Pran RFL term paper by Mushfiqul Haque Mukit


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Pran RFL term paper by Mushfiqul Haque Mukit

  1. 1. Term Paper OnManagement Function In PRAN 1
  2. 2. Submitted To:Silvia AkterFaculty of Business AdministrationEast West University Submitted By: 1. Md.Mushfiqul Haque Mukit ID: 2010-2-18-010 2. Arafa Ferdous ID: 2011-1-10-360 3. Mahfuz Ahmed ID: 2011-2-10-194Section-07Date of Submission: 08/04/2012 EAST WEST UNIVERSITY 2
  3. 3. LETTER OF TRANSMITTALDate: 08/04/2012ToSilvia AkterFaculty of Business AdministrationEast West University.Subject: Submission of report on “Management Function of PRAN”.Madam,This is our great pleasure to have the opportunity to submit the report on the “ ” as part ofour course studies.The report is prepared based on visiting company, published reports, websites and other relateddocuments and the documents collected from library. Through our best sincerity we have triedto uptake all the related issues in the report within several limitations. We sincerely hope andbelieve that these findings will be able to meet the requirements of the course.Therefore we would like to place this report for your kind judgment and valuable suggestion.Thanking you.Sincerely yoursMd. Mushfiqul Haque MukitID: 2010-2-18-010Arafa FerdousID: 2011-1-10-360Mahfuz AhmedID: 2011-2-10-194 3
  4. 4. ACKNOWLEDGEMENTAt first we are very grateful and thankful to the Almighty Allah.For the completion of this report visiting the company, searching for websites, articles andrelated documents were required. However, it was our instructor, Silvia Akter who played theimportant role by giving us an insight about the report. We express our profound indebtednessand gratitude to her, for her valuable advice that helped immensely in preparing this report.In addition we would also like to thank all employees of PRAN who spent their valuable time toprovide us information about their company.We are also thankful to our fellow students, who helped us a lot to prepare this report. 4
  5. 5. Table of Content History of PRAN Page-1-2 Planning Page-2-6 Organizing Page-6-7 Leading Page-8-10 Controlling Page-10-13 Conclusion Page-13 Reference Page-14Introduction:PRAN stands for Program for Rural Advancement Nationally. 5
  6. 6. The largest fruit and vegetable processing industry in Bangladesh with countrywide distributionnetwork AMCL’s PRAN is an established brand of Bangladesh with an extensive sales force allover the country. PRAN have a well-developed infrastructure for production, sales anddistribution. PRAN has proven itself as – Local product but of international standard.AMCL was launched in 1985 as an agri-business venture to: Serve small farmers with inputs. Marketing farm produce for profits. Organizing contract growers to grow specific crops. Exports of agricultural products.Soon it was apparent that a processing facility was imperative for a sustainable venture. AMCLtherefore set up a factory on 8 acres in Ghorasal with machinery for bottling and canning in May1991. The factory has expanded substantially over the last 9 years in all spheres of foodprocessing e.g. bottling, canning, pulping, pickling, concentrating as well as installation ofBangladesh’s first Tetra-Pack facility and a modern Extrusion plant for snack food. Machineryfor all these lines are being installed, expanded, modified and fabricated continuously.AMCL are very keen to adopt a new technology as it is discovered because of being in such acompetitive market. PRAN’s R & D are always working hard for a better technology ofproduction. All departments’ administrative works are done through connected computers usingthe best software and hardware.Being a major exporter PRAN has to communicate a lot with outside suppliers, retailers orconsumers. Therefore this section is very important for AMCL. PRAN has taken thiscommunication issue very seriously. They often have to do meetings by doing teleconferences,internet shopping, video conference etc.AMCL provides with good quality products conforming to local tastes, health and hygienicstandards which are of affordable price and within the reach of target consumers. This is the firstand largest ISO 9001 certified food processing industry in Bangladesh. 6
  7. 7. Mission:To generate employment and earn dignity and self-respect for our compatriots throughprofitable enterprises.Vision:Improving LivelihoodObjectives:AMCL and its Brand name “PRAN” have twin objectives – “achieving social values withsustainable pecuniary advantage for all our stakeholders.”Goals: To remain as the market leader with consumer items in food & beverage sector in the country & to be the market leader in same sector in abroad with minimum NP level of 10%. Quality maintenance and improvement. Satisfied customers. Hold on to the current customers and again gain customer loyalty. Gain competitive advantage over all the competitors. To double sales and expand production capacity every 7-8 years. To become one of the biggest names in international fruit and vegetable processing industry“PRAN” is currently one of the most admired food & beverages brand among the millions ofpeople of Bangladesh and other 82 countries of the world where PRAN Products are regularlybeing exported. 7
  8. 8. The company hasn’t reached this position without a great management function.Planning:One of the most common sets of activities in the management is planning. It is a preparatorystep. It is a systematic activity which determines when, how and who is going to perform aspecific job. It involves defining the organization’s goals ,establishing strategies for achievingthose goals and developing plans to integrate and coordinate activities Planning is a detailedprogram regarding future courses of action. It is rightly said “Well plan is half done”. Thereforeplanning takes into consideration available & prospective human and physical resources of theorganization so as to get effective co-ordination, contribution & perfect adjustment. It is the basicmanagement function which includes formulation of one or more detailed plans to achieveoptimum balance of needs or demands with the available resources.There is no mystery about how PRAN reached it today’s position. All it took was great planninginvolved turning ideas into actua1ities by a series of logical steps.PRAN followed some general and logical steps and they are: 1. By defining the major objective. The major objective is the total job, the final result. There can be only one major objective, and this must be clearly visualized before any planning can be attempted. The major objective for PRAN is to remain as the market leader with consumer items in food & beverage sector in the country & to be the market leader in same sector in abroad with minimum NP level of 10%. They thoroughly communicate this to the entire organization. 2. By choosing alternative course of action 8
  9. 9. When forecast are available and premises are established, a number of alternative course of actions have to be considered. For this purpose, each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization. The merits, demerits as well as the consequences of each alternative must be examined before the choice is being made. After objective and scientific evaluation, the best alternative is chosen. Managers of PRAN always surf the market to avoid vacuum in Market in aspect of existing product availability & in aspect of new product. The planners take help of various quantitative techniques to judge the stability of an alternative.3. By formulating short term plans People fail because they try to achieve major objectives in one swoop. The task should be broken down into contributory minor objectives, each clearly defined and each capable of detailed planning. These plans include policies, procedures, rules, programmes, budgets, schedules, etc. As PRAN main objective is to remain the market leader, short term plans will include sales maximization, production maximization, and cost minimization. The company’s short term objective is to avail the target that been set before the year starts. These targets are also a part of the long term objective as well. Derivative plans indicate time schedule and sequence of accomplishing various tasks4. By involving more organizational member. Organization should involve more members in the planning process. This doesn’t mean plans are handed down from one level to the next but instead are developed by organizational members at various level. PRAN uses this strategy very well, they help their employee grow. They give them proper training and development and encourage employees to ask questions and make suggestions that they think better. 9
  10. 10. 5. By working out detailed plans for minor objectives and allowing flexibility. With the overall plan broken down and correctly phased, it becomes possible to work out details for the accomplishment of each minor objective. At this stage the decisions which PRAN make are: What is to be done? How is it to be done - resources, methods and means? Who is going to do the job? When is the job to be done - starting and finishing times Where is the job to be done? All the facts may not be known when plans are first made. Later on, new data may become available. For this reason, minor plans of PRAN are flexible enough to cater for unforeseen events or emergencies.Having considered the steps involved in planning PRAN turn their attention to the way in whichthey should be applied. In PRAN planning is applied downward, with the active co-operation ofsubordinate staff all down the line. It follows that every level understand the planning approachoutlined and is able to allocate priorities and work out precise details. Only in this way PRANbreak down a really major objective into the mass of detailed activities which become necessaryfor its accomplishment. In the end, a proper job of planning by the entire supervisory staff ofPRAN ensure unified and successful action. PRAN is very effective in doing so as they treattheir employees as core resources and family member and encourage their participation indecision making and in implementing plans those are formed by the top level management thusthey implement their plans easily and efficiently with the help of subordinates and staffs.After the plans are implemented monitoring the plans are equally important to ensure thatobjectives are achieved. It is also important to appraise its effectiveness. PRAN does this on thebasis of feedback or information received from departments or persons concerned. This enablesthe management to correct deviations or modify the plan. This step establishes a link betweenplanning and controlling function. The follow up go side by side the implementation of plansin the light of observations made, and thus help PRAN to make more realistic future plans. 10
  11. 11. In PRAN managers frequently check all the works that are to be maintained and take anycorrective actions that are needed. PRAN is one amongst the fewest in Bangladesh who has aculture of profit sharing management as an appraisal for performing the jobs correctly.Organizing:Production system:The practical expression of PRAN’s people and customer-oriented philosophy is known as thePRAN production system. This is not a inflexible company-imposed procedure but a set ofprinciples that have been proven in day –to-day practice over many years. Many of these ideashave been adopted and imitated all over the world.PRAN production system has three desired outcomes: To provide the customer with the highest quality product, at lowest possible cost, in a timely manner with the shortest possible lead times. To provide members with work satisfaction, job security and fair treatment. It gives the company flexibility to respond to the market, achieve profit through cost reduction activities and long-term prosperity.PRAN production system strives for the absolute elimination of waste, overburden andunevenness in all areas to allow members to work smoothly and efficiently. The foundations ofPRAN production system are built on standardization to ensure a safe method of operation anda consistent approach to quality. PRAN members seek to continually improve their standardprocesses and procedures in order to ensure maximum quality, improve efficiency and eliminatewaste.Manufacturing Process:PRAN control and monitor every aspect of the manufacturing process. PRAN ensure theintegrity of the enterprise and to maintain quality assurance, the implementation of standards.This means installing efficiently designed processes throughout the operation from productdevelopment, to supply chain and shipping. By adopting a strong, process-centric culture, yourcompany can smoothly transition from chaotic and ad hoc management systems to a smoothrunning operation that increases profits. 11
  12. 12. PRAN Company gains the accountability and consistency that will give them a cutting edge. All the tools ensure that all processes are properly understood, allowing you to increase the safety as well as the efficiency of the operation. Managing Director CFO Retail (Chief Financial HRMarketin Officer) Manage g rManagerRetail Wholesale Merchandisin Costing & MIS Export PlantServices g Manage Manage Manager Efficiency r r ManagManage Manager Manager err Area Wholesale Merchandising Costing Program Exp. Dept.Manager Services Officer Supervis Manager Manager Officer Officer orShop Area DistributMLeading: Manage anag or er r 12
  13. 13. PRAN is the largest processors of fruits and vegetables in Bangladesh. The management of thisGROUP is modern adapted to our environment and culture. PRAN has some enthusiastic leaderswho are always lead the company very well.The most gifted athletes rarely make good coaches. The best violinist will not necessarily makethe best conductor. The company higher managers will seek out the scope from how they theiremployers. Nor will the all the managers take effective decision for the company so theycooperate with all employers and they also distinguish between the skill of performance andachieving task performance. PRAN’s management group also determines whether a person iscapable to finish his task or not.As the PRAN is a huge organization it leading style varies with the employee and environmentof the company. Whenever they fall in a tough situation they will find the way to overcome thesituation with effective leadership style.Leadership Style in the OrganizationLeadership differs or varies man to man. Leadership works best when employee and employerare works towards organizational goal. PRAN has its clear vision and planning overall theorganization and they go ahead with their goal to achieving this. As it’s a huge organizationcomprises 10 companies so it tough to organize the whole work activity and maintain the worker.The company’s largest asset is its competent team of hands-on-managers and their dedicatedemployees. The manager of the organization treats their subordinates with very friendly way andalso plays very important role to leading them effective way. The organization differentiatesmanager leadership power in different sector. The entire organizational strategies are workedwith to achieve the company’s goal. 13
  14. 14. Democratic leadership: The Company wants to share their views and ideas with worker andfrom them the company also expects some valuable ideas whenever take any decision. So thecompany believes in democratic leadership which gives importance to all the employer.Transactional leadership: Sometimes Company offer reward for some specific task they did itto motivate employee. PRAN has some expertise those make strategy for long-term motivatingwork environment and they used it towards the workers.Motivating EmployeeMotivation is the process that account for an individual’s willingness to exert high levels ofeffort to reach organizational goals, conditioned by the effort’s ability to satisfy some individualneed. Motivation mostly needed when the workers are low in their effort or performance. Thesimplest and most intuitive approach to motivation is to satisfy an employee’s need. Themanagement leader of the company motivates their employers giving reward, special offer,promotion and many others ways like:  They make most workers motivated as they always try to make the best result out of their employees.  They set a personal example to follow by their subordinates.  The company shows the employee’s future basing on their job regarding their achievements and other staffs.  Sometimes they offer outing beyond the job.  Sometimes they give employee’s different incentive offer like- performance based reward, task based reward etc.  For motivating the employer they set the right job and well environment for the employer.  They also give the right to make effective decision for organization.How changes affect workers productivityPRAN has different sector and all the sector strategy are not same so they set different strategyfor the entire sector to increasing company’s productivity. Whenever any changes are made the 14
  15. 15. team manager let all know about the changes and make them training what will be done at theforefront. This change also is not tough to the employer because seniors are come tocommunicate with the employer and make them understand about the changes. They also makethem know about the productivity of their work performance and give some target oriented taskwhich may increase the productivity.Right Time of Stimulate ConflictStimulate confliction happened for some unusual reason which could be very complicated for thecompany to solve this problem. As PRAN is a huge company some work could not be done timeto time when a gap created between management and employee and for this confliction occur.Another problem for the company is when the employee leave from company. As the Companybuild their planning with a clear vision so PRAN overcome this.Controlling:What is controlling?In today’s competitive global marketplace, managers want their organizations to achieve highlevels of performance, and one way they can do that is by searching out the best practicessuccessful organizations are using. By comparing themselves against the best, managers look forspecific performance gaps and areas for improvement where better controls over the work beingdone are needed.So Control is the process of monitoring activities to ensure that they are being accomplished asplanned, and correcting any significant Deviation.Importance of control for PRAN-RFL group: 15
  16. 16. In an organization planning can be done, an organizational structure can be created to efficientlyfacilitate the achievement of goals and employees can be motivated through effective leadership,still there’s no assurance that activities are going as planned and that the goals managers ofPRAN-RFL group are seeking are, in fact being attained. Therefore control is important becauseit’s the final link in the management function.The value of control lies in the relation to:  Planning  Employee Empowerment  Protecting the WorkplaceThe Control Process of PRAN-RFL group: 2. Comparing 1. Measuring Actual Actual Performance Performance against Standard 3. Taking Managerial ActionCommon sources of information for measuring performance:Personal observations:Managers of PRAN-RFL group get firsthand knowledge. They emphasis on Intensive coverageof work activitiesStatistical reports:Managers of PRAN-RFL group can easily visualize the performances of employees. They canbuild relationship through this source.Oral Reports: 16
  17. 17. This is the fastest way to get information for the Managers of PRAN-RFL group. They allowboth verbal &nonverbal feedbackWritten Reports:This is comprehensive & the formal way for the company. This is easy to file & retrieveComparing:The comparing step determines the degree of Variation between actual performance and thestandard. Although some variation in performance can be expected in all activities, it’s critical todetermine the acceptable range of Variation. PRAN-RFL group offers themselves the standardin the Bangladeshi Food and beverage sector.Taking Managerial action:The third & final step in the control process is taking managerial action. Correct actual performance of the organization Revise the Standard of productivityMarginal Decisions in the control process:The standards evolve out of goals which are developed during the planning process. These goalsthen provide the basis for the control process which essentially a continuous flow betweenmeasuring, Comparing and taking managerial action.Controlling for Organizational performance:They Measure organizational Performance through:  Productivity of PRAN-RFL group  Effectiveness of PRAN-RFL group 17
  18. 18. Management Information System:  Management information system should be IT based. PRAN-RFL group majorly focus on IT based MIS.  More automation wills easy your life more with better control.Tools for controlling organizational performance: Tools for Controlling Feedforward Control Concurrent Control Feedback ControlControls Measures for reducing workplace violence:The organization is very much concerned about the workplace violence for maintain theorganizational productivity and organizational effectiveness.Conclusion 18
  19. 19. No ideology, no ism, no political theory can win a greater output with less effort from a givencomplex of human and material resources, without sound management. Although this firm is in avery good position in the market, we would just make a suggestion that, they should offer moreand more differentiated products through segmentation of the current market in more details. Ofcourse, the economic capability of target customers must be carefully analysed. Managers cancommunicate more and make survey to reach closer to the customers and create market offeringswhich are both for the betterment for the firm as well as for the society. This practical experiencegathered from observing these established company of Bangladesh has just helped us to reach toa conclusion that – What nurtured the success of PRAN-RFL group?References: I. MD: Shahan Shah Azad II. COO, PRAN-RFL Group III. IV. V. VI. Management by Stephen P. Robbins VII. EWU library. 19