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Managing Business Activities to Achieve Results
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Business Management
Assignment: Managing Business Activities
to
Achieve Results
Mr. Dudley Ofori
I.D No: 105649
NIPUNA WEERAKOON
Higher National Diploma
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Table of contents
Executive summary
Acknowledgements
Introduction to organization
Chapter I …………………………………………………………………….......
1.1 Coca cola functions and Culture 07-09
1.2 Coca cola Mission and Vision 10
1.3 Coca cola objectives 11
1.4 Principles and models of coca cola process management 12
1.5 Quality Gateway 14-15
Chapter II ……………………………………………………………………….
2.1 Management and responsibilities 16
2.1.1 Function specific skills and knowledge required at Position Entry 17
2.1.2 Management decision type and responsibilities 18-19
2.2 Leadership and Coca cola 20
Chapter III ………………………………………………………………………
3.1 Total Quality Management 21
3.1.1 TQM vs. Six Sigma 22-23
3.2 International Standard Organization (ISO) 24
3.3 Performance Management 25-26
3.4 Change management 27-28
Chapter IV ……………………………………………………………………..
4.1 Health and Safety at Coca cola 29
4.1.1 Food & Drink Safety and Law 29-32
Bibliography Appendices
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Acknowledgements
I would like to acknowledge the advice and guidance of Mr. Dudley Ofori. Thanks very
much for Mr. Dudley Ofori provided lecture for students every Tuesday, and he patiently
explained and analyzed from the most basic knowledge, help me step by step understand the
questions of assignment and how to do it. Also I want to thanks for my classmates, thanks for
your enthusiasm to help me solve the problems which I meet during the assignment.
The major materials for the research from the library books, so thanks college library support
books and social library staffs introduce some books for me.
Nipuna Weerakoon,
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Executive Summary
This report is prepared by the author addressing various influences that will impact on
business activity at Coca-Cola. Furthermore, it will relate to other areas such as company
vision, Mission management responsibilities and quality and Total quality development that
are essential to achieve aim and objectives in their work schedule.
This report has been divided into four chapters which have been discussed briefly as follows:
Chapter 1 about, Process management at coca cola, Company aim and objectives and Coca cola
current quality management methods. Chapter 2 highlight in Coca cola company‟s management,
responsibilities and leadership. Chapter 3 emphasizes Total quality management (TQM),
International standards such as ISO, performance management and change management. Finally
chapter 4 highlights Health and Safety and Food drink safety law which related to Coca Cola
Company.
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Introduction
Managing business activity is a great opportunity to every organization for increases overall
business performance and understand modern professional quality management and quality
assurance. Business activity management has a special role in both strategic change and
operational run. Strategic and operational management levels are involved when managing
different activities, the strategic one focuses on the whole business system and the operational
one on single processes and projects. To establish quality strong level at organization it
necessary to understand and analyze company vision, mission, culture and the structure.
Finally after manage all activities the objectives must be fulfill to be success. Business
activity management consists of planning and controlling then improving the operations, and
cover quality. Most practical general model for business activity management is PDCA (Plan
+ Do + Check + Act) below diagram will describe that,
Figure 1: PDCA,
http://www.qualityintegration.biz/BusinessProcessManagementShort.html
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Back ground of organization:
Coca-Cola is one of the world‟s largest carbonate drink company. The coke Company selling,
more than 3000 products, around 200 countries in the world. Coca cola was invented by John
Pemberton in late 19 century, after that it bought Griggs Candler who was a business man,
because of coca cola marketing tactic it was lead of the world soft-drink market entirely the
20th century. The Coke Company mainly focuses on the non-alcoholic carbonate beverage
market so they producing a deferent range of drinks around the world such as Juice drinks,
Soft drinks, Tea and coffee Sport drinks and Water. Coke is the world‟s leading manufacturer
also distributor and marketer share of non-alcoholic beverages; the company everyday selling
over six million beverages.
Coca-Cola selling over 3000 product (full list available at Coca Cola Website) all over the
worlds here can see most famous product which selling UK.
Figure 1.1: Coca cola Brands,
http://www.inminds.com/img/logos/coca-cola-brands-uk.jpg
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1.1 Coca cola functions and Culture:
Any organizational structure is a mainly hierarchical method of helpers of qualify that
confirm and contribute to serve for one common aim. There are six deferent organization
structures, The Functional Organizational Structure, The Geographic Organizational
Structure, The Form/Product Organizational Structure, The User/Market Organizational
Structure, The Hybrid Organizational Structure and The Matrix Organizational Structure.
(Refer Appendix 1 for more information). Daft (2008),
Formal Organization
Strategy and goal
Structure, norm and procedures
Products and services
Management and Financial wealth
Informal Organization
Beliefs, Attitudes and Values.
Leadership style and behavior
Organizational norm and culture of
behavior
Politics, Conflicts also power.
Informal body
Figure 2: Compare of informal and formal organisations, Field work
Here at coca cola they follow a combination of structures for the benefit and the ease of the
company. The main structure they follow is a formal structure, where everything runs in a
plan method, rules and regulations are followed.
Coca cola also follows a flat structure where the CEO of the company will speak to its
employees to show that he cares about them. As shown by star bucks, the CEO makes 9 calls
every day. And one of them is to the employee of the day. This shows that they actually care
about the employees and not only about their profits.
Formal Structure
Tall structure
More capitalized on
centralisation
Over 92800 of employees all
around the world
Narrow span of control
Multinational organization
Higher chain of command
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Culture at Coca Cola
One company
At coca cola they have a shared lust. That is transforming the Coke Company. They also
create an environment where can find their way with free ideas. Helps is always close at hand
and pride wake them to grow. Every day they develop meaningful and valuable learning
space and anticipate the skills and prosperity they will need to found their future demands.
One Team
As employees of Coke say, „our job is to refresh the world and we
take it very seriously‟. They also know that to achieve this, it requires
the vision, streamline, and lust of everybody inside company. To increase their positive
thinking they engage in a friendly conversation with a different member of staff every day so
that the team will get stronger as they grow.
One Passion
At coca cola they have a shared lust. That is transforming Coke
Company. The employees at Coke try their best to give the joy of
Coke Company outside its walls of the company. They believe in a workplace that cuddles all
of their staff‟s unique abilities. They are also committed to help communities and they are
dedicated to save and protecting the planet.
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1.2 Coca cola Mission and Vision:
Rader (1994) told that published mission statement act as a proof of correctness‟ when
talking mission every organization can ask basin question what business are we in. Coca cola
mission gave a way to judge the appropriateness of all potential activities that the coca cola
might engage in. bellow two diagrams describe that coca cola mission and vision statement.
Integrity
Always doing what is right
Service Exceeding the expectation of
coke customers. Our
communicate and coke people
Results
Winning as a team in the
market place and the
workplace.
Fun
Enjoy what we do every day.
Respect
Listening understanding and
appreciating others.
Passion
Driven to be the very best in
what we do and how we do it.
Quality
Excellence every time
Our
Values
We
Aspire
To
Live By
these
Values
Every day
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1.3 Goal and Objectives:
When talking about coca cola goals and objectives there are various kind of objectives under
deferent department also Coca Cola Company is world largest manufacturing and distributing
Soft Drink Company they have already achieved objectives and day to day running objectives
hens to easy to identify here author briefly describe that key objectives which necessary to
achieve to keep their strength.
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1.4 Principles and models of coca cola management of process :
Management process This process is that operating in management
system. Normally process includes corporate
governance and strategic management. In this
stage top management suppose to identify
input and output activities of whole industry.
Process of Operational Operational process are key activities in any
organization this is the place which most
active and important. Normally operational
processes are manufacturing, purchasing,
marketing and facilities.
Process of Supporting Supporting process is activity or function that
helping day to day operation of the
organization. Such as sales, accounting,
maintenance and communications.
Typical information intensive processes
Marketing
Sales
Operations/Project
Support/Maintenance
Managements
Administration
Lead generation, advertising, formulating new products and
services
Bidding for new work, managing customers etc,
Undertaking new product, producing product
Looking after existing customers, maintaining assets
Overseeing the whole business, making high level decisions
Finance, HR, QA, etc
Figure 4: Typical information intensive processes, (Field work)
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O Coca cola Manufacturing and distribution process:
Below diagram shows that part of operational activity in coca cola which running
manufacture and distribution system.
Figure 5: Coca cola Manufacturing and distribution process
http://www.cokecce.com/brochures/cce_2005/02_atglance.html
O Coca cola Value chain analysis:
http://www.va1ue-chain.com/1/COCA-COLA-VALUE-CHAIN/screenshot.gif
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1.5 Quality Gateway :
Quality is “Enjoying the customer by fully meeting their needs and hope”.Coca cola is world
top soft drink company they producing 1.6 million products a day so they must maintain their
products quality. Coca cola mention that providing quality products to the market is company
highest objective. Coca cola have their own brand quality management system name call
TCCQS, TCCQS develop by global cross-functional team and endorsed by senior
management of coke. TCCQS also combined with international quality system like ISO 9000.
Coke expect their quality in this areas,
Quality expectation
Also coca cola expect from suppliers same quality standard which can full fill coke objectives
To make sure there quality practice they measure it two areas such as Good manufacturing
practice and Good laboratory practice.
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Coca cola quality requirement for suppliers:
Coca cola should authorized their suppliers by
identifying following quality areas,
Laws and Regulation: Supplier should
meet coca cola laws, rules and regulation in
manufacturing system.
Child Labor : Supplier do not use child
labor
Forced labor : Supplier do not use forced
labor
Abused of labor : Supplier do not abused
labor
Freedom of Association and collective
bargaining : Supplier should full filed this law
Discrimination: Supplier should agree with local discrimination law.
Environment: Supplier should protect all environment laws.
Also Coca cola mainly expect this quality standard among their product and services
I. Process monitoring and controlling: Suppliers and coke must ensure all products
are manufacturing according to company specification.
II. Finished product management: Finished product or packaging products should
create to company standard.
III. Storage and transporting: Transport method and storage system should protect from
hygiene regulation and safe method.
IV. Security: Supplier or coke company must make sure there products and labor force
security at any time.
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2.1 Management and responsibilities:
According to U.S. Geological Survey Manual (1988) the objective of the personnel
management evaluation is to assure that human resources are being used efficiently and
economically. Most companies spend millions of pounds a year to bring their work force up
to speed. Most companies prefer to spend large amounts in training its workforce so they can
benefit in the long run. Coca cola also dose the same investment to bring their work force up
to speed.
O Main approaches to organization, structure and management
Figure: Main approach to organization management and structure, Field work
Coca cola approach combination of classical and Human Relations. Human relation
approaches describe about leadership, behavior of employees and groups of organization.
This classical approach and Human relations approach help to coca cola to gain their product
in market among their competitors.
O Coca cola top management Job title breakdown :
Figure 6: Job Title breakdown,
http://www.hrssoutsourcing.com/uploadedImages/EventRedesign/USA/2012/May/18172006/
Assets/job-title-breakdown.gi
Top Executives
Marketing Manager
Finance Manager
ProductionManager
R & D Manager
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2.1.1 Function specific skills and knowledge required at Position Entry:
Inside the coca cola organization there has been operating different type of activities in
different department so when required staff to the coca cola management they hope deferent
knowledgeable skills for each works. Bellow describes that specific skills and knowledge
required.
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2.1.2 Management decision type and responsibilities :
There are basically three main type of decision such as strategic, Tactical and operational
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Figure 7: Level of coca cola management Decision Making, (Field work)
Example, According
to coca cola
Strategic
Expand market share
by establishing a new
areas
Tactic
Develop new price
structure to attract
customers
Operational
Extra new product
one due to increase in
demand
(Refer Appendix 2 for more information, Board Mission and Director Responsibilities)
Strategic level
(Senior management)
Tactical level
(Responsible Middle Management)
Operational level
(Responsible Junior Management)
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2.2 Leadership and Coca cola:
Leadership is a process of social impact in which one person can enlist the help and support
of others in the performance of a common organizational goal. The concept of leadership is
relevant to any aspect of ensuring effectiveness in organizations and in managing change.
Figure 8: Qualities of a leader, Leadership qualities, Oxcel
Some Qualities of a leader should be Communicate, Vision, Integrity, Honesty, Dedication,
Magnanimity, Humility, Openness, Creativity, Fairness, sense of humor, Assertiveness.
Every leader will not have most of these qualities. When coca cola requiting the person for
top management to bottom management they expect those quality from each person.
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3.1 Total Quality Management
Total quality management is way for manage future. This found in 1950s and nowadays most
famous method to manage total management process. Total quality management is place
which can involve management and an employee to give continues improvement for product
and services. It‟s support to help wasteful activities in organization. TQM tool must be
practice in all department every person such as marketing, manufacturing, sales, purchasing
etc,
Figure 9: TMQ Process,
http://4.bp.blogspot.com/_5NhPekd5TdE/S-
627H7_QxI/AAAAAAAAAXg/Zu0BDlgxpVk/s1600/TQM_MODEL.png
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3.1.1 TQM vs. Six Sigma
Six sigma is business improvement method it can use to manage company total quality
standard. There are six variables which can describe define, deter mine company goal and
current process, Measure is identify current performance and collect data, Analyze is identify
actual reason, Improve is determine appropriate solution and final stage Control is main the
gain achieve positive process.
Figure 10: Six sigma model,
http://www.i360institute.com/files/image/DMAIC_roadmap_75.gif
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O Below chart shows that differences between TQM and Six Sigma
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3.2 International Standard Organization:
International standard is high value to any organization. Most famous standard one is ISO
9001 that is measure quality standard. ISO 9001 can achieved any new business if they meet
quality requirement. International standard awards can benefit to organization deferent way
such as reduce mistake, achieve high targets, market coke business very effectually, enter
new market sector etc,
O Below chart shows that four element of the ISO 9001:2008 standard.
I. Management
responsibility
According to the customer needs and business objectives top
management need to support the quality system.
II. Resource
management
People and work environment need to fulfill and improve
with quality system.
III. Product realization Design sales, production and purchasing activities according
to what customer‟s need.
IV. Measurement
analysis and
improvement
Make sure company and customer both part satisfied with
company activities.
O Coca cola management system standard,
Quality Management at coca cola (ISO
9001)
Food Safety at coca cola (ISO 22000)
Environment Management coca cola
(ISO 14001)
Occupational Health and Safety at
working place (OHSAS 18001)
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3.3 Performance Management:
“The record of outcomes produced on specified job functions or activities during a specified
time period” (Benardin 2006) Simple as the definition provided,
Performance management is the process whereby an organization fixed the parameters within
which investment, programs, and acquisitions are to be reached in order to get the desired
results. In a business environment there are two major that are internal and external sector.
The Internal and External environments affecting the business can be classified as follows.
The internal environment factors are internal rules and regulations, Work ethics, Relationship
at work, Change. The external environment may include Economy, political and legal. Ian
Worthington, (2006). There is deferent kind of tools to identify company performance below
shows benchmarking process to identify cola performance.
Figure 11: The Benchmarking Process
http://www.change-management-toolbook.com/mod/book/view.php?id=74&chapterid=66
Soft drink industry is huge industry so important to identify organization weakness also
good way to find the new opportunities. For that „Benchmarking‟ most important,
Benchmarking is the method which we can compare one's business processes and
performance metrics to other industry best practice. Target typically measured are time,
quality, and cost. Improvements from learning mean, doing something with good quality and
fast with cheap price.
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Performance management stages of Coca-Cola
Value results Set KRAs Performance-linked pay observe results.
Prepare current Finalize Recognize Top Competency
Year current year performers‟ development
Development plan development plan.
Plan.
(Refer Appendix 3 for more information, Performance evaluation)
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3.4 Change management:
Nickols (2006) introduced four basic definitions for change management; according to
Nickols “Change management is a task of managing differences, a method of professional
practice, a structure of knowledge and information and a control mechanism”.
Change come to the business, it can mean many things. Change can give result in a good way
also bad way. This is a Coca cola and Pepsi marketing changes over the past years.
Figure 12: Coca cola Vs. Pepsi Logo changes,
Negative
Positive
Passive active
Figure 13: The four change categories, Bourne M (2002)
http://www.underconsideration.com/brandnew/archives/coca-
cola_vs_pepsi_revised_edition.php
Traditionalists Resistors
Bystanders Change agents
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Management of change:
Managing any organization‟s change will be more successful if apply these simple principles.
Also every positive Change must be realistic, achievable and measurable. The author strongly
believes that, an organization can implement a successful change program also strongly
communication and motivation will effect for management of change.
Figure 14 - Change Management Process
Image sources: http://www.change-management.com/tutorial-change-process-detailed.htm
When talking management of change human resource most impotent than others, because if
senior management arrange some changes for organisation progress some time because of
that change employees may face difficulties to adopt themselves to new processes. specially
because of new changes organisation environment normally change so employee feel
uncomfortable situation in that new environment it default to continues organisation works.
Therefore it is responsibility of the management so management should continuously
motivate the employees.
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4.1 Health and Safety at Coca cola:
In United Kingdom primary occupational Health and Safety at Work etc Act 1974, also
referred to as HASAW or HSW. There are deferent levels in health and safety such as
employee safety and food safety.
4.1.1 Food & Drink Safety:
Food Safety law affect to both management and employer. The Food Safety Act 1990 is the
main law regarding food safety. Under this law it is an offence to sell food and which is unfit
for human consumption, contaminated or injurious to health. Coca cola maintain ISO 22000
and HACCP standard.
Food and Drink Safety Law
Food safety law affects to directors/ managers and all employers in organization. The food
safety Act 1990 is the main law regarding food safety. Under this law it is an offence to sell
food which is can injurious to health. Another important piece of legislation is the Regulation
(EC) No 852/2004. This law tells us the requirement of the hygienic operation and
construction of food premises. Also this law affects employer and manager both part because
if employer know have food poison he or she should report as soon as possible also food
handles must use clean high level of cloths. For under the Food safety Act can fined up to
£20,000 and under Regulation (EC) No 852/2004 up to £5,000 per offence.
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Product storage
Coke expects from suppliers and
subordinate ensure that their products
does not become contaminated or damage
The general rules of storage are:
Keep the storage area in a good
clean, dry & tidy condition.
Store food products off the floor-
this will avoid pest infestation and
contamination if there is a spillage
nearby.
Ensure the products are clearly
labeled.
Keep raw and complete products
separate.
Pest
Pest control activities must be active and
should done by certificate organisation,
make sure avoide
Rat
Mice
Insects
Files
Birds
Pest carry pathogens and spread diseases
also can infect food with bacteria so
employees must store food safe place.
It‟s all employees responsibility to reduce
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Cleaning :
Effective cleaning is of the highest
importance in all food production
enviroments and it is a key factor in
ensuring the preparation
When talking effective cleaning employer
must follow these important rules:
I. Keep chemical in orginal
container
II. Strore chemical in a dedicated
area away from food.
III. Wear the correct protective
clothing
Physical hazards and chemical hazards
A physical hazard is something which has
fallen onto or in food. This can happen
any stage of food handling. Physical
hazard can come from:
I. Employer‟s Jewelers earrings can
be physical hazard.
II. Bits of work wear.
III. Plaster
IV. Finger nails and false nails
V. Glass and personal items.
Chemical hazard can be :
i. Cleaning chemicals
Perfumes & aftershave
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Assessing safety risks
Coke has a safety risk assessment tool for their production facilities that includes an analysis
of the job safety of each position in the organisation. This tool guides us in reducing the risks
associated with each role. Also each employee needs to get health and safety training before
they start job so coke try to reduce mistake as much as they can.
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Conclusion:
Quality is a major Objective of Coca cola company. Nowadays people are clever to find good
reasonable healthy products for their day to life so manufacture always need to improve and
maintain their standard.
In this report author has spoken about many things that effect to coca cola such as Health and
safety, Total quality management, performance management and deferent kind of process. By
completing this report learnt that there are specific things that coca cola management can do
impress at TQM also mainly talk that how deferent process management important to coca
cola and employees. We have learned many important lessons that should help us in our
professional and personal lives.
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Bibliography
Ould, M.A, (2005) Business process management: British computer society: UK
Poorinma M. Charantimath (2011) Quality Management (2nd
Edition) Dorling Publish
limited: India.
Tennant, G., (2001) six sigma: Gower publishing limited: England.
Drucker, F., (2006) Organization structure: cybernetic systems foundation, Collins, London
Bacal, R (1999), Performance management, A Briefcase book, McGraw-Hill Professional.
Driving the Truth into performance management, The Conference Board Review,
September 2008.
Team Performance (4th Edition) John Wiley and Sons Inc: San Francisco
Bourne, M. , (2002)Change management, Hodder education, England
Stranks, J., (2003) Health and safety at work,(7th
Edition) Kogan page Limited: England.
Entis,P,.(2007) Food safety,. ASM Press: Washington, DC
(n.a)., (2002)Guide to food hygiene, Food standards agency, England.
(n.a), (2002)Food safety regulations, Food standards agency, England.
Cookery (2002) [online]
The Coca – Cola Company,(2011)[Online] http://www.thecoca-colacompany.com/ [Accessed
25 December 2011]
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[Accessed 28 December 2011]
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Appendix
Appendix 1:
Types of organizational structures
Management experts have identified 6 different organizational structures:
The Functional Organizational Structure
Each part has a functional purpose with regard to helping its internal or external customers.
This structure is easy to manage but can be difficult to find something quickly.
The Geographic Organizational Structure
Parts are distributed in different places (i.e. not under one roof).
The Form/Product Organizational Structure
You group people in the organization by the type of material they are dealing with (eg. in a
library, a person deals with audiovisual material, or book materials etc), not by their position.
The User/Market Organizational Structure
The bank structure is an example. The separation of customers based on user/market
segmentation.
The Hybrid Organizational Structure
Two separate organization structures are combined into one. Most organizations are hybrids
because of its simplicity.
The Matrix Organizational Structure
The matrix structure involves a repeating substructure within each department or unit under
the one roof which are the same. In this structure, staff could have several bosses with several
different projects. It is quite complex. But in life, you already have a matrix structure,
because you deal with several bosses (eg. wife, the community etc). While it can take time to
maintain and make them work, it does free up management for strategic planning. But
unfortunately it encourages internal power struggle and anarchy. Requires lots of
interpersonal skills. Expensive.
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Appendix 2: Board Mission and Director Responsibilities
The Board is elected by the shareholders to oversee their interest in the long-term health and the
overall success of the business and its financial strength. The Board serves as the ultimate
decision-making body of the Company, except for those matters reserved to or shared with the
shareholders. The Board selects and oversees the members of senior management, who are
charged by the Board with conducting the business of the Company.
The core responsibility of the Directors is to exercise their business judgment to act in what they
reasonably believe to be in the best interests of the Company and its shareholders. Directors
must fulfill their responsibilities consistent with their fiduciary duty to the shareholders, in
compliance with all applicable laws and regulations. Directors will also, as appropriate, take into
consideration the interests of other stakeholders, including employees and the members of
communities in which the Company operates.
The Board provides advice and counsel to the Chief Executive Officer and other senior officers
of the Company. The Board oversees that the assets of the Company are properly safeguarded,
that appropriate financial and other controls are maintained, and that the Company's business is
conducted wisely and in compliance with applicable laws and regulations and proper
governance.
In discharging their duties, Directors may rely on the Company's senior executives and outside
advisors and auditors. Accordingly, skill and integrity will be important factors in selection of
the Company's senior executives and other advisors. The Board has the authority to hire
independent legal, financial or other advisors as they may deem necessary.
Directors are expected to attend all meetings of the Board and of the Committees on which they
serve. Directors should devote the time and effort necessary to fulfill their responsibilities.
Information important to Directors' understanding of issues to come before the Board or a
Committee will be provided sufficiently in advance of meetings to permit Directors to inform
themselves. Directors are expected to review these materials before meetings.
The Board will hold regularly scheduled meetings at least five times a year. The Chairman of
the Board will set the agenda for Board meetings. Any Director may suggest items for inclusion
on the agenda. Any Director may raise a subject that is not on the agenda at any meeting.
Certain items pertinent to the oversight and monitoring function of the Board will be brought to
the Board regularly. The Board will review the Company's long-term strategic plans and the
most significant financial, accounting and risk management issues facing the Company at least
one Board meeting each year.
Managing Business Activities to Achieve Results
105649/Nipuna Weerakoon
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37
Appendix 3: Performance Evaluation: