HOLY ANGEL UNIVERSITY

Angeles City
Module 1= Organizational Theory, 2nd Trimester

Assignment 1

I. Name of the Organization: TFT-LCD Manufacturing Corporation

II. Nature of the Organization

(1) Type according to purpose: Semiconductor Manufacturing Company
(2) Type of Ownership: Private (Conglomerate). A Part of Japan Display Group of Companies
(3) Location: Clark, Pampanga
(4) Products/Services: Producer of LCD modules for different applications (Mobile, Consumer and
Industrial Applications)

III. Vision-Mission-Goals-Objectives
1. Vision
 To set quality as the foundation of the company
 To pursue individual growth through given task
 To contribute to the society as one of the companies based in the Philippines

2. Mission
To be the world’s number one manufacturing company in providing customer satisfaction.

3. Goals
3.1 Environment, Health and Safety
 LTI and SI should be ZERO
 Environmental accident should be ZERO
 Reduce energy consumption and the amount of waste
 Align specific EHS objectives and targets with JDI in consideration of the
Significant Aspects and Occupational Hazards of NPI
3.2 Budget
 Keep our cost and expenses within the budget
3.3 Quality
 Achieve customer claim number target value
 Should be quality assurance activity with cost consciousness
 100% achievement of customer audit
3.4 Cost Reduction
 Attain a competitive cost by continuous cost reduction activities and programs
 Reduction of over stock products and products in progress in inventories
 Increase in efficiencies
3.5 Delivery
 Supplying products to customers with high quality on time for delivery
3.6 External Audit and Company Activity
 Updating audit of OHSAS/EMS/QMS
 Achieve 100% compliance on all applicable legal and other requirements
 Activation of NIC activities
4. Objectives
We shall:
 Understand trust and cooperation with each other through constant communication.
 Aim higher target and stick to achieve.
 Consider the efficiency of the job and improve them.
 Keep working environment clean and neat.

Organizational Theory Prepared by: Jerome S. Policarpio

IV. Organizational Structure
1. Operating units (Departments, Divisions, etc.)

2. Organizational Chart

<Manufacturing Engineering Department Organizational Chart>

Organizational Theory Prepared by: Jerome S. Policarpio

 <Development Section Organizational Chart>

3. Summary of Responsibilities of the Various Roles/Positions and Supervisory Relations (who is

responsible to whom; who supervises whom)

Director (Japanese)

 Overseas multiple divisions in the organization.

 Together with the General Managers, they directly report to the President and Japan Counterparts

General Manager (Japanese)

 Head of the Division
 Manufacturing Engineering Division General Manager handles Four Departments.

Senior Manager (Japanese / Local)

 Head of a single department in a division
 Under Manufacturing Engineering, there are 4 Senior Managers reporting to the General Manager and
Director.
 Sets department targets
 KPI reports
 Prepares all instructions (Specifications, Engineering Change Notice) coming from Japan

Senior Supervisor / Supervisor (Local)

 Head of a single department reporting to the department’s Senior Manager
 Summarizes per process reports

Organizational Theory Prepared by: Jerome S. Policarpio

  Monitor Yield and Shipment
 Training of Personnel, EHS and QMS reports

Engineers / Staffs
 Process Owners
 Yield Monitoring and Failure Analysis
 Line Balancing and Capacity Monitoring
 Documentation (Specifications, Work Instructions, Control Plan and FMEA)

Line Leaders
 Supervise Operators
 Monitoring of Daily Targets

Operators
 Direct (Production Operators, Technicians) and Indirect manpower (Encoder, Clerk, etc)

4. Manpower size (number): by department; total

HR / GS / Finance – 132
Procurement /PPIC – 182
Manufacturing Engineering – 207
Production Engineering - 168
Production – 4100
Quality Assurance – 572
TOTAL - 5361

Assignment no. 2

ON ORGANIZATIONAL EFFECTIVENESS

1. Draw a model of the way the organization creates value. Use the following template of the I-P(C)-O-E
(Refer to Figure 1—1 of Jones’ Chap. 1 – Module 2a2 power point).
Briefly describe its Inputs, Process Conversion), Outputs, and Environment.

