2. GROUP 8
Name ID#
1. Shabnin Shahrin 1110575030
2. Sharzin Shavina Reza 1110773030
3. Zobaidur Rahman Ovi 1120746030
4. Fatema Tuz Zohra 1120082030
Presented By:
3. Introduction
Rahimafrooz is one of the respected and reputed
business houses in Bangladesh. Rahimafrooz has
endured turbulences of the last 62 years and has
been able to transform itself from a small trading
company into a leading diversified business house.
Today Rahimafrooz is the market leader with
covering eighty percent of the battery market share.
Rahimafrooz was founded as a trading company in
1950 by Late Mr. A C Abdur Rahim.
In 1954the company was incorporated as a limited
company called Rahimafrooz (Pak) limited. In 1959 it
entered intro joint venture with Lucas, U.K. to set up a
modern automotive battery factory.
History
4. Organizational Overview
• Aim:
– To be the most admired and trusted organization thro
ugh excelling in everything they do, following ethical
business practices and adding value to stakeholders.
• Vision:
– Be an enterprising Group of Taka 2000 crore by the
year 2017 with a diversified business portfolio focused
on dynamic growth, excellence, innovation, customer
delight in enriching our world.
5. Organizational Overview (contd.)
• Mission:
– To improve profitability by 30% every year.
– To achieve zero defect by adopting an advanced process
technology.
– Continuous cost improvement.
– To ensure performance oriented culture through employee
empowerment.
• Values:
– Integrity in Dealings
– Excellence in everything done
– Total commitment to customer satisfaction
– Thinking ahead and taking new initiatives
– Valuing and inspiring people
6. Balancing Effectiveness and Efficiency
• Rahimafrooz balance their
effectiveness and
efficiency through the
minimal usage of both raw
materials and production
wastage. For example: they
collect their used batteries
through the authorized
dealers and recycle it. They
take about 3 months to
implement a new project.
So the period is short and
so they are able to launch
their products before
others. In terms of
time, they are efficient.
Effectiveness
Efficiency
8. Managerial Functions
1. Planning: This process begins at the level of board of
directors’ by generating the ideas of new project.
After studying the project its carried out by the SBU
head. After proper clarification of the plan, the
project goes to the Board of Directors for approval.
There’s always a Plan B, if Plan A fails.
2. Decision Making: The profitability and shortcomings
of the proposed projects are evaluated by the board
members. The best prototype of project is chosen
and then its reevaluated and thus authorized.
9. Managerial Functions
3. Organizing:
The management
process is
organized as the
organizational
chart : COO
Head of
Marketing
Marketing solar
Battery
Marketing
Export Battery
Marketing Local
Battery
Marketing VRLA
Head of Finance
Head of
Engineering &
Technology
Head of Human
Resources
Training &
Development
Recruitment
HR Service
Supply Chain
Manager
Factory
Manager
Head of
Maintenance
Head of charge &
VRLA production
Assembly &
Production
Head of
Warehouse
Head of Quality
Assurance
10. Managerial Functions
4. Staffing: At the beginning of the year, in the Annual
Business Plan meeting they decide the number of
employees needs to be recruited.
But incase they feel the need for more employees at the
middle of the year, they conduct the recruiting process
immediately.
5. Motivating: Rahimafrooz motivates the employees by-
– Individual Development Planning (IDP)
– Career Growth Planning
– Promotion Policy (According to performance)
– Hospitalization Policy
– Skim Insurance (Top-Down Managerial Section)
– Retirement Skim
11. Managerial Functions
6. Controlling: This process is conducted when the
initial project doesn’t meet the desired goal.
Rahimafrooz only controls the faulty part of the
project rather than changing the whole project.
7. Communicating: Follows two-way communication
process. Things below are achieved through this:
– Clarity of goals & benefits
– Ownership & Accountability
– Setting action plans & deadline
– Allocation of resources
– Harnessing right skills
12. Management Practice of
Rahimafrooz
• Rahimafrooz follow the “Contingency view” of
Contingency Approach.
• They are ISO9001 certified and there are some
fixed rules and regulations by ISO. Except these
rules they make their decisions depending on
the changing situations.
13. Environmental Analysis
• According to the New Social Contract, the relationship
between employer and employees of Rahimafrooz is
based on convenience and mutual benefit of
themselves.
• Rahimafrooz highly follows the EEO. They give equal
importance to women, old, minorities, and physically
challenged people in employment opportunities.
According to the abilities their jobs are rotated.
There is an age limit of 60 years. But a person might
continue working if he’s physically fit and eligible for
the job.
14. PEST Analysis of Rahimafrooz
• Political Factors:
– Environmental regulations are effective.
– Timely payment of tax.
– In the unstable political environment, their production and
distribution is hampered.
– No harmful chemicals are used that can make safety issues.
• Economical Factors:
– In our country value of money fluctuates a lot. So, international
business is harmed.
– Middle class and higher level spending power is well enough
which is helpful for Rahimafrooz.
– In summer, the IPS business is profitable because of frequent
load shedding.
15. PEST Analysis of Rahimafrooz
• Social Factors:
– Our country’s GDP is growing, living standard
growing, so purchasing power rises that positively
affects Rahimafrooz.
– People are being educated day by day. So earning
ability is growing and thus their purchasing power
increases.
• Technological Factors:
– Electricity is available in most of the regions of our
country. So, positive affect on Rahimafrooz.
– Because of increasing use of computer and
internet, people can go through the quality products of
Rahimafrooz in their webpage.
16. Management of Political Response
Continuum
• Rahimafrooz follows the Proactive approach
in responding to the social and political issues.
• They follow the norms and regulations of
government and make themselves improved
in performance to avoid the political attacks
and government intervention.
17. Political Legal Environment
Through Indirect Lobbying
Rahimafrooz maintain the political-
legal environment.
– Building school in Bogra,
– One fan and one light policy in some
rural areas.
18. Innovation Process of Rahimafrooz
1. Conceptualization
- Idea generation of a new product
2. Product Technology
- Product evaluation
- Feedback from Board of Directors
- Customer segmentation
- Authorization from Board of Directors.
3. Production Technology
- Setting Cost of the product
- Buying efficient machine according to the product
- Conducting the production process.
19. Innovation Process
• The innovation lag of Rahimafrooz is 3
months.
• The innovation lag is short because-
– They bear the sense of urgency and purpose.
– Employees from each and every level can come up
with ideas and these are highly valued.
21. Corporate Social Responsibility
• Economic Responsibility: The main aim of
Rahimafrooz is not only to make profit but
also survive in the market.
• Legal Responsibility: They follow the legal
business practices by excelling in everything
they do. Tax payment, no use of un-approved
materials in the batteries, labels on packaging
etc are given properly.
22. Corporate Social Responsibility
• Ethical Responsibility: Rahimafrooz follow the
ethics strongly inside and outside of the
organization. They sell the products that was
promised to the customers.
• Philanthropic Responsibility: They add value
to the society by creating a not for profit social
enterprise.
– “Rural Service Foundation” (RSF)
– “Dhaka Project”
23. Social Responsibility Strategies
• Rahimafrooz follow proactive strategy
Taking the initiative with new programs that serve
as models for the industry.
– For example: Previously the industries used to
pollute the environment as there had no
environmental policies. But Rahimafrooz forced
Bangladesh government to develop and implement
environmental policy for reducing pollution.
It was a voluntary action for Rahimafrooz.
24. The Ethical Dimension
of Management
• Business Ethics
– They don’t involve in any
unethical practice that gives
rise to ethical issues.
– In their factory they don’t use
child labor.
– They don’t use any harmful
chemicals in their products.
25. Coping with Uncertainty
• Plan: As long as there are many uncertainties
for their business, Rahimafrooz don’t do
anything without a certain plan.
– If they want to implement a new product
line, they do planning to cope up with the three
types of uncertainties.
• State Uncertainty
• Effect Uncertainty
• Response Uncertainty.
26. Coping with Uncertainty
Three Types of Uncertainties for Rahimafrooz
• State uncertainty: involves any types of uncertainties
like the recession, inflation, increase in the price of raw
materials will happen or not.
• Effect uncertainty: If any types of uncertainties like
recession, inflation, increase in the price of raw
materials take place what will be the effect on the
company.
• Response uncertainty: If the uncertainties occurs, what
will be their response towards their uncertainties.
27. Coping with uncertainties
• Organizational Response to Uncertainties By
Rahimafrooz:
Prospectors: As long as they are the first mover in the
industry, they get unique advantages over others. That
helps them to cope with the uncertainties.
For example: They are able to build strong brand value for
Lucas Battery. That means if anyone thinks about the
battery of a car, the first name comes to the person’s mind
is Lucas Battery.
28. Planning Process
Lower Management:
Supervisors, lower level
employees.
Operational Planning:
one week to 5 months
Middle Management:
Head of SBUs
Intermediate Planning:
6-8 months
The Managerial Pyramid Planning Horizons
Top Management
COO
Strategic Planning:
One year
29. Means End Chain Objectives
Produce 5000
batteries per
day
Production of
1.50,000
batteries after
every month
After a year
production of
18,00000
batteries
Means
Means
End
End
30. The MBO Cycle of Rahimafrooz
– Step 1: Setting objectives
• They set their obj. for that particular job that is to be done. For
example: when they launch the IPS, they set a objective to sell
200,000 IPS at Dhaka city.
– Step 2: Developing action plans
• They develop Promotional activities for the sales of IPS.
– Step 3: Periodic review
• Periodic review on promotional activities to know if the action plan
is working or not.
– Step 4: Performance appraisal
• According to the performance of the promotional activities of IPS
selling, managers are given a feedback by the Board of Directors.
31. Competitive Strategy of Rahimafrooz
• Strategic Management
– Rahimafrooz ensure the sustainability in the
changing environment of market by doing the
strategic management process.
Differentiation
Broad
Target
Higher
Quality
• Pricing Strategy
– Rahimafrooz follows the
differentiation strategy.
Competitive
Advantage
Competitive
Scope
32. • Forecasting technique:
– They use Trend Analysis to predict the
future business environment or the
future business scope.
Forecasting of Rahimafrooz
33. Organizational Behavior
• Rahimafrooz is a business organization that
makes profit in a socially acceptable manner.
• Rahimafrooz follows the modern view in
organizational behavior.
– Situational decisions are taken
– Open-system interaction with the environment
34. Organizational Effectiveness and
Efficiency
• Rahimafrooz use minimal resources to get a
perfect output from their production process.
And finally the job gets done properly.
– For example: To launch the Agro products they did
market survey for 8 months. Only a team of 4
employees from marketing department did the
survey and the feasibility study. Then, they were
able to launch the Agro Products successfully.
35. Characteristics of Organizational
Cultures of Rahimafrooz
1. Collective: Employees from different parts of
Bangladesh work here regardless their regions.
So, cultures from different parts of the country
meet here and create a collective environment.
2. Historically based: This company is serving the
country successfully since 1954. In this long way
they have earned trust and loyalty from every
class of customers and the employees.
3. Inherently symbolic: They not only talk about
their success, but also do business successfully.
36. People centered HR practices of
Rahimafrooz
• Employees are highly empowered in
Rahimafrooz.
• According to the performance the employees are
compensated.
• All the employees are given training to know the
tasks they need to accomplish in a given job.
• Upper level employees keep a good and mutually
understanding relation with the lower level
employees.
• The key information are shared as every
employee at different stage may get aware of the
objective of the firm.
37. HR strategy of Rahimafrooz
• They periodically recruit employees:
– Generally at the beginning of the year.
– Also at any period of the year based on their
needs.
• Recruitment process of Rahimafrooz starts at
the Annual Business Plan (ABP) meeting based
on market and business state.
• They follow PROCEED model for the Selection
of employees.
– Everyone will have to go through this process.
38. HR strategy of Rahimafrooz
• PROCEED model:
– Prepare
• In-house search for the post.
• Create a job description for the position.
• Identify the skill based on their job requirements.
• Draft interview questions based on the post of the job.
– Review
• They review the questions so that the questionnaire doesn’t hurt
any individual.
– Organize
• The Board of Directors, Senior Officers from the respective SBU
form the interview team.
• They are assigned to do different roles.
39. HR strategy of Rahimafrooz
• Steps in the PROCEED model (cont’d):
– Conduct
• Gather data from the job certificate
– Evaluate
• On the basis of the interview they evaluate if the candidates
are eligible enough to meet the job requirements.
– Exchange
• Discussion among the interview team members and
unofficially take the decision whether the employee should
be selected or not. Here the different team members give
their own opinion regarding who should be selected.
– Decide
• Actually take the decision who is selected for the job.
40. HR Strategy of Rahimafrooz
• Equal Employment Opportunity (EEO)
– In the interview board they don’t ask any question
that discriminate the candidates on the basis of
race, colour, sex, religion, age, national
origin, disability etc.
• Affirmative Action
– Though they don’t have any quota system, for ethnic
minorities or physically challenged people they
actively seek out, employing, and developing the
talents of those groups who are traditionally
discriminated against in employment. For example:
they favour to select ethnic minorities like
chakma, marma and so on for their field level
activities that doesn’t require higher level academic
background and they train those people properly.
41. Some Issues of Rahimafrooz
• It is hard for the employees to move from one SBU to
another SBU because their moving plan is not flexible
enough.
• No transparency of information in all units of management
because of their complex managerial process.
Solutions to these problems:
• Flexible working plan for employees of each SBU so that one
can easily move from one SBU to another.
• The managerial process should be simpler so that the
information can flow through the departments in a flexible
way.
42. Conclusion
• In spite of having some
issues, Rahimafrooz is
excelling in doing business
throughout the country and
serving the country to their
optimum level.
