National University of Computer and Emerging Sciences

Fundamentals of Management
Semester Project Fall 2016

Submitted On: 20th November, 2016

Role of four functions of Management (Planning,

Organizing, Leading and Controlling) in D.Watson
 Acknowledgement

In the writing of this report, we are exceptionally grateful to Allah for granting us the strength, patience
and capability for undertaking and accomplishing a task that at many times seemed terrifyingly daunting
and excruciatingly difficult. We are grateful to Allah for making us strong enough to adequately deal with
all the hurdles and hardships we encountered on the way.
We want to express our gratitude to Ms. Sara Qazi, for her guidance and support throughout the time.
We would also like to express our deep gratitude for Mr. Ahsan Bakhtawri (Managing Director
D.Watson) for giving us time from his busy schedule. This report wouldn’t have been possible without
him. He was abundantly helpful and offered invaluable assistance, support and guidance.

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We are exceedingly thankful to our beloved parents; we could not have achieved anything without their
endless faith in our abilities and their constant moral support. Thank you for being there for us always.

Dedication

To all those who have supported, encouraged, challenged, and inspired us. And specially to our
beloved Parents, honorable teachers and Friends for all their guidance, love and attention which
has made it possible for us to make it up to this point and as well as Ms.Sara Qazi, who best
owned us with the courage, the commitment and the awareness to follow the best possible route,
by their unmatchable style and by best possible training. This report is also dedicated to all the

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 concerned students, as this is formed by the Students of Fast University.

Table of Content

Chapter 1:

Introduction……………………………………………………………………7
History……………………………………………………………………………………...7
Mission……………………………………………………………………….………..….7
Business Capacity……………………………………………………….....……….7
Products and Services…………………………………………………………....8

Chapter 2:

Interview Guide

Planning………………………………….. ………………………………….…..9

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 Goals and Plans……………………………………………….………………………9
Departments………………………………………………….………………………..9
Core Values……………………………………………………..……………………….9
Competitive advantage……………………………………..………….……….10
Management Polices………………………………………..……….…………..10
Strategies………………………………………………………..……….……………10
Management Roles…………………………………………..……..…..………..11
Management Perspective………………………………..…………………..12
Analysis Conducted…………………………………………..….….…….……13
Recommendations…………………………………………..………………….17

Organizing………………………………………………………………………17
D.Watson as an Organization…………………………..…………..….17
Contingency factors……………………………………..………….………18
HRM………………………………………………………………..……………….19
Recommendations……………………………………..…..……..………..21

Leading……………………………………………………………………..……22
Leadership theories …………………………………………..…..…..………22
Analysis Conducted………………………………………..……..…….………26
Change Process…………………………………………….……..…..………….27
Innovation…………………………………………………..…...……..…………28
Emotional Intelligence…………………………….………….…..………….28

Controlling………………………………………………………………...……22
Process of Controlling………………………………………….…..29
Type of Controlling………………………………………………….30
Areas of Controllig…………………………………………….……..32
Work-Place Concerns………………………………..……………..33
Communication………………………………….……………………33
Productivity………………………………………..……….………….35
Technology……………...............................................….……..35

Chapter 3:

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 Analysis…………………………………………………………………………..36

Conclusion………………………………………………………………………37

Reference………………………………………………………………………..38

Introduction
History:
D.Watson Chemist and Super Store have been working since 1978 in Pakistan. D.Watson
scientific expert and Super Store is a Pakistan national based organization, enrolled under the
PARTNERSHIP ACT 1932 as RETAIL COMPANY.
Primary Areas of Activities of Business:
D.Watson is working under existing legitimate structure and built up strategies, to give quality
items to their customer at moderate cost. D.Watson additionally has a wide cluster of items
which are inaccessible to the next aggressive retailers.
In this respects, D.Watson is anticipating extend at the national and worldwide level to share
Their business experience to other new markets and in addition present new ideas and items in
the entire market. They are likewise retailers of Pakistani and different universal items.

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D.Watson is resolved to give creative quality items and administrations to accomplish customer's
aggregate fulfillment; And D.Watson is accomplishing this by satisfying their current necessities
and foreseeing their future desires or needs. We additionally hold fast to satisfy Quality
Standards as indicated by the lawful demonstrations.
Accessibility of the esteem based item is the real test now in the aggressive gatherings, and
D.Watson has the strong technique and making arrangements for their customer to make the item
accessible as per their needs. We generally endeavor to make their first shopping knowledge best
to give them best cost to the quality items and fulfillment of the administrations.

Mission

Our mission is to supply cheaper products to everybody who has access to the internet. Through
harnessing the power of the internet and supplying you directly, this website will save up to 50%
off the cost of many well known products found in your local chemist.

