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Digital Chocolate Organizational Behavior Issues

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Digital Chocolate has the competency and necessary resources to succeed in the mobile gaming industry. CEO and founder Trip Hawkins has an extensive background with over 30 years of experience in the gaming and mobile phone industry. Hawkins is also a graduate from Stanford University and has marketing experience that he gained while at Apple Computer. As an entrepreneur, he had the capability of identifying opportunities and transforming it into a success. As with Digital Chocolate, Hawkins was able to recognize that computers would be the perfect fit for a gaming platform. There is no doubt that his business background makes him the right fit for the mobile gaming industry. Digital Chocolate possesses a multi-cultural and international organizational structure. Its structure is split between creativity/innovation and operations, with a focus on cost reduction and increased profits. Although the company has an entrepreneurial culture and embraces creativity, evidence proves differently. In 2005, Hawkins stated, “About 50% of senior managers were not working out, primarily due to personality issues. In a company like ours, everyone has to play on the same team in order to win. If we have too many solo flyers, the company will not succeed.” With a statement like this one, it is easy to assume that as the company grows, it will face many issues when attempting to add additional team members. The organization’s culture will be stunt, thus, preventing potential talent from evolving. Another issue that Digital Chocolate is faced with is its top down approach to reviewing employee performance. Employees are appraised based on past year contributions, employee strengths, and employee conformity to company values. This method leads to a very biased performance assessment and it does not allow for employee feedback. Hawkins management style is contradicting to what he speaks about. He says he believes in creativity and receiving input from everyone. However, the truth is that only the voice of those in his executive team and his key employees are heard. This type of performance review is not in sync with Paananen’s management style, which focuses on “enabling success” and allowing developers’ creative freedom. Hawkins’ is well aware that Paananen has the capacity to manage creative talent. Therefore, it is reasonable to say that if Hawkins took over the creative side of the firm, there would be a notable decrease in Digital Chocolate’s creative production. Digital Chocolate has a very large gap between the young developers and the older executive team. This could pose a problem, especially when many of the competitors who have very young staff, also have much shorter development times than Digital Chocolate. This is could be due to Finland’s creative team’s focus on developing games that are guaranteed approval by the “older” executive team. As Loia stated, “Our team in Finland has become very good at creating traditional mobile games, and the executive team tends to give the go-ahead to most of the traditional games presented.” Finland’s creative team is more concerned with getting approved, thus lacking focus on creating innovative games.

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[ 1 ]. Hill & Wagonfeld, 2009, p. 5
[ 2 ]. Hill & Wagonfeld, 2009, p. 8

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