chowdhury leather craft ltd. (2)
TRANSCRIPT
Assume that you are a top executive of an organization. Now think of a
decision that will bring a significant change in your organization. Justify
why do you want to take such a decision and how will you implement it.
By:
Name Roll No.
1. Debashish Mondal 048 2. Alvy Riasat Malik 123 3. Sadi Mohammad Ziaul Abedin 1284. Md. Mafi Ullah 016 5. Md. Zakir Hossain 145 6. Fahim Lodhi 149 7. Md. Mohibbul Islam 007 8. Taj Mohammad Sagar 1399. Md. Samir Shaker 100
BBA 13th Batch Department of Management Studies
University of Dhaka
Supervisor:
Md. Salim BhuiyanProfessor
Department of Management StudiesUniversity of Dhaka
November20, 2007
To,
1
Md. Salim BhuiyanProfessorDept. of Management StudiesUniversity of Dhaka
Sub: Submission of Term paper.
Dear Sir,
This is a great pleasure for us to submit the term paper, which is a partial requirement for the
degree of BBA. We have been assigned to do term paper on Fundamentals of Management. Our
assigned topic is Assume that you are a top executive of an organization. Now think of a decision
that will bring a significant change in your organization. Justify why do you want to take such a
decision and how will you implement it. Our analysis is based on what we have learned from this
study. There may be some limitations, but we have tried our best to make it as accurate as
possible.
We sincerely hope that you will enjoy reading this report. We will be very glad if the study can serve its actual purpose and we are ready to explain anything to you if necessary.
Yours faithfully,
Name Roll No.
1. Debashish Mondal 048 2. Alvy Riasat Malik 123 3. Sadi Mohammad Ziaul Abedin 1284. Md. Mafi Ullah 016 5. Md. Zakir Hossain 145 6. Fahim Lodhi 149 7. Md. Mohibbul Islam 007 8. Taj Mohammad Sagar 1399. Md. Samir Shaker 100
BBA 13th Batch Department of Management Studies
University of Dhaka
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ACKNOWLEDGEMENT
This is a short ranged study report submitted to the Department of Management
Studies, University of Dhaka. This research focuses on the decision making process
in a particular organization. At first, we take the opportunity to thank The Almighty.
Then we express our thanks to our department and authorities for granting us such
opportunity in this level.
First we would like to express our gratitude to our honorable teacher Md. Salim
Bhuiyan, Professor, Department of Management Studies, University of Dhaka,
with whose wise and liberal supervision we were able to complete our research
paper. He built us for our journey with his insightful advice and continual
encouragement and support with unforgettable caring. We are deeply indebted to
him for removing some of our great confusions during the research work. We are
also thankful and grateful to him for his skilled effort and contribution to build up
our research methodological knowledge.
Our sincere thank goes to our two fellow senior students of this department for
helping us to understand the structure of our research work and data collection
techniques.
We would like to thank to the officials of “Chowdhury Leather Craft Ltd.” For
helping us to find out the essential data we need and warm hospitability and
cooperation.
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Table of Contents
Title Page i
Letter of transmit ii
Acknowledgement iii
Table of Contents iv
CHAPTER-ONE : INTRODUCTION 1.1 Introduction to our study 4
1.2 Objective of the study 4
1.3 Methodology 5
1.4 Limitations 5
CHAPTER-TWO: 2.1 Overview of the company 7
2.2 vision of the company 7
2.3 Goal of the company 8
2.4 Organ gram of the company 8
CHAPTER-THREE: 3.1 Analysis of last five years business report 3.2 The major problems of the organization 3.3 Alternative solution 3.4 Evaluating alternative solutions 3.5 Conclusion
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CHAPTER -ONE
INTODUCTION
1.1 Introduction to our study:This term paper is prepared on the basis of decision making process in a
particular organization. There are many leather companies who are exporting
finished leather products from Bangladesh. We have chosen one of this well
known leather product manufacturing and exporting company named
“Chowdhury Leather Craft Ltd” for making our term paper. It is a repudiated
leather product exporting company in Bangladesh. It has been exporting leather
products with a great success. This company is now one of the best leather
companies in Bangladesh. But as the competitors are increasing in this sector
“Chowdhury Leather Craft Ltd” is facing some problems. And as the top
executive of this company we are to find out the problems and to find out the
best solutions for those problems.