Vision

“Provide quality products internationally”

Business Capacity
HR: Human Resource
D.Watson utilizes more than 500 exceptionally experienced, qualified and best administration
suppliers in the urban areas of Islamabad, Rawalpindi, and Chakwal and at present have more
than 14 stores and using. They guarantee to the client that our specialists are best in client mind
administrations.
Break even with Opportunity Employer:
We are resolved to equivalent open door in business and to encouraging assorted qualities in our
work constrain. Our employing strategies and practices require that there be no separation as a
result of race, shading, religion, age, sex, national inception, inability and different components
that might be secured by nearby law. We perceive that assorted qualities in our work constrain is
a significant resource, and we endeavor to give a comprehensive workplace in which diverse
thoughts, points of view, and convictions are regarded. Infringement of the Company's
equivalent open door Policies may bring about train, up to and including end or discharge.

Products and Services:

D. Watson offers an assortment of key administrations including Pharmacy, Allopathic
Medicines, Vitamins and Health Supplements, Family Planning, Sexual Wellbeing Products,
Perfumes, Medical Store, Medicines Retailer, Eye Clinic and Optical, Optometrist Consultants,
First Aid, Plaster and Painkillers Tablets, Antibiotics, Orthopedic, Herbal Products, Beauty
Products, Baby Care Products, Toiletries, Electrical Items and Pet Products.

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D.Watson Group mission is to supply less expensive items to everyone who has entry to the web.
Through saddling the force of the web and providing you specifically, this site will set aside to
half off the cost of numerous notable items found in your neighborhood scientific expert.
They likewise have marked scents, antiperspirants, shampoos, toothpastes, spoils, encouraging
containers and some more. To wrap things up, on second floor now they have marked shoes and
socks for women. No different shoes/packs store in twin urban areas (Islamabad/Rawalpindi) can
contend them on assortment.

Management:
From D.Watson’s point of view, management is all about monitoring the performance of
individuals for accomplishment of goals.

PILLARS OF MANAGEMENT
There are four pillars of management
1) Planning
2) Organizing
3) Controlling
4) Leading
D.Watson, a successful wholesale and retail dealer, is working under these four pillars of
management. One needs to learn management in order to manage his/her personal life and as
well as to apply such management techniques in his business to flourish in today’s dynamic and
competitive world.

Planning Under D.Watson:

Everything in D.Watson is organized and well-managed. It starts from the top with CEO,
Managing director, Branch Manager, Department Manager, Sales Manager, Purchase Manager,
Accountants, Supervisors and finally they give command to the Executors who implement
activities on ground.

Goals and Plans:

They implement different types of plans in different dimensions. Plans are implemented
according to the situations.
D.Watson Islamabad is currently following Collective multiple plans. They are also
implementing directional plans which make room for changes according to the situation.
They do not stick to a single plan if the situation calls for another plan. Operational plans are

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 also made, for that they use “Gantt Chart”. They mark their daily progress on a ‘Gantt Chart
‘and evaluate it later on. Hence, their plans are based on situations.

D.Watson’s Departments:
D.Watson is divided into three sections.

 Pharmacy
 Cosmetics
 Grocery

Core values (basic principles)

 Known and recognized choice
 Open door policy
 Reliable source
 Innovation is a part of routine
 Formats made in accordance with local markets
 Commitment
 Competent and low cost operations
 Win-win partnership with suppliers
 Commitment to ethical and environmental needs
 Continuous growth of shareholder value
 Considers employee and customers’ needs and demands.

Competitive Advantage and Core Competencies

D.Watson is offering products with lowest price range and higher and better quality at the
same place and in huge quantity. It is a single place which provides everything one must
need to purchase for their own home for example medicines, food items and grocery etc.

Competencies:
 Lowest price offered
 Stock availability (up to 20 thousand SKU)
 One stop shop
 Quality guaranteed
 Parking is free
 Across the board but simple billing system
 Great value in exchange of money

Management Policy:
Management policy also depicts the culture of D.Watson, which is mentioned above is a
strong and friendly culture. By working together as a well-knit team they can endure any
hurdle that comes their way.

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 They treat their workers with Love and Respect. Everyone is considered equal and treated
in good way.

 Open Door policy: Anyone can walk to the top management and talk to them. Nothing
can stop them from their right.
 Innovative ideas are encouraged rather than discouraged: Any employee can come
up with an idea, which is discussed and implemented subsequently, if found suitable,
without the risk of making a mistake. Mistakes are considered a part of progressing.
 Set out trends: Because of their team spirit and enthusiasm, they are likely to be
considered as a role model.
 Recognition and Reward: Employees reports are judged bi-annually and are rewarded
according to their performance.
 Corporate Social Responsibility: commitment to the principles of social responsibility.

