COMPANY PROFILEIndustry Investment ServicesCore areas of business business of stocks, money market, foreign exchange and commodity broking, economic research and investment consultancy servicesRegistered Capital in PKR 249.56 millionTotal assets in PKR 2,027.4 millionYears in business 11 (since 2000)Number of employees Not mentionedNet income in PKR -24.75m
DIVISIONS KASB Bank KASB KASBModraba Remit KASB KASB Funds Securities KASB Direct
• Research Question - How does management at KASB Securities plan, organize, lead and control its resources to achieve organizational goals? FOUR FUNCTIONS OF THEMES MANAGEMENT Planning 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 Pakistans premier Brokerage Franchise.• Managers also contribute to theoverall organizational planning• First job is to build goodunderstanding of the vision, goals andthe 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 Securities1. The Front Office2. 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 tohim/her in order to check his/her ability. If theperson 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 bycommunicating 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) Strategic Initiatives Investing in service culture
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.