MANAGING BUSINESS

ACTIVITIES TO ACHIEVE

RESULTS Name : Doan Minh Thanh

ID number: P1007208

Course: Managing Business Activities to Achieve Results

Module : Organizations and Behavior

Lecture : Shamima Hossain

Due date : April09th, 2014

Group : 1A

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TABLE OF CONTENTS

Interrelationships Between Organizational Process And Function Structure...............................5

Structure................................................................................................................................................................... 5

Functions.................................................................................................................................................................. 7

Interrelationships between different functions:....................................................................................8

Process and Relationships between Objectives, Vision and Mission Statement......................9

Methods for Mapping:...................................................................................................................................... 12

Identifying the Process Margins:............................................................................................................12

Make the list of the functions and their process accordingly....................................................12

Make the Classification of Steps and Process...................................................................................12

Draw the Symbols to show Functions accordingly........................................................................12

Evaluate the output of the Process and the Quality Gateways......................................................13

Customers’ Requirement........................................................................................................................... 13

Gateway Process............................................................................................................................................ 14

Business Process Measurement.............................................................................................................14

Develop Plans To Implement Operational Plan.........................................................................................16

Design plans which promote goals and objectives for own area of responsibility...............16

Training’s Goals and Objectives..............................................................................................................16

Plan for Promoting Goals and Objectives...........................................................................................16

Ethical and Regulatory Requirements.................................................................................................18

Write objectives, which are specific, measurable, achievable, realistic and time-based...18

Implement appropriate systems to achieve objectives in the most efficient way, on time, to budget and meeting organisational standards of quality...........................................................19

Gantt Chart....................................................................................................................................................... 19

Risk Factors Analysis...................................................................................................................................19

Carry out work activities meeting the operational plan through effective monitoring and control..................................................................................................................................................................... 21

Primary activities.......................................................................................................................................... 21

Secondary activities..................................................................................................................................... 23

Six Sigma For Quality Management......................................................................................................24

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Start-up Plan........................................................................................................................................................ 25

Objectives.............................................................................................................................................................. 25

Mission.................................................................................................................................................................... 26

Planning, control and monitoring for the store operation..............................................................26

Appropriate Systems to Improve The Orgnisational Performance..................................................26

Total Quality Management.............................................................................................................................26

Demonstrate a quality culture to ensure continuous monitoring, evaluation and development of the process.......................................................................................................................... 28

Monitoring and Controlling Processes................................................................................................28

Performance Management for Human Resource............................................................................30

Performance Management for Organisation.....................................................................................31

Building up Quality Culture...................................................................................................................... 32

Recommend improvements which align with the organisation’s objectives and goals and which result in improvements.....................................................................................................................33

Report on the wider implications of proposed changes within the organisation.................35

Health and Safety Management........................................................................................................................37

Risks assessment................................................................................................................................................ 37

Legislation and Regulations.......................................................................................................................... 38

Health and Safety at Work............................................................................................................................. 39

Practical Implication.........................................................................................................................................40

References.................................................................................................................................................................. 41

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INTERRELATIONSHIPS BETWEEN ORGANIZATIONAL PROCESS AND FUNCTION STRUCTURE

STRUCTURE

The structure not only supports the organization in identifying the relationship and

reporting line, the process, monitoring, authorized controls and decision-making

procedure (Hitt, et al., 2011) but also has substantial effect in knowledge management;

hence, a failure in structural implementation can lead to the fatal flaw in strategic

adjustment (Johnson, et al., 2007). One of the most challenging issues of an international

company has to face is that the leaders have to plan for an effective management regarding

to the diversification of the products it offers to customers and the fluctuation of the

market it penetrates in once the business develops and expands (David, 2012) since the

very basic point is a company will divide the responsibility and profession once it grows

beyond the firming level of size and complexity (Johnson, et al., 2007). Therefore, a firm has

the goal to build up an effective structure to adapt with two main requirements: the

structure has to achieve the synergy to make the whole system can operate as an

intertwining body in a stable way; in the other hand, the structure also has to offer a range

of flexibility and authority to make good condition for business level units can implement

and adapt with customers’ requirement in a specific market accordingly (Wheelen &

Hunger, 2012). Therefore, understanding and applying the appropriate structure would

create an important strategic advantage for the company.

In the case of InterContinental Hotels Group (IHG), the company applies the

multidivisional structure concerning to dividing the geographic areas with four regions:

AMEA (Asia, Middle East, Africa), Americas, Europe, and Greater China (includes of Hong

Kong, Taiwan and China). Below is the sample organization chart of Americas in

Commercial Department:

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FUNCTIONS

Look at the structure, the top of executive management level would be Chief

Executive Officer (CEO) Richard Solomons. The CEO will stay in IHG headquarter which is

based in Denham, United Kingdom. In order to support for CEO, a corporate central service

is established. The corporate central service will be responsible for planning and

implementing the strategy regarding to the corporate-level. The strategy is planned for the

whole organization. The functions of the corporate centre includes:

Business Reputation and Responsibility: it is responsible for championing and

protecting the reputation of IHG and all IHG’s brands. The responsibility also

includes group legal services, risk management, corporate responsibility and public

affairs, internal audit and company secretariat.

Global Communications: it is responsible for building IHG’s prestige as the provider

of Great Hotels Guests Love (IHG’s motto) and assisting in the delivery of IHG's

longer term journey to become one of the world's great companies (IHG Vision).

Global Finance: it is responsible for planning the commercial finance, strategy and

corporate development, investor relations, procurement, monitoring the financial

reporting.

Global Sales and Marketing: it is responsible for the brand management, reservation

channels, relationship marketing, loyalty programmers, and global sales strategy.

Global Human Resources (HR): it is responsible for the development and

implementation of company-wide HR strategies, human capital management

programmers, policies and strategies in order to maintaining the HR retention. The

main focus would be leadership development, talent development, career service,

performance management and employee’s communication as well as engagement.

Global Technology: it is responsible for supporting the technical direction for the

whole organization and business objectives, providing and augmenting core

revenue-generating and user-facing systems, and integration of property

technologies, with additional focus on financial, corporate and human resources

applications.

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Beside the corporate central service, there are also heads of the regional

departments of Europe, Americas, AMEA and Greater China. These top regional

departments have the responsibility in collaborating with the corporate centre in order to

gain the acknowledgement and implementation of the strategy. Then they will be

authorized to plan the appropriate business policies for their own regions accordingly.

INTERRELATIONSHIPS BETWEEN DIFFERENT FUNCTIONS: The corporate centre functions will have the interdependent relationship with each

other together. The Global Human Resources (HR) will be responsible for the whole

organisation internal policy. For the selection, they give out the Competencies Based

Interview, job analysis and job descriptions in order to help the hotels have the guidelines

to select the right employees for other departments. Moreover, the HR is also responsible

for planning the policy, regulations and other employees programs. The two important

procedures from HR are training and performance management. While training – especially

the orientation training helps the employees feel confident when starting the job and

encourage the harmonic collaboration among departments, the performance management

will help the department head to catch up with the performance of the employees and help

them in doing the personal development plan. For example, in IHG, there is a sales

standards so-called IHG Great Ways of Sales with the Key Performance Indicators (KPI)

that help the managers to assess the performance of staffs. After that, they will discuss

together about the Personal development plan (PDP) to enhance and improve the

performance. HR will be responsible for manage these PDPs.

Therefore, in order to have a smooth management toward the organisation policies

and other HR documents as well as files, the Technology function will be responsible for

maintaining the business support programs. For HR, it would be Cadena HRM Series

software. For Sales & Marketing, it would be Delphi and especially for Finance & Revenue

Management, it would be Holidex, Opera and Fidelio. Especially with Holidex, this one is

the worldwide reservation system of IHG and the very first hotel reservation management

system all over the world. The Holidex helps the IHG hotels in managing the revenue as

well as the room rates in order to make the appropriate forecast and budget. Therefore,

Technology will help the Sales and Marketing department in giving out the rate, managing

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the occupancy and analyse the revenue status. For HR, with Cadena HRM Series, the hotels

can manage which training programs have been made, how the other departments conduct

the internal training programs and manage the continuous quality improvements within

IHG.

PROCESS AND RELATIONSHIPS BETWEEN OBJECTIVES, VISION AND MISSION STATEMENT

IHG is the largest hotel company measured by total number of rooms. It has 4653

hotels worldwide and 679,050 rooms. Therefore, in order to make the whole system

operates appropriately, IHG has to create a common scope – culture – for employees to

share and behave together. Hence, the cultural process of IHG is born. Regarding to

Johnson, Scholes, & Whittington (2007), the cultural process is related to the firms’ culture

and norms standardisation; the control of this process is indirect and internalised as the

employees become part of the culture. The cultural process of IHG relates to the IHG Vision

which is illustrated in the image below:

The IHG vision combines four main aspects:

1. Unique resources: the resources include the brands that IHG owns and people

that work in these brands.

2. IHG Culture: in order to take advantage of human resources appropriately, IHG

creates the cultural values for the employees to share together. It is so-called

“IHG Winning Ways”, it includes of five philosophies: Do The Right Thing –

Celebrate Difference – Work Better Together – Aim Higher – Show We Care. The

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performance, working attitudes of the employees will be reviewed and based on

these Winning Ways. The performance review will be conducted per half year.

3. Quality measurement: in order to have a common measurement for a large

amount of IHG hotels portfolio, IHG creates a balance scorecard so-called IHG

Steering Wheels includes four quadrants which are related to each other: Our

People – Guests Experience – Responsible Business – Financial Returns. In each

quadrant, there are factors that are used to evaluate the performance:

These factors are called key success factors or key performance indicators (KPI).

These KPIs are measured in both qualitative and quantitative proportions.

4. Objectives and mission statement: the vision of IHG is “Become one of the

world’s great companies” and the mission statement is “Great Hotels Guests

Love” with four statements:

a) Guests love to stay with us

b) People love to work here

c) Owners love our brands

d) Investors love our performance

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In summary, the IHG process can be summarized in this process map:

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Performance and Quality Measurement

IHG Winning Ways and IHG Steering Wheel

IHG Regional Areas directors will collaborate with the corporate central service in order to acknowledge about the policy.

AMEA AMERICAS EUROPEGREATER

CHINA

The corporate centre will plan the strategy, vision and policy

IHG Corporate Central ServiceBusiness

Reputation and Responsibility

Global Communication Global Finance Global Sales

and MarketingGlobal Human

ResourcesGlobal

Technology

METHODS FOR MAPPING: In order to conduct the mapping of the process, there would be some steps need to

be taken:

Identifying the Process Margins:

In order to carry out this step, the whole process must be analyzed through the

secondary data research of the organisation and answer these questions:

(1) What is the starting point of the process?

(2) What is it going through in each step?

(3) What is the boundaries of each function in the whole process?

Make the list of the functions and their process

accordingly

In this step, the organisation and flow charts would be made to show the reporting

line, the information flow, decision making process and the given tasks accordingly.

Make the Classification of Steps and Process

Using the arrows and the line to show the flow of the information in the whole

process

Draw the Symbols to show Functions accordingly

Using the square shape to show the specific functions

Using the line to show the flow of the information

Using the arrow to show the starting point and ending point of the flow

Using different colors to show the different levels of the function

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EVALUATE THE OUTPUT OF THE PROCESS AND THE QUALITY GATEWAYS

The quality gateway is the point of organization in which all requirements have to

pass in order to avoid the incorrect requirements from getting through the design and

implementation stages (Robertson & Robertson, 2006). The quality gateway are set up

with one or two staffs that are authorised to make decision whether requirements be able

to pass or not. In order to achieve good quality regarding to requirements, a process would

be:

Elicitation: identifying the customers’ requirements and expectations through

discussion with stakeholders.

