This report was written in the request of Leonard Swarnadhipathi, Organisation and Management tutor, to investigate and analyse management in an organisation in the context of current management theory.
1.2 Scope and Methodology
The report considers a range of organisation issues, researching key aspects of management within the organisation. The organisation's management structure and processes are analysed and evaluated in relation to current theory.
The following sources were consulted:
Mr Baldev Singh, CEO, Vege Oasis, Massey rd.
Leonard Swarnadhipathi, organisation management tutor, kiwi institute of training and education.
I will like to acknowledge Manpreet Singh, store manager for being the subject of my interview. Arpan Kaur, production manager for giving me all other required information.
1.3 Executive Summary
The following aspects of the organisation's management were investigated and analysed, and these conclusions were drawn:
Type and size of organisation
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Vege oasis retails fruits, vegetables and pacific groceries. It has grown up from a small to a large business in past few years and still into its growing phase.
Vege oasis is a tall structured organisation. This structure clearly indicates who reports to whom. This structure is working very well for the organisation, as it helps the organisation run smoother.
In success of this organisation customer's satisfaction is major contributing factor. Store is well equipped with latest technology. As all other organisation, recession did affected Vege oasis but with good team efforts it is on success track again despite of presence of big competitor countdown on the other side of the road.
Planning and control systems, processes and strategies
All the planning and strategies are well handled by CEO which can be seen in the success rate of Vege oasis. Managers are responsible to implement CEO actions and human resource department
Team structure and dynamics
The employees are divided into four different teams. Individual and team performance are monitored by the managers. Employees with good performance are given promotions every year. The best performing team is rewarded with a cash prize every month. This system encourages the employees to perform to the best of their ability.
The CEO of Vege oasis, Mr. Baldev Singh sees him as an autocratic leader. He, himself sets all the plans, goals and strategies and delegates tasks of implementation to the managers. The leadership manages crisis and changes very efficiently. Leadership motivates their employees in many ways to improve their performance.
2.1 Type and size of organization
Vege Oasis was established for the purpose of retailing vegetable and fruit in 2002, Massey Rd, Mangere by a sole trader Mr. Baldev Singh. Although it started as a small organization, it has grown into a fairly large organization throughout the past 10 years. During the beginning of Vege Oasis, it only had 9 employees; now there are more than 24 employees in this store. When it started, Vege Oasis was only dealing with fruit and vegetables but in the last 10 years due to certain demands of Island and Asian people it has start dealing in complete range of Island and Asian groceries, meat, fish, dairy products and become very successful business in that area.
2.1 (b) Analysis
Because the shop is Located in a residential area where there's no other Vege shop; Vege Oasis has become a very successful business. Considering the nature of the business the type and size of this organisation is quite suitable.
2.2 Organisation Structure
2.2 (a) Findings
Organization structure labels areas of responsibility and power, who should report to whom, how tasks are to be allocated, and the formal coordination system and interaction model, which will be followed.
This organisation has two divisions namely, store and production each headed by a manager. These two managers are answerable to the CEO. Under each manager there are two teams which are supervised by a supervisor. CEO represents the organisation to the external agencies and liaison with all governmental and nongovernmental organisations. He negotiates with suppliers. All strategic decisions are made by the CEO and whereas all tactical decisions are made by Managers. Managers ascertain what resources are needed by their divisions but the final decision as to what resources are to be allocated to these departments is made by the CEO. In addition managers resolve all disputes arise in their respective divisions.
2.2 (b) Analysis
Always on Time
Marked to Standard
Because of the tall structure of this organisation, the ability of Vege Oasis to carryout strategic direction is strongly impacted; as a result, goals are accomplished. The achievements of the organisation ensure the sustainability of confidence in the management, certifying positive communication and innovative thinking.
2.3 Environmental factors
2.3 (a) Findings
Success of the business of this organisation is due to the contribution of the workforce. This business requires people, who are able to work under pressure, lift heavy load and have excellent customer service with retailing experience. Therefore the organisation has to heavily depend on their available human resources. The organisation has to complete with other similar organisation to retain the existing staff as well as attract prospective employees whenever required.
Business's Key Values and Organization Culture
The company's key values are better described as guiding principles and are thought to be the reasons why the business was started in the first place (Tim, 2010).
This organisation considers that all employees are equal. It promotes team work and to advance the team spirit the management make a monthly cash award to the team which performs best during the period under consideration. All employees are devoted to maintain the quality and are encouraged to follow all regulations in respect of health and safety applicable to food industry. Vege oasis keeps the employees happy by lowering strictness, playing music while work and follows the employee orientation strategy. The organisation values the customer satisfaction more than strict work procedures. Many cultural ceremonies are celebrated (Christmas, Easter, Diwali, etc.) and while these festivals are going on, team and individual goals are set for this period and if achieved well, rewards are given out. To maintain the employee's good attitude they are rewarded with less strictness in work and there are songs playing at all working hours. The employees are also encouraged to think innovatively. When expanding the business, the organisation does not hesitate to take risks. The rosters in Vege oasis are made very thoughtfully and flexibly. The work days for students that work there is considered depending on the days that they go to college and anyone who has an understandable reason to leave is given permission and replaced for the time being, by a part time fill-in.
Health and Safety
Good Customer Service
Vege Oasis Key Values
Ethics and social responsibility
This organisation believes in social responsibility. It allocates a portion of its profit to up lift the community. As an example this organisation donated a sum of $100,000 to community Sikh temple to be used for its religious activities. Usually this organisation donates a considerable amount of money to temples to celebrate Diwali.
This organisation has a strict code of ethics and expects all employees to comply. Breaches of the provisions of this code are promptly dealt with.
A decade ago, Vege oasis was mainly made for the retailing of fruits & vegetable, and some Indian grocery. As time went by, the area around the business was becoming very multicultural and the organisation had to change itself to adapt to the needs of the diverse community in order to be in business. Accordingly the organisation introduced fish and international food items to cater to the demand of the community. This change has attracted customers of various cultures.
Many years ago, Vege oasis used to earn a very high profit. Because of the recession people of New Zealand experienced last two years many people lost their jobs, and peoples' buying power reduced. This in turn affected the turnover of the organisation resulting in reduced profit. Management had to cut much of the non essential expenditure to compensate for the loss of profit. As a part of cost cutting exercise this organisation terminates the employment of several employees.
The closest competitor for this organisation is Countdown situated just opposite the organisation, there are no other small businesses (dairy shop, fruit vegetable retailers, etc.) close by. Hence Vege oasis makes sure that their product prices are extraordinarily competitive, are of good quality and provide a wide range of international groceries (especially Islander and Asian) which are not available at countdown.
2.3 (b) Analysis
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Organisation culture has played a considerable part in the development of this organisation. As this business is customer oriented, it has gained loyal customers. This organisation pursues all avenues to ensure the satisfaction of their customers. The culture that values the employees as an essential asset has reduced the employee turnover and thereby enabling the organisation to retain loyal and efficient staff. The organisation has gain acceptance and appreciation by the local community through their generous social responsibility which in turn has the effect of free advertisement.
The change in demography, drived the organisation to introduce changes, in which strategic planning was used. By introducing food items demanded by many Asian and other communities it has been able to attract people belonging to all communities. This has helped the organisation to successfully expand its business. When the recession effected the organisation negatively, it overcame it by reducing its work force and cutting down its overheads. This strategy has helped the organisation to face the adverse situation successfully. Vege oasis identified its' competitor as countdown. To face the threat by its competitor Countdown, this organisation has very effective steps through competitive pricing system supported by excellent customer service.
2.4 Planning and Control systems, processes and strategies
2.4 (a) Findings
Planning is centred on the future of the organisation, a decision-making procedure that will help the company in achieving their goals (Hitt, Black, & Porer, 2005).in Vege oasis the managers are responsible for executing the plan by supervising the activities of the organization and making sure that the plans are implemented according to the standards set by the organization.
Financial planningC:\Users\ha\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\8O6BR436\MM900284139.gif
CEO is in charge of financial planning. He does financial planning on annual basis. He does so by studying the financial performance of the organisation during the current year and by analysing the current resources of the organisation, and any setbacks. If he sees any opportunities he will have in near future to expand the business, then he allocates funds for such events in his budget. He takes precautions where he sees threat to his organisation.
CEO monitors the financial performance of the organisation quarterly. He does so by studying the financial reports. If these reports indicate that the organisation is not in the correct path to achieve the goals set by him, he takes immediate action to ascertain the cause of the problem and take necessary remedial action.
The organisation is in the possession of information in respect of its employees, customers, suppliers, future planning, and financial performance. The information is held electronically in a particular computer file to which only the CEO has access. This information is checked from time to time for accuracy and if any variation is found the CEO takes immediate steps to update the same.
Store manager has to keep check of what products are moving fast, need to be replaced, are expired and what new things need to be added. He does this by delegating the task, of monitoring items that are required, to the employees. There is also a system used in the computers that stores the amount of stock, which is regularly used by the manager.
Human resources are the uses of human skill in a business. The human resource manager is someone who employs trains and assesses employees. It is the management role dedicated to acquire, train, evaluate and compensate employees (Dessler, 2004).
Vege Oasis employs mainly full time workers, but due to nature of work, organisation hires some part time workers to handle extra workload on weekends and on public holidays. In those situations the store manager organises, interviews and employs new staff. The store manager has to choose the right person, thus he has to check their ability, experience and skill before their employment.
2.4 (b) Analysis
The effect of the CEO conducting all of the financial planning has helped the organisation to successfully expand their business. The electronically collected information is very useful to this organisation as it helps making strategies, and planning successful. Store operations are successfully managed by the store manager which keeps the organisation in business. Good human resource management has helped Vege oasis run smoothly and maintain its reputation throughout.
2.5 Team Structures and Dynamics
2.5 (a) Findings
A team is a group of people organised to work together interdependently and cooperatively. A team is a group of people who hold themselves communally responsible towards achieving a common purpose, set of performance goals and approach (Dessler, 2004).
How teams are organised.
In Vege Oasis teams are organised according to their ability and work experience. Their roles are decided by the store manager as he is in charge of the human resource department. The employees get training provided specific to their job.
How team membership and leadership is determined
The managers annually decide if anyone should get promotion to supervisor from the groups or not. They use performance record and leadership skill for help as well. Supervisor's feedback also plays a vital role in the decision.
How team roles are determined
Vege Oasis has four teams; stock filling, checkout, fish butchery and fruit and vegetable packing team. Organisation determines team's roles according to their area of experience and knowledge. Staff with the packing experience assign to packing team, with butchery experience to fish butchery team, with filling experience assign to filling team, with checkout or cash register experience assign to checkout team.
How team performance is monitored
In Vege oasis the managers observe the staff's behaviour through CCTV cameras and record who is actually working and who is not serious about their role and responsibilities. Managers also determine Individual's performances by checking their time management, customer dealing skills and the flexibility to adjust into different roles if required. While determining individual's performance, supervisor's feedback is also very important
For the team as a whole
When the managers are looking through the CCTV cameras, they not only notice the employees as individuals they also look for their groups as well. Managers determine team's performance by checking that, team has finished their task on time or not and had maintained the quality as required by the organisation because it's the manager's full responsibility to encourage, improve and help their team out.
How team achievement is recognised and rewarded
In Vege oasis the four teams are monitored continuously by the managers; then at the end of each month, the best performing team is rewarded $200 to share between them. This method encourages the employees to work harder as they find out that the management will notice and reward them. When the rewards are presented, all the other groups are present to support and congratulate them.
2.5 (b) Analysis
Due to the teams being organised according to their ability and work experience allocating tasks is very easy. To enhance the leadership quality of the employees, a deserving employee with good leadership skills is annually chosen and promoted. Team roles are chosen according to the employee's experience, to make them work more efficiently. To enhance the ability of the employees they are constantly monitored through CCTV cameras and their performance report is regularly reviewed. Because employees are rewarded cash in front of other teams for their efforts as a team, they perform more efficiently.
2.6 (a) Findings
Type of leader
Vege oasis is owned by a sole trader who sees himself as an autocratic leader. In this leadership role he has the complete power over this organisation. He does all the strategic planning and then delegates tasks to the managers.
How leadership manages changes
The environment, technology, ethics, and communication around Vege oasis has been changing rapidly. This organisation has handled those changes very effectively as they have upgraded the surveillance system, uses latest computer and scanning system for checkout, changed the types of products sold depending on the community ethnicity, and added non-vegetarian food (as it was a demand).
Handling of a crisis
According to the strategies set by the CEO, non crisis problems are handled by managers. They are capable of successfully handling it, but when it comes to crisis problems managers are authorised to handle these problems. But, if they are not able to handle it, then the CEO takes it upon himself to resolve the crisis.
In Vege Oasis management motivates staff with a reward system in which every month they give a $200 cash reward to best performing team. Awards are given in front of all other staff. Every year this organisation considers the best performing employees for promotion.
Vege oasis is owned by a sole trader which is a fairly big organisation; therefore there is an endless amount of work (store operations, financial planning, strategies, human resources etc.) to do. The CEO cannot do all the tasks by himself, that's why he delegates tasks to the managers. Managers have responsibility to implement those tasks; managers also delegate some tasks to the supervisors.
2.6 (b) Analysis
As the organisation has an autocratic leader, the benefits are that decision making is more efficient and work gets done faster. Vege oasis uses planned and unplanned changes to enhance customer service, information management, store operation and to attract more customers. To handle a crisis as soon as possible, managers are authorised to take immediate action. Cash rewards and opportunities of promotion are given out to motivate the employees to perform to the best of their abilities. To smoothen the running of the organisation's store operations, and to release the pressure from one person to take every decision, the CEO delegates tasks to the managers.