Organizational Theory Prepared by: Jerome S. Policarpio

 Our organization is patterned on a manufacturing / production setup. The main inputs are raw
materials needed to be assembled, the workers to operate and perform tasks, specifications (design
documents) that serve as references. The conversions needed are machines, human skills, methodologies, and
quality assurance. The outputs are the finished goods (in case of our organization, we have LCD modules
delivered to various customers). Our organization gives salaries and performance based bonus to its
employees as a reward. Finally, the environment of our organization includes our customers (the main
recipient of our finished goods, which we need to satisfy most), suppliers, competitors and the government.

2. How does your organization define organizational effectiveness (from the point of view of the various
stakeholders? What are the indicators?

Our organization’s measure of effectiveness is by KPI (key performance indicator). For the
Manufacturing Engineering Division (Development Section), our KPI is measured by Defect Ratio Level (Process
Cause Defects) and Shipment Achievement. Defect ratio is set per model depending on its characteristics. For
shipment, our target is 100% shipment quantity and delivered on time.

3. Do an initial analysis of your organization’s major problems/issues. What challenges confront your
organization today, for example, in its efforts to attract customers, increase organizational effectiveness and
operating efficiency? How do its organizational structure, design, and climate to the problems?

Our company produced two major types of LCD modules according to its application. First is for
Consumer and Industrial applications like Cameras (GoPro, Nikkon, Canon, Sony), Virtual Reality (VR) models
(Google, Huawei), and Wearable models (Suunto, Garmin, etc). Second is for Mobile Phone Applications (Sony,
Fujitsu, LG, Huawei, Google, Oppo, etc).

Currently, Mobile application models are losing against its competitors like Samsung, Apple, Oppo (our
company did not get the approval to run continuously on Mass Production), LG and other Korean and Chinese
competitors. The main reason is that the technological capabilities of our company was left behind and
became slow to shift to the new technologies of mobile phones. Competitors already been doing the OLED
Technology in Mass Production while our company is still in its development stage.

This results to the following:

 Reduction of working hours (overtime, Saturday and Sunday operations)
 Abolishment of old and Creation of new departments, tasks and functions
 Management and employee reshuffle
o Have overlapping tasks
o Managers losing their authorities on certain functions

4. What organizational design change do you propose? Why?

 The restructuring of the Research and Development section is important (It is on the Headquarters
company only. TFT-LCD Manufacturing Corporation located in Clark, Philippines has no R&D). The fact
that our technological capabilities was left behind implies that the current R&D setup is not effective.
 At our current organizational setup, Japanese managers on the top hierarchy gives all the decision and
no inputs coming from the local side. Local managers are becoming less effective and efficient. It also
affects human behavior of local employees.
 At our local setup, Engineers and Staffs are per process (1 or 2 staffs per 15 lines) which is too much
work and difficult to monitor. Per model management must be considered.

Organizational Theory Prepared by: Jerome S. Policarpio

 Assignment no. 3
ON YOUR ORGANIZATIONS ENVIRONMENT

Do an initial analysis of your organization (the one you have submitted in Assignment No. 1)

1. Using the following model, list the environmental forces (specific and general) that affect your
organization. You can be specific, for example, under Government: Strict compliance with CHED CMOs; under
Political Forces: Ruling party alliances/patronage.

You may opt to redraw the model and put the specifics within the boxes, or you can simply be enumerative.

In the above figure, the specific and general environments affecting our TFT LCD manufacturing company are
listed.

Specific Environments
1. Suppliers of Different Raw Materials – Selecting the best supplier for our raw materials is one of
the important choices to be made in order to achieve higher yield, higher profits and lower cost for
the organization. High profit demands high quality products to attract more customers and High
quality products starts with high quality raw material (suppliers).

2. Customers – To satisfy our customer’s needs is the top most goal of our organization. In the same
manner that we choose best suppliers, we also aim to be the best supplier for our customer.

3. Sales and Marketing – Getting more orders (higher demands) and selling finished products at most
profitable and competitive price is a factor that can affect our organization’s ability to produce
goods and services. High quality products can produce higher sales and attract more customers
and low quality can make the products sold at a lower price (B-grade).

Organizational Theory Prepared by: Jerome S. Policarpio

 4. Competitors – TFT LCD Manufacturing Company must struggle to be on top against its competitors
(e.g Korean and Chinese manufacturing firms of same LCD modules) to attract more customers.
One way we do this is by adapting new technologies that is OLED technologies (low power
consumption LCD modules) that is used by a well-known Korean LCD firm (Samsung).

5. Government – TFT LCD Manufacturing complies with different government agencies in order to
start and continue operations. Without the compliance, operation will stop and the organization
might face legal issues. Some of the governing agencies we attend are the following:

a. Clark Development Corporation (CDC) – manages all companies inside Clark Freeport Zone
b. Department of Labor and Employment (DOLE) – for Labor issues
c. Bureau of Internal Revenues (BIR) – for employees and corporate taxes
d. Department of Environment and Natural Resources and its Bureaus

6. Accreditations – These are additional certifications of the TFT LCD manufacturing company have in
order to stand out as the best LCD manufacturing company against its competitors and to show
compliance to governing agencies’ requirements.
a. ISO (QMS and EHS)
b. BVJC
c. CDC Audits
d. Safety Audit

General Environments

1. Economic Forces – Purchase of raw materials and Sales are affected by differing Foreign Exchange
rates. Cash flow is affected due to suppliers and customers from different countries with different
currencies. Another factor is Corporate Tax, with the threat of Higher Corporate Tax on the
ongoing Tax Reform Bill for 2018; The Net Cash Flow of TFT LCD Manufacturing Company is
threatened by this planned tax reform.

2. Political and Environment Forces – Additional government policies that have an impact on the
Operations like the new rulings (e.g. Truck Ban, newly declared Holidays, Delay due to government
inspection like Customs Inspection, etc).

3. Demographic and Cultural Forces – TFT LCD Manufacturing is a Japanese firm which has difference
on the culture of its employees. Difference includes management style, behavior, culture,
philosophy, and the like. Another cultural force in the environment is the educational level of
employees. Majority of the employees are from Production which was hired as skilled production
operators.

4. Technological Forces – One of the always changing forces in Semiconductor industries is

technology. In this age that there is a rapid advancement of technology, TFT LCD manufacturing
company must be on this trend, and to be first in introducing new technologies.

2. Based on your observation, analysis and evaluation, what are the dominant environmental forces (specific
and general) that your organization has to deal with to be effective and sustainable? What has your
organization been doing to address the challenges? What other strategies do you propose to be adopted?

TFT LCD Manufacturing is a semiconductor and technology based company. It’s most dominant
environmental forces are its Competitors and its Technological Capabilities. There are a lot of LCD
manufacturing competitors for Mobile Applications around the World. To name some, Apple and Samsung
(our main competitors) are on top of the Mobile Phones marketplace. Oppo, a rapidly growing Mobile on the

Organizational Theory Prepared by: Jerome S. Policarpio

market is also rising on top. TFT LCD Manufacturing main products are Sony, Huawei and Toshiba products. All
of these products are losing on market competitions.

To bridge the gap between its competitors, TFT LCD Manufacturing Company is investing in new
technologies to offer more advanced and high quality products. New machineries capable in producing these
advance technologies already started. Organizational structures were also redesigned which focusses more on
the Development and Improvement of products. In our organization, the Manufacturing Engineering
Department (which houses both the Development and the Improvement Functions) has more attention from
the Japanese Top Management in improving the section.