Analysis: firming set of requirements and clarifying conflicts, missing,

ambiguous, overlapping and unrealistic requirements.

Representation: the requirement must be filed accurately, unambiguously and

understandably.

Validation: checking whether the requirements follow the quality standards.

In another hand, the measures of the business process in order to identify critical

success factors (CSF) in order to strengthen the operation process.

In the case of IHG, for example, here is a typical process in order to carry out a

convention or event in a five-stars hotel:

Customers’ Requirement

The clients contact the hotel and is directed to an Event Sales Executive. The

salesperson will take complete details the requirement of customers include of:

1. Clients name. For example: Mr. Michael John

2. Clients’ purpose of the convention or event. For example: ASEAN Clean Water

Conference.

3. Clients’ requirements detail for the convention. For example: the clients want to

have a Full Day Meeting on 28 August 2014 for 180 pax; inclusive of 02 coffee

breaks (03 types of canapés); 01 buffet lunch; the ballroom set up in classroom;

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stage 3.6 x 7.2 meters; podium with microphone, 02 standby wireless

microphones.

4. The salesman then ask for the clients’ contact details such as phone number, e-

mail in order to follow up this sale lead.

After exchanging the information and details, the salesman closed the deal and the

conference will be conducted. The salesman will then create Banquet Event Order (BEO) to

sent for Banquet Manager – the quality gateway of Banquet team before sending the BEO to

customers for confirmation.

Gateway Process

The Banquet Manager will have a look toward and check the BEO to see whether all

of requirements can be done by Banquet team and discuss with sale department for any

implementation if needed. For example, for above requirements of customers, Banquet

Manager will want the salesperson to gather more information:

Should classroom set up be in chevron or fishbone?

Is the table cloth color should be black or white?

Does the customer need the flower on podium?

Does the customer need any specific instruction regarding to the coffee breaks

(vegetarian, Halal food, so on)?

The maximum capacity of buffet restaurant is 120 persons. How can the hotel

organise seats for 180 persons for buffet lunch?

Is the revenue breakdown appropriate? For example, if the cost of buffet lunch

and coffee break are £30++ (“++” means excluding service charge and VAT);

however, the salesperson only charged the customers £35++. Is there any

approach that can make change with customers’ requirements?

The salesperson will contact with the customers to discuss further with the details

and collaborate with Banquet Manager to adjust.

Business Process Measurement

In the case of IHG, the business process will be measured on the basis of customer

satisfaction surveys. For illustration, regarding to the conference above, the customer will

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rate the satisfaction by questionnaire on the basis of SERVQUAL philosophy (Buttle, 1996)

of RATERS (reliability, assurance, tangles, empathy and responsiveness):

1. Reliability: it is the ability of the organisation to perform the promised service

dependably and accurately.

2. Assurance: in this aspect, it rates the staffs’ knowledge and courtesy as well as

their abilities to carry out trust and confidence.

3. Tangibles: it is the appearance of the tangible facilities, human resources, and

communication materials.

4. Empathy: it is used to rate whether the employees deliver the caring spirit,

individualized attention to customers.

5. Responsiveness: it is used to rate the degree that employees are willing to

support customers in a professional manner and with prompt service.

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Figure 1. A sample of guest satisfaction results of IHG (IHG, 2012)

DEVELOP PLANS TO IMPLEMENT OPERATIONAL PLAN

In order to make an appropriate implementation for Admiral-Dendi Clothes and

Accessories business operation, a plan is carried out.

DESIGN PLANS WHICH PROMOTE GOALS AND OBJECTIVES FOR OWN AREA OF RESPONSIBILITY

Training’s Goals and Objectives

The goals and objectives of training and development responsibility would be

include in three aspects:

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Orientation: the employees will be carried out the orientation training program

in order to have an overview regarding to the company and the products as well

as services provided.

Products Information: this is the basic training in order to help the employees to

acknowledge regarding to the products of Admiral-Dendi Clothes and

Accessories.

Selling Skills and Attitudes: the employees will be trained with higher level

regarding to the sales skills and services to the customers.

Plan for Promoting Goals and Objectives

The training plan will be conducted in order to make implementation concerning to

those goals above. The planning process is made in the reference of Decision-making

process of Robbins & Coulter (2012):

Step 1 – Identifying the problem: the problem that the store can encounter is the

employees may not get along with the company’s procedure in the first time. Therefore,

they would need to be delivered with traning sessions in order to be confident with the

company’s process.

Step 2 – Developing alternatives: the employees can be trained in the store or they

will be applied in sales skills classes in other facilities.

Step 3 – Selecting the best alternatives: the employees can be only trained in the

store by the supervisor. No budget is allocated for sending the employees to classes.

Step 4 – Implementing the alternative: the training sessions will be conducted right

after recruiting the store supervisor.

Step 5 – Monitor and control: the store supervisor will make the supervision in the

store regarding to the skills and service attitudes of the employees.

Training Subjects Description

Orientation Training Basic information regarding to the store as well as the

service theme.

Product and Service Training Basic knowledge regarding to the products and services

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that the store provide to customers.

The employees are required to understand clearly

concerning to the products, prices, and other

characteristics of accessories.

Sales Skills and Attitudes The employees will be trained with the store training

program so-called “Be My Guest”. This training subject will

base on the employees’ knowledge and experiences in

serving the customers.

Training Monitor and Audit The store supervisor will audit during the process of

employees’ working routine. The assessment review will

be made monthly to rate the performance of the

employees

Support Training This is the re-training sessions for the employees to

communicate with the about the services and products

provided and enhance their skills in selling and delivering

the services.

Ethical and Regulatory Requirements

One of the difficult challenges that the store has to face is that the revenue would

have chance not to meet the requirement and goals. Therefore, the store will have the duty

to meet the ethical standards with below actions:

Ensuring the standard working hours for the employees, no forcing of overtime

working without paying extra salary and bonus.

Ensuring all of employees can be provided with the same level of training. No

discrimination or exploitation of employees. For instance, forcing the employees

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to work without training and after a while, providing bad feedback in the aspect

of their attitude.

Providing appropriate equipment for the employees to conduct their daily tasks.

The recruitment department must ensure there is no discrimination during the

recruitment and selection process.

No recruitment of child labour.

Ensuring the fire, life safety and other dangerous protection equipment for the

employees.

WRITE OBJECTIVES, WHICH ARE SPECIFIC, MEASURABLE, ACHIEVABLE, REALISTIC AND TIME-BASED

S.M.A.R.T (Specific, Measurable, Achievable, Realistic, Time Bounded) Milestones:

Earn 10% market share within the first year of operation.

Achieving high brand recognition within London in 6-months.

Achieving the net profit of £20,000 in the first year of operation, the second year

would be £45,000 and the third year would be £80,000.

Reducing the cost of goods sold by 4% in the second year.

Reducing the inventory cost by 3.5% in the second year of operation.

Supporting the local community by dealing with suppliers who provide the

environmental friendly solutions in customizing the products.

IMPLEMENT APPROPRIATE SYSTEMS TO ACHIEVE OBJECTIVES IN THE MOST EFFICIENT WAY, ON TIME, TO BUDGET AND MEETING ORGANISATIONAL STANDARDS OF QUALITY

The management will control the plan through the Gantt Chart and Risk Factor

Analysis in order to help Admiral-Dendi Clothing and Accessories to achieve the objectives:

Gantt Chart

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Regarding to the Gantt Chart above, the management would require the total of 93

days in order to make the plan to be operated in process to achieve the objectives.

Risk Factors Analysis

Regarding to Project Management Institute (2013), the risk analysis includes the

processes of conducting risk management planning, identification, analysis, response

planning, and controlling risk on a project. Below is the risk analysis for Admiral-Dendi

Clothing and Stores:

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Description Risk Scale

(1: lowest; 5: highest)

Action

Financial budget situation leads to the shortage of cash or financial supply during the project operation.

5 The financial situation is very important for the implementation of the project. The management needs to plan very carefully regarding to the allocated resources and financial budget in order to avoid the cash-trap.

Wrong understanding of customers’ trend

4 The wrong view toward the market can lead to the products do not meet the requirements or expectations of the clients. The negative outcome of this can lead the store to over-order the inventory and large amount of wasteful supplies. In order to avoid this, the management must carry out the market research carefully to catch up with the customers’ trend of clothing and accessories.

Wrong assessment of tasks delegation

2 The wrong delegated tasks to management can make the monitor and control of the process would encounter the fault in the operation. However, it can be implemented by assigning proper tasks for other members of management.

Failure in recruitment of qualified staffs

4 The unqualified staffs can lead to the poor performance of the store. Therefore, the human resource management must be appropriate in the first place.

Risk of employees’ attitude and skills in providing the products and services.

2 This can be implemented easily with the internal training programs.

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CARRY OUT WORK ACTIVITIES MEETING THE OPERATIONAL PLAN THROUGH EFFECTIVE MONITORING AND CONTROL

Monitoring is defined as collecting the project performance data in comparison to a

plan, carry out the performance measure, report and distribute performance information

(Project Management Institute, 2013). In order to have better monitoring, the value chain

helps the firms in clarifying the activities within and around an organisation that play a role

in the procedure of creating products or services (Johnson, et al., 2007). Porter in a book by

Wheelen (2012) stated that the value chain involving of primary activities and secondary

activities. Bygrave & Zacharakis (2011) claimed that organizations need to conduct the

analysis of activities within the value chain since there is no existence of ready reliable

source.

Figure 2. Value Chain (Johnson, et al., 2007)

Primary activities

Inbound Logistics

Supplier: the clothes will be placed order through the supplier so-called Medieval

Collectibles (http://www.medievalcollectibles.com/). There would be an acquirement of

license for the cosplay accessories imports.

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Location: London, in the central business district of Regent Street and Oxford Street.

Operation

Store supervisor would be assessed the skills in handling guest requirements,

transaction issues, leading staffs and giving the solutions for other issues arose within the

store, responsible for the information interchanged among staffs concering to shifts swap,

supervising the store fulfilment.

Cashier would be responsible for the right pricing during the transaction process,

providing finance information for the accountant and other cashier in the shifts swap.

Accountant is responsible for the accounting balance in the end of the day.

Security staff is responsible for the safety and anti-thieves within the store, fire life

safetey and other health risk factors.

Sale staff will do the selling and consulting for customers, guiding the customers to

the cashiers, recording the customers feedback and providing the products information for

customers.

Outbound Logistics

After the supervisor check the quality of the supplied products, the clothing stuffs

will be put out for exhibition right in the only distribution channel – the store.

Marketing and Sales

Enhancing the relationship marketing through the applying the customers loyalty

programmes and sales promotions for the out-date products, enlarging the customers’

database.

Encouraging the sales revenue and creative ideas of the customers through the

clothing and accessories design contest.

Promoting the new website to encourage the e-commerce sales.

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Managing the quality efficiently through the surveys on website and store for both

users and non-users.

Services

The store will be decorated with the Medieval and Dungeon & Dragons theme with

swords, cuirass and lanterns. The main color tone would be olive gold and brown.

Secondary activities

Firm’s Infrastructures

Point-of-Sale (POS) system will be equipped for the staffs in order to help them keep

track with customers’ products requirements. Moreover, the POS system also helps them to

manage the sales situation of each item within the store for easy budgeting and planning.

At the store, there will be fingerprint machine in order to control the shifting of the

staffs and the cameras to help the security staffs in effective anti-thieves operation. The

store is also equipped with the fire extinguisher for fire life safety, a first-aid kit in case

there are health risks happening.

Human Resources Management

Creating a personnel management plan to indicate the necessary positions to

operate the stores: store supervisor, cashier, accountant, security staff, and sale staff.

The interviews will be conducted to make appropriate selection regarding to the

persons who are responsible for the allocated positions. After the interview, the selected

staffs will be signed the labour contracts with complete information about the rights, duties

and benefits and be informed about the start day.

The selected staffs will be equipped with the store’s uniforms – taken from the

store’s clothes models in order to not only guarantee the integrity and professional looking

but also helping to promote the store’s products.

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All staffs will be provided with the training documents, rules and regulations, shift

allocation form, the store fulfilment records and the handling guest complaints form, the

products description to gain the products’ knowledge, the SOP (standard operation

procedures) to ensure the smooth transaction and consultation toward customers.

Conducting the orientation training for all staffs. After the training programmes, the

staffs are ready to work.

Technology Development

Training the sales software for the staffs to ensure they will key the right numbers

of price, quantity, products code into the system. This system will be connected online to

the main system in the headquarter to keep track with the daily sale revenue. The staffs are

also introduced to the store and inventory management system in order to keep track with

the warehouse fulfilment daily. The store supervisor will be trained with the human

resources system to allocate the daily shifts of the staffs. Accountant will be trained in

order to use the electronic accounting system in the right way to manage the account

figures. The sale staff will have extra training program with the specific sale and consulting

skills.

Procurement

A system so-called material requirement planning (MRP) will be applied. The MRP

can help the store supervisor to make the prompt implementation or adjustment regarding

to the customers’ requirement. The careful material planning can help the store to avoid

shortage or surplus of stock.

Six Sigma For Quality Management

In order to ensure the smooth service and quality to adapt with customers’

satisfactions. Admiral-Dendi Clothes and Accessories will apply the Six Sigma quality

management method. Six Sigma includes the stages of DMAIC (Define – Measuring –

Analyse – Improve – Control) to help the management to control the process and quality

(Gale, 2009):

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(D) Define: the management will clarify areas or processes that need improvement.

Then, the management will have the objectives or goals to implement and adjust together

with the financial calculation to ensure the positive effect.

(M) Measuring: aspects of key critical factors will be measured and the management

also collected the relevant information. The management will be measured in this stage as

well.

(A) Analyse: the management will apply some approaches of analysis such as SPC

(statistical process control), hypothesis testing, or pareto analysis in order to identify the

problems or defects within the processes.

(I) Improvement: corrective actions will be undertaken so as to reach the desired

level of improvement.

(C) Control: Admiral-Dendi Clothing and Accessories will make the implementation

in order to manage the process continuously.

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APPROPRIATE SYSTEMS TO IMPROVE THE ORGNISATIONAL PERFORMANCE

TOTAL QUALITY MANAGEMENT

Quality is when the products or services that are produced and provided by the

organizations and firms can reliably satisfy the expectation of the customers (Knowles,

2011). Through many years with evolution, the quality management from the traditional

methods of inspection and assurance has evolved and become Total Quality Management

(TQM). TQM is considered as managing the production process with the main goal to be

able to provide the outstanding products or services to meet and maybe exceed the

customers’ requirements (Gale, 2009). The core concepts of TQM has developed from 14

points of Edwards Deming (Gale, 2009). The 14 points are:

1. The TQM is creating the constancy of purpose towards improvement of products

and services

2. Adopting the new philosophy in production process – this means that the

implementation of new philosophy must be conducted in the both management

and employees, it is not just only the managers expect the employees to apply.

3. Terminating the dependence on inspection: this means that the organizations

should avoid inspecting the large quantities of defective products by doing the

quality management in the very beginning stage of production process.

4. Working with single supplier for one item. The more suppliers come, the more

variation will appear in the stock.

5. Making the improvement constantly and forever to improve the quality and

reduce the cost.

6. On the job training in the organizations. This means that if the employees are not

trained carefully, they cannot catch up with the complicated quality

management processes and policies.

7. Establishing the proper leadership. Leadership is totally different with

management in the definition of Deming. Leadership here will help the

implementation in vision, objectives and strategy, production motivation instead

of quota-based focus.

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8. Driving out the fear. The management by fear will be a counter-productive

method because the employees will lose their interest in contributing to the

organizations’ performance.

9. Breaking down the barriers among departments. Every department includes of

R&D, marketing, sales, designing must work better together in order to

recognize the trends of the customers, forecast the issues may occur during the

production process and the implementation plan to enhance the experience of

the customers.

10. Slogans and mottos elimination. Deming’s philosophy is that not the people who

makes the defect products but the production process. Therefore, it is a counter-

productive action if putting the slogan to encourage the people to always

produce conforming products.

11. Management by objectives should be eliminated. The production target pressure

is one of the reasons for bad products encouragement.

12. Removing the barriers to the pride of workmanship.

13. Encourage the education and self-improvement.

14. The transformation is everyone’s job.

The recent development of quality management was the appearance of ISO 9000.

ISO 9000 is a series of international quality management standards which were built up by

the International Organization for Standardization (ISO). The ISO set the standard

guidelines for production processes in order to ensure that the products satisfy the

customers’ requirements (Robbins & Coulter, 2012). The ISO 9000 standards have become

the recognized standards all over the world for firms evaluation and comparison and

achieving the ISO 9000 would be a certificate for the production quality of the company.

For the case of RUS Plc, in order to make the implementation to the TQM to the “high

quality servicer for discerning guests”, there must be the good collaboration among the

departments. First of all, the management levels must show the leadership competencies –

they must make the initiatives and drive the process within the organisation. A quality

management committee must be established with the representatives from all

departments, an internal audit committee is also established to do the auditing and

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checking the process. Adjusting the reporting line, drafting the report form, editing and re-

checking are the main actions.

For the personnel management, the Human Resources must collaborate with other

departments to build up the professional job description and standard operation

procedure (SOP) so the current staffs can have the standards for behavior and job

responsibilities. Moreover, HR will need to build up the competency based-interview in

order to have a proper selection process. The performance management process would

also need to be professionalized and conducted in a suitable timeframe – maybe per annual

or per half year.

DEMONSTRATE A QUALITY CULTURE TO ENSURE CONTINUOUS MONITORING, EVALUATION AND DEVELOPMENT OF THE PROCESS

Monitoring and Controlling Processes

Regarding to Portny (2010), five major processes of project management include of:

Initiating processes: identifying the requirement of business, making clear the

expectations of high-level positions as well as resources, and starting to

identifying the audiences taking part in the project.

Planning processes: making clear of project’s scope, project’s time-frame,

allocated resources as well as risks or any dilemma, planned methods for

communicating project and quality, purchasing management.

Executing processes: forming and taking management regarding to the project

team, communicating as well as managing the project’s audiences, making

implementation to the project plan.

Monitoring and controlling processes: project performance’s tracking and taking

any necessary actions or adjustments in order to make sure project plans are

successfully implemented and the desired results are achieved.

Closing processes: ending all of project’s activity.

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Figure 3. Monitoring and controlling processes of project (Portny, 2010)

As a result, regarding to Portny (2010), the processes of controlling and monitoring

are applied in each of the project stages in order to help ensure that work is being

performed concerning to plans. Therefore, monitoring plays an essential part for the whole

process. The monitor and control process is concerned with (Project Management Institute,

2013):

Making comparison between the project performance with the management

plan;

Rating the performance in order to make corrective or preventive actions or

changes that are necessary;

Monitoring the risks

Monitoring accurate and timely detail in the aspect of project’s product and

associated documentation through project completion;

Monitoring data for supporting the status report; measuring the progress and

making forecast;

Monitoring and providing the forecast information regarding to current cost and

schedule.

Monitoring the adjustment of approved changes;

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Providing appropriate report concerning to the project progress and status.

Performance Management for Human Resource

Keeping a stable pool of human resource has become an essential matter for

organisation to maintain the competitive advantage as well as sustainability; hence, it is

necessary to give performance management in order to help employees enhancing their

ability in work. The performance appraisal has evolved from the traditional carrot and

stick method to the performance management. One of performance appraisal backwards is

that the employees have to wait until the official review time which occurs once or twice

per annum to be identified about the scale of their performance (Dessler, 2012). Therefore,

performance management was born as a continuous process with the flexibility that

includes both managers or supervisors and employees to discuss how they can work better

together and make the continuous improvement overtime (Armstrong, 2009). Performance

management, therefore, is a continuous process of clarifying, measuring and developing the

employees’ performance and aligning their performance with the objectives of the firms

(Dessler, 2012). Hence, the performance management would likely focus on the

performance planning in the future and continuous improvement and the employees

personal development instead of the old and outdate past oriented performance appraisals

(Armstrong, 2009). There are three main different points that help the managers can

identify the performance management and performance appraisals (Dessler, 2012):

1. The performance management is conducted in a continuous way, daily, weekly

or monthly in order to enhance the managers and employees interaction to

create condition for the continuous improvement.

2. The performance management focuses in achieving the goals and objectives.

3. Performance management leads to the continuous improvement and re-

evaluation; therefore, it can help employees and managers to modify and

implement if necessary to get jobs done in the right way.

Performance Management for Organisation

Organisational performance is defined as the accumulated results of all the

organization’s work activities (Robbins & Coulter, 2012). In order to make assessment

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regarding to the organisational performance, Robbins & Coulter (2012) used three

measures include of organisational productivity, organisational effectiveness and industry

rankings.

Organisational productivity: this is the amount of products or services produced

divided by the inputs needed to generate the output.

Organisational effectiveness: this is the degree to which the organisation

achieves the goals, or being successful in accomplishing what the organisation

tries to do (Daft, 2010).

Industry and company rankings: this is a popular way for managers to measure

organization’s performance.

Monitoring and controlling process would need the information regarding to the

organisational performance; therefore, Robbins & Coulter (2012) also recommends these

tools below in order to help measuring the performance and collecting the information for

monitoring and controlling process:

Feedforward/Concurrent/Feedback Controls: these three tools help the

managers to implement the control before an activity begins, during the time

that organization’s activities are going on or after they completed.

Financial Controls: Managers always need control the financial status of the

company. The financial ratios, debt level or asset calculation would need to be

counted in order to ensure the process is productive. Budgets, in another hand,

are the tools of planning and controlling when they help the managers to clarify

which work activities are essential and what type or how much resources need

to be allocated to achieve those activities.

Balanced Scorecard: A balanced scorecard helps the managers to look at four

areas of the company: financial, customers, internal processes and

people/innovation or growth assets.

Information Control: the managers would need the right information at the right

time in order to monitor organisational activities and performances for making

appropriate and corrective actions. A management information system is

needed.

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Benchmarking of Best Practices: The benefits of benchmarking is searching for

the best practices among competitors or non-competitors that lead to the

superior performance.

Building up Quality Culture

Deming’s PDCA

In order to apply the continuous monitoring in project performance, RUS Plc needs

to apply the PDCA model of Deming to repeat the solving process until the defect becoming

zero.

1. Plan (P): through the monitor process, RUS Plc collects the data regarding to the

defect that being made in daily routine. Then, RUS Plc establishes the corrective

actions that can help employees to improve the defects.

2. Do (D): RUS Plc tests on a small proportion of operation. Regarding on the

collected result after the test, RUS Plc can make the change to improve the plan

and enhance the process.

3. Check (C): RUS Plc checks the results of the change.

4. Act (A): in case the results are positive, RUS Plc then can expand the action to

larger proportion of operation.

Repeating the Step 1 for other new defects.

Slack’s recommendation regarding to implementation

Like Deming, Slack et al. (2013) recommended 03 areas which are also related to

the organizations’ leadership level need to take notice in order to build up the quality

culture of continuous monitor and evaluation for improvement:

1. Top-management Support: Slack et al. (2013) stated that the support of

management goes far beyond the allocation of resources to the project.

Therefore, for RUS Plc, in order to make the appropriate implementation toward

the project, the top-management should:

a. Understand and believe the benefits of the improvement approaches;

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b. Communicate the principle and techniques of the improvement

monitoring and controlling;

c. Participate in the process;

d. Formulate and maintain the clear strategy for the process.

2. Senior management must understand the process approaches: the monitor and

controlling as well as continuous improvement regarding to the project would

require complicated technical matters or models. Therefore, it is required the

senior managers have to master and completely understand these matters.

3. Avoid excessive “Hype”: some managers can become victims of the process when

they have new ideas popping up and may replace the whatever went before. This

will destroy the ability to accumulate the experience from experimenting with

each one.

RECOMMEND IMPROVEMENTS WHICH ALIGN WITH THE ORGANIZATION’S OBJECTIVES AND GOALS AND WHICH RESULT IN IMPROVEMENTS

In order to have the appropriate implementation of the TQM and the performance

management, the information flow, the handling situation process must be re-evaluated

and adjusted. Therefore, the RUS Plc can make the Business Process Reengineering (BPR)

in order to re-adjust the business process. BPR is defined as the fundamental rethinking

and radical redesign of business processes to achieve dramatic improvements in critical,

contemporary measures of performance; for instance, cost, quality, service and speed.

(Slack, et al., 2013). The BPR helps the RUS Plc focuses in analyzing and re-design the

workflows as well as business process and rethink about how the company can operate in

order to cut the operational cost, enhance the customer service, redesign the distribution

channels and generate more revenue. According to Slack et al. (2013), the principles of BPR

include of:

1. Remapping the business processes concerning to cross-functional manner which

help organizing work around the natural flow of information (or maybe

materials or customers)

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2. Attempt for improving dramatically in performance by rethinking and

redesigning process radically.

3. To have people who use the output from a process perform the process. Doing a

check in order to see whether all internal customers can be own suppliers rather

than depending on another function in the business to supply them – that can

take longer and separate out the stage in the process.

4. Making decision points in which the work is performed. Do not separate those

who do the work from those who control and manage the work.

For RUS Plc, since the firm wants to change the quality of the product that aim to

provide a “high-quality service”, it must adjust some of the departments – especially to the

operation departments like Housekeeping, Food and Beverage, and Front Office. RUS Plc

must plan the organizational charts with specific positions and the report line to identify

who are responsible for particular tasks. For example, in Sales & Marketing department,

before, maybe it did not have any special hospitality industry management system; hence,

in order to readjust the process, the leaders must implement with a reservation system

which is responsible for the room rate management, occupancy, average daily rate (ADR)

and RevPAR (Revenue per available room) to update with the trend of the market and give

out precise budget forecast. Moreover, the tasks in the Sales team must also be specialized;

there must be staff that is responsible for leisure and travel, a salesperson who is

responsible for transient, and so on. In another hand, by applying the BPR, RUS Plc can

redesign the process within the Sales & Marketing department can bring up some benefit:

The Corporate sales team will connect closely with the reservation department in order to

bring up best contracts for corporate customers. The Convention and Event team now will

work closely with Food and Beverage department in order to ensure the Banquet team can

fulfil the clients’ requirements regarding to the conference perspective. The Leisure team

now will be close with front office, concierge in order to ensure the proper welcome of

leisure customers.

REPORT ON THE WIDER IMPLICATIONS OF PROPOSED CHANGES WITHIN THE ORGANISATION

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Regarding to Daft (2010), there would be some wider implications when RUS Plc

take some actions regarding to the organisational change based on the BPR’s redesign of

process:

Structural implications: the redesign of the process within RUS Plc will require

the departments have to make communication together in order to make rapid

decision. For instance, the Convention Sales Executive now can ask directly to

Executive Chef in order to have appropriate price for conference buffet lunch to

make quotation to customers.

Performance measurements: the performance measurement now can

concentrate on the last outcome rather than the activity. For example, with the

new redesign and allocation of department, the Revenue Meeting of

Management Board will need to focus only in RevPAR and other indication

relating to the budgeting revenue, room rate and actual figures.

Empowerment implication: the Sales Executives now can have more power and

authorize in order to make quotation to the customers because the performance

now will be rated mainly on the end results of revenue or room rate, guest

satisfaction figures and so on. Therefore, they will have to put more effort in

order to deal the best rate and deliver best service.

Focus-on-customers implication: since the performance measurement would

concentrate on the end result, the customers’ satisfaction figures can be

considered as a measurement tool for employees’ performance through the

customers’ surveys or feedback.

The attitude of management: managers now have to involve in the daily work

routine more than before in order to keep track with the performance and

operation process. They now will provide more training and monitoring the

process to make prompt implementation.

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HEALTH AND SAFETY MANAGEMENT

RISKS ASSESSMENT

Risk assessment is a careful examination in workplace or in daily work routine of

what can cause harm or damage to people; therefore, the staffs can have appropriate

actions in order to give the precautions or prevent the harm. All of the workers, colleagues

and other staffs have the right to be protected from harm, especially if the company has the

ability to take reasonable control and management.

The affect from the accidents, harms and other health risks factors can lead to the

business operation, causing the financial, health and even live loss. The company lost the

machines and other working tools, important people in management position cannot

continue working can cause a loss in leadership trait, insurance cost and other legislation

cost. Therefore, the company owner has the responsibility in amending the working safety

condition to minimize the harm toward the employees.

There are five steps in assessing the risk within the organisation:

1. Identifying the hazards

2. Deciding who would might likely be harm and which way that they are harm

3. Make the risk evaluation and precaution

4. Recording the findings and make the implementation if needed

5. Review the assessment

The detail of the employers’ responsibilities to ensure the safety of the working

environment includes:

Make the assessment for the risks that can occur for all employees work for

them.

The employers must be proactive in measuring all risk and identify the

preventive methods for them.

Appointing an internal manager or employee and this person will be responsible

for the preventive and protective methods for those assessed risks.

36

Making announcement to employees for the risks they may face during the

working routine and make the appropriate training for these employees to have

a clear understanding about those risks such as using the fire extinguisher

appropriately in fire life safety training.

Moreover, there are some ways in order to monitor the risks assessment: the

company can conduct the continuous inspection action to check the department or any

place in the company that easily causes the harm. For example, in the case of the ABC, the

coarse warehouse would be a place that can easily cause the fire, therefore, it would be

needed to check frequently. The company can do the internal audit with the test in order to

check the knowledge of the employees about the safety procedures.

LEGISLATION AND REGULATIONS

For the legislation, concerning to the ABC Construction Company, there is Health

and Safety at Work etc. Act 1974 with the details and guiding about how to ensure the

safety in workplace. Because ABC is a construction company, therefore, the staffs would

need to have knowledge about their rights of legislation concerning to the safety. This Act

can provide ABC Construction Company the framework for the process of managing health

and safety regulations and policies which are applied on all employees in daily work

operation. The Act also states that the organizations must ensure the health and safety for

any reasonable one who would likely be influenced by their work actions.

Hereby is the detail of the section 37, Act 1974 about Health and Safety at Work:

“(1) Where an offence under any of the relevant statutory provisions committed by a

body corporate is proved to have been committed with the consent or connivance of, or to

have been attributable to any neglect on the part of, any director, manager, secretary or other

similar officer of the body corporate or a person who was purporting to act in any such

capacity, he as well as the body corporate shall be guilty of that offence and shall be liable to

be proceeded against and punished accordingly.

(2) Where the affairs of a body corporate are managed by its members, the preceding

subsection shall apply in relation to the acts and defaults of a member in connection with his

functions of management as if he were a director of the body corporate.”

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There are some more important regulations that relate to the work health & safety

that can be applicable in the case of ABC Construction company:

Management of Health and Safety at work Regulations 1999: this regulation can

help the employees to acknowledge their rights regarding to dangerous work

protection as well as being informed concerning to the risk assessment relating

to the daily work operation. This regulation also stated that the employers have

the duty to provide not only necessary equipment but also training,

collaboration for the employees. With a construction company for ABC,

Management of Health and Safety at work Regulations 1999 can help them to

build up the plan or guideline that is ethical and regulatory for the workers.

Working Time Regulations: since the workers of ABC Construction have to deal

with heavy workload or dangerous construction process; therefore, Working

Time Regulations will help the employees to acknowledge their rights regarding

to the weekly work hours, overtime policy, time-off details and so-on in order to

avoid the exploitation from the company. The company also has to take

reference to this regulation and has the duty to inform the employees regarding

to their rights.

The Health and Safety (Safety Signs and Signals) Regulations 1996: ABC

Construction Company has to take reference regarding to this regulation in

order to provide the appropriate safety signals and signs during and after the

construction process such as Fire Life Safety signals or Exit signs in case of

emergency situations.

HEALTH AND SAFETY AT WORK

For the case of ABC Construction Company, there are steps to implement

successfully the health and safety:

1. The company must set up and plan the policy and process of the health and

safety

2. The company must set up the staffs who are responsible for the program and

policy that company arranged.

3. The company must plan and set up the standards for health and safety

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4. The company must have the performance measurement management.

5. The company must have frequent audit, inspection and review to the policy.

Those steps above can be considered as a “Plan-Do-Check-Act” system. By taking the

systematic method for the health and safety management, the operation of the company

would be more easier and effective because the managers now have the standards and

policy to follow with potential scenarios for risks, so they can implement and make the

appropriate actions in a smooth way.

The consistent approach and training can reduce the mistakes in hazard handling

situations. In hazard management, the more mistakes the solvers make, the more serious

issues can happen.

It can help the company understand the legislation and regulation and protect the

owners from costly implementation from not applying the appropriate standards such as

the court fees, etc.

PRACTICAL IMPLICATION

The ABC construction company will have such items below that can cause the harm

to the employees:

1. The warehouse with coarse woods, wallpapers, painting and other materials that

can cause fire and explosion.

2. The painting and other chemical substances that are used in the construction can

cause the bio-hazard and other biological allergies, diseases toward workers.

3. The potential threats from the machinery, drills, and other construction vehicles

and devices can cause physical damage or explosion or injury in case the

employees do not know how to use them in the right way.

In order to prevent for those damages, the employees must be equipped with the

helmets and other protection suits, and equipment such as mask, gloves and boots. They

must be provided the detailed manuals for controlling and handling the devices as well as

the materials.

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The supervisors must ensure the proper training programmes occur for the

workers. The supervisors also have to consult continuously with the workers about the

potential risks that can happen if they do not follow the working process.

The company owners must ensure the factory or the warehouse or any place in the

company is equipped with the appropriate protection equipment such as the fire

extinguishers, the sparkling fire drill, etc. The company owners must also ensure that they

provide the insurance contract for the workers.

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