges facing California counties and other
government entities (Ibid). I encourage administrators interested in cultivating strategic, adaptive
cultures to critically examine their existing organizational environment against the framework
presented.
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Arvato’s strategic framework builds on their Solution Groups’ strategies. It provides the direction of
Arvato’s further growth – based on even more international, even more innovative solutions.
Scalable operations: By bundling platforms and systems, Arvato can benefit from economies of
scale and offer clients individual solutions more quickly.
Arvato is very strong in the operative implementation of services. The reliability of these services
must be ensured in the future as well.
Strong client relationships: . Retaining top clients and expanding business relationships with them
is essential. Arvato will systematically develop medium-sized yet promising clients in order to grow
along with them. Arvato can achieve further growth with an even more targeted client approach in
sales and marketing
Cutting-edge solutions: Within the organization, the task is to internationalize existing solutions as
comprehensively as possible.Arvato invests in progressive technologies such as cloud services, big
data, artificial intelligence and robotics. The bundling of know-how in key industries will further
strengthen Arvato’s position.
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Portfolio and culture: Priorities are supported with the ongoing analysis of their portfolio on one
hand, and the development of their culture on the other hand.
2.5 Annual report
Operating EBITDA of €2,636 million was above the high level of the previous year of €2,568
million, despite start-up losses for digital and new businesses, which, for Bertelsmann Education
Group and RTL Group alone, amounted to €-69 million in total (previous year: €-71 million).
Bertelsmann recorded positive business performance in 2017, achieving revenue growth and
increases in operating EBITDA and Group profit. This development was accompanied by further
strategic progress with Bertelsmann’s transformation into a faster-growing, more digital, more
international and diversified Group. Group revenues rose by 1.4 percent to €17.2 billion (previous
year: €17.0 billion), driven by organic growth of 1.7 percent. BMG and Bertelsmann Education
Group were mainly responsible for the improved earnings. The EBITDA margin improved from
15.2 percent in the previous year to 15.3 percent. This was generated in particular by the TV, music,
services and education businesses. The revenue share generated by the strategic growth businesses
increased to 32 percent (previous year: 30 percent). RTL Group, Group profit increased from €1,137
million to €1,198 million. Economic investments during the reporting period increased to €1.8
billion (previous year: €1.3 billion), in particular as a result of the shareholding increase in Penguin
Random House. For 2018, Bertelsmann again expects positive business performance and continued
progress with the implementation of its strategy
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2.6 Financial solutions
Bertelsmann Chairman and CEO Thomas Rabe and Bertelsmann CFO Bernd Hirsch took over the
management of the Arvato division. Revenues of the Solution Group Arvato CRM Solutions grew
slightly in the financial year, but its earnings declined. Arvato posted a stable revenue performance
and a decline in the operating result in 2017. The international network was expanded with the
opening of new offices, including in the Philippines and Senegal. Arvato SCM Solutions massively
expanded its global logistics network in the past financial year, reflecting its good order-book
situation. In Germany, the United States, France, Austria and Poland, new distribution centers took
up operations and some existing sites were expanded, including in the Netherlands and Germany.
Arvato's revenues rose by 1.6 percent to €3.8 billion (previous year: €3.8 billion). Especially due to
challenges in individual markets and sectors as well as high start-up costs for new business,
operating EBITDA in the reporting period was down by 10.0 percent to €320 million (previous
year: €356 million). The EBITDA margin was 8.4 percent, after 9.5 percent in the previous year. In
July 2017 The main reasons for this were declining business volumes in the telecommunications
sector, start-up costs for new clients, and the expansion of business with Germany 6.6 France 4.0
UK 23.6 Other European countries 12.3 United States 44.2 Other countries 9.3 Consolidated
Revenues by Region in percent Rights and licenses 89,7 Own products and merchandise 10.1
Services 0,2 Revenues by Category in percent 0 200 400 600 2016 2017 Revenue Breakdown
Change Exchange rates Portfolio and other effects Organic growth 416 Mio. € -3.6% 6.9% 18.5%
507 Mio. € 65 international companies from the IT/high-tech sector. The Solution Group also
expanded its services businesses, primarily in the core sectors of e-commerce, fashion & beauty, and
healthcare, and significantly strengthened its North American business by taking over US deliveries
for a major high-tech client. Its continued positive business performance was fueled primarily by the
steadily growing business in the core market of Germany. To expand the service portfolio in the
innovative fintech sector, Arvato Financial Solutions began a collaboration with Solaris Bank. The
start-up costs for these new business activities impacted earnings. Arvato Financial Solutions’
financial services businesses did well in terms of both revenues and earnings. In particular, the
project costs for expanding the cloud capabilities had a negative impact on earnings.
In addition, the shareholding in the Brazilian financial services company Intervalor was increased
from 41.5 percent to 81.5 percent. Demand for Arvato Systems’ IT services remained high in 2017.
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To sustainably meet this demand, a nearshore site in Riga was opened, among other things. The
expansion of business activities in the field of healthcare IT was successfully advanced, and further
investments were made in emerging fields such as solutions for the smart-energy market and cloud
services. The innovations at Arvato were introduced in all four solution groups and primarily
concern the use of innovative technologies, development and implementation of new service
offerings, and investment in innovative companies. In the growth markets, Bertelsmann further
expanded its global network of start-up investments. During the reporting period, the company made
over 40 new investments worldwide through the funds grouped under Bertelsmann Investments. In
China, the Bertelsmann Asia Investments fund made various new and follow-up investments,
achieved further significant value growth and made a considerable contribution to Group profit in
particular through gains from disposals of investments. In India the Bertelsmann India Investments
fund invested in the education provider Eruditus. Arvato CRM Solutions acquired the IT and
analytics company Ramyam. In Brazil, the Bertelsmann Brazil Investments fund and its partner
Bozano Investimentos continued their establishment of a network of universities focusing on
education in the healthcare sector. Arvato Financial Solutions increased its stake in the financial
services provider Intervalor.
In CRM Solutions, Arvato used new technologies such as analytics, machine learning and chatbots
to optimize the service experience. In the SCM Solutions business area, data goggles and driverless
transport systems are increasingly used. Arvato Financial Solutions worked on innovative cloud
solutions to combat fraud in the healthcare and e-commerce sectors. Moreover, in the financial year
2017 Arvato again invested in innovative companies in the fintech and analytics sectors.
The global ecommerce market will continue its dynamic growth over the next few years. Arvato
could participate significantly in this growth through new services, particularly those offered by the
Solution Groups SCM and Financial Solutions. Further growth opportunities from the ongoing
digitization lie in the development of innovative IP-based and cloud-based IT services
At Arvato, interdivisional cooperation and major projects can provide additional opportunities for
acquiring new customers.
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2.7 Innovation and Growth
Bertelsmann relies on innovation and growth in core operations and new business fields. The key
success factors of Bertelsmann’s innovation management include continuously following cross-
industry trends and observing new markets The long-term success of the Group depends heavily on
product innovations, investing in growth markets and integrating new technologies. Furthermore,
innovative expertise is very important for strategy implementation. Businesses invest in the research
and development of new products in order to ensure their long-term competitiveness. The media
sector has a similar imperative to create innovative media content and media-related products and
services in a rapidly changing environment. This means that rather than conventional research and
development activities, the company’s own innovative power and business development are
particularly important to Bertelsmann. The innovations at RTL Group are focused on three core
topics: continuously developing and acquiring new, high-quality TV content and formats; using all
digital means of distribution; and expanding diverse forms of advertising sales and monetization. At
the Group level, Bertelsmann 49 works with the divisions to continuously identify and implement
innovative business strategies. Alongside market-oriented activities, support is given to Group-wide
initiatives that actively promote knowledge transfer and collaboration. At regular innovation forums,
executives meet with internal and external experts to examine success factors for innovation and
creativity The primary objective is to create a global, independent monetization platform for
channels, video-on-demand services and content providers. . New and innovative TV formats
include the show “Lost in Time,” an interactive production by Fremantle Media Norge, in which
special effects and reality are combined in real time. In addition, RTL Group invested in virtual
reality for the first time and initiated the latest round of investments of the Israeli start-up Inception
VR. RTL Group is also pursuing an ambitious growth plan for its advertising technology business..
Innovations at Penguin Random House are related to the areas of content and distribution. The
innovations at Gruner + Jahr included digital marketing and the expansion of the brand business and
the existing magazine division. The strong growth of the digital business was generated above all by
the significantly increased advertising revenues from brand websites and the strong growth of the
app recommendation platform AppLike, although Germany’s food community Chefkoch also
continued to grow. G+J expanded its brand-related activities with furniture from the Schöner-
Wohnen collection. In 2017 innovative magazines were launched such as the interior design
magazine “Ideat.” The publishing house Deutsche Medien-Manufaktur founded by Gruner + Jahr
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and Landwirtschaftsverlag successfully launched “Hygge.” They are central to forging direct
relationships with millions of readers by utilizing the platforms to market the books and authors An
example of innovation in partnership with new and emerging technology is the Penguin Young
Readers’ imprint collaboration with both Google and Amazon to make the App Mad Libs accessible
on their respective voice assistants. . As one example, subscribers worldwide receive regular e-mail
updates from the publishers on early-cover reveals, advance excerpts, sweepstakes, author
appearances, and more. With the novel, “Wonder,” the company is capitalizing on the theatrical
release of the film adaptation by experimenting with large-scale merchandising through new retail
channels and promotional partnerships with film production companies in an effort to convert fans
of the movie to purchasers of the book. For example, SpotX and Smartclip are to be merged to form
an integrated advertising technology company by the end of 2018. An example of this came in 2017
with the launch of a mobile app to allow songwriters 24/7 access to their royalty information via
their mobile phones. A version tailored to the needs of recording artists will be released during
2018. Powerful endorsement for BMG’s innovative technology came with the decision of the TV
Content Streaming Service Netflix to move the administration of its music publishing rights to
BMG. The focus here is mainly on adressable TV, which means that advertising can be targeted at
TV households via linear television based on criteria such as income and age. Synergy committees
are used for exchanging information and knowledge within RTL Group The innovations at BMG
are driven by the company’s artist- and songwriter-friendly approach encompassing everything from
contracts to administration, marketing and finance, and reflecting its core values of Fairness,
Transparency and Service.The innovations at Arvato were introduced in all four solution groups and
primarily concern the use of innovative technologies, development and implementation of new
service offerings, and investment in innovative companies. In CRM Solutions, Arvato used new
technologies such as analytics, machine learning and chatbots to optimize the service experience. In
the SCM Solutions business area, data goggles and driverless transport systems are increasingly
used.. In recognition of this, the company received the Digital Product Innovation Award at the start
of the year from the US industrial association Digital Entertainment Group. Other innovation
projects focused on 3D scanning and the integration of augmented reality markers in books,
magazines and catalogs. Arvato Financial Solutions worked on innovative cloud solutions to combat
fraud in the healthcare and e-commerce sectors. Moreover, in the financial year 2017 Arvato again
invested in innovative companies in the fintech and analytics sectors. The innovations of the
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Bertelsmann Printing Group in 2017 again are mainly in improving technology and processes and in
developing and marketing new products and services. With the production of the innovative Ultra
HD Blu-ray data carrier, Sonopress was one of the pioneers in developing a growth market For
example, Relias expanded its expertise in analytics and performance management in 50 order to
provide more data-based support to customers in the healthcare sector in improving performance
within companies. At the same time, Relias developed a large number of online courses in the
United States and expanded the range of courses being offered in the United Kingdom, Germany
and China. Udacity developed new Nanodegree programs, including deep learning, digital
marketing and software development for robotics, thus setting further standards in student
qualifications for future technology jobs.
The innovations at Bertelsmann Education Group mainly consist of the further development of
digital and customized education offerings and the expansion of existing business areas.
2.8 Entrepreneurship and creativity
Entrepreneurship, defined as the identification, evaluation, and exploitation of opportunities
(Shane & Venkataraman, 2000), is often seen as the engine of an economy. Historically, the study
of entrepreneurship began with the study of entrepreneurs. To identify the personal characteristics of
entrepreneurs, researchers have examined the differences between entrepreneurs and other
populations on a numbers of traits.
When innovation and entrepreneurship are metaphorically regarded as the engine of an economy,
creativity can be viewed as the fuel needed to start the engine and to keep it running. Because
creative ideas are often the precursor to innovation and entrepreneurship
According to Michiel Crommelinck (2013) The Role of Feedback in Creativity, Innovation, and
Entrepreneurship
The prerequisites for a corporate culture in which employees, management and shareholders work
together successfully, respectfully and in a spirit of trust are common goals and shared values. These
are enshrined in the corporate constitution and in the four Bertelsmann Essentials: partnership,
entrepreneurship, creativity and corporate citizenship The company largely follows the
recommendations of the German Corporate Governance Code for good and responsible corporate
governance and the OECD Guidelines 85 for Multinational Enterprises. Bertelsmann is committed
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to the principles of the Universal Declaration of Human Rights, the United Nations Guiding
Principles on Business and Human Rights, and the International Labor Organization core labor
standards. Since 2008, Bertelsmann has also supported the 10 principles of the United Nations
Global Compact as an active participant.
Furthermore, the Bertelsmann Code of Conduct – as a binding guideline – defines standards for
law-abiding and ethically responsible conduct within the company and toward business partners and
the public. The sense of purpose embodied in the triad “To Empower. To Create. To Inspire.” also
provides orientation for the company’s staff and partners. Bertelsmann’s actions are also determined
by external guidelines. The diversity strategy focuses on the aspects of gender, generations and
nationality. The diversity strategy is implemented by the Corporate Responsibility & Diversity
Management department with support from a Group-wide Diversity Working Group. In 2017, the
primary focus was on realizing the recommendations from the Bertelsmann Diversity Conference
2016. The proportion of women in Bertelsmann talent pools (top management, senior management,
career development) shall be increased. This was already considered in the 2017 talent pool
nominations. These included piloting diversity training, management qualifications from
Bertelsmann University and taking into account diversity aspects in Corporate Talent
Management. .For Bertelsmann, diversity of its workforce is a prerequisite for creativity, innovation
and long-term business success.
2.9 Key Findings & Highlights
Arvato’s clients can avail themselves of a network that gives them quick access to new markets
and supports their growth plans with scalable infrastructures. This ensures rapid availability, as well
as a high degree of flexibility for responding to growth surges or changes in regional demand.
Arvato’s SCM has already taken a big step towards expanding its market position in the
international focus markets by developing operational hubs and adding new international clients.
New projects that contribute to the SCM strategy and advance the implementation of future-oriented
business models have been agreed with new and existing clients.
Arvato’s SCM's core markets are Germany, France, U.K., Spain, China, and the U.S. with a further
focus on growth regions in India, Poland, and Turkey. Its target industries are hi-tech &
entertainment, healthcare, fashion & beauty, retail, telco, and publishing. Arvato SCM's offerings
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are focused on international consumer-oriented industries. Arvato's SCM BPS offerings are broken
out into after-market, eCommerce, and logistics, though the company’s after-market services are
only available in Europe.
2.10 Healthcare
According to Sharon Mickan and Rosalie A Boyce Organisational behavior: Understanding people
in healthcare organizations Sharon Mickan and Rosalie A Boyce
Organizations, , are challenged to define and measure output, where the nature of work is highly
variable, complex,exacting, reactive, urgent and non-deferral. Healthcare requires a complex
organizational milieu, to co-ordinate the highly specialized and differentiated professionals, who,
because of the increasing complexity of healthcare, are required to work interdependently with each
other.5Further, healthcare organizations exist in highly political environments where there is
increasing competition for scarce resources. Patterns of professional political power also influence
the education and socialization processes of many disciplines. Professionals’ expertise and
reputation influences their authority and expectation of greater autonomy and control in
organizational settings. As a result, greater emphasis is placed on clinical issues, often at the
expense of managerial efficiency.8There has also been significant change in the composition of the
healthcare workforce. At the beginning of the 20th century, physicians accounted for approximately
1:3 healthcare workers. There have been rising public expectations of the benefits of medical care,
health promotion, and disease prevention. The burden of illness has shifted from acute to chronic
conditions, older patients and more technologically complex care.11Although a significant amount
of healthcare depends on predictable production processes as delineated in evidence-based practice
and clinical guidelines, the organization and management of healthcare cannot be interpreted
similarly. Managers must look to alternative theories of management to better understand their
organizations and to determine their most potent roles within them. Component areas of an
organization often adopt different theoretical approaches in order to manage the complexity of
health services. Critical evaluation of these theoretical perspectives contributes to the ability to
understand and enlighten current practice.
However, by the early 1980s, the ratio had fallen to about 1:16. There has been a dramatic increase
in the number and type of non-physician clinicians, which include AHP and nursing staff.9These
non-physician clinicians have created new roles for themselves in the health workforce by providing
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holistic care for the chronically ill, frail elderly persons,and family caregivers. These changes have
boosted inter-disciplinary collaboration and there has been a decline in the proportion of patients
treated
exclusively by any one clinician. In addition, there is pressure to move clinical services out of
hospitals into Primary Care and to create larger organizations through mergers10 that require more
management care.
They believe that healthcare systems, sales channels and distribution chains undergo constant
change to ensure patients derive the greatest benefit from innovative and existing pharmaceuticals
and medical products at the most reasonable coasts. They support you in making this happen.
Healthcare integrated logistics, distribution, managed care & IT solutions for the healthcare sector.
Arvato are here to support you: They use individual and fully integrated distribution and logistics
solutions in order to find and realize optimal concepts for your products, clients, and of course for
your patients. They are also able to incorporate existing structures into their solutions concept as
required. Arvato provides individual logistics solutions for pharmaceutical and medical technology
companies across Europe – for all product categories and temperature ranges.
European healthcare concepts and market and its sales channels undergo constant change and
continually present pharmaceutical and medical technology companies with new challenges.
Though many healthcare companies have previously relied on national and Europe-wide storage
structures that are independent of each other, for some years now, a trend has been developing
towards creating harmonized European concepts. Arvato provides individual logistics solutions for
pharmaceutical and medical technology companies across Europe – for all product categories and
temperature ranges. This facilitates the creation of standardized structures, a reduction in stock,
optimized processes and lower costs. With a European site network that is specifically tailored to
the requirements of pharmaceutical and medical technology clients, Arvato offers customized
Central and Multi-Warehouse solutions: 01 Our broad range of intelligent transport management
solutions enables short delivery periods – to destinations across the globe, applicable to all product
categories, temperature ranges, and diverse logistics concepts. Individual usage of various
distribution centres allows manufacturers to reduce additional transport costs. Integrated
Postponement solutions are particularly beneficial for companies that manufacture high-quality
pharmaceuticals, facilitating a low and flexible range of stock. Arvato’s manufacturing license for
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the process of repacking and labeling medicine provides companies with the best possible
conditions for regional and central distribution. On demand, they also support companies that
manufacture life-saving medicine with our 24-hour emergency delivery, which runs seven days a
week, 365 days a year. Similarly, an increasing number of manufacturers that produce generic
medicines or in-vitro diagnostic medical devices are relying on Arvato’s process expertise, high
level of quality, IT skills and integrated services range – regardless of whether their logistics models
are national or international Named Patient Supply services also facilitate delivery to selected
patients before product authorization has been granted. Solutions for risk management programmers
complement their range. In addition, they offer Forward Stocking Locations that allow, for example,
medical technology manufacturers to supply individual markets or clients in the shortest possible
time, sometimes even a few hours after receiving the order.
2.11 Bertelsmann's strengths and weaknesses
v Figure 2.1
Strengths
Diversified portfolio: Supply chain management, financial services, IT services, e-learning portals,
online services for Universities, Investment arm for acquiring start-ups and an education group as
well. Thus, such a unique product portfolio helps Bertelsmann diversify its risks and exposure, and
at the same time provides leverage over other mass media companies in.
Bertelsmann has a rich and diversified product portfolio ranging from Broadcasting, Content
creation, Digital media, book publications, magazines, media content, music copyrights, audio-
visual rights, marketing and CRM services,
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Leading market positions: BMG- the world number 4 in the music industry. It also owns Arvato- a
global services company that provides expertise in IT, logistics and finance. The group also own a
Printing Group, an Education Group and an Investments arm. Together, these 8 divisions provide
Bertelsmann an edge over other mass media companies because of its marketing leader positions in
most of these divisions.
Bertelsmann is made up of 8 divisions, includin J the RTL group which is the leading entertainment
network in Europe; the Penguin Random House The world's leading book publisher; Gruner+ Jahr-
Europe's largest printing and publishing house;
Global operations: The group owns a blueprint in over 50 countries with over 117,000 employees
making it truly a global organization. Spread over Europe, the USA, India, China, Brazil and hosts
other major countries has provided Bertelsmann an international image.
Corporate Culture: The vision of Bertelsmann is taking responsibility for its employees, supposing
high quality content to its clients, and for the impact its business operations have on society and the
environment.
Digital Growth: Bertelsmann has underlined the shifts in customer use to the digital platforms, by
administering content on every available online devices, e-books, online magazines, portals and
through digital services.
Weaknesses
Exposure to European markets: Europe is a highly volatile Geo-political market at the moment,
and this high dependence impacts its revenues and increases the company's exposure to any
volatility in demand in Europe Bertelsmann derives 71.5 % of its revenues from European
operations.
High Indebtedness: .Even though this reduced from 6.03 billion in 2014; it is still a high mount.
This increases the interest payments and such a high debt reduces the group's profitability margins.
Opportunity This section is available only in the 'Complete Report' on purchase Threat This section
is available only in the The group's Economic debt was 5.6 billion at the end of Financial Year 2015
'Complete Report' on purchase.
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Chapter 3 – Study case about Arvato Bertelsmann Brasov
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Results of the Case Study
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Chapter 4 – Conclusion and Proposals
In regards to the experimental purpose, the aim of this study case is to raise proposals that can help
the organization to successfully implement organizational behavior adjustment to heighten the
organizational engagement.
The main aim of these recommendations is to lead these actions to the development of an
organizational behavior that enhances organizational engagement. This case study will lead to
several conclusions for leaders in any organization, which have an essential role to perform in
establishing the needed organizational engagement and organizational behavior.
The below proposals are made in an effort to show the threats identified in the experimental case
study.
Now let’s see the list of proposals that can be applied to the company, based on the results received
from the experimental study case:
Communication:
The company should provide more insight about the changes that can affect its employees.
The company have to develop and adopt procedures and policies that members of the organization,
consider to be fair and have more sense related to their engagement.
The organization should focus more on keeping the employees informed and up to date about the
changes that are happening in the organization.
Resources:
The company needs to increase the chances for employees to improve their skills.
In this way, the quality of work will grow-up and the company’s customers will be more pleased.
The process documentation needs to be more clarified, in this way employees will know where to
search for the information they need and it will improve employees’ skills at same time.
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Training:
Basic Training should be revised in order to have better results in regards of new employees that are
being adopted by the company.
Career:
The company should offer more opportunities to the performant employees to advance within the
company since they can do much more than their actual job. This proposal will lead to a significant
change once applied.
Career is very important in any kind of organization, therefore the organization should promote its
employees based on their experience and skills. Administration must strive to ensure that benefits
and resources are distributed fairly in the organization.
Management:
Based on the experimental study case, we can observe that 40% of the employees rated the relation
between them and Management as a negative one and the confidence in the company is not so good
seen as well. These factors can lead to crucial issues especially when we’re talking about an
organizational group. Leadership must struggle more to solve these issues because they can extend
to a higher scale leading to conflicts within co-worker and Management and also can affect the
company itself.
Procedures:
More than 50% of the workers rated the fact that unnecessary steps and procedures are involved in
their daily job. Leadership should apply Work Procedures adjustment but also to take into
consideration Employees opinion about what can be adjusted to a better work efficiency.
80% of the employees voted that the company should be more flexible in personnel matters, what
we can propose to the company in regards of this statement is:
“Take care of your employees and they will take care of your business” (Richard Branson)
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Equality:
We can see that almost 40% of the employees rated the fact that procedures and policies are not
applied equally to all employees, this means that there are a couple of gaps in the Leadership here.
The company’s leadership must provide equality in regards of this matter in order to avoid other
issues and escalations that might outcome due to this behavior.
Another big issue here, promotions are not applied in a fairly manner, 52% of the employees rated
that promotions are not made based on performance. We can propose to the leadership to reconsider
their way of recruitment / promotion because again, this can lead to several issues in the business
such as high number of employees’ resignation.
The restriction of the experimental study being applied only in one organization makes it hard to
verify results and interpretations with similar case studies in other organizations. Therefore, the
present results cannot be generalized or given as example to other populations groups without
further analysis for each organization.
Herewith, the specific aim is finally met, namely to develop recommendations that can help the
organization to create an organizational behavior that reinforce employees organizational
engagement.
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