Strategies and Techniques used in D.Watson:

Corporate Strategy:
The Corporate Strategy that they are using is “Growth Strategy” and in growth strategy they are
using “Concentration” that is;
Focusing on a primary line of business and increasing the number of products offered or markets
served.
As they are planning to expand their business in future depending on market potential
D.Watson’s top management is following the symbolic view of management where by the
Managers and Supervisors below the top management are directly responsible for the success of
D.Watson. Each worker plays a vital role in the success story of D.Watson.

Techniques:
Forecasting means to predict the outcomes.
They apply:

 Quantity forecasting by conducting different time series analysis to measure their

progress.
 Qualitative forecasting by conducting meeting with the top management to predict
future outcomes.
Since they recently started budgeting

Management By Objective:
Each category such as Sales, Quality Audit, Operations and Management has its own objective
which clearly states their goal and help them conduct a better analysis.

Manager:

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One who coordinates with employees and oversees their work to accomplish goals of
organization.
Managing director is the top manager who takes all the decisions of D.Watson to accomplish its
goals. Branch manager is the middle manager and Department manager is the First-line manager
who coordinates with sales manager and manages the work of non-managerial employees.
Two main things needed for management are efficiency and effectiveness. If there is no
efficiency there will be no effectiveness in management.

Management Roles:
Roles are the actions expected of a manager.
Interpersonal roles:
Figurehead role is to build good relationship within employees and customers. Manager of
D.Watson uses figurehead role to keep employees connected to each other. The manager wants
to keep a friendly environment within the workplace.
Decisional role:
Manager is also using decision role in a way that he handles the situation in case of crisis.
Manager of D.Watson bring innovation time to time for the motivation of employees. The factors
that are changing the job of manager are

 Technology: It takes time to adopt continuously changing technology.

 Challenges: At D.Watson employees have challenge of communication. Most of the
employees are poor in English and are not able to deal with foreigners.
 Turnover rate: Another challenge is to control turnover rate. The salary of new employees
at D.Watson is usually low which the main cause of high turnover rate is. New
employees gain experience and transfer to serve some other organization that pays them
better.

Size of organization:
D.Watson is a small private organization; most of the branches of this private organization have
100 or less employees.

Challenges of being Manager:

Dealing with different personalities and motivating employees in uncertain situation is a great
challenge for manager.

Classical Management Perspective

D-Watson follows Administrative management which focuses on managing the overall
organization. Following Fayol’s principles of management, there is centralization in

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organization. There is no involvement of employees in decision making. Decision is taken by
managers only.

Weber’s Bureaucracy
According to Weber’s bureaucracy, In D-Watson

 The jobs are broken down to well-defined tasks

 Positions are organized in hierarchy following chain of command
 Manager is not owner of the organization but professional in career.
 There is no formal selection of employees. Employees are not selected on the basis of
technical qualification. Also there are no formal rules and regulations. However the
employees should be hired on the basis of technical qualification.

Quantitative management:
D.Watson support and give importance to Behavioral management. Every employee of
D.Watson deals with the customers with a respected proper behavior.
Theory XY is applicable in D.Watson. As majority of people are motivated towards work but still
one third of the employees are not motivated towards their work and hence are always pushed to
do their work by the managers.

Open system:
The manager of D.Watson interacts with the employees properly discussing each and every issue
and objective of the goal and tasks moreover the manager also interacts properly with the
customers so that he get to know about their needs and demands.

Quality as basis for competition:

D.Watson only sells authentic, real and non-expired medicines, as quality is the first priority of
D.Watson.
External factor:

 The location of D.Watson is reachable for majority of the people.

 The competitor Shaheen also affects the performance of D.Watson in a positive way as
the employees of D.Watson work in competition and work well in result.
Internal factor:
Staff of D-Watson is better than Shaheen chemist, as told by manager staff of Shaheen keeps on
changing, while the staff of D.Watson is stable and permanent. Also pricing of D.Watson is
better than that of Shaheen chemist. D-Watson sells products in their original price without any
extra charges while Shaheen chemist sell products more expensive than the original price adding
taxes in it as well.
ShaheennChemist plays main role in success of D.Watson. Because of competition
D.Watson’semployees continuously work and perform well in competition.
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Stakeholders
There are no stakeholders of D.Watson.

Culture:
D.Watson has a strong culture as values are spread among the employees and managers.
D.Watson respects the values of every employee working as well as it also respect the value of
the customers. Hence provides them with the best services.

PESTLE ANAYLSIS – D.Watson ISLAMABAD:

Pestle stands for
P: Political:

The fluctuating Pakistani government influences the workings of D.Watson. Anything that stops
the consumers for reaching D.Watson causes trouble. The ineffective control of every
government regarding the prices of products and inflation because customers are demanding for
a product at a comparatively lower price. Any trouble caused in the government directly or
indirectly affects the working of D.Watson.
Dharna is the biggest example which caused a lot of loss in D.Watson. When the protest held
near blue area there were fewer customers because of the sealed roads and also the stock vans
couldn’t reach the store therefore the store was out of stock at times. Hence any trouble caused in
the government directly or indirectly affects the working of D.Watson.

E: Economical:
Proper control over environmental factors and offering different packages according to different
conditions can enhance the profit level.
People are getting a good salary now which has increased buying. In simple words it means that
now-a-days people are mostly striving hard to be on a better post in any organization which has
caused them better salaries and that they can afford. D.Watson has more customers now as they
can afford the goods which D.Watson sell.

S: Social:

The social environmental conditions of Pakistan are not that favorable to the Chemist business so
they should often come up with different campaigns to attract the retailers in the long run. The
publicity campaigns of D.Watson should be attractive enough to fetch maximum retailers and
customers.

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T: Technological:

In Pakistan D.Watson is using high tech technology but it is still not meeting the requirements, it
still needs improvement. With the passage of time new technology should be introduced in
Pakistan like RFID.
D.Watson is using high technology like CCTV camera and computerized billing but still it needs
improvement. Time to time new technology should be introduced.

E: Environmental:

Workers that are inclined to work efficiently are encouraged while those who lack efficiency and
are source of bad influence on the environment can never be tolerated, hence not kept.
D.Watson‘s internal environment is so friendly and strong that no outer force can indulge in or
able to break it. They have a very strong culture that is the basic core of their success in today’s
world, where everywhere is tough competition.
D.Watson wants healthy people therefore people can buy any medicine for any cure. Changing
environment increases buying. Due to change in atmosphere more people get sick and buy
medicines and stuff from D.Watson easily and conveniently.

L: Legal:

D.Watson has its own legal department which is controlling the situation and resolving any
structured or unstructured problems occurring at D.Watson.

SWOT ANAYLSIS – D.Watson ISLAMABAD:

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Strengths:
The Major Strength is their goodwill and Location is better .Staff is better trained as Compared
to other chemists like Shaheen, Al-Fateh ,. and PR with customers.

Opportunity:
D-Watson has opportunity of first mover advantage. There are many locations where there is no
other opponent and they can easily open their branch.

Weakness:

There is no communication among departments and high technology is not used in D-Watson.
Weakness is the discount policy: policies are generated according to the organizations
convenience rather than consumers benefits. If a consumer asks for a discount, it is a very long
and cumbersome process which creates bad impression to the consumers/customers.
Weak counter service as complained by many customers on online forums.
Processes are rigid in terms of return and discount policy

Threat:
Threat to D.Watson is the declining growth rate, it was good in past and now it is static.
Competitors like Shaheen chemist and Al-Fatah are also threat for D.Watson.

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BCG Matrix Analysis –D.Watson ISLAMABAD :

D.Watson lies in “Stars” Because it has high market share and also high growth rate.

D.Watson going global is a vision ahead in future

D.Watson wants to open its chains globally in future to provide people with the best all around
the globe.

Economic environment:
D.Watson has free market economy; Resources are primarily owned and controlled by D-watson
itself.

Recommendations:

Understand that planning is an ongoing process.

D.Watson should use Develop plans that are specific but flexible.
Change plans when conditions warrant alterations.

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Persistence in planning eventually pays off.
Flatten the organizational hierarchy to foster the development of planningskills at all
organizational levels.

Organizing Under D.Watson:

D.Watson as an Organization:
D.Watson has very organized system which enables them to utilize their resources efficiently.
Organizing Structure: They have different Set Of Building Blocks e.g. Counter, Store, Head
office and HRM etc (They don’t have any finance department)
Job Design: As D.Watson has 3 major departments, they have different job design for different
categories
Job Specialization: Because of job design D.Watson employees get specialized and perform
their task more efficiently
(Because of high turnover rate specialized employees quit their job and replacement of that
employee takes time)

Job Rotation:
D.Watson Company has no job rotation.

Departmentalization:
D.Watson has three Major Product Departments and each one has different manager.
(There are no Coordination Between managers of different departments)
D.Watson is Mechanistic and is highly centralized as decisions are taken within the managers
and higher authorities.

D.Watson is a flat Organization

Lead to higher levels of employee morale and productivity.

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Create more administrative responsibility for the relatively few managers.
Create more supervisory responsibility for managