The Managerial Process of

RahimafroozSubmitted to

Tasmia Ekram(TsE)

MGT210

Section:24

Summer 2012

GROUP 8

Name ID#

1. Shabnin Shahrin 11105750302. Sharzin Shavina Reza 11107730303. Zobaidur Rahman Ovi 11207460304. Fatema Tuz Zohra 1120082030

Presented By:

IntroductionRahimafrooz is one of the respected and reputed business houses in Bangladesh. Rahimafrooz has endured turbulences of the last 62 years and has been able to transform itself from a small trading company into a leading diversified business house. Today Rahimafrooz is the market leader with covering eighty percent of the battery market share.

Rahimafrooz was founded as a trading company in 1950 by Late Mr. A C Abdur Rahim.

In 1954the company was incorporated as a limited company called Rahimafrooz (Pak) limited. In 1959 it entered intro joint venture with Lucas, U.K. to set up a modern automotive battery factory.

History

Organizational Overview

• Aim:– To be the most admired and trusted organization

through excelling in everything they do, following ethical business practices and adding value to stakeholders.

• Vision:– Be an enterprising Group of Taka 2000 crore by the

year 2017 with a diversified business portfolio focused on dynamic growth, excellence, innovation, customer delight in enriching our world.

Organizational Overview (contd.)

• Mission:– To improve profitability by 30% every year.– To achieve zero defect by adopting an advanced process technology.– Continuous cost improvement.– To ensure performance oriented culture through employee

empowerment.• Values:

– Integrity in Dealings– Excellence in everything done– Total commitment to customer satisfaction– Thinking ahead and taking new initiatives– Valuing and inspiring people

Balancing Effectiveness and Efficiency

• Rahimafrooz balance their effectiveness and efficiency through the minimal usage of both raw materials and production wastage. For example: they collect their used batteries through the authorized dealers and recycle it. They take about 3 months to implement a new project. So the period is short and so they are able to launch their products before others. In terms of time, they are efficient.

Effectiveness

Efficiency

Managerial Functions

Planning

Decision Making

Organizing

Staffing

Communicating

Motivating

Leading

Controlling

Managerial Functions

1. Planning: This process begins at the level of board of directors’ by generating the ideas of new project. After studying the project its carried out by the SBU head. After proper clarification of the plan, the project goes to the Board of Directors for approval.

There’s always a Plan B, if Plan A fails.

2. Decision Making: The profitability and shortcomings of the proposed projects are evaluated by the board members. The best prototype of project is chosen and then its reevaluated and thus authorized.

Managerial Functions3. Organizing:

The management process is organized as the organizational chart :

COOHead of Marketing

Marketing solar Battery

Marketing Export Battery

Marketing Local Battery

Marketing VRLA

Head of Finance

Head of Engineering & Technology

Head of Human ResourcesTraining & Development

Recruitment

HR Service

Supply Chain ManagerFactory Manager

Head of Maintenance

Head of charge & VRLA production

Assembly & Production

Head of Warehouse

Head of Quality Assurance

Managerial Functions

4. Staffing: At the beginning of the year, in the Annual Business Plan meeting they decide the number of employees needs to be recruited.But incase they feel the need for more employees at the middle of the year, they conduct the recruiting process immediately.

5. Motivating: Rahimafrooz motivates the employees by-– Individual Development Planning (IDP)– Career Growth Planning– Promotion Policy (According to performance)– Hospitalization Policy– Skim Insurance (Top-Down Managerial Section)– Retirement Skim

Managerial Functions

6. Controlling: This process is conducted when the initial project doesn’t meet the desired goal. Rahimafrooz only controls the faulty part of the project rather than changing the whole project.

7. Communicating: Follows two-way communication process. Things below are achieved through this:– Clarity of goals & benefits– Ownership & Accountability– Setting action plans & deadline– Allocation of resources– Harnessing right skills

Management Practice of Rahimafrooz

• Rahimafrooz follow the “Contingency view” of Contingency Approach.

• They are ISO9001 certified and there are some fixed rules and regulations by ISO. Except these rules they make their decisions depending on the changing situations.

Environmental Analysis

• According to the New Social Contract, the relationship between employer and employees of Rahimafrooz is based on convenience and mutual benefit of themselves.

• Rahimafrooz highly follows the EEO. They give equal importance to women, old, minorities, and physically challenged people in employment opportunities. According to the abilities their jobs are rotated.

There is an age limit of 60 years. But a person might continue working if he’s physically fit and eligible for the job.

PEST Analysis of Rahimafrooz

• Political Factors:– Environmental regulations are effective.– Timely payment of tax.– In the unstable political environment, their production and

distribution is hampered.– No harmful chemicals are used that can make safety issues.

• Economical Factors:– In our country value of money fluctuates a lot. So, international

business is harmed.– Middle class and higher level spending power is well enough which

is helpful for Rahimafrooz.– In summer, the IPS business is profitable because of frequent load

shedding.

PEST Analysis of Rahimafrooz• Social Factors:– Our country’s GDP is growing, living standard growing,

so purchasing power rises that positively affects Rahimafrooz.

– People are being educated day by day. So earning ability is growing and thus their purchasing power increases.

• Technological Factors:– Electricity is available in most of the regions of our

country. So, positive affect on Rahimafrooz.– Because of increasing use of computer and internet,

people can go through the quality products of Rahimafrooz in their webpage.

Management of Political Response Continuum

• Rahimafrooz follows the Proactive approach in responding to the social and political issues.

• They follow the norms and regulations of government and make themselves improved in performance to avoid the political attacks and government intervention.

Political Legal Environment

Through Indirect Lobbying Rahimafrooz maintain the political-legal environment.

– Building school in Bogra,– One fan and one light policy in some

rural areas.

Innovation Process of Rahimafrooz

1. Conceptualization- Idea generation of a new product

2. Product Technology- Product evaluation - Feedback from Board of Directors- Customer segmentation- Authorization from Board of Directors.

3. Production Technology- Setting Cost of the product- Buying efficient machine according to the product- Conducting the production process.

Innovation Process

• The innovation lag of Rahimafrooz is 3 months.

• The innovation lag is short because-– They bear the sense of urgency and purpose.– Employees from each and every level can come up

with ideas and these are highly valued.

Corporate Social ResponsibilityETHICAL RESPONSIBILY

LEGAL RESPONSIBILITY

ECONOMIC RESPONSIBILITY

Corporate Social Responsibility

• Economic Responsibility: The main aim of Rahimafrooz is not only to make profit but also survive in the market.

• Legal Responsibility: They follow the legal business practices by excelling in everything they do. Tax payment, no use of un-approved materials in the batteries, labels on packaging etc are given properly.

Corporate Social Responsibility

• Ethical Responsibility: Rahimafrooz follow the ethics strongly inside and outside of the organization. They sell the products that was promised to the customers.

• Philanthropic Responsibility: They add value to the society by creating a not for profit social enterprise. – “Rural Service Foundation” (RSF)– “Dhaka Project”

Social Responsibility Strategies

• Rahimafrooz follow proactive strategyTaking the initiative with new programs that serve as models for the industry.

– For example: Previously the industries used to pollute the environment as there had no environmental policies. But Rahimafrooz forced Bangladesh government to develop and implement environmental policy for reducing pollution.

It was a voluntary action for Rahimafrooz.

The Ethical Dimension of Management

• Business Ethics– They don’t involve in any

unethical practice that gives rise to ethical issues.

– In their factory they don’t use child labor.

– They don’t use any harmful chemicals in their products.

Coping with Uncertainty

• Plan: As long as there are many uncertainties for their business, Rahimafrooz don’t do anything without a certain plan.

– If they want to implement a new product line, they do planning to cope up with the three types of uncertainties.• State Uncertainty• Effect Uncertainty• Response Uncertainty.

Coping with Uncertainty

Three Types of Uncertainties for Rahimafrooz• State uncertainty: involves any types of uncertainties

like the recession, inflation, increase in the price of raw materials will happen or not.

• Effect uncertainty: If any types of uncertainties like recession, inflation, increase in the price of raw materials take place what will be the effect on the company.

• Response uncertainty: If the uncertainties occurs, what will be their response towards their uncertainties.

Coping with uncertainties

• Organizational Response to Uncertainties By Rahimafrooz:

Prospectors: As long as they are the first mover in the industry, they get unique advantages over others. That helps them to cope with the uncertainties.

For example: They are able to build strong brand value for Lucas Battery. That means if anyone thinks about the battery of a car, the first name comes to the person’s mind is Lucas Battery.

Planning Process

Means End Chain Objectives

Produce 5000 batteries per day

Production of 1.50,000 batteries after every month

After a year production of 18,00000 batteries

Means

Means

End

End

Top Management

Lower Management

Middle Management

The MBO Cycle of Rahimafrooz– Step 1: Setting objectives

• They set their obj. for that particular job that is to be done. For example: when they launch the IPS, they set a objective to sell 200,000 IPS at Dhaka city.

– Step 2: Developing action plans• They develop Promotional activities for the sales of IPS.

– Step 3: Periodic review• Periodic review on promotional activities to know if the action plan

is working or not.

– Step 4: Performance appraisal• According to the performance of the promotional activities of IPS

selling, managers are given a feedback by the Board of Directors.

Competitive Strategy of Rahimafrooz

• Strategic Management– Rahimafrooz ensure the sustainability in the

changing environment of market by doing the strategic management process.

Differentiation

Broad Target

Higher Qualit

y

• Pricing Strategy– Rahimafrooz follows the

differentiation strategy.Competitive Advantage

Competitive Scope

• Forecasting technique:– They use Trend Analysis to predict the

future business environment or the future business scope.

Forecasting of Rahimafrooz

Organizational Behavior

• Rahimafrooz is a business organization that makes profit in a socially acceptable manner.

• Rahimafrooz follows the modern view in organizational behavior. – Situational decisions are taken– Open-system interaction with the environment

Organizational Effectiveness and Efficiency

• Rahimafrooz use minimal resources to get a perfect output from their production process. And finally the job gets done properly.– For example: To launch the Agro products they did

market survey for 8 months. Only a team of 4 employees from marketing department did the survey and the feasibility study. Then, they were able to launch the Agro Products successfully.

Characteristics of Organizational Cultures of Rahimafrooz

1. Collective: Employees from different parts of Bangladesh work here regardless their regions. So, cultures from different parts of the country meet here and create a collective environment.

2. Historically based: This company is serving the country successfully since 1954. In this long way they have earned trust and loyalty from every class of customers and the employees.

3. Inherently symbolic: They not only talk about their success, but also do business successfully.

People centered HR practices of Rahimafrooz

• Employees are highly empowered in Rahimafrooz. • According to the performance the employees are

compensated. • All the employees are given training to know the tasks

they need to accomplish in a given job. • Upper level employees keep a good and mutually

understanding relation with the lower level employees.

• The key information are shared as every employee at different stage may get aware of the objective of the firm.

HR strategy of Rahimafrooz

• They periodically recruit employees:– Generally at the beginning of the year.– Also at any period of the year based on their

needs.• Recruitment process of Rahimafrooz starts at

the Annual Business Plan (ABP) meeting based on market and business state.

• They follow PROCEED model for the Selection of employees.– Everyone will have to go through this process.

HR strategy of Rahimafrooz

• PROCEED model:– Prepare

• In-house search for the post. • Create a job description for the position.• Identify the skill based on their job requirements.• Draft interview questions based on the post of the job.

– Review• They review the questions so that the questionnaire doesn’t hurt any

individual.

– Organize• The Board of Directors, Senior Officers from the respective SBU form

the interview team.• They are assigned to do different roles.

HR strategy of Rahimafrooz

• Steps in the PROCEED model (cont’d):– Conduct

• Gather data from the job certificate

– Evaluate• On the basis of the interview they evaluate if the candidates

are eligible enough to meet the job requirements.

– Exchange• Discussion among the interview team members and

unofficially take the decision whether the employee should be selected or not. Here the different team members give their own opinion regarding who should be selected.

– Decide• Actually take the decision who is selected for the job.

HR Strategy of Rahimafrooz

• Equal Employment Opportunity (EEO)– In the interview board they don’t ask any question that

discriminate the candidates on the basis of race, colour, sex, religion, age, national origin, disability etc.

• Affirmative Action– Though they don’t have any quota system, for ethnic

minorities or physically challenged people they actively seek out, employing, and developing the talents of those groups who are traditionally discriminated against in employment. For example: they favour to select ethnic minorities like chakma, marma and so on for their field level activities that doesn’t require higher level academic background and they train those people properly.

Some Issues of Rahimafrooz

• It is hard for the employees to move from one SBU to another SBU because their moving plan is not flexible enough.

• No transparency of information in all units of management because of their complex managerial process.

Solutions to these problems:

• Flexible working plan for employees of each SBU so that one can easily move from one SBU to another.

• The managerial process should be simpler so that the information can flow through the departments in a flexible way.

Conclusion

• In spite of having some issues, Rahimafrooz is excelling in doing business throughout the country and serving the country to their optimum level.

QUESTIONS?