Dr. Nazrul Islam Professor Dept Of Business Administration East West University Sub: Letter Of Transmittal Dear Sir We from your course Principles of Management(section-1),are very glad to submite the given group assignment on management procedures. We would like to inform you that our report focuses on management procedures We have garnered all information from web site. Weare presenting the report to your consideration . We have given our best eforts in preparing this report. we hope that you will consider it and oblige thereby. Thanking you Your s sincerely _________________ _ _______________________ Amitun Hasin Mir Nayma Nazneen 2010-2-10-081 2010-2-10-041 _____________________ ____________ Md. Ashiqual Islam Md. Riad Morshad Chowdhury 2010-2-10-105 2010-2-10-051 Report Principle of managenent Sec-1 Submittied To Dr. Nazrul Islam Professor Dept Of Business Administration East West University Submittied By Mir Nayma Nazneen : 2010-2-10-041 Md. Riad Morshed Chowdhury : 2010-2-10-051 Amitum Hasin : 2010-2-10-081 Md.
Ashiqual Islam : 2010-2-10-105 Date of Submission: 20/4/2011 [pic] Executive Summery Otobi Limited is one of the largest manufacturer and seller of Particleboard furniture in Bangladesh. They have coverage in all the districts of the nation and their head office is in Dilkusha and factory in Shampur and Mirpur. This report originated when our honorable course instructor for MGT 101: Principles of Management , Dr Nazrul Islam instructed us to prepare a report on the management system of Otobi Limited as a part of the practical learning process in the course.
The main objective of the report is to find the effects of environment, influence of the stakeholders, and type of organizational model they follow, the human resource management of Otobi. The scope of the report is the management process of Otobi and its related issues. We focused on the different issues and their effects on the organizations decisions. The limitations are lack of time, lack of enthusiastic cooperation of the management of Otobi and some biased answers from the employees and managers.
The information for writing the report was collected by visiting the showrooms and the head office where the managers and the employees were interviewed. For the survey four employees were selected from the HR division that included the Manager, Senior Personnel, Personnel and Assistant Personnel of HR. As an organization Otobi has different values, missions, policies, strategies to reach their desired goal. Otobi wants present furniture as art not as an object. So all the employees of Otobi is working to attain that goal.
In the assessment of the internal environment, the management, employees and the entrepreneur comes into play. All of them are a major part of the organization and in its operation. The entrepreneur is Mr. Kundu, who started Otobi at first. The management controls the operations, marketing, finance and the human resource. The employees work for the organization and try to build their career. So all of them affect Otobi as a whole. In the assessment of the external environment, the customers, suppliers and competitors act as the specific environment.
Their impact on the organization is direct. Also the economic conditions, political conditions, socio cultural conditions, demographic conditions and technological conditions and global conditions have their effects on the operations of Otobi and the management decisions. The stakeholders of Otobi are the employees, customers, competitors, trade unions, government, media, suppliers etc. Their activities greatly influence the decisions and at the same time the stakeholders are also being affected by the decisions of the organization.
As an organization Otobi follows the ideals of the Max Weber’s bureaucratic model but all the time the exact bureaucratic model is not maintained. So we can say that Otobi is not fully a bureaucratic organization even though they have division of labor, authority hierarchy, formal selection, rules and regulations, impersonality and career orientation. In the human resource management process the planning is done, then the recruitment and decruitment is involved, then the selection process comes and after selection employees are given orientation and training to adjust with the conditions of Otobi.
The managers’ do the performance appraisal by essay writing that includes comments overall performance of the employees. The employees are given different benefits and chance of career development is present in Otobi. Also the HR handles the current issues of management like the workforce diversity and sexual harassment of the employees very strictly. The last part of the report consists of a survey on the employees of the Hr department to judge their skill level and their knowledge about business and their organization and about their career orientation and different topics.
The results of the survey were analyzed with the help of the SPSS software and the assessed. Lastly, we will say that, for any organization to be successful, the management needs to be strong and efficient in order to bring the maximum output from the organization. Weak management will only cause the wastage of resources. So companies should emphasize on the management system in every aspect to become a successful one. Background of Otobi OTOBI began their journey at 1975. Mr. Nitun Kundu was the owner of the company.
