Term Paper On

Management FunctionIn

PRAN

1

Submitted To:

Silvia Akter

Faculty of Business Administration

East West University

Submitted By:

1. Md.Mushfiqul Haque Mukit

ID: 2010-2-18-010

2. Arafa Ferdous

ID: 2011-1-10-360

3. Mahfuz Ahmed

ID: 2011-2-10-194

Section-07

Date of Submission: 08/04/2012

EAST WEST UNIVERSITY

LETTER OF TRANSMITTAL

2

Date: 08/04/2012

To

Silvia Akter

Faculty of Business Administration

East West University.

Subject: Submission of report on “ Management Function of PRAN ”.

Madam,

This is our great pleasure to have the opportunity to submit the report on the “ ” as part of our course studies.

The report is prepared based on visiting company, published reports, websites and other related documents and the documents collected from library. Through our best sincerity we have tried to uptake all the related issues in the report within several limitations. We sincerely hope and believe that these findings will be able to meet the requirements of the course.

Therefore we would like to place this report for your kind judgment and valuable suggestion.

Thanking you.

Sincerely yours

Md. Mushfiqul Haque Mukit

ID: 2010-2-18-010

Arafa FerdousID: 2011-1-10-360

Mahfuz Ahmed

ID: 2011-2-10-194

ACKNOWLEDGEMENT

3

At first we are very grateful and thankful to the Almighty Allah.

For the completion of this report visiting the company, searching for websites, articles and

related documents were required. However, it was our instructor, Silvia Akter who played the

important role by giving us an insight about the report. We express our profound indebtedness

and gratitude to her, for her valuable advice that helped immensely in preparing this report.

In addition we would also like to thank all employees of PRAN who spent their valuable time to

provide us information about their company.

We are also thankful to our fellow students, who helped us a lot to prepare this report.

4

Table of Content

History of PRAN Page-1-2

Planning Page-2-6

Organizing Page-6-7

Leading Page-8-10

Controlling Page-10-13

Conclusion Page-13

Reference Page-14

Introduction:

PRAN stands for Program for Rural Advancement Nationally.

The largest fruit and vegetable processing industry in Bangladesh with countrywide distribution

network AMCL’s PRAN is an established brand of Bangladesh with an extensive sales force all

5

over the country. PRAN have a well-developed infrastructure for production, sales and

distribution. PRAN has proven itself as – Local product but of international standard.

AMCL was launched in 1985 as an agri-business venture to:

Serve small farmers with inputs.

Marketing farm produce for profits.

Organizing contract growers to grow specific crops.

Exports of agricultural products.

Soon it was apparent that a processing facility was imperative for a sustainable venture. AMCL

therefore set up a factory on 8 acres in Ghorasal with machinery for bottling and canning in May

1991. The factory has expanded substantially over the last 9 years in all spheres of food

processing e.g. bottling, canning, pulping, pickling, concentrating as well as installation of

Bangladesh’s first Tetra-Pack facility and a modern Extrusion plant for snack food. Machinery

for all these lines are being installed, expanded, modified and fabricated continuously.

AMCL are very keen to adopt a new technology as it is discovered because of being in such a

competitive market. PRAN’s R & D are always working hard for a better technology of

production. All departments’ administrative works are done through connected computers using

the best software and hardware.

Being a major exporter PRAN has to communicate a lot with outside suppliers, retailers or

consumers. Therefore this section is very important for AMCL. PRAN has taken this

communication issue very seriously. They often have to do meetings by doing teleconferences,

internet shopping, video conference etc.

AMCL provides with good quality products conforming to local tastes, health and hygienic

standards which are of affordable price and within the reach of target consumers. This is the first

and largest ISO 9001 certified food processing industry in Bangladesh.

Mission:

6

To generate employment and earn dignity and self-respect for our compatriots through

profitable enterprises.

Vision:

Improving Livelihood

Objectives:

AMCL and its Brand name “PRAN” have twin objectives – “achieving social values with

sustainable pecuniary advantage for all our stakeholders.”

Goals:

To remain as the market leader with consumer items in food & beverage sector in the

country & to be the market leader in same sector in abroad with minimum NP level of

10%.

Quality maintenance and improvement.

Satisfied customers.

Hold on to the current customers and again gain customer loyalty.

Gain competitive advantage over all the competitors.

To double sales and expand production capacity every 7-8 years.

To become one of the biggest names in international fruit and vegetable processing

industry

“PRAN” is currently one of the most admired food & beverages brand among the millions of

people of Bangladesh and other 82 countries of the world where PRAN Products are regularly

being exported.

The company hasn’t reached this position without a great management function.

7

Planning:

One of the most common sets of activities in the management is planning. It is a preparatory

step. It is a systematic activity which determines when, how and who is going to perform a

specific job. It involves defining the organization’s goals ,establishing strategies for achieving

those goals and developing plans to integrate and coordinate activities Planning is a detailed

program regarding future courses of action. It is rightly said “Well plan is half done”. Therefore

planning takes into consideration available & prospective human and physical resources of the

organization so as to get effective co-ordination, contribution & perfect adjustment. It is the basic

management function which includes formulation of one or more detailed plans to achieve

optimum balance of needs or demands with the available resources.

There is no mystery about how PRAN reached it today’s position. All it took was great planning

involved turning ideas into actua1ities by a series of logical steps.

PRAN followed some general and logical steps and they are:

1. By defining the major objective.

The major objective is the total job, the final result. There can be only one major

objective, and this must be clearly visualized before any planning can be attempted. The

major objective for PRAN is to remain as the market leader with consumer items in food

& beverage sector in the country & to be the market leader in same sector in abroad with

minimum NP level of 10%. They thoroughly communicate this to the entire organization.

2. By choosing alternative course of action

When forecast are available and premises are established, a number of alternative course

of actions have to be considered. For this purpose, each and every alternative will be

evaluated by weighing its pros and cons in the light of resources available and

8

requirements of the organization. The merits, demerits as well as the consequences of

each alternative must be examined before the choice is being made. After objective and

scientific evaluation, the best alternative is chosen. Managers of PRAN always surf the

market to avoid vacuum in Market in aspect of existing product availability & in aspect

of new product.

The planners take help of various quantitative techniques to judge the stability of an

alternative.

3. By formulating short term plans

People fail because they try to achieve major objectives in one swoop. The task should be

broken down into contributory minor objectives, each clearly defined and each capable of

detailed planning. These plans include policies, procedures, rules, programmes, budgets,

schedules, etc. As PRAN main objective is to remain the market leader, short term plans

will include sales maximization, production maximization, and cost minimization. The

company’s short term objective is to avail the target that been set before the year starts.

These targets are also a part of the long term objective as well.

Derivative plans indicate time schedule and sequence of accomplishing various tasks

4. By involving more organizational member.

Organization should involve more members in the planning process. This doesn’t mean

plans are handed down from one level to the next but instead are developed by

organizational members at various level. PRAN uses this strategy very well, they help

their employee grow. They give them proper training and development and encourage

employees to ask questions and make suggestions that they think better.

5. By working out detailed plans for minor objectives and allowing flexibility.

With the overall plan broken down and correctly phased, it becomes possible to work out

details for the accomplishment of each minor objective.

9

At this stage the decisions which PRAN make are:

What is to be done?

How is it to be done - resources, methods and means?

Who is going to do the job?

When is the job to be done - starting and finishing times

Where is the job to be done?

All the facts may not be known when plans are first made. Later on, new data may

become available. For this reason, minor plans of PRAN are flexible enough to cater for

unforeseen events or emergencies.

Having considered the steps involved in planning PRAN turn their attention to the way in which

they should be applied. In PRAN planning is applied downward, with the active co-operation of

subordinate staff all down the line. It follows that every level understand the planning approach

outlined and is able to allocate priorities and work out precise details. Only in this way PRAN

break down a really major objective into the mass of detailed activities which become necessary

for its accomplishment. In the end, a proper job of planning by the entire supervisory staff of

PRAN ensure unified and successful action. PRAN is very effective in doing so as they treat

their employees as core resources and family member and encourage their participation in

decision making and in implementing plans those are formed by the top level management thus

they implement their plans easily and efficiently with the help of subordinates and staffs.

After the plans are implemented monitoring the plans are equally important to ensure that

objectives are achieved. It is also important to appraise its effectiveness. PRAN does this on the

basis of feedback or information received from departments or persons concerned. This enables

the management to correct deviations or modify the plan. This step establishes a link between

planning and controlling function. The follow up go side by side the implementation of plans

in the light of observations made, and thus help PRAN to make more realistic future plans.

In PRAN managers frequently check all the works that are to be maintained and take any

corrective actions that are needed. PRAN is one amongst the fewest in Bangladesh who has a

culture of profit sharing management as an appraisal for performing the jobs correctly.

10

Managing Director

Organizing:

Production system:

The practical expression of PRAN’s people and customer-oriented philosophy is known as the

PRAN production system. This is not a inflexible company-imposed procedure but a set of

principles that have been proven in day –to-day practice over many years. Many of these ideas

have been adopted and imitated all over the world.

PRAN production system has three desired outcomes:

To provide the customer with the highest quality product, at lowest possible cost, in a

timely manner with the shortest possible lead times.

To provide members with work satisfaction, job security and fair treatment.

It gives the company flexibility to respond to the market, achieve profit through cost

reduction activities and long-term prosperity.

PRAN production system strives for the absolute elimination of waste, overburden and

unevenness in all areas to allow members to work smoothly and efficiently. The foundations of

PRAN production system are built on standardization to ensure a safe method of operation and

a consistent approach to quality. PRAN members seek to continually improve their standard

processes and procedures in order to ensure maximum quality, improve efficiency and eliminate

waste.

Manufacturing Process:

PRAN control and monitor every aspect of the manufacturing process. PRAN ensure the

integrity of the enterprise and to maintain quality assurance, the implementation of standards.

This means installing efficiently designed processes throughout the operation from product

development, to supply chain and shipping. By adopting a strong, process-centric culture, your

company can smoothly transition from chaotic and ad hoc management systems to a smooth

running operation that increases profits.

PRAN Company gains the accountability and consistency that will give them a cutting edge. All

the tools ensure that all processes are properly understood, allowing you to increase the safety as

well as the efficiency of the operation.

11

Leading:

PRAN is the largest processors of fruits and vegetables in Bangladesh. The management of this

GROUP is modern adapted to our environment and culture. PRAN has some enthusiastic leaders

who are always lead the company very well.

The most gifted athletes rarely make good coaches. The best violinist will not necessarily make

the best conductor. The company higher managers will seek out the scope from how they their

employers. Nor will the all the managers take effective decision for the company so they

12

cooperate with all employers and they also distinguish between the skill of performance and

achieving task performance. PRAN’s management group also determines whether a person is

capable to finish his task or not.

As the PRAN is a huge organization it leading style varies with the employee and environment

of the company. Whenever they fall in a tough situation they will find the way to overcome the

situation with effective leadership style.

Leadership Style in the Organization

Leadership differs or varies man to man. Leadership works best when employee and employer

are works towards organizational goal. PRAN has its clear vision and planning overall the

organization and they go ahead with their goal to achieving this. As it’s a huge organization

comprises 10 companies so it tough to organize the whole work activity and maintain the worker.

The company’s largest asset is its competent team of hands-on-managers and their dedicated

employees. The manager of the organization treats their subordinates with very friendly way and

also plays very important role to leading them effective way. The organization differentiates

manager leadership power in different sector. The entire organizational strategies are worked

with to achieve the company’s goal.

Democratic leadership: The Company wants to share their views and ideas with worker and

from them the company also expects some valuable ideas whenever take any decision. So the

company believes in democratic leadership which gives importance to all the employer.

Transactional leadership: Sometimes Company offer reward for some specific task they did it

to motivate employee. PRAN has some expertise those make strategy for long-term motivating

work environment and they used it towards the workers.

Motivating Employee

13

Motivation is the process that account for an individual’s willingness to exert high levels of

effort to reach organizational goals, conditioned by the effort’s ability to satisfy some individual

need. Motivation mostly needed when the workers are low in their effort or performance. The

simplest and most intuitive approach to motivation is to satisfy an employee’s need. The

management leader of the company motivates their employers giving reward, special offer,

promotion and many others ways like:

They make most workers motivated as they always try to make the best result out of their

employees.

They set a personal example to follow by their subordinates.

The company shows the employee’s future basing on their job regarding their

achievements and other staffs.

Sometimes they offer outing beyond the job.

Sometimes they give employee’s different incentive offer like- performance based

reward, task based reward etc.

For motivating the employer they set the right job and well environment for the

employer.

They also give the right to make effective decision for organization.

How changes affect workers productivity

PRAN has different sector and all the sector strategy are not same so they set different strategy

for the entire sector to increasing company’s productivity. Whenever any changes are made the

team manager let all know about the changes and make them training what will be done at the

forefront. This change also is not tough to the employer because seniors are come to

communicate with the employer and make them understand about the changes. They also make

them know about the productivity of their work performance and give some target oriented task

which may increase the productivity.

Right Time of Stimulate Conflict

Stimulate confliction happened for some unusual reason which could be very complicated for the

company to solve this problem. As PRAN is a huge company some work could not be done time

14

to time when a gap created between management and employee and for this confliction occur.

Another problem for the company is when the employee leave from company. As the Company

build their planning with a clear vision so PRAN overcome this.

Controlling:

What is controlling?

In today’s competitive global marketplace, managers want their organizations to achieve high

levels of performance, and one way they can do that is by searching out the best practices

successful organizations are using. By comparing themselves against the best, managers look for

specific performance gaps and areas for improvement where better controls over the work being

done are needed.

So Control is the process of monitoring activities to ensure that they are being accomplished as

planned, and correcting any significant Deviation.

Importance of control for PRAN-RFL group:

In an organization planning can be done, an organizational structure can be created to efficiently

facilitate the achievement of goals and employees can be motivated through effective leadership,

still there’s no assurance that activities are going as planned and that the goals managers of

PRAN-RFL group are seeking are, in fact being attained. Therefore control is important because

it’s the final link in the management function.

The value of control lies in the relation to:

Planning Employee Empowerment Protecting the Workplace

15

The Control Process of PRAN-RFL group:

Common sources of information for measuring performance:

Personal observations:

Managers of PRAN-RFL group get firsthand knowledge. They emphasis on Intensive coverage

of work activities

Statistical reports:

Managers of PRAN-RFL group can easily visualize the performances of employees. They can

build relationship through this source.

Oral Reports:

This is the fastest way to get information for the Managers of PRAN-RFL group . They allow

both verbal &nonverbal feedback

Written Reports:

This is comprehensive & the formal way for the company. This is easy to file & retrieve

Comparing:

16

2. Comparing Actual

Performance against Standard

3. Taking Managerial

Action

1. Measuring Actual

Performance

The comparing step determines the degree of Variation between actual performance and the

standard. Although some variation in performance can be expected in all activities, it’s critical to

determine the acceptable range of Variation. PRAN-RFL group offers themselves the standard

in the Bangladeshi Food and beverage sector.

Taking Managerial action:

The third & final step in the control process is taking managerial action.

Correct actual performance of the organization

Revise the Standard of productivity

Marginal Decisions in the control process:

The standards evolve out of goals which are developed during the planning process. These goals

then provide the basis for the control process which essentially a continuous flow between

measuring, Comparing and taking managerial action.

Controlling for Organizational performance:

They Measure organizational Performance through:

Productivity of PRAN-RFL group

Effectiveness of PRAN-RFL group

Management Information System:

Management information system should be IT based. PRAN-RFL

group majorly focus on IT based MIS.

More automation wills easy your life more with better control.

Tools for controlling organizational performance:

17

Controls Measures for reducing workplace violence:

The organization is very much concerned about the workplace violence for maintain the

organizational productivity and organizational effectiveness.

Conclusion

No ideology, no ism, no political theory can win a greater output with less effort from a given

complex of human and material resources, without sound management. Although this firm is in a

very good position in the market, we would just make a suggestion that, they should offer more

and more differentiated products through segmentation of the current market in more details. Of

course, the economic capability of target customers must be carefully analysed. Managers can

communicate more and make survey to reach closer to the customers and create market offerings

which are both for the betterment for the firm as well as for the society. This practical experience

gathered from observing these established company of Bangladesh has just helped us to reach to

a conclusion that – What nurtured the success of PRAN-RFL group?

18

Tools for ControllingFeedforward

Control

Concurrent Control

FeedbackControl

References:

I. MD: Shahan Shah Azad

II. COO, PRAN-RFL Group

III. WWW.pranrflgroup.com

IV. www.Google.com

V. http://www.pranfoods.net/employee_care.php

VI. Management by Stephen P. Robbins

VII. EWU library.

19