Four Functions of Management (KASB Securities Pak)

Analysis of Four Management Functions

Group members:

Misbah HemaniJawaria HameedSaroosh Zahid

Monday, April 10, 2023

K.A.S.B Securities

Video

COMPANY PROFILEIndustry Investment Services

Core areas of business business of stocks, money market, foreign exchange and commodity broking, economic research and investment consultancy services

Registered Capital in PKR 249.56 million

Total assets in PKR 2,027.4 million

Years in business 11 (since 2000)

Number of employees Not mentioned

Net income in PKR -24.75m

DIVISIONS

KASB Bank

KASB Remit

KASB Securities

KASB Direct

KASB Funds

KASB Modraba

• Research Question - How does management at KASB Securities plan, organize, lead and control its resources to achieve organizational goals?

FOUR FUNCTIONS OF MANAGEMENT THEMESPlanning Process of planning

Types of planning Functions involved in the planning Frequency of planning

Organizing Resource allocation Specific individual responsibility

Leading Leading through motivation

Controlling Controlling by monitoring performance

Controlling by supervising implementation

Controlling by taking corrective actions

METHODOLOGY• Inductive approach • In-depth interviews with higher management • Each interview lasted from 30 to 45 minutes• Profile of Managers - five employees at managerial level

volunteered to participate but chose the option of anonymity

Manager Gender Education Years at KASB

Mr. Ali M Bachelors 1

Mr. Ashar M Masters 2

Mr. Sohraib M PhD. 4

Mr. Abdullah M Masters 2

Mr. Huzaifa M Masters 3

PLANNING “Defining goals, setting specific

performance objectives, and identifying the actions needed to

achieve them” (Schermerhorn et al., 2000, p. 11)

Four aspects in relation to planning• 1. Process of planning• 2. Types of planning• 3. Functions involved• 4. Frequency of planning

THEME 1:PROCESS OF PLANNING

• Corporate Management goals identified at the beginning of year.

• Broken and passed down to subsidiaries.

• The fundamental goal of KASB Securities is to be Pakistan's premier Brokerage Franchise.

• Managers also contribute to the overall organizational planning

• First job is to build good understanding of the vision, goals and the expected role of his department.

Speaking of the different roles employees have in the organization, Mr. Abdullah stated:

“All the employees here are assigned strategic goals. These goals, even though not exceedingly clear cut or very specific,

provide the employees with enough direction to perform their tasks. There are

no established or conventional departments, and everyone in the

organization serves multiple roles. This allows them to be well-rounded have know-how of how everything works.”

THEME 2: TYPE OF PLANNING• They used was basically time-wise planning • E.g. long versus short term• He said that mostly managers used time lines to

define primary plans.

• Usually annual plans and quarterly plans.

•Their plans fall under the category of short-term planning

THEME 3:FUNCTIONS INVOLVED IN THE PLANNING

PROCESS• The planning indicated that there was employee

participation• Staff members were invited to the table to brainstorm

and swap ideas. • Feedback is sought afterwards and then incorporated

into the final plan. • However, the responsibility of the final decisions rests

by the managers themselves.

THEME 4:FREQUENCY OF PLANNING

• Annual decisional plans were to be formulated at the start of the year,

• These plans were formulated through meetings and formal as well as informal gatherings.

• “Done through mainly the internal discussions.”

ORGANIZING• Organizing is usually interpreted as creating work

structures and systems, and arranging resources to accomplish goals and objectives

(Schermerhorn et al., 2000)

• One aspect of this function is organizing work by dividing up tasks. another essential aspect is matching people with work by delegating tasks and the authority

to use the organization’s resources. (Mescon et al., 1981).

There were two main areas of Organizing

1. Resource allocation

2. Specific individual responsibility

THEME 1: RESOURCE ALLOCATION

• How the managers decided on resources allocation and what criteria they used to divide up work?

• First priority is to create the annual divisional business plan, according to the urgency of task

• There are fundamentally two major departments within KASB Securities

1. The Front Office 2. The Back Office

Step by Step deployment Employees share resources Employees have no specified roles and

perform a multitude of tasks. To have a flatter structure within the

organization.

“A clear division of tasks without boundaries allows for better collaboration among

employees.”(Mr. Abdullah, KASB Securities)

KASB Securities has their own award

winning research department

THEME 2: SPECIFIC INDIVIDUAL RESPONSIBILITY

• Managing the HR is very important for an organization.

• At KASB Securities, the specific individual tasks are more reflective of function-based jobs.

• Mr. Sohraib’s role in HR is of a facilitator.

“There are functional and departmental heads in the organization and the HR

department decides which talent is most suitable for which job.”

(Mr. Sohraib KASB Securities)

•Each employee within the organization has know-how of the way each department works and functions•New employees are “rotated around”. They spend approximately three months each in the different departments

CONTROLLING

“We have a hands off approach with the smaller results; but a

strong focus on long term results”

(Mr. Nadir Rehman,

CEO of KASB securities)

THEME 1: MONITORING PERFORMANCE

• Employee empowerment• Lack of interference by Management

“Qualitative performance appraisal is not a part of the system. The HR assembles details of whether and how set targets

are realized (thus performance appraisal is predominantly quantitative)”

(Mr. Sohraib, KASB Securities)

THEME 2: SUPERVISING IMPLEMENTATION

• Minimum need of supervision • Progress reports• Informal communication (e.g. grapevine)

•“Every day when I come to office, I begin my day with taking my cup of tea and

moving around to strike up conversations with other

people in my department.”(Mr. Asher, KASB Securities)

THEME 3: TAKING CORRECTIVE ACTION

• Importance of providing constructive criticism• Work is evaluated by the HR department

““If some employee consistently fails to complete his/her tasks

and meet targets, they are given a warning. Then a special

assignment is given to him/her in order to check his/her ability. If

the person fails to produce effective results, he/she is given a time of 2 months to find a new job and then he/she is sacked.”

(Mr. Asher, KASB Securities)

LEADING“Leading is when managers instill enthusiasm by communicating with

others, motivating them to work hard, and maintaining good

interpersonal relations”(Schermerhorn et al., 2000)

COMMUNICATION • Mr. Asher at KASB securities: he finds motivation

through verbal communication an integral component of “inspiring employees”

“It is profits that matter at the end of the day”

ROLE OF MOTIVATION• Tasks are increasingly complex and demanding.

• Employees are requires to “do more” at all times.

• Task of motivating then becomes more difficult and challenging.

STRATEGIC INITIATIVES Training

programs (analyst

programs)

Investing in service culture

Strategic Initiatives

TRAINING PROGRAMS• Securities market in Pakistan is still in its “embryo

phase”• Essential for management to provide continuous

training• Initial resistance to training from employee side• Slowly and gradually they opened up to training and

development.

DEVELOPMENT OF SOFT SKILLS

• Relatively new trend: development of soft skills.• Plays a critical role in personal development.

CULTURE Four categories of cultures have been formally

defined on the basis of focus on human needs and the task needs.

• Achievement culture• Adaptive culture• Involvement culture• Bureaucratic culture

“The basic sources of motivation for staff at KASB Securities are

Job enrichment and employee empowerment”

(Mr. Ali, Manager)

CLASSIFICATION OF CULTURE• The overall culture at KASB securities is an

Achievement Culture.• Tasks are assigned to individuals or usually

teams.• The final result and its details such as deadline

are provided.• The entire responsibility and authority regarding

execution is left on employee.

Thus employee empowerment.Quantitative results (i.e. numerical facts/results) are

then evaluated to judge the overall performance.Hence achieving the targets is what is essential.

ROLE OF ETHICS• The group chairman Nasir Ali Shah

Bukhari is very particular about this.• Exercises his power as well as

position to emphasize the role of ethics and integrity

• Insider trading practice is strongly discouraged

• Top management is extremely critical of such activities.

Conclusion

Purpose

Planning

Organizing

Leading

Controlling

Planning

top management:

strategic goals and

objectives

goals are then

divided

short-term goals

identified

individual tasks: function-based

jobs

Organization

• Basic principle: Employee empowerment• No specified tasks for individuals• Job enrichment & job rotation• Best department: the research department

Leading: culture

• Culture of organization: Achievement Culture

• Employees are encouraged to work to their best and give as much as they can to complete a task.

LEADING

motivating through verbal communication

growth incentives

Job enrichment (and

empowerment)

Significant weight on ethics

and morality

Controlling

• Keeping check on employee activities is discouraged.

• Constructive criticism is provided• HR is involved in evaluation of performance• Technology oriented.

Questions?