In the beginning they came up with decorative items like trophy, meddle etc. After a few days he got orders to design steel and wrought iron furniture. In 1978, Mr. Nitun Kundu designed President Gold Cup trophy made of 5 kg gold. In 1984, for the first time he got financed by the President and formed official production of steel furniture and employed 15 to 18 workers in their factory. [pic] After the making of the SAARC fountain at Kawran Bazar by Mr. Kundu, company got more organized as they received many more orders then. In 1994, they started a particleboard furniture factory at Mirpur.
In 2000, Otobi started its second factory in Shampur, which is now the main manufacturing unit of Otobi. By the end of 2005, the company will start production in its factory for wood furniture. Currently, they have got seven showrooms in Dhaka, one showroom in Chittagong and one in Sylhet. Otobi has got 69 dealers in other districts of Bangladesh. Otobi has also started exporting furniture in India and in future it expects to expand its market in other countries in Asia. Origin of the Report Principles of Management is a very important subject in the field of Business Studies.
We know that, to enhance our theoretical knowledge we need an exposure to the real world to learn better and effective ways of Management procedures. So in these circumstances, we were assigned to prepare a report on the Management of employees of an organization by our honorable course instructor Dr Nazrul Islam. We thus prepared a report on “Management procedures of Otobi Limited” with our little but all-out effort. |Table of Content |Page NO. |Scope of the Report |11 | |Values of Otobi |11 | |Missions of Otobi |11 | |Policies of Otobi |12 | |Strategies of Otobi |12 | |The Internal Environment |12 | |The External Environment |14 | |Employees |19 | |Customers |19 | |Social and political action groups |20 | |Competitors |20 | |Trade and industry associations |20 | |Governments |21 | |Media |21 | |Suppliers |21 | |Communities |21 | |Unions |21 | |Shareholders |22 | |Division of labor |22 | |Authority hierarchy |23 | |Formal selection |24 | |Formal rules and regulation |24 | |Impersonality |25 | |Career orientation |25 | Human Resource Planning |26 | |Recruitment and Decruitment in Otobi |27 | |Selection of Employees of Otobi |29 | |Orientation of employees at Otobi |30 | |Training of employees at Otobi |30 | |Performance Appraisal Methods of Otobi |31 | |Benefits provided by Otobi |31 | |Career Development at Otobi |32 | |Current issues in management |32 | |Major Findings |32 | |Conclusion |33 | |Sources of Information |34 | Scope of the Report
Otobi Limited is a manufacturer and seller of different furniture and interior decorating products in various regions of the country and abroad. As an organization Otobi is quite successful in their field of business. They have a management system that guides and controls the employees to reach the organizational goals. Our report is based on the management related issues in Otobi and the way the Human resource is organized in the Organization. We will discuss the environment of Otobi, the stakeholders and their influence, and the human resource management procedure of Otobi Values of Otobi The values that Otobi posses for its operational activities are as follows: 1. To represent the furniture as an art. 1.
Provide the furniture for all class of people, business class as well as economy class. 1. Maintain absolute quality of the furniture. 1. Fast service for the customers. Missions of Otobi OTOBI missions are to bring variety in their products. They want to move more towards interior designing of houses and offices. At the same time they want to improve the quality of the products and expand their market in outside the country as well. Moreover they also want to open their own showrooms in other districts in Bangladesh. Policies of Otobi The policies that Otobi follows to maintain a good quality service are as follows: 1. Maintain a good will. 1.
Ensure that all the products maintain a certain standard. 1. Ensure customer satisfaction. Strategies of Otobi The strategies that Otobi follows in order to attain its goals are as follows: 1. Create reasonable price as far as possible. 1. Their target is to reach all sorts of people in order to expand their business. 1. They want to develop a new production plant for available and rapid supply. 1. They would like to provide all sorts of training to make their employees efficient to improve customer service. 1. Come up with innovative designs for better interior designing of houses and office. 1. Improve their raw materials as well so that the furniture last long.
The Internal Environment The internal environment of the organization – OTOBI is composed of the following three forces, such as the employees, entrepreneur and the management. And all the three forces work together for the betterment of the organization. The organization is internally very strong as all the internal stakeholder work together and takes decisions together and every party is very involved in their specific work. More over the entire three internal stakeholders’ motive is to serve the customers in the best way possible and provide them with vast variety of furniture. Entrepreneur: Entrepreneur is the figurehead of the organization.
He commands and directs his managers for doing what they have to do. Hence he is the path shower in the organization. He is the one who makes the final strategies and plans that are very crucial for the organization’s operation, so he is a very important internal environmental factor in Otobi. The management: The management at Otobi acts as an important environmental factor in Otobi. This is because managers are responsible for their individual decisions in running the showrooms. The managers are given freedom to control the employees under them and fulfill the missions. Their individual performances have direct impact on the sales of Otobi and its profit.
The managers have to keep in touch with the customers and potential customers in order to ensure that the customers do not face any problems and get the service they want. It was also observed that some managers perform better than the others in different places. So the middle management must decide properly which manager to place in the right place and which employees to select. The employees: The employees consist of the sales force and the technicians, who install the furniture. Sales officers are the people who also meet with the customers more than the managers. And the technicians are people who install the furniture in homes and offices. Their attitude towards work also gives the impression about Otobi different ways.
For example: it a technician goes to any house and install the furniture very quickly and does not behave with the customer properly then the customer will lose their feelings for Otobi and the next time when they buy any furniture they might not give Otobi the first preference. To ensure that these things do not happen and customers can serve to the expectations of the customers, the employees are given training and sometimes cash rewards to motivate them to perform well in Otobi and make them feel secure in the workplace. Thus it can be said that, the internal factors, employees and the management also plays a great role as environmental factors in Otobi. The External Environment
The term external environment refers to the forces and institutions outside the organization that potentially can affect the organization’s performance. The external environment is made up of two components. Those are: i. The specific environment i. The general environment Specific environment The specific environment includes those constituencies that have a direct and immediate impact or influence on the manager’s decisions and actions and these are directly related to the organizational goals and achievements. There are four elements of the specific environment, which has a direct impact on the organizational activities and performances.
This environment made up of four elements, customers, suppliers, competitors and pressure groups. The impact of all this elements on our chosen organization OTOBI is explained bellow: Customers: The customers of OTOBI are of dynamic types. This is because they are more responsive to new products with new designs. Since, OTOBI has established its brand name it has many loyal customers and many potential customers. In this regard OTOBI has their own policy to make their customers satisfied with their new products and it is also taking the customers design and surveying the customer responses on its service to reach very near to its customers. An example of an incident will describe the importance of customers as an element the environment.
A few days back during the Eid-ul-Fitr season OTOBI brought a newly designed Cabinet (Almirah). Only 50 copies of the product were made at first. But due to the huge demand for the product OTOBI had the orders for the product of almost 200 to 300 cabinets. So they started to produce the newly designed cabinet at a large scale. On the other hand customers also sometimes complain about different design of the product. These complaints are usually taken as suggestions and OTOBI tries to meet the desired requirements to the customers by giving importance to these suggestions. So we can find that the production depends on the customers demand and customers thus play a very important part as the specific environment.
Therefore the customers as an environmental factor are quite stable. Suppliers: The word supplier does not refer to those who provide the material inputs needed in production process only. It also includes other providers of financial and labor inputs, banks, insurances, and stakeholders and so on those ensure a continuous supply of money. OTOBI is a privately owned organization and it runs its business on the capital of the owner and from the profit in the business. So, stakeholders like banks and other financial institutions do not act as a major factor of the specific environment. But the raw materials of OTOBI are supplied from mainly China and Malaysia.
It was informed that they have an uninterrupted supply of raw materials from the suppliers. But in different occasions like Eid and Trade fair labor shortage sometimes creates problem in distribution and on time production. So it can be concluded that the suppliers does not play a major role as an environmental factor and it is also a stable factor for OTOBI. Competitors: Navana furniture, Partex and Hatil are the top listed competitors of OTOBI in its particleboard furniture business. But OTOBI is known as the leader in the business and it also contributes a massive portion of the market share in particle business. It is like competitors are just following OTOBI and thus managing their business.
This is the reason that the competitors can create very few impacts to the managerial decisions of OTOBI. It is mostly seen that the competitors take any decisions after OTOBI has taken a promotional campaign. But people like OTOBI more because of its brand name and essence. At the same time OTOBI has to face the other competitors like the wooden furniture selling companies and for them the management of OTOBI has to make different strategic plans to get ahead of those competitors. For example OTOBI has to make advertisements with the information that their furniture is better than the wooden furniture as it is water, insect proof, which wooden furniture is not.
So it is clearly vivid that the competitors from the wooden furniture companies play a quite important role as the specific environmental factor. Pressure Groups: Pressure groups are those who maintain a special interest to influence the actions of organization. For example, BSTI (Bangladesh Standard Testing Institute) exercise an influence on the actions of different organization in Bangladesh. OTOBI is not influenced by any pressure group like that or by any environmentalist as their products does not require cutting trees down in a large scale. So, pressure groups do not play any part as the specific environmental factor in OTOBI. General Environment
The general environment includes broad external conditions that may affect the organization. It includes the broad economic, political/legal, socio cultural, demographic, and technological and global conditions. Although changes in any of these areas does not have as large impact as the specific environment has, the managers must consider these areas as they plan, organize, lead and control. OTOBI considers these conditions of general environment in its management activities. Economic Conditions: From the net profit figures of OTOBI every year it was informed that OTOBI is not facing any problems due to the economic conditions. People are greatly interested about the OTOBI furniture.
Apart from these, there are sometimes price increases due to yearly inflation and also price cuts for some products that have a high sales volume. So the economic conditions play a minor part as an environmental factor for OTOBI. Political or legal condition: Like any other organizations OTOBI also face the political disputes prevailing in Bangladesh. Usually during the strikes the showrooms of OTOBI remain closed. For that sometimes the supply and sales get interrupted and the employees have to work on holidays like Friday to meet up the expected sales. So political environment contributes to the management decisions and thus it can be considered as an important factor in the general environment fro Otobi. Socio Cultural Condition:
In OTOBI the managers are continuously trying to adapt with the changing expectation of the customers as well as the employees. That is why OTOBI has 20-25 designers who are working to produce elegant design furniture. The employees are given different benefits like training, bonus during Eid and cash rewards to meet up with the changing attitudes of the employees. Since OTOBI has also started exporting furniture to India, they had to survey the market structure there and the attitude of the people to their products. Otobi also designed some products that were only made for export in India. Therefore the socio cultural condition acts as a major part in the general environment of OTOBI. Demographic Condition: OTOBI buyers are mostly in the medium age level e. g. rom 25 to 60 years that is the working age group. And in the young age group in this category frequently changes the taste and preference about furniture and they have a choice for both elegant and simple designs. On the other hand, the senior aged buyers look for elegant product and within a specific budget. There are corporate buyers of OTOBI and they look for products that will enhance the work conditions of their office and give a modern look. So as taste and preference changes with the demographics it is quite an important environmental factor for OTOBI. Technological condition: OTOBI has well equipped factories in Shampur and Mirpur as their production unit.
They have up to date machineries and due to their huge volume of production they have gained some economies of scale. Due to more recent improvement in the machineries their production rate has gone high. They have own database that bears all the records of the sales and it is updated all the time. They have good network system within the showrooms by Internet, land phones and mobile phones. But they lack the facility of a website which could be used to send messages to customers in the country and abroad. And at the same time collect online orders from the customers. So, technological impact is quite important as an environmental factor in OTOBI.
Global conditions: Global conditions have affected OTOBI in a way that their designs of furniture are more of the furniture that is found in the West. They believe in simplicity, quality and elegance. So people are coming out of their thing of old style and prefer the new style more and more. On the other hand, other global conditions like politics and economy have not created any impact on the business of the company. So it can be concluded that global conditions are not as important as the environmental factor for OTOBI. Stakeholders are any constituencies in the organization’s external environment that are affected by the organization’s decisions.
These groups have a stake in or are significantly influenced by what organization does in turn; these groups can influence the organization. In OTOBI there are many stakeholders too who directly and indirectly effects and are affected by the decision of the organization. Employees Employees are one of the biggest stakeholders in OTOIB because they are the people who represent the organization in front of the customers. Customers buy the products depending on the sales officers. So their activities influence the decision of the organization and at the same time the organizations decisions also have a great impact on the attitudes of the employees.
For example, the showroom of OTOBI that is located in Shewrapara, used to have a monthly sale of TK 30 lakh with the previous Showroom Manager but as the present Showroom Manager came to this Showroom, the sales increased to TK 1 crore. Customers Customers are also influencing OTOBI decisions in different ways. The customers have different preferences about the furniture. So the popular furniture is produced more often than other furniture. Sometimes some furniture was not produced anymore due to the lack of sales of that particular furniture. A few days back during the Eid-ul-Fitr season OTOBI brought a newly designed Cabinet (Almirah). Only 50 copies of the product were made at first. But due to the huge demand for the product OTOBI had the orders for the product of almost 200 to 300 cabinets.
So they started to produce the newly designed cabinet at a large scale. Social and political action groups Social and political actions groups influence less in OTOBI Company. Mainly in the strikes they have problem to deliver their furniture. Otherwise they have no other problem in their decisions making. Competitors OTOBI is the largest company in this sector. They fulfill about 60 percent of demand of particleboard furniture in Bangladesh. Mainly other companies follow them. Sometimes other companies follow their design. Even though OTOIB is not affected by the decisions of the other companies, the other companies are affected by OTOBI decisions.
In most cases, when OTOBI takes out a new promotional offer the other companies like Navana Furniture and Partex try to give same kinds of offers to increase their sales. Trade and industry associations OTOBI maintains a friendly relation with the furniture companies association. They have some trade industry rules and regulations that OTOBI always maintains and act accordingly. OTOBI recently took part in a fair that was organized by the furniture association. In the fair it was required to give discount of 5% on all furniture and OTOBI acted accordingly to the requirements. It was informed that OTOBI always takes part in the annual meetings of the furniture associations as a part of their membership to the association. Governments
Governments do not influence OTOBI extensively because the organization does not break Government rules and laws. They have tax clearance and other legal matters done properly. Media OTOBI uses media for promotional activities to increase their sales and to make aware the customer about their product and the special offer that are given in some special occasion or festival. OTOBI supplies all the furniture’s for a TV channel (ATN Bangla). So as a result ATN Bangla is their media partner. Thus they are gaining benefits from the relationship. Suppliers OTOBI import their raw materials from china. They always try to import from the same suppliers.
Until now their supply of raw materials has been uninterrupted and they are try to go for backward vertical integration and produce the raw materials in Bangladesh. Communities OTOBI does not take into account the influence of any communities, as they have never faced such situations. They have seven different showrooms in Dhaka city and they never faced any complains from the people that their activities disturbed the activities of other companies and people. Unions There are no unions in OTOBI. The management informs that they select all the employees according to their skills and different benefits are given to them. So they do not allow any labor unions to grow in OTOBI.
If any employee does not like the environment in OTOBI they can leave the organization through some procedures. Shareholders OTOBI is a privately owned company. Its owner is Mr. Nitun Kundu. So there are no shareholders or partners in the organization. Mr. Kundu is the final decision maker fro the organization and OTOBI is complete run on the profit from the business and new investments are also made from the equity part of Mr. Kundu. Max Weber, a German sociologist studied the organizational activities and created a theory of authority structures and relations. Weber described that the ideal type of organization should have division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.
This form of organization Weber termed as bureaucracy. Even though Weber’s ideal bureaucracy does not exist in any organization, but it is the basis of organizational structure of many organizations. We have studied the organizational structure of OTOBI and tried to relate it to the Weber’s bureaucratic model to find out whether any organization can succeed in maintaining the bureaucracy. At this stage, the comparison could be more clear and specific by discussing the characteristics of bureaucracy: Division of labor The term division of labor explains the routine work, well-defined tasks or how jobs could be broken down in simple components.
Division of labor makes a job easier, can be performed at a faster rate and also makes the employees efficient in individual task. In OTOBI, the first segment of division of labor is the different departments. They have departments for sales, production, accounting administration etc. Again in the departments the work is segmented in different parts. For example, the sales department sales work is divided among different showrooms and dealers also. From the showroom the work is again divided among the sales officers on the basis of territory and connections. There are 15 sales officers in the OTOBI Shewrapara showroom and the target areas for sales are divided as follows: Mr. X (Mirpur 10 sales) Mr. Y (Mirpur 1 sales) Mr. Z (showroom sales) Mr. W (Corporate clients)
In this way the work is segmented so that there is no clash among the employees in reaching their desired customers. At the same time OTOBI management feels that this segmentation improves the quality of work of the employees and increases their productivity, which is the sale. But sometimes the division of labor is not followed when the employees tries to reach the customers beyond their individual territory. The management handles these sorts of disputes in a very strict way. Authority hierarchy The position organized in a hierarchy with a clear chain command is authority hierarchy. The authority of hierarchy also defines from where the commands will come and where they will go to be executed.
By looking at the hierarchy chart of OTOBI it can be clear that they follow the chain of command and they have a proper hierarchy to do their jobs accurately. The major decisions in OTOBI are usually taken at a meeting with the Deputy Managers and Assistant Managers present including their Directors and the top-level Managers. When a decision is taken it is passed to the General Manager, then to the Deputy General Manger, then to the Manager, then to Deputy Manager then to the Showroom Manager and from the Showroom Manager to the Sales Officers. But at the same time many decisions are taken based on the suggestion of the Showroom managers and Deputy Managers. Formal selection Formal selection is all about selecting employees for jobs based on technical qualification.
Selection of employees is an important process as these employees will serve for the organization and if they are not properly taken then the employees cannot meet the customers demand and fulfill the organizational goal. The selection procedure in OTOBI is like other companies. When an employee is required they give advertisement in the newspapers and calls for a written test. Then if the person passes the written test he/she is called for an interview. After the recruitment the employee stays in the probation period, which varies from position to position, and then the job gets permanent fro that person. But during the probation period if the management does approve the employee then they are not given the job permanently.
The administration try to maintain a fair way of selecting the employees as in described in the Weber’s bureaucratic model. Formal rules and regulation It is the system of standard rules and standard operating procedures. It helps to guide the employees into proper discipline and also make them punctual in the work they perform. In OTOBI, the basic rules and regulations are given as follows. Employees are required to maintain these rules in OTOBI. 1. Office time: 9:00am to 1:30pm and 2:30pm to 9:00pm. 1. Lunch time: 1:30pm to 2:30pm (1 hour). 1. No special dress codes. Other than these basic rules OTOBI likes to give its customers the topmost priority.
Impersonality Impersonality is the uniform application of rules and controls, not according to personalities. Impersonality helps the organization to be fair to everyone and give all the employees the same right in the organization. The management of OTOBI informed that they are impersonal to every employee and they are treated fairly in case of promotion and other benefits. On the other hand the employees think that sometimes they are not fairly judged by the management. They also feel that some employees get more benefits than the others always and the management is often partial to the employees whom the management likes more. Career orientation
Career orientation means managers are career professionals, not the owner of unity that they manage. So managers cannot want everything according to their wishes. They have to train the employees to be efficient, motivate them to work better. In OTOBI, Showroom Managers usually makes the trains the new employee (sales officer) to perform their individual task. The employees are also given other training programs to learn different things about the organization. They are also guided by the Managers to accomplish different task. So OTOBI is quite career-oriented organization. Finally it is clear that, in our chosen organization OTOBI, there are much similarities and as well as dissimilarities to the Weber’s ideal bureaucracy.
Even though the organizational structure is based on the Weber’s model of bureaucracy but in different situations OTOBI follows its own way of doing things. So we cannot say that OTOBI is an ideal bureaucratic organization. Human Resource Management is an important issue in the field of management. This is because if the employees of an organization are not managed properly then they cannot work as a whole to gain the benefits of the organization and reach the goals of the organization. Studies have given an insight in the linkage between the HRM policies and practices and organizations performance found that certain policies and practices have positive impact on the performance. We will now look into the different factors of Human Resource Management of Otobi Limited
Human Resource Planning Planning is a process by which managers ensure that they have the right number of employees in the right kind of places. Like any other organization Otobi also plans for its human resource. The planning is done at Otobi based on the needs of the employees in different departments. The HR firstly does the job analysis, the assessment that defines the work and the behaviors necessary to perform them, of the position for which new employee is required, then writes the major job description, the work that the jobholder does, of the position and then determined the minimum requirement for the job that is the job specification.
After they have assessed both the current condition and the future needs, the manager in the HR then estimates the shortage or surplus of all the employees in all the departments. They then take decisions where there will be need for recruiting more employees and where there is need for reducing employees. Recruitment and Decruitment in Otobi Both the recruitment and decruitment process is involved in Otobi. We will first look into the decruitment process. Decruitment process Decruitment is done when the performance of an individual employee is not up to the expected level and he or she cannot perform the required job after training and cooperation from the management of the organization. Also the decruitment is done when the Managing Director Mr. Nitun Kundu feels that the employee is not performing satisfactorily.
He does this because he has the ultimate command over the organization. Usually when the employee is decruited he/she is requested to leave the organization and leave a letter of resignation from his/her own. Then the person submits the resignation letter and then the decruitment process is complete. Incases of emergency and when the management feels that the employee should be sacked immediately, the employee is given the suspension letter as soon as possible. Recruitment process The recruitment process of Otobi is similar to any other organization. They first give advertisement in the newspaper mainly, and then resumes are obtained and then the HR department identifies the potential people for the job.
We have given a sample advertisement of the recruitment procedure of Otobi. Management Trainee (sales): Qualification: 1. Honors. Masters, any subject (MBA more preferable) Third division not allowed. 1. Experience may be required. 1. Computer literacy. 1. Fluency in English & Bangla. Responsibilities: 1. Marketing promotion 1. Order selection 1. Customer relation 1. Share concept Interested candidates are requested to send their resume with one recent passport size photograph and two references at the following address HRD section: 14 Dilkusha C/A Dhaka-1000 As a new recruit, these qualifications are required to perform certain responsibilities and that is expected from an employee.
In order to perform marketing activities, an employee must have very good communication skills. In that sense, he/she has to be fluent in both English and Bangla. On the other hand, in case of order collection, employee should have computer literacy. Then he/she would be more efficient to collect orders and provide a better customer service for the organization. Customer relation is totally based on how well the employee can handle the customers. Here, experience may work better. Besides, an employee can share his/her idea with the officials for the advancement of the company so he/she needs to be creative in nature. But the advertisement does not mention of creativity. Moreover, as a sales officer hey would need to work for long hours, which requires high level of energy and that is also not mentioned in the advertisement. So we think that these qualifications should be mentioned in the advertisement so that the organization can avoid the trouble of checking a large number of Resumes unnecessarily. Selection of Employees of Otobi Otobi uses different devices for the selection of the employees. The HR people feel that their way of selection of employees is effective and fast. The devices they use for the selection of the employees are as follows: 1. Written Test: after the employees are selected from the analysis of their resumes they are called for the written test.
The written test consists of the test of employees’ knowledge of the related subject of the work to be performed and some general knowledge. 1. The Interview: the applicants selected from the written test are called for an interview. The related department head conducts the interview and manager from HR and sometimes other managers are also present. The interview is taken mainly to test the communication skills of the applicants and the wits and the capability of the applicants to face difficult situations. 1. Background Investigations: sometimes when the management feels that the information provided by the applicants are biased and misleading, then the HR checks the background of the applicants.
Sometimes after the selection of applicant finally the HR might judge the background of the employee to give them motivation and training to perform well in the organization. 1. Probation Period: after the employees are selected finally they are sent into the probation period where the performance of the employees are continuously measured and if the employee can meet the expected level then his/her job is made permanent and if the performance is not up to the expectation then they are requested to leave the organization. We were informed by some of the employees that sometimes in the selection process partiality are done when the applicant has some known personnel in Otobi. Orientation of employees at Otobi The orientation is given in the probation period.
The managers appoint the specific jobs of the employees and the employees are given all the information they need to know about the organization. Some training programs are also arranged during this time to make the employee comfortable with the current conditions of Otobi and learn how to perform jobs in an efficient way. The employees are also given a complete schedule of the duties they need to perform and thus he/she will get familiar with the jobs that should be performed by them. Training of employees at Otobi After the selection of employees at Otobi, they are given training on the basis of the activities they will have to perform. The training is given by the managers and by some specialist in different field.
The employees attend workshops for the training. Sometimes trainings are given in the office also. There are trainings for the old employees also. When the HR feels that the training could enhance the performance of the employees they arrange training for the old employees also. Recently there was a training program to develop the computer using skills and the software (company software) using abilities of the employees. The employees were sent to this training program to improve the computer literacy and the use of modern technology. Performance Appraisal Methods of Otobi The performance of the employees is measured and also they are given appraisal during their career time.
In the performance appraisal method Otobi follows the written essay method to evaluate the performance of the employees. The managers are the evaluators of the employees. The directors are the evaluators of the managers. When an employee performs to the expectation level and show initiative to perform better in future, the manager sends a letter to the top management writing about the good qualities of the employee, his/her performance records, and the strengths and potential they have complete the task. The top management judges and undergoes a meeting with the managers and then takes the decision whether the employee will be promoted or the promotion will be held for sometime.
We were informed that sometimes the manager writes negatively in the performance appraisal of the employees. This sort of partiality is harmful for the career of the employees. We also got to know an employee from the accounts division who was transferred 4 times from one showroom to another showroom due to the fact that none of the managers liked him. Benefits provided by Otobi Like other organizations Otobi also tries to give benefits to its employees for motivating them to work better. The different benefits given by Otobi are as follows: 1. Eid Bonus on two Eids (Eid-ul-Fitr and Eid-ul-Azha): The amount of bonus is the employees’ one-month gross salary. This varies from employee to employee because everyone’s salary is different. 1.
Cash Reward based on performance: employees are given a certain amount of cash reward for good performance in sales, service, customer relation and attracting new customers. The reward is given at a regular interval of 3 months. 1. Provident Fund: employees are allowed to save in the provident fund so that after retirement they can get pension and some bonuses for working a long time in Otobi. Career Development at Otobi The management of Otobi informs that there is a good opportunity for the employees to develop the career in different fields. Since this is organization that has to deal a lot with the customers and their likings so the employees can get efficient in marketing.
Moreover the employees can enter the firm as management trainee and can go up to the position of the general manager. So there is lot of possibilities for an employee to go further with the career. But the organization does not provide boundary less career options, where the individuals will define their individual career progression. Current issues in management Diversity of the workforce is managed by the orientation and the training methods mainly. The employees are trained to behave in the desired way of the organization and as the employees remain in the job they learn the culture of Otobi and self manage them. Any sort of dispute in terms of religion and race is handled severely.
We did not get any information on the topic of sexual harassment of the female employees at Otobi. Every employee is required to maintain a professional relationship with the coworkers and be friendly to all. Major Findings Our report was based on several topics in the management system of Otobi. We learned different aspects of management practically with the help of this report. The major findings of this report are: 1. Learning the management process of Otobi Limited. 1. Learning about the environmental condition that Otobi is facing and how it effects decisions. 1. Learning about the stakeholders of the Otobi and their influence in the management process of Otobi. 1.
Understanding whether Otobi follows the Max Weber’s Bureaucratic model and the similarities between it and Otobi’s organizational structure. 1. Learning the human resource management process in Otobi is terms of planning, recruiting, selecting, training, orienting, organizing and controlling the diversity etc. 1. Learning about the different characteristics of the HR employees of Otobi and their level of knowledge and expertise in different issues. Conclusion Otobi is the manufacturer and the seller of one of the largest particleboard furniture in Bangladesh. As an organization it is very successful that can be easily observed from its sales every year.
The Managers of the company attributes the success to hard work, sincerity, devotion and the constant drive of the employees to achieve success. In this regard the management also refers to the successful management system they have to run the company as an effective one. Our mission was to find why this management was successful and what factors influence the management process and the activities of the employees as a whole. We also did a survey to be more accurate and precise with our findings. Lastly, we will say that, for any organization to be successful, the management needs to be strong and efficient in order to bring the maximum output from the organization.
Weak management will only cause the wastage of resources. So companies should emphasize on the management system in every aspect to become a successful one. Sources of Information To prepare this report we gathered information that were the most vital factor to collect lot of data, the sources of collecting the data may be varied rather might be different. To prepare this report we followed two ways of collecting information. We talked with the management of the organization of Otobi, and we also did a survey on the employees of the HR based on a questionnaire that determines the level of excellence of the people of HR. The following diagram shows how we collected and analyzed our data:
