Icbt Managerial Communication Knowledge And Information Commerce Essay


This report explains informations of Royal Rice Mill, the information provided are the organizational structure which shows the unity of command, specialization, span of control, authority and responsibility and the communication process. Next this explains about decision making process at all company level, the strategic, tactical and operational decision making is also discussed here.

The firms existing methods, process and technologies are also taken into concern and finally we will discuss of the information gathering of the firm and will be concluding the report with recommendations.

Table of Contents

1.0 Introduction

Royal Rice Mill was founded on 2001 by Mr.Hilmy and started as sole trader. After two years Mr.Feroz joined Royal Rice Mill as a partner which resulted the business to convert into to partnership. This firm was located in Dambulla Sri Lanka.

The business started as a small firm which supplied wheat and rice throughout Dambulla. After the business converted into a partnership it has been rapidly increasing its sales and distribution channels, now the business distributes throughout Sri Lanka.

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Each and every firm has a mission and vision so does Royal Rice Mill, the mission of Royal Rice Mill is to be the market leader by 2015 and the vision is to provide the best quality and quantity for the price paid by the consumers.

2.0 What is an Organization Chart?

Organization chart is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions.

Figure 1 Royal Rice Mill Organization Hierarchy

3.0 Types of Decisions

Decision making should be highly considered in every organization, because taking a wrong decision would affect their future plans. As the top level of management all the decision can't be made by them, so decision making has been split into three categories. They are strategic decision, tactical decision and operational decision.

3.1 Strategic Decision

Strategic decisions are the decisions taken by the top level of management that means CEO, MD, and Board of Directors. Decisions which would affect for a long term in the organization and would rather affect the whole firm, and it involves high level of uncertainty and risk. Strategic planning is a process on deciding on objectives of the organization. Some of the decisions taken by the top level management are:

1. Decide the future plans of the firm

2. Planning to open a new branch

3. Introducing a new product

Planning to open a new branch, they must consider about the publicity and recognition of the place, whether it would be successful, is it a good place to open a new branch and the demand for the product. And also can do a market research like questionnaires to get the customers feedback.

Royal Rice Mill's strategic decision is: - to provide the best quality rice ever.

3.2 Tactical Decision

Tactical decisions support strategic decisions. They tend to be medium range, medium significance, with moderate consequences. Tactical decision is a process of ensuring that resources are used effectively and efficiently in achieving organizational objectives. Tactical decisions are taken by the middle level employees of the management. Middle level management means finance manager, HRM manger and marketing manager. The decision taken by them are mostly time routine and also usually contain few alternatives. Tactical plans are sometimes called short-term action plans. A tactical decision plan is a response to strategic business plan. The tactical planning horizon is shorter than the strategic plan horizon. If the strategic plan is for five years, tactical plans might be for a period of one to three years, or even less, depending on what kind of market the business serves and the pace of change.

Some examples of tactical planning, increasing the performance of the employees in the production department by 10% by the year of 2013. Another decision is to reduce the cost of production by 2012.

Reducing the cost of production by 2012 can be done by making the employees work efficiently by providing training and development programs ,or u can analyze whether doing work specialization is effective and efficient to keep on progress.

Royal Rice Mill's tactical decision is: - increasing the salary according to employee's individual performance.

3.3 Operational Decision

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Operational decisions are decisions which are taken to day to day activity. Not a long term or a medium term, it is very short. Operational decisions happen on the fly. Therefore any decision you make at work on a day to day that affect what anyone at the work is an operational decision. Employees at every level take operational decisions daily. But mostly supervisors and employees play the main role in operational level such as planning production.

But in operational level supervisor, employees, clerks and machine operators are the people who play the main role. Such as supervisors making the schedule for the employee's day to day work, Daily budgets such as cleaning, managing accounts, deciding the shifts by supervisor.

Operational planning describes the short way of achieving milestones.

Royal Rice Mill's operational decision:-to achieve the unit of per day that has been recommended to. For example, if the CEO of Royal Rice Mill had suggested that you all should provide 260 units per day.

4.0 Managing Knowledge and Information

Information and knowledge are used to make effective decisions

Royal Rice Mill's information to make effective decision:

As above said Royal Rice Mill's main objective is to bring out the best quality of rice to customers. In order to achieve this they can buy new machineries from other countries, where it is available. India is very popular for rice mill machineries, so they can buy it from there. People buy rice by seeing its color and the polish. There is a machine called Polisher, where the rice is put into that and makes well polished and clear, and it also separates the little stones from rice.

Nipuna is the leading no.1 rice manufacturer in Sri Lanka, they have been the leading for more than 10 years. So Royal Rice mill should work hard to achieve that rank. Royal Rice mill has been selling at a lower price than the competitors so they can produce more outputs than the competitors. Competitors has been distributing more places than Royal Rice mill so, they need to send their products to some other areas such as Colombo, Kurunegala and some other places ,then only they can capture a higher market. Most of the customer had been paying by cheque, as far as possible cheques should be avoided and make sure about cash transactions. Royal Rice mill can use another strategy by offering transport services for bulk buyers which will make them to get motivate and make more offers and customers,

Managers and employees should be more boosted up to work more effective and efficiently. Managers should be rewarded for the individual skill to motivate them, or managers should be given a target to achieve, for example: CEO must suggest them to increase sales by 25% this month and the one who makes would be promoted.

Royal Rice Mill's closely related bank has been Hatton National Bank {HNB}. So Royal Rice mill can launch a new product or open new branch since HNB would support them by giving loans because most of the transactions had been done through HNB.

4.1 Internal Sources of Royal Rice Mill


Salary sheet

Day to day ledger

Receipt from suppliers

Sales ledger information

Attendance sheet

4.2 External Sources of Royal Rice Mill




Advertising boards

5.0 Method of Organization system

There are two types of organization system

Manual system

Computerized system

5.1 Manual System

Manual system involves data processing which does not involves used of store programs and computerized equipment. This system uses other types of equipments such as calculator, written note and card programmed. And it is mainly operated by a human not buy a computerized system.

5.2 Drawbacks of Manual System

Time wastage

Difficult to operate

Mistakes may occur very rarely

Need large space to store

5.3 Computerized System

Computer system is easy to operate .It means that the data and information are stored in a memory as computerized ,no need of large space .Can reduce the employees ,because a single person can do 5 employees work.

5.4 Drawbacks of Computerized System

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Lack of skills

More cost

Outsiders can easily access through information

At the mean time Royal Rice mill has been using a manual system in their organization. Nearly about 50 employees are working in the organization. Machines are operated by human effort labors such as elevator machine and polisher machines. But using a manual system is also good for the country because uneducated unemployment rate will decrease, if every organization starts to use computerized system people who are not educate should be unemployed.

Royal Rice mill's accounts are being done as written document not computerized or stored. Even though Royal Rice mill should convert into a computerize system in order to achieve their future goals and objectives. In these moderate days technology has been upgrading rapidly quick.

6.0 What is communication?

Communication is the process of sending and receiving messages between 2 or more people either verbally or non-verbal. Communication helps to transfer message from the top level management to subordinators in an organization. Effective communication helps in building relationships and prevents individual disconnecting emotionally.

6.1 Communication Matrix of Royal Rice Mill

Matrix structure means a structure that creates dual lines of authority and combine functional and departmentalization.

P1 Multifunctional employees

Figure 2 Finance HRM Marketing






6.1.1 Advantages of Communication Matrix

Can provide multi skilled employees.

Due to the effective communication productivity will increase.

Since employees are motivated because of higher opportunities production will increase.

Flexibility among employees due to changes in task.

6.1.2 Disadvantages of Communication Matrix

Doing many tasks might confuse employees.

Too much work leads to stress.

Costly and time consuming.

Dependence on single employee.

7.0 Personal Communication weaknesses

Every employee wants to grow in their present position or get promoted to a better position. But every single employee has been suffering through a weakness. Same as Royal Rice Mill also had their problem with some employees. To do this effectively an action plan was needed in order to achieve their goals and objectives.

Problems of Royal Rice Mill by their Employees

Accounting clerk is lack of skills and knowledge.

HR manager not communicating with each and every employee.

Figure 3 Action Plan




Review method

Training the accounting clerk

Introduce training and development programs

2 months to 4 months

Feedback from accounting manager

Make HR manager communicate with each and every employee

Arrange company meeting every month.


Check whether the meetings are held regularly

8.0 Recommendation

I would like the CEO of Royal Rice Mill to take this recommendation into consideration, to improve Royal Rice Mill.

To convert into computerized system, from manual system. Royal Rice Mill has been using manual system from the day it started. In this modern world everything has been computerized because it makes effective and efficiently. Changing from manual to computerized system will be very expensive but it will pay off in the long run.

The next recommendation is about the payment method that is almost each and every customer is paying by cheque even though the amount is small which takes time to liquidate. It would be easy if Royal Rice Mill sets a minimum amount to be able to pay a cheque.

9.0 Conclusion

After completing this assignment I came to know, more about managing communication, knowledge and information inside the organization. I also learned how communication and information are processed in order to make effective decision at all company level. The organizational chart also gave me a brief explanation about the chain of command, span of control, authority and responsibilities. I learned about computerized system and manual system and there advantages and disadvantages and what are the best alternative to use.

Finally I understood that managerial communication knowledge and informations important for the business to run very effectively and efficiently.