As for my proposal, it is being complimented that TFT LCD products (like Sony) produces very good
quality products. Problem is that they are economically impractical to buy. In the Philippines, Oppo and Vivo
mobile products are rising in market due to its very good market strategies. Their products are being sold at
very affordable prices for its consumers. I suggest TFT LCD Company should improve its marketing strategies to
capture more market. TFT LCD company must also produce high quality products at a lower price same as
Oppo and Vivo strategies.

Assignment 4
ANALYSIS OF YOUR ORGANIZATION’S STRUCTURE AND CULTURE

Study further your own organizational structure and culture. In the context of the organizational theories,
concepts, and principles write your reflections/analysis on the following as they affect organizational
effectiveness and competitiveness.

1. Organizational Structure:
1.1. Authority and Control

As seen on the above organizational chart of TFT LCD Manufacturing Company, authority and control is
differentiated vertically with a Director and a General Manager heading every department. These positions are
Japanese members. Middle level managers are Senior Managers (mix Japanese and Filipino Local Managers).
Our organization is dominantly centralized in almost all aspects of decision making. For purchase, request,
budget and document approval are signed and approved by the General Manager. With regards to Product’s
Design, Specification, Disposition for Wider Judgment of defects, Decisions are coming from Japanese
members which make it more centralized. Local member’s decision making involves process improvement,

Organizational Theory Prepared by: Jerome S. Policarpio

cost reduction and manpower management. A disadvantage I see in this setup is we encountered queuing due
to we need to wait disposition for certain matters (Sometimes from Japan headquarters) thus making the
organization ineffective in communications.

1.2. Specification/Specialization (Division of Functions) and Coordination

TFT LCD Manufacturing Company is horizontally differentiated based on specialization and functions.
Each department are still divided in Sections by their specific tasks. This setup is same with other
manufacturing organizations. Each department and section focuses on specific tasks that makes our
organization have more specialized workers. One advantage we see in our current setup is that Some
Departments have overlapping and contradicting targets. Example: Mass Production, Manufacturing and
Production Engineering have its own improvement actions which contradicts each other. An improvement
item for 1 defect will cause another defect. Another example: Manufacturing and Production Engineering
Departments will improve the process and operations which will affect the tact time per process, thus it affects
the Planning Department Goals (Shipment).

In Summary using SWOT Analysis,

Organizational Theory Prepared by: Jerome S. Policarpio

2. Organizational Culture.

Note: You may answer 1 and 2 above from a SWOT Analysis Approach
S = Strengths (including best practices and arrangements internal to the organization which contribute
to organizational effectiveness and competitiveness)
W = Weaknesses (difficulties, problems, internal to the organization) which negatively affects
organizational effectiveness
O = Opportunities (conditions, forces, arrangements external to the organization which could be
tapped to contribute to organizational effectiveness and competitiveness)
T-Threats (conditions, forces, arrangements and challenges external to the organization which need to
be addressed)

3. Proposals for Innovative Change to (a) sustain and elevate the Strengths and take advantage of the
Opportunities and (b) address/solve/eliminate the Weaknesses and Threats - to increase organizational
effectiveness and competitiveness

With TFT LCD Manufacturing Company operating in a Technological market and its products (Mobile)
with always high market demand, it is important that the organization must have Competent Technological
Capabilities against multiple competitors and be flexible in rapidly changing trend in technologies. To add also,
Research and Development of new products must also be focused to achieve market advantage. Japan Display
Group of Companies (which includes TFT LCD manufacturing company) has geographical advantage in which it
has different manufacturing plants in Asia (in Japan, South Korea, China, Thailand, etc...). It can be a good
training ground to give technical experiences to its workers. Together with providing career advancement
opportunities, it can help to reduce employee turnover rate. To improve Organization effectiveness, increasing
the flexibility of local management must also be promoted so issues and problems that aroused can be easily
solved.

Organizational Theory Prepared by: Jerome S. Policarpio