People dynamics poster

1. “Inventing the
future of play”
- VISION -
- MISSION -
“Inspire and develop the
builders of tomorrow.”
TIMELINE
The Lego Group is a
Danish family-
owned company
based in Denmark.
It is best known for
the manufacture of
Lego-brand toys, consisting mostly of
interlocking plastic bricks.
Acquire more
licensing
agreements
Expansion in
production
Growth in
emerging
markets
Strong brand
power
Diversified,
broad
differentiated
products
Well
developed
global
presence
Strengths
Threats
Opportunities
Weaknesses
Price (Costly
production,
high cost)
Easy to
imitate
Patent
expiration
PC/Video
games
Increase in
competition
Increased
dependency
on licensed
products
SWOT ANALYSIS
Executive Leadership Team
ORGANIZATIONAL STRUCTURE
Instead of “shifting the responsibility”
up the management ladder, flat
structures empower employees to
take charge, help make decisions
and feel responsible for the
company’s success.
Reduced bureaucracy
Reduced levels of management
Coordination & communication can be improved
Effective delegation of tasks among employees
Stronger bonds between employees
HOW EFFECTIVENESS OF
PERFORMANCES CAN BE
IMPROVED?
• Preparation of strategic issues
• Handling significant or fundamental
operative matters
• Ensure internal communications
• Guides the development of the Group
• Implementation of the strategy
• Strategic Planning
• Risk Management
• Human Resources
• Communications Policy
• Financial Reporting
Corporate Team
• Recruit, supervise, retain,
evaluate and compensate the
manager.
• Provide direction for the
organization.
• Monitor and control function.
• Establish a policy based
governance system.
• Govern the organization and
the relationship with the CEO.
Board of Directors
FLAT ORGANIZATION STRUCTURE
The name
“LEGO” is
moulded on
every brick
Ole Kirk Kristiansen
founded The Lego
Group.
The LEGO mini-
figure is launched
bringing role-play
to LEGO play
Product
differentiation and
variation; have over
2500 employees
1932
1953
1978
1989
2000
The LEGO brick
is elected “Toy of
the Century”
LEGO
TOY OF
THE
CENTURY
2,500
EMPLOYEES
HOW
ORGANIZATIONAL
STRUCTURE
INFLUENCE &
AFFECT
BEHAVIOUR?
RESPONSIBLE
PRODUCTIVE
MOTIVATED
CONFIDENCE
SKILLFULL
WHY ARE THESE
BEHAVIOURS USEFUL FOR
THE MANAGERS?
Less time needed to delegate task
and roles to the employees
Excellent performance
benefits the company
Can focus on
important tasks
Better decision-making, leading
to increase in productivity
Accomplish
objectives
Able to direct themselves without
constant instructions given
Progress faster, more efficient
& effective
Able to
visualize
Less issues/conflict in the work force
FOUR PILLARS THAT
DETERMINE THE
BEHAVIOUR OF LEGO
EMPLOYEES
PurposeDriven
SystematicCreativity
ClutchPower
ActionAbility
S W TO
COPYRIGHT

2. Discuss on the organizational structure for effective organizational performance.
The organizational structure for Lego is generally a flat structure. A flat organization refers to an organization structure with few or
no levels of management and staff level employee. Lego has a flat structure with few levels and high horizontal differentiation.
The company has 21 divisional subunits. With this type or organizational structure, it shows the effectiveness in the performance
for the organization.
• Right people doing the right job
The employees in Lego have a clear understanding about their respective strengths and weaknesses. Having said that, the
employees make use of their strengths in the organization. This allows them to be more engaged in their work, this allowing them
to perform better. Furthermore, the team leaders and team members would then become more proficient when it comes to
delegating their tasks and roles. This would ensure that the job is done by the most suitable or qualified people.
• Improve coordination and speed of communication
Employees will tend to be more democratic. Plus, they would be able to offer a greater level of innovation in this sense. Speed of
communication can also be more efficient.
• Fewer levels of management encourage easier decision making process
Being a flat organization, Lego team members have more power and they can make decisions easily and immediately instead of
having to go through many layers to obtain approval like how a tall organization is. Direct input leads to having more support for
decisions.
• Strong bonds among employees
Lego’s organizational structure allows a strong team bond to be created whereby they act as a support mechanism for employees
to go through challenges daily in the work force. Moreover, the employees could drive and motivate one another to enhance their
performance and work together towards their goal.
• Reduction in bureaucracy
For this point, it leads to more equality among the employees.
Each Lego employee will then have more commitment and ownership when it comes to doing their own job.
How structure of an organization influence and affect behaviour?
If the structure is systematic, employees will tend to be more
• Confident
Many believe that a company’s head must be able to monitor and manage anything and everything that is happening inside the
organization. Contrary to believe, a flat organization structure boosts employees’ confidence as it requires less dominance and
supervision. More productive employees can get in day as the employee feel confident in themselves to achieve the tasks given.
• Productive
An organisation structure which set their own goals can cause an impact to employees to strive towards the goals of the division.
The employees will be able to move the team in a better productive mode and achieve higher standards.
• Motivated
A flat organization structure motivates the employees to be a part of a team and an idea. Employees that are given the
opportunity to make a contribution towards a working program and give ideas are more positive in the sense that they feel
wanted by the organisation and are not just a number on a system.
• Skillful
Flat organization structure also provides employees the freedom to contribute in other programs instead of contributing in one
particular program which in return allow the employees to equip with different set of skills.
• Responsible
Instead of “shifting the responsibility” up the management ladder, a flat organization structure empowers employees to take
charge, help to make decisions as fewer people have to be consulted about a decision, allowing the management to provide
rapid response to any issues or concern hence give them a higher sense of responsibility for the company’s success.
References
• LEGO Group Management. (n.d.). Retrieved April 26, 2017, from https://www.lego.com/en-us/aboutus/lego-group/management/
• A Great Company Culture Example: LEGO. (2017, March 24). Retrieved April 26, 2017, from https://inside.6q.io/company-culture-example-
lego/
• The LEGO Group: Organizational Complexity. (2016, April 24). Retrieved April 26, 2017, from https://jamessblogblog.wordpress.com/
2016/04/24/the-lego-group-organizational-complexity/
• Jorge Robles, Process Engineer, Monterrey, Mexico. (n.d.). Retrieved April 28, 2017, from https://www.lego.com/en-my/careers/people
• What is executive leadership? - Definition from WhatIs.com. (n.d.). Retrieved April 28, 2017, from http://searchcio.techtarget.com/definition/
executive-leadership
• Roles and Responsibilities of Chief Executive Officer of a Corporation. (n.d.). Retrieved April 26, 2017, from http://managementhelp.org/
chiefexecutives/job-description.htm
• Role of Corporate Management. (n.d.). Retrieved April 27, 2017, from http://www.oriental-sky.net/governance/board-of-directors/role-of-
corporate-management.html
• The Role of the Board of Directors | Ag Decision Maker. (n.d.). Retrieved May 05, 2017, from https://www.extension.iastate.edu/agdm/
wholefarm/html/c5-71.html
• People Promise | - The Lego Brand (n.d.). Retrieved Retrieved April 27, 2017, from https://www.lego.com/en-us/aboutus/lego-group/
the_lego_brand/peop
Why are these behaviours are useful for the managers?
Organizational behavior is the systematic study of people and their work within an organization. Understanding the
organizational behavior is very useful for the Lego’s managers to lead and control the employees.
• Excellent performance benefits the company - The growth of the employees is also the growth of the
organization. With the effective performance, Lego’s employees can improve themselves with excellent
performance skills that helps to improve the image of the company.
• Can focus on important tasks – The manager can focus on other important tasks instead of guiding and leading
the employees to shape their behaviors. The Lego’s manager can pass down his responsibility to employees with
shaped behaviors to make smaller decision thus manager can focus on the bigger projects that must be decided
by the manager.
• Less time needed to delegate task and roles to the employees - The employees that are shaped with specific
behaviors who knows what are their strengths will take lesser time for manager to delegate tasks to the
employees.
• Better decision-making, leading to increase in productivity – Lego’s manager act as the decision maker to sort
out the organizational problems. Manager that has a clear mind in making a good decision will lead to
productivity towards the company’s goals.
• Accomplish objectives – In today’s work culture, it is important for manager to understand the behaviors of their
fellow workers and channelize their skills and resources to achieve goals of the organizations.
• Able to direct themselves without constant instructions given – Manager have the confidence in the
employees because they are independent to perform within their own ability to complete their task on time.
• Progress faster, more efficient and effective – Manager delicate task to employees that are capable of that
work. Productive employee can do the thing right and do the right thing at the same time.
• Able to visualize – Manager able to visualize in a bigger picture that likes to look for innovative ideas for the
improvement of their units. Therefore, with the help of employees, they can create better idea together to
improve their team and performance.
• Less issues / conflict in the work force – Lego’s manager also act as a conflict handler, which act as judge
between two parties in order to solve the conflict or misunderstanding. With the harmony environment that
created by the employers and employees, manager can avoid spending their time to solve the conflict that
created in the group.
PEOPLE DYNAMICS IN MALAYSIAN ORGANIZATION (UCM60303U3)
TUTORIAL SESSION: SEC 3
LECTURER: DR. SHANTHI BAVANI
SUBMISSION DATE: 9TH MAY 2017
GROUP MEMBERS:
LEONG LI JING 0323628
TAM ZHAO WEI 0322587
LOH MUN TONG 0323680
ADELE LU KHAI SYN 0323151
YEAP PHAY SHIAN 0322243