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Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon Page 1 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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Page 1: MBAAR

Managing Business Activities to Achieve Results

105649/Nipuna Weerakoon

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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]

Johnson, P.A (1998) [Internet] http://www.leadership-expert.co.uk/leadership-styles/

[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.

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Appendix 3: Performance Evaluation: