Srba Markovic - Organisation and Company Development

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Welcome

Module

Organisation and Company Development

Trainer: Srboljub Markovic

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Relation to other modules

1. Public appearance skills 2. Management skills

3. Organization and Company Development

4. Local Business Opportunities 5. Business Communication 6. Business Plan Writing7. Financial management and accounting8. Public appearance skills

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Program first day

• Introduction BSC Kragujevac

• Introduction participants

• Training agreement

• Program of the week

• Introduction topic of the day

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Training agreement• Confidentiality• Attend whole week (5 – 9 May)• Start and end ‘on time’: 09.00 – 13.00 hours• Short comfort breaks 10 minutes • Switch off mobile phones• Only one person talks at one moment• Every participant gives at least 1 presentation• Individual counseling after 13.00 hours

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Introduction of participants

• Name, education, experience

• Expectation of the training/module

• Elevator pitch on Business idea– More information in next slide

• Take 5 minutes to prepare

• Total time to present: 1 minute!

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Elevator Pitch (60 seconds)

• Catch attention• Pitch

– What is your product or service?– Who is your market?– How will you make money?– Who is behind company?– Competition?– Competitive advantage?

• Show your passion• End with request

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Program of the week

• Monday – Entrepreneurship and motivation, Organisation

• Tuesday – Human Resource Management (HRM)

• Wednesday – Project management• Thursday – Production and Operations

management• Friday – Practical work in a leading

production company

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Agenda – topic of the day:

Monday – May 5, 2008

•Entrepreneurship and motivation,

Organisation

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Who are entrepreneurs ?

• Person who creates a new business, in the face of risk and uncertainty, for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them.

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Characteristics of Entrepreneurs

• Need for Achievement

• Willingness to take Risks

• Self-Confidence

• A need to Seek Refuge

• Diversity – regardless on age, gender, race, background

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Options we all have ???

Run own business

OR

Work for somebody else

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Rewards of being an Entrepreneur

• Possibility of unlimited profits

• Independence - doing what s/he likes and enjoys, and have control over the life and destiny

• Satisfying way of life

• Contribute to society and be recognized for my efforts

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Drawbacks of being an Entrepreneur

• Long hours and hard work (usually it associates with stress)

• Uncertain income and BIG possibility of business failure

• Risk of losing invested money

• Lower quality of life in early stage

• Complete responsibility

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Leadership

• The nature of leadership

• Who are leaders?

• What makes them leaders?

• Different leadership styles

• Are leaders born, or is it possible to become a leader?

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A leader:

• innovates

• develops

• focuses on people

• inspires trust

• has an eye on the horizon

• does the right things

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Leadership Styles

• Autocratic style

• Paternalistic style

• Participative style (Democratic)

• Consensus style

• Laissez-faire style

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Business Functions

• Human Resources Management• Marketing and Sales• Research and Development • Production/Operations• Customer Service• Finance and Accounts• Administration and IT

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Human Resources

• Recruitment and retention– Job descriptions– Person Specifications

• Dismissal• Redundancy• Motivation• Professional development and training• Health and safety and conditions

at work• Liaison with trade unions

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Marketing and Sales

• Market research• Promotion strategies• Pricing strategies• Sales strategies• The sales team• Product – advice on new product

development, product improvement, extension strategies, target markets

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Research and Development

• New product development• Product improvements• Competitive advantage• Value added• Product testing• Efficiency gains• Cost savings

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Finance and Accounts

• Cash flow– Monitoring income/revenue– Monitoring expenditure

• Preparing accounts

• Raising finance – Loans

• Links with all other functional areas

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Production/Operations

• Acquiring resources• Planning output – labour, capital, land• Monitoring costs• Projections on future output• Production methods

– Batch– Flow– Job – Cell

• Efficiency

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Customer Service

• Monitoring distribution

• After-sales service

• Handling consumer enquiries

• Offering advice to consumers

• Dealing with customer complaints

• Publicity and public relations

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Administration and IT

• Managing estates – cleaning, health and safety, maintenance, security

• Reception• Clerical work – reporting, recording,

record keeping, communication• Overview of quality control• Use of IT systems

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Organisation Charts

Hierarchical Structure

Managing Director

Sales DirectorMarketingDirector

Finance Director

A B C D Market Research

Strategy PurchasingManager

Sales Manager

AccountsManager

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MD

Middle Management

Workers

Pyramidal Structure

SeniorManagement

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R&D

Marketing Sales

Production

Finance

MD

Centralised/Entrepreneurial

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Sales

Marketing

Production

Accounts

Collaborative

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Marketing Sales

ProductionFinance

R&D

Circular/Flat

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Project

Marketing

R&DSales

Finance

HRProduction

Matrix Structure

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Organisation Charts

• Changes to business structures • Linked to new thinking on leadership

and management• Less hierarchical• Emphasis on communication

and collaboration between sections• Global businesses – more complex

structures

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Corporate Culture

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Corporate Culture

• The beliefs and values shared by people who work in an organisation– How people behave with each other– How people behave with customers/clients– How people view their relationship with

stakeholders– People’s responses to energy use, community

involvement, absence, work ethic, etc.– How the organisation behaves to its

employees – training, professional development, etc.

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Corporate Culture

• May be driven by:

• Vision – where the organisation wants to go in the future

• Mission Statement – summary of the beliefs of the organisation and where it is now

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Corporate Culture

• May be reflected in:– Attitude and behaviour of the leadership– Attitude to the role of individuals in the

workplace – open plan offices, team based working, etc.

– Logo of the organisation – The image it presents to the outside

world– Its attitude to change

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End of day 1

• Conclusions

• Further readings

• Individual consulting on request

Thank you on your attention !

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Agenda – topic of the day:

Tuesday – May 6, 2008

•Human Resource Management

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Day 2 – HRM

• Introduction• Summary of previous day• Objective of the day• Training

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Human Resource Management

• HRM deals with management of people

• People is a dominant factor that makes difference between SUCCESS and FAILURE of the company.

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Human Resources Management

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Recruitment

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Recruitment• The process by which a job vacancy

is identified and potential employees are notified.

• The nature of the recruitment process is regulated and subject to employment law.

• Main forms of recruitment through advertising in newspapers, magazines, trade papers and internal vacancy lists.

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Recruitment• Job description – outline of the role

of the job holder• Person specification – outline

of the skills and qualities required of the post holder

• Applicants may demonstrate their suitability through application form, letter or curriculum vitae (CV)

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Selection

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Selection• The process of assessing candidates and

appointing a post holder• Applicants short listed –

most suitable candidates selected• Selection process –

varies according to organisation:

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Selection• Interview – most common method• Psychometric testing – assessing the personality of

the applicants – will they fit in?• Aptitude testing – assessing the skills

of applicants• In-tray exercise – activity based around what the

applicant will be doing, e.g. writing a letter to a disgruntled customer

• Presentation – looking for different skills as well as the ideas of the candidate

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Employment Legislation

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Employment Legislation• Increasingly important

aspect of the HRM role

• Wide range of areas for attention

• Adds to the cost of the business

Even in a small business, the legislation relating to employees is important – chemicals used in a hairdressing salon for example have to be carefully stored and handled to protect employees.

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Discipline

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Discipline• Firms cannot just ‘sack’ workers• Wide range of procedures and steps

in dealing with workplace conflict- Informal meetings- Formal meetings- Verbal warnings- Written warnings- Grievance procedures- Working with external agencies

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Development

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Development• Developing the employee

can be regarded as investing in a valuable asset- A source of motivation- A source of helping the employee fulfil potential

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Training

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Training• Similar to development:

- Provides new skills for the employee- Keeps the employee up to date

with changes in the field- Aims to improve efficiency- Can be external or ‘in-house’

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Rewards Systems

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Rewards Systems

• The system of pay and benefits used by the firm to reward workers

• Money not the only method

• Fringe benefits

• Flexibility at work

• Holidays, etc.

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Trade Unions

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Trade Unions• Importance of building relationships

with employee representatives• Role of Trade Unions has changed• Importance of consultation

and negotiation and working with trade unions

• Contributes to smooth change management and leadership

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Productivity

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Productivity• Measuring performance:• How to value the workers contribution• Difficulty in measuring some types of output

– especially in the service industry• Appraisal

- Meant to be non-judgmental- Involves the worker and a nominated appraiser- Agreeing strengths, weaknesses and ways forward

to help both employee and organisation

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Final remarks

• People create good ideas, products and services; they don’t come from the equipment, infrastructure or capital.

• This is why we need to employ the best candidates.

Who is the best candidate?

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End of day 2

• Conclusions• Further readings• Individual consulting on request

Thank you on your attention !

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Agenda – topic of the day:

Wednesday – May 7, 2008

•Project management

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Day 3 – Project management

• Introduction• Summary of previous day• Objective of the day• Training

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What is a project?• A project is a sequence of unique, complex

and connected activities that are completed to achieve one goal or purpose in a limited timeframe.

• A project is a temporary endeavor to achieve a stated objective: specific start and end dates specific deliverables based on SoW consumes resources: people, time, money,

machines, materials often has a defined budget

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Project scheduling• Split project into tasks and estimate time and

resources required to complete each task.• Organize tasks concurrently to make optimal

use of workforce.• Minimize task dependencies to avoid delays

caused by one task waiting for another to complete.

• Dependent on project managers intuition and experience.

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The project scheduling process

Estimate resourcesfor activities

Identify activitydependencies

Identifyactivities

Allocate peopleto activities

Softwarerequirements

Activity chartsand bar charts

Create projectcharts

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Bar charts and activity networks• Graphical notations used to illustrate the

project schedule.• Show project breakdown into tasks. Tasks

should not be too small. They should take about a week or two.

• Activity charts show task dependencies and the the critical path.

• Bar charts show schedule against calendar time.

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Task durations and dependencies Activity Duration

(days) Dependencies

T1 8

T2 15

T3 15 T1 (M1)

T4 10

T5 10 T2, T4 (M2)

T6 5 T1, T2 (M3)

T7 20 T1 (M1)

T8 25 T4 (M5)

T9 15 T3, T6 (M4)

T10 15 T5, T7 (M7)

T11 7 T9 (M6)

T12 10 T11 (M8)

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Activity network

start

T2

M3T6

Finish

T10

M7T5

T7

M2T4

M5

T8

4/7/03

8 days

14/7/03 15 days

4/8/03

15 days

25/8/03

7 days

5/9/03

10 days

19/9/03

15 days

11/8/03

25 days

10 days

20 days

5 days25/7/03

15 days

25/7/03

18/7/03

10 days

T1

M1 T3T9

M6

T11

M8

T12

M4

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Activity timeline4/7 11/7 18/7 25/7 1/8 8/8 15/8 22/8 29/8 5/9 12/9 19/9

T4

T1T2

M1

T7T3

M5

T8

M3

M2

T6

T5

M4

T9

M7

T10

M6

T11M8

T12

Start

Finish

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Critical Path Analysis• May be used as part of the decision making process• Enables a firm to plan and monitor operations• Time related – identifies the maximum time for an

operation to be completed• Identify potential problems in implementing operation• Identifies where and when resources (including

human ones) are needed

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CPA – the Process• Identify and prioritise the activities• Identify which activities MUST be done

before others• EST – identify earliest start time• LFT – identify latest finish time• Identify the FLOAT – tasks which can be

completed outside the critical path• Identify the critical path – points connecting

ESTs and LFTs (where these are the same)

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Critical Path Analysis

Nodes: Show the start and finish of a task

1 2

Node numbers showing order of activities in the left hand semi-circle

of each node.

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Earliest Start Time (EST)

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Latest Finish Time (LFT)

A

3

B

5

Arrows indicate the order of the tasks, the

letter above shows the order, the

time period below the

arrow

The Critical Path

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End of day 3

• Conclusions

• Further readings

• Individual consulting on request

Thank you on your attention !

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Agenda – topic of the day:

Thursday – May 8, 2008

•Production and Operations

management

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Day 4 – Production and Operations management

• Introduction• Summary of previous day• Objective of the day• Training (we have a guess speaker)

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Answer the following questions

1. Identifying production program/services2. Main characteristics of production process?3. Selection of technology and needed

equipment?4. Main producers and suppliers?5. Technical requirements (electrical supply,

water supply, sewerage, etc.)?6. What are your costs of production?7. Future investments in equipment?

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Quality

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Quality Control

• The responsibility of every member of the workforce for the quality of products and services provided by the business.

• Emphasis on reducing defects, etc. before it gets to the final stage of production and certainly to the consumer.

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TQM (Total Quality Management)• Name given to quality control• Features of TQM:

– Quality Circles – meetings of relevant workers to discuss issues relating to maintenance and improvement of quality in the business – may also double as a form of empowerment and motivation.

– Statistical Process Control – statistical data generated to inform the evaluation of processes within the business.

– Zero defects – systems in place to ensure that no product leaves the business with a defect – important in building supplier relationships, image, reputation.

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Quality standards

• ISO 9001

• ISO 14000

• OHSAS

• HACCP

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ISO 9000

The ISO 9000 family addresses "quality management"

This means what the organization does to fulfill:• the customer's quality requirements, and • applicable regulatory requirements, while aiming to • enhance customer satisfaction, and • achieve continual improvement of its performance in

pursuit of these objectives.

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ISO 14000

The ISO 14000 family addresses "environmental management"

This means what the organization does to: • minimize harmful effects on the environment

caused by its activities, and to • achieve continual improvement of its

environmental performance.

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ISO 9000 Benefits

• Businesses, can base their activities (products and services offered) on requirements that are accepted widely across the globe

• As these standards have a worldwide acceptance, consumers are served with an increasingly wide choice of products and services

• Technology becomes compatible across most business organisations

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ISO 9000 Benefits• A wider choice of suppliers meeting ISO Standards

means greater competition which benefits consumers

• Greater understanding of what’s required to compete globally gives developing countries the information they need to decide what to produce

• We all benefit from wider use of international standards as the transport systems, machines and tools we use (for example) become safer

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Summary of ISO 9000 Benefits

• Controls quality • Saves money • Makes for satisfied customers • Is widely used globally • All types of organisation covered• All sectors and markets included

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End of day 4

• Conclusions• Further readings• Final arrangements for day 5 – Visiting

a leading production company• Individual consulting on request

Thank you on your attention !