Management in Organisation

Management in Organizations (BLB10145-2) Group Presentation Page 1of 17

ContentsCHAPTER 1:.....................................................................................................................................................3

INTRODUCTION OF PERSON INTERVIEWD AND THE ORGANIZATION..........................................................3

1.1) Brief History:.......................................................................................................................................4

1.2) Achievement Feedback Research:.......................................................................................................4

1.3) Sales and Growth:................................................................................................................................4

1.4) Quality of the product:.........................................................................................................................5

1.5) Business objectives:.............................................................................................................................5

CHAPTER 2:.....................................................................................................................................................6

NATURE OF TASK FACED BY THE ORGANIZATION.........................................................................................6

CHAPTER 3:.....................................................................................................................................................8

THE ISSUES FACED BY THE MANAGER...........................................................................................................8

3.1) Unable to meet organizational demands:.............................................................................................8

3.2) Conflicts between the staff and other units:.........................................................................................8

3.3) Lack of training among the workers:...................................................................................................8

3.4) Problems of communication with members in organizations:.............................................................8

3.5) Maintaining good relation with labor:.................................................................................................8

3.6) Problem with supplier:.........................................................................................................................8

CHAPTER 4:.....................................................................................................................................................9

PROBLEMS IDENTIFIED AND RELATED ISSUES...............................................................................................9

4.1) Buying the material:............................................................................................................................9

4.2) Selection and evaluation of supplier and vendor:................................................................................9

4.3) Preserving and enhancing reputation of company:............................................................................10

4.4) Maintain stock level:.........................................................................................................................10

4.5) Obtaining and analyzing quotations of suppliers and vendors:..........................................................10

CHAPTER 5:...................................................................................................................................................11

THE ORGANIZATIONAL STRUCTURE TO ADDRESS THE TASK......................................................................11

5.1) Organizational Structure Details:.......................................................................................................12

CHAPTER 6:...................................................................................................................................................13

LEADERSHIP STYLE USED AND DIFFERENT WAYS TO MOTIVATE AND BOOST MORALE OF EMPLOYEES...13

6.1) Democratic Leadership Style:............................................................................................................13

6.2) Recognition:.....................................................................................................................................13

Level 2 Asia Pacific Institute of Information Technology 2013


6.3) Leadership opportunities:..................................................................................................................13

6.4) Building Employees' Involvement:....................................................................................................14

6.5) Increase rate per product of labor:................................................................................................14

6.6) Refreshment:.....................................................................................................................................14

CHAPTER 7:...................................................................................................................................................15

RECOMMENDATIONS TO HANDLE AND SOLVE THE IDENTIFIED ISSUES AND PROBLEMS.........................15

CHAPTER 8:...................................................................................................................................................16

REFERENCING...............................................................................................................................................16



MANAGEMENT IN ORGANIZATIONS

CHAPTER 1:

INTRODUCTION OF PERSON INTERVIEWD AND THE ORGANIZATIONThe manager/business person whom we have decided to interview is the purchase manager of

Phoenix Textiles. Phoenix Textiles is a leading textile industry of Panipat. And Panipat is famous

for textile industries so this is the best place to set up the textile industry. By keeping this fact in

mind the Managing Director of Phoenix Textiles decided to put up this industry at Panipat in 2008

and since then it is growing day by day. He works as the purchase manager of the industry.

Figure (1.a) Logo of Phoenix Textiles

Interview details of the person are given in the table below.



1.1) Brief History:

Founder of organization is Mr. Sudesh Kumar, son of Shri. Ramakrishna Kumar is a manager of

“PHOENIX TEXTILE COMPANY” which is specialized in Textile Industry and Trade, and has

grown to become one of the manufacturer and exporter of textile.

This family company established on 26/10/2008, now more than 4 years in textile field, it is

currently owned and promoted by family members and leading by Sudesh Kumar (founder). The

company is in the business of carpet, bathmats, paper child, manmade fabrics, etc. It has

successfully implemented the expansion project by installing fully high speed text rising machine.

1.2) Achievement Feedback Research:

Strategy: Top quality, innovation and fancy designs

Attitude: Honesty and responsibility

Spirit: Commitment to customer needs

1.3) Sales and Growth:

30% of the company products are sold at the local and neigh boring markets while 70% of the

products is exported to outside Market.

First year after the company was established; it earned 5 % of the principal amount followed by 13

% in the next year then 16.5% in the year 2012.

Growth chart of Phoenix Textiles is given as below:

2008 2010 20120

1

2

3

4

5

6

7

Principle AmountProfit

Graph (1.3.a) Growth of Phoenix Textiles



1.4) Quality of the product:

The company Produces high quality products and uses quality control system at all stages of

production.

1.5) Business objectives:

The factory is planning to enlarge lately to 3000 sqm to cope with the increasing demand for the

company product. It is equipped with both old and new plant machines.



CHAPTER 2:

NATURE OF TASK FACED BY THE ORGANIZATIONThe nature of task is designed by the industry senior officials or owners to simplify and accelerate

the operation which is to be performed for purchasing. The common tasks performed for the

purchasing procedure in various industries are Purchase Requisition, Purchase Order, Purchase

Contract Form, Follow up Form, Receiving slip, Inspection Report, Test Certificate, Rejection

Form etc.

Nature of task used by the Phoenix Textiles for the whole process done in the company is:

1) Recognizes the need

2) Selection best fit supplier

3) Placing a purchase order

4) Follow up of the order

5) Receiving and inspection of the materials

6) Payment of the invoice

7) Maintenance of the records

8) Maintaining the relation with supplier

The initiation of purchasing process starts with the recognition of need of industry. For this

industry plans and internal and external factors are evaluated which include manufacturing, store

or office sections. The demand is loaded in purchase requisition forwarded by authorized person

which is called purchase indent. It identifies the details of specification of materials, quality,

quantity, suggested supplier. Audit of suppliers is done during which audit checklist information

can be verified on site through interviews and documents review and then the supplier is selected.

Then the cross-checking of records of supplier with other organizations like supply on time of raw

material through transportation, punctuality, market reputation of supplier, quality of material

supplied. Generally, order of purchase is made through purchase order but in case of emergency,

purchase is made through telephone and confirmed by regular purchase order.

A track is made for the supplier so that the supply of material is on promised date without any

delay. Delivery of goods by the supplier in accordance with agreement is followed. Then the

inspection of material is done by cross checking the quantity with purchase order and damage

condition of consignment is also checked. Quality check is done through samples on lab test.

Inspection department verifies that the incoming material meet the standard quality as specified in

purchase order. The inspection report along with a test certificate for acceptance and rejection is



sent to purchase department for further action. On the acceptance of goods in satisfactory condition

the invoice is checked before payment. The invoice will be paid to supplier according to agreed

payment terms. A copy of receipt is sent to purchase department for records. It also records any

damage of consignment. After this finally the workers starts working using the raw material.

Figure (2.a) Worker working in Phoenix Textiles

Vendor relationship is maintained by sharing information and priorities at right time with limited

forecast information, lunch of new product, changes in design of goods. Get the commitment of

vendor with competitive bids on raw materials and they are also invited to strategic meeting and

negotiation is done so that both side accomplished their goals.



CHAPTER 3:

THE ISSUES FACED BY THE MANAGER

3.1) Unable to meet organizational demands:

One of the problems faced by manager today is unable to meet the organizational demand in terms

of innovations, creativity and strategy and flexibility from the staff members. The main problem

arises from poor motivation and of staff members.

3.2) Conflicts between the staff and other units:

Frequent conflicts between the members and units affects the workflow leads to problem during

production and delivery of product at time. Due to these conflicts other members and workers also

get affected and leads to many problem regarding the organization.

3.3) Lack of training among the workers:

Due to improper training and orientation performance of worker decreased and leads to greater

chances that they would not be skilled to perform task. It leads to difficult situation of motivating

the workers. Inability to meets the growth and demand of workers as well as of organization. With

the developing and growing of workers, organization grows.

3.4) Problems of communication with members in organizations:

A communication problem exists in an intra-cultural and inter-cultural environment. Selection of

different language for the communication with members of the organization to meet the goals is

very difficult.

3.5) Maintaining good relation with labor:

1. Direct communication with the workers regarding their problems and demand.

2. Problem of ego between the employees can be solved by giving them team work.

3. Providing satisfactory salary and working conditions for their trust in company and some time

extra bonus during festivals. Giving them income during extra working hour. Providing them

leave when required.

3.6) Problem with supplier:

1. Communication with suppliers to ensure reliable and timely supply of consignments.

2. Changing nature of supplier creates lots of threats and opportunities which manager have to

face.

3. Bargaining with strong supplier for good quality of raw material at reasonable price.

4. Suppliers make progress difficult by restricting the access of important inputs.



CHAPTER 4:

PROBLEMS IDENTIFIED AND RELATED ISSUES

4.1) Buying the material:

Right quality means cost and technical characteristic of material should meet the required

specifications. Specification of right quality is E.O.Q. known as economic ordering quantity is the

term used for identifying the right quantity of material. Material should be purchased at right time

otherwise leads to low production and less sale of manufactured goods, gap in customer relation

and fall of reputation in the market. Purchase of raw material should be at right price for

substantial absolute monetary gain. Right price is selected by checking the quotations of different

suppliers. Right source is selected by specific analysis by negotiating with different supplier.

Figure (4.1.a) Material used in textile industry

4.2) Selection and evaluation of supplier and vendor:

Error in supplier selection process leads to more loss in significant cost and time not in the

procurement process but also in delivery of orders. Selection of supplier is a strong process to

ensure the right decision. SCM known as supply chain management depend upon the supplier.

Continuity of supply of raw material from the supplier is necessary when required otherwise

manufacturing will be stopped, leads to wastage of time and money which is invested for different

segments. Since, whole of the production depend upon the raw material. A threat to supply of raw

material leads to unpredictable fall in growth of organization.



4.3) Preserving and enhancing reputation of company:

A huge amount of money is required to be on track which is fulfilled by loans, investments from

the different parties. This creates various long time or short time effects depend upon the growth of

organization. Preserving the market value of company otherwise it leads the investor or banks to

not give capital to organization. Faith of the employees and trust of consumer will break and leads

to less sale of goods. It leads to huge loss to capital of the industry and less profit.

4.4) Maintain stock level:

Managing the stock is important for organization because without managing stock production and

sales will be stopped. Stock control requires careful planning to ensure that the work is going on

properly at right time and material is available. The stock level should be maintained to ensure the

adequate supply and availability of material when required and also to check whether the material

is not over stock.

4.5) Obtaining and analyzing quotations of suppliers and vendors:

Analysis of quotations of suppliers is necessary due to this organization various activities will be

affected. In review part cross-checking of records of supplier with other organizations like supply

on time of raw material through transportation, supply on time punctuality, market reputation of

supplier, quality of material supplied to different organizations. All these activities are performed

by interview representative and correspondence.



CHAPTER 5:

THE ORGANIZATIONAL STRUCTURE TO ADDRESS THE TASKThe organizational structure means the framework or the hierarchy around which the whole

company or the organization is organized. The structure of the organization is governed by the

rules and regulations which the organization follows in operation and the distribution of work

within the organization. A common organization structure includes an initial steering committee

which includes the people like President, CEO or Managing Director who create plans for funding,

organizational functioning and development of board. After that there is a coordinating committee

who modifies the organizational objectives and strategies in response of the consultation with the

various people of the organization. And then comes the common workers of the organization.

The organizational structure of Phoenix Textile Industry is shown below:

Diagram (5.a) Organizational Structure of Phoenix textiles



5.1) Organizational Structure Details:

The organizational structure of Phoenix textiles is made such that the line of authority along with

individual duties and responsibilities can be understood by every member of the organization. In

the top level manager is company owner, who is directly involved in the money making process of

the industry. After that, the purchasing manager who has the responsibility for the buying

functions of the industry. He is responsible for the selection of suppliers, studies the market rates

of products, tallies the track records of the suppliers and buys the best quality product at lowest or

economical cost. He has many link ups with the permanent suppliers of the industry and these

permanent suppliers also offer many facilities and concession as they have a good relationship

with the industry form the past many years. After this unit it comes to the sales association who

sells the products manufactured at the profitable cost. They are also involved in the advertising and

promotion of the products and have a good tie up with the permanent dealers or the customers of

the industry.

In this organization the hierarchy is created in such a way that the most experienced person is at

the top of the management level and he coordinates all the functions of the industry. The function

may be related to purchasing of raw material from suppliers, product manufacturing, workers

issue, selling of goods, etc all the functions are coordinated by the M. D. of the organization. His

task is to get the quality raw material from the suppliers and make it used by the workers to

manufacture the products. The divisional purchase manager is followed directly by the suppliers

and the workers working in Phoenix Textiles.



CHAPTER 6:

LEADERSHIP STYLE USED AND DIFFERENT WAYS TO MOTIVATE AND

BOOST MORALE OF EMPLOYEESLeadership involves defining the direction of a team and communicating it to the other people of

the organization. A leader is the one who motivates, inspires and empowers the employees of the

organization and contributes to achieve organizational success.

There are many ways to lead and every leader has his/her own leadership style. Four basic

leadership styles are autocratic, bureaucratic, democratic, and laissez-faire.

The leadership style used by Phoenix Textiles’ purchase manager is democratic style. In which all

the organizational decisions are made in consultation with the employees.

6.1) Democratic Leadership Style:

This is the leadership style in which employees can become the part of organization decision

making process. The employees are consulted before making any decision and they have a say in

the solving the grievances and making decisions of the organization. Leader acts as a coach and he

take the final decision by keeping the suggestions of employees in mind.

He motivates his employees by giving recognition, opportunities, refreshment, motivational praise,

giving appropriate wages for extra working hours, increasing rate per product to the labor, creating

a feeling of competition between the labor by giving preference to skilled labor, etc which are

discussed in detail further.

6.2) Recognition:

Recognition inspires the employees to do their work with more enthusiasm. On the part of the

manager, it costs nothing but gives a great satisfaction to the employees. Recognition is the best

way to build the self esteem of the employees. The manager of Phoenix textiles gives recognition

to his employees. He recognizes employees’ achievements and good work and praises him or her

publically. He sits down with his employees and talk to them about their challenges and

opportunities in the organization.

6.3) Leadership opportunities:

Leadership opportunities are also provided by him to the top performing employees to inspire them

to do their excellent work with more zeal and enthusiasm. According to him these opportunities

helps to retain good work of the top employees as they get new challenges daily.



6.4) Building Employees' Involvement:

The purchase manager of Phoenix textiles is always ready to identify and immediately solve any

problem that stands in the way of his employees. He also helps them in their personal problems.

Some of the power is also given to the employees and they have a say in the decision making

process of the company. The employees are given opportunity to find new ways to help business

reach its goal without any fear of punishment in case of failure and he also allows certain amount

of failure and reward for trying.

6.5) Increase rate per product of labor:

It is a textile industry so if a situation comes when more work is to be taken from the labor due to

the urgency of competing the contract, the rate of labor per product is increased. It means that the

person who will do overtime and is able to make more products in less time will get more wages.

Sometimes a share of profit is also given to the workers to make them work for long hours for the

completion of the target given to the company.

6.6) Refreshment:

Continuous working hours creates tiredness among the worker, at this point of time small

refreshment can work as motivation to them. Refreshment of 10 to 15 minutes is given by the

manager to make his workers work for long hours without exhaustion.



CHAPTER 7:

RECOMMENDATIONS TO HANDLE AND SOLVE THE IDENTIFIED

ISSUES AND PROBLEMS1. There is requirement of building strong management mechanism in the industry to face the

emerging internal challenges.

2. Textile industry face the competition in the export and domestic market to overcome these

challenges there will be requirement for properly trained professional who are experienced in

this sector.

3. There should a R&D as a small part for development of new technologies for products, new

designs and tackling the market with new idea`s which takes the organization to growth.

4. Power-loom structure should be evolved for common services and functions as testing,

marketing, short-term financing.

5. Human resource can be another area of focus for the workers. The workforce must be trained

and oriented toward more productivity.

6. Try to reduce the production time, improve the machine effectiveness, production line by

eliminating the hurdles and supply line.

7. Select the quick and easy transport system. Improving the inventory for more storage of

material.

8. Try to reduce the percentage of defected goods and more concentrate on repeat orders.

9. Purchase the raw material from the supplier don`t consider any intermediate between the

contract. Try to go for more than one supplier.

10. Achieve the maturity level so as to determine the effective and efficient level of supply chain.

11. The stock level should be maintained to ensure the adequate supply and availability of material

when required and also to check whether the material is not over stock.

12. Economic ordering method should be used for ordering the right quantity which is based on

technical formula. With the help of EOQ total inventory cost will be minimum. Formula is

given as:

EOQ = √2RD /CS

Where, R is annual requirements of the material in units.

D is ordering cost per order.

C is the cost of per unit.

S is the storage cost of material stored.



CHAPTER 8:

REFERENCING1. Meier, Ronald L., Michael A. Humphreys, and Michael R. Williams. "The Role of

Purchasing in the Agile Enterprise." International Journal of Purchasing and Materials

Management. Fall 1998.

2. Harrington, Lisa H. "Buying Better: Strategic Sourcing Can Improve Suppliers'

Productivity, Component and Product Quality—and Improve the Bottom Line." Industry

Week. July 21,1997.

3. Mehra, Satish, and R. Anthony Inman. "Purchasing Management and Business

Competitiveness in the Coming Decade." Production Planning and Control 15, no. 7

(2004): 71018.

4. Burt, David N., Donald W. Dobler, and Stephen L. Starling. World Class Supply

Management: The Key to Supply Chain Management. Boston, MA: McGraw-Hill Irwin,

2003.

5. Caridi, Maria, Sergio Cavalieri, Giorgio Diazzi, and Cristina Pirovano. "Assessing the

Impact of e-Procurement Strategies Through the Use of Business Process Modelling and

Simulation Techniques." Production Planning and Control 15, no. 7 (2004): 64761.

6. Brau, J.C., Fawcett, S.E. and Moragn, L. (2007), “An empirical analysis of the financial

impact of supply chain management on Small Firms”, Journal of Entrepreneurial Finance

and Business Ventures, Vol. 12 No. 1, pp. 55-82.

7. Croom, S. (2001), “The dyadic capabilities concept: examining the processes of key

supplier involvement in collaborative product development”, European Journal of

Purchasing & Supply Management, Vol. 7 No. 1, pp. 29-37.

8. Daewoo, P. and Krishnan, H.A. (2001), “Supplier selection practices among small firms in

the United States: testing three models”, Journal of Small Business Management, Vol. 39

No. 3,pp. 259-71.

9. Organizational Structure, Unknown. (2013) Organizational Structure. [online] Available

at:http://www.prenhall.com/divisions/ect/app/Diamond_temp/source_files/

dia76827_ch03.pdf [Accessed: 15 Apr 2013].

10. Five Different Types of Motivation That Managers Use to Inspire Employees Unknown.

(2013) Five Different Types of Motivation That Managers Use to Inspire Employees.



[online] Available at: http://smallbusiness.chron.com/five-different-types-motivation-

managers-use-inspire-employees-32493.html [Accessed: 17 Apr 2013].

11. Improving Employee Morale and Motivation Unknown. (2012) Improving Employee

Morale and Motivation. [online] Available at: http://www.bizfilings.com/toolkit/sbg/office-

hr/managing-the-workplace/improving-employee-morale-motivation.aspx [Accessed: 19

Apr 2013].


Work Breakdown StructureSheikh Ramesh (Pt1084414)Intervewing the manager of Phoenix TextilesData Collection about manager and companyNicholus Zulu (PT1084410)Introduction of the ManagerIntroduction and History of the OrganizationKapil Makhija (PT1086604)Nature of Task Faced by the OrganizationAnalysis of Issues faced by the ManagerRecommendations to handle the issues Charu Bhardwaj (PT1084417)Organizational Structure to address taskLeadership styles and motivations used

Documents

Management in Organisation