1.2 Objectives of the study:
Have an experience of real life business situations.
Representing a company’s top management.
Finding out the major problems of an organization.
Finding solutions of those problems according to the process of decision
making.
Experiencing the process in which different management decisions are
made.
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1.3 Methodology:
When we were given this term paper on decision making process, the first
question raised in our mind was from where we should start, which type of data,
what type of data we need and from where we would collect them.
Then we selected the company upon which we will make our term paperand we
selected “Chowdhury Leather Craft Ltd” as our company.
The report is prepared on the extensive use of secondary data. We gathered
most of our data from the following two places
WWW.Chowdhuryleather.com
Annual report of 2006 (Chowdhury Leather Craft Ltd)
1.4 Limitation of the study:In the way of preparing this report we faced many problems. These problems
caused many obstacles in our report. In spite of these obstacles we tried to make
our report well informed, logical, analytical and well arranged. The limitations
are as follows...
Shortage of information in the official web site of “Chowdhury Leather
Craft Ltd”
We got a very few managerial information in their annual report.
Very little data was available to prepare this report.
CHAPTER –TWO6
2.1 Over view of the company:“Chowdhury Leather Craft Ltd” is a leading leather product exporting company
in Bangladesh. It is a producer and exporter of 100% finished leather Products.
It is a private limited company and it was incorporated in 1997. It has started its
venture in 1998 and still exporting leather goods.
Its corporate office is in Motijhil and its main factory is situated in Savar. Its
registered capital is 200crore taka and now it is running with a capital f
107crore taka. More than 8000 people directly and indirectly work in this
organization. Now “Chowdhury Leather Craft Ltd” is recognized as one of the
leading leather company in Bangladesh.
2.2 Vision of the company:
We will be the top leather products exporter in Bangladesh. We will produce
and export the finest leather products in Bangladesh and outside Bangladesh.
We will be company with qualified professionals, who will work together as a
team and serve the company with dignity and the highest integrity.
We believe in excellence and will continuously improve our product’s quality
and design.
“Excellence in everything” will be the operative words for our organization.
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2.3 Goal of the company:
Produce and export the finest leather products.
Achieving every year’s company objective which is a specific amount of
net profit on the basis of the total cost.
Spreading our product’s market in all over the world.
Making the company assets double within the next 8 years.
2.4 Organ gram of the Company:
CHAPTER-THREE8
3.1 Analysis of last five years business reports:
As a exporting company we are exporting finished leather products for last 10 years.
Every year company sets a target of net profit which is to be achieved. But last 2 years
we found that we were not able to achieve company's target. In the previous years we
were very much near to the target but last 2 years we couldn't even go near to the
target. Our business report of last five years is given below....
Year Total cost
(Tk.)
Sales Total Sales Profit Profit
%
company
targetExport Local
market
2002 350000000 351847000 22753000 374600000 24600000 7.03% 9%
2003 420000000 432806000 28270000 461076000 41276000 9.78% 11%
2004 450000000 409928000 48796000 491520000 47520000 10.56% 12%
2005 480000000 467056000 47552000 514608000 34608000 7.21% 14%
2006 520000000 497122000 54754000 551876000 31876000 6.13% 15%
If we see this report we will be able to see that the company's target was to make 14%
and 15% net profit on the total cost but were could only make 7.21% and 6.13% net
profit on the total cost.
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When we started to investigate the reasons why we aren't being able to achieve the
company’s objective we find out many reasons.
For the last 2 years we aren't being able to fulfill our buyer's demand that's why they
canceled some big orders. Sometimes it is seen that we aren't able to produce enough
products in given time.
They are also complaining about the quality of our products and the high price of our
products.
Where technology is improving day by day there we are using the same old
technologies and that is the main reason why we are not being able to improve our
products quality. Our competitors are using new technologies and by using these new
technologies they are improving their products quality. And most of all by using the
new technologies they are being able to produce more products at a low cost of
production. So they are supplying products at a chief rate. So we are losing our market
to them.
3.2 The major problems of our organization:
We gathered information from different sources as much as we can and then analyzed all the
reports and information we have found out the major problems of our organization.
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High cost of production.
Low production rate
Qualities and designs
If we see clearly through these problems, we will be able to find out some problems behind
these major problems. These small problems are causing these major problems.
High employee turn over
Absenteeism
Lack of experience of workers
Lack of advanced technology
High price of lather
Mismanagement of time
Lack of motivation
Lack of training programs
Power supply shortage
HIGH EMPLOYEE TURNOVER:
Employee turnover means employees switch off one company to another company for better
facilities. Labor turnover measures the movement of workers in and out of employment with
a particular firm. The success of an organization largely depends on the performance of its
human resources that means on the performance of its skilled and experienced employees. If
skilled and experienced employees of an organization change their company frequently then
the effect of this change create a problem with its internal and external people and as a result
it is so difficult for an organization to make profit. If a post becomes vacant the activities of
management become hampered. And ultimately this effect goes to the production ratr and
high cost of production.
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ABSENTEEISM:
There is a tendency of being absent in the work place of the workers. Sometimes
they come to work place after the work starting time and leave before the work
time ends. So absenteeism of workers and employees is another major problem in
our company.
TECHNOLOGICAL PROBLEM:
The buyers are raising question about quality of our product. By seeing deeply
through the production process, we managed to find out that the technologies we
are using are backdated and old. That’s why we can’t improve our product quality
and design comparing to the other leather companies in Bangladesh. It is one of
the main reasons behind low production rate.
Lack of expert workers:
Another major problem is lack of expert workers. Maximum of our workers don’t
have enough technical knowledge and working knowledge. As a result our production
rate is not increasing and we are getting less expert finishing in our products.
Time mismanagement:
There is a serious problem of time management in producing products in appropriate
time. We are not being able to meet up with the orders of our buyers. Sometimes it is
seen that we are asking more time for producing their ordered products.
High price of lather:
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Another major problem is high cost of lather. We purchase our raw materials from the
local markets and which costs us a huge amount of money. As result our cost of
production has increased.
Lack of motivation and training program:
There is serious lacking in motivating the workers so that they can work more
efficiently and effectively in their work place. Because of the lacking in motivation
the rate of employee turnover is increasing.
We also have a poor quality of training facility. So there isn’t enough chance of train
the workers and make them expert workers.
Power supply shortage:
The power we get in our factories is not sufficient enough for our production. Rapid
fluctuation of electricity hampers our productivity a lot.
3.3 Alternative solutions:13
In decision making process the second step is to find out alternative solutions. As the
top executive of the organization it’s our responsibility to find out the solutions of
every obstacle which are in the path of company’s objective. So after finding out the
problems which are the main reasons why could not achieve company’s objectives,
we have gathered as much information as we can and analyzed them very carefully.
After analyzing all the information, we thought of some alternative solutions and tried
to find out their effectiveness and limitations towards the problems we have
discovered. And finally we find out the following alternatives….
Reduce high cost of production:
Payment of wages on the basis of Units:
Workers will be paid on the basis of units rather than on the basis of hours. It
will reduce absenteeism of workers in the workplace. Most often workers
spend time in gossiping, working slowly and carelessly. If wages are paid on
the basis of unit, workers won’t get enough time to gossip or work slowly. It
will also decrease the tendency of workers of leaving workplace before the end
of the work time.
Purchasing raw materials:
Raw materials of shoes, bags, coats, jackets, lather pants from the local markets
and if possible from the raw material producers at a cheap rate so that our high
cost of production can be reduced. We also have to be sure about the quality of
the raw materials we are purchasing for manufacturing our products.
Adoption of advance technologies:
We need to change a major part of our machinery. We have decided to buy
some new advanced machinery especially computer based machines.
To reduce the high cost of production we have thought about some steps as follows:
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Overtime should be reduced from 2 hours to 1 hour, because in overtime
workers are given for each unit of production and that leads to high cost of
production.
Number of workers should be reduced because there are extra employees
comparatively.
Good relation must be remained with the raw material producers, so that we
can get raw material when needed at a cheap rate.
There are many paid holidays in a month and this paid holidays leads to the
high cost of production.
The workers must be conscious about the high cost of production.
Raise production rate:
Reasonable wages:
Reasonable wages will be paid to the workers so that they get motivated and
can work efficiently in the workplace and to reduce high turnover.
Grading workers:
Workers will be graded on the basis of their produced units as average workers,
above average workers, below average workers.
Above average workers will be given bonus, below average workers will be
given training. Separate below average workers from the average workers and
above average workers and train them to make them average workers.
Training programs:
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Every worker has to participate in the annual training program. Below average
workers will be given extra training.
In spite of providing training among the below average workers if they are not
able to reach the level of average workers they must be suspended from the
organization.
Motivation:
Motivation will be provided to encourage the workers on the basis of their
needs, so that they can find work enjoyable in their workplace.
Above average workers will be given bonus. Providing bonus to the workers on
the basis of their production at the end of every month.
Employees will be given transport facilities; lunch will be provided at a low
cost to the workers and the employees.
Power supply:
We have to increase the number of our generators. Because the electricity govt.
provide us is not enough for our production.
For improving our production rate we have thought of some extra steps as follows:
Workers who will present 100% in a month will be given bonus.
The employees who will present less than 80% will be given lower amount of
money than their average pay scale.
Supervisors should consult with the employees about their problem directly.
Efficiency and effectiveness must be remained among the existing workers.
The workers must be attentive to the work so that they can give their best in the
workplace.
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3.4 Evaluating alternative solutions:
After finding the alternative solutions, evaluating the alternative solutions are the third
step of decision making process. In the evaluation process we followed some strategic
process such as ….
Cost benefit analysis
SWOT analysis
Analytic Hierarchy Process
Strategic planning process - applying the objectives,
SWOTs, strategies, programs process
Six Thinking Hats - symbolic process for parallel thinking
After finding out the alternative solutions we realized that we might not be appropriate
in all the decisions because management always has some limitations of information
about the lower level of management and workers. So we need to consult with mid
level, lower level managers and work union leaders, because only top management
cannot implement a decision, we need active participation of all level managers.
Lower level managers and the workers are the people who run all the task of the
company, so if the top level management doesn’t consult with them in making new
decisions the management will not be able to know the reasons of their hesitation.
And if they are hesitated about the taken decisions they will not be able to work at
their full capacity. They will think the management is only forcing them to do what it
wants them to do. As a result it may hamper the existing production rate. So the
management needed to take their opinions before making any final decision.
So we made a group meeting with the mid level and lower level managers and work
unions. In this meeting they freely expressed their opinions. We considered these
opinions to evaluate our alternative decisions.
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Opinions given by the subordinates:
1. Holidays should not be withdrawn.
2. Attendance of the subordinates will be reduced to 90% from 100% because 100%
attendance is not possible on the part of the subordinates.
3. The manager should consult with the subordinates so that any problem can be
solved.
4. Every employee and workers will be given Life insurance facility.
5. Over time must be remained from two hours to four hours.
6. Workers and employees should be given medical facilities.
7. General workers should have pension and retirement fund.
8. Subordinates and workers should have communication channel through which
they can consult with the mid and top level management.
9. The festival bonus should be given to the workers and the amount of the festival
bonus of the workers and employees should be increased.
10. All salaries and wages should be paid within the third day of the month.]
11. The right to commence worker unions.
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Making final decisions:
Making decisions is the most difficult job of a manager. After evaluating all the
decisions we have finally taken some decisions which will be very important for
the development of our organization.
Final decisions are given below…..
1. Old machines will be changed and new machines will be used.
2. Experienced workers will be employed for high production.
3. Experienced trainers will be employed in the factory so that they can give their best
training to the subordinates and workers.
4. Reasonable overtime will be given to them.
5. Proper ventilation and sanitation system will be adopted.
6. There will be only one holiday in a week.
7. Employees will get the pension facility but workers only above 45 years old will get
pension facility.
8. Wages and salaries will be paid within the 3rd date of the month.
9. Attendance of subordinates will be reduced from 100% to 95% and 95% attendance
will be given rewards and attendance below 90% will be given punishment.
10. Wages will be paid on the basis of the units rather than on the basis of hours.
11. Workers will be graded on the basis of their produced units as average workers,
above average workers, below average workers.
12. Above average workers will be given bonus and below average workers will be
given training.
13. Departmentalization on the basis of functions.
14. Workers and employees should be given medical facilities.
15. Vacant managerial posts will be filled up by promoting the employees within the
organization.
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Conclusion:
We think the decisions we have made will help us a lot in achieving our company
objectives. From now on we will use a management information system. This system
will help us implementing our taken decisions. If there is any problem implementing
the decisions, it will be detected by the management system and the problem will be
treated instantly.
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