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Organisation and Company Development
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1
Welcome
Module
Organisation and Company Development
Trainer: Srboljub Markovic
2
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
3
Program first day
• Introduction BSC Kragujevac
• Introduction participants
• Training agreement
• Program of the week
• Introduction topic of the day
4
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
5
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!
6
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
7
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
8
Agenda – topic of the day:
Monday – May 5, 2008
•Entrepreneurship and motivation,
Organisation
9
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.
10
Characteristics of Entrepreneurs
• Need for Achievement
• Willingness to take Risks
• Self-Confidence
• A need to Seek Refuge
• Diversity – regardless on age, gender, race, background
11
Options we all have ???
Run own business
OR
Work for somebody else
12
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
13
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
14
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?
15
A leader:
• innovates
• develops
• focuses on people
• inspires trust
• has an eye on the horizon
• does the right things
16
Leadership Styles
• Autocratic style
• Paternalistic style
• Participative style (Democratic)
• Consensus style
• Laissez-faire style
17
Business Functions
• Human Resources Management• Marketing and Sales• Research and Development • Production/Operations• Customer Service• Finance and Accounts• Administration and IT
18
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
19
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
21
Finance and Accounts
• Cash flow– Monitoring income/revenue– Monitoring expenditure
• Preparing accounts
• Raising finance – Loans
• Links with all other functional areas
22
Production/Operations
• Acquiring resources• Planning output – labour, capital, land• Monitoring costs• Projections on future output• Production methods
– Batch– Flow– Job – Cell
• Efficiency
23
Customer Service
• Monitoring distribution
• After-sales service
• Handling consumer enquiries
• Offering advice to consumers
• Dealing with customer complaints
• Publicity and public relations
24
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
25
Organisation Charts
Hierarchical Structure
Managing Director
Sales DirectorMarketingDirector
Finance Director
A B C D Market Research
Strategy PurchasingManager
Sales Manager
AccountsManager
26
MD
Middle Management
Workers
Pyramidal Structure
SeniorManagement
27
R&D
Marketing Sales
Production
Finance
MD
Centralised/Entrepreneurial
28
Sales
Marketing
Production
Accounts
Collaborative
29
Marketing Sales
ProductionFinance
R&D
Circular/Flat
30
Project
Marketing
R&DSales
Finance
HRProduction
Matrix Structure
31
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
32
Corporate Culture
33
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.
34
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
35
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
36
End of day 1
• Conclusions
• Further readings
• Individual consulting on request
Thank you on your attention !
37
Agenda – topic of the day:
Tuesday – May 6, 2008
•Human Resource Management
38
Day 2 – HRM
• Introduction• Summary of previous day• Objective of the day• Training
39
Human Resource Management
• HRM deals with management of people
• People is a dominant factor that makes difference between SUCCESS and FAILURE of the company.
40
Human Resources Management
41
Recruitment
42
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.
43
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)
44
Selection
45
Selection• The process of assessing candidates and
appointing a post holder• Applicants short listed –
most suitable candidates selected• Selection process –
varies according to organisation:
46
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
47
Employment Legislation
48
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.
49
Discipline
50
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
51
Development
52
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
53
Training
54
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’
55
Rewards Systems
56
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.
57
Trade Unions
58
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
59
Productivity
60
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
61
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?
62
End of day 2
• Conclusions• Further readings• Individual consulting on request
Thank you on your attention !
63
Agenda – topic of the day:
Wednesday – May 7, 2008
•Project management
64
Day 3 – Project management
• Introduction• Summary of previous day• Objective of the day• Training
65
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
66
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.
67
The project scheduling process
Estimate resourcesfor activities
Identify activitydependencies
Identifyactivities
Allocate peopleto activities
Softwarerequirements
Activity chartsand bar charts
Create projectcharts
68
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.
69
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)
70
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
71
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
72
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
73
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)
74
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.
3
Earliest Start Time (EST)
5
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
75
End of day 3
• Conclusions
• Further readings
• Individual consulting on request
Thank you on your attention !
76
Agenda – topic of the day:
Thursday – May 8, 2008
•Production and Operations
management
77
Day 4 – Production and Operations management
• Introduction• Summary of previous day• Objective of the day• Training (we have a guess speaker)
78
79
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?
80
Quality
81
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.
82
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.
83
Quality standards
• ISO 9001
• ISO 14000
• OHSAS
• HACCP
84
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.
85
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.
86
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
87
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
88
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
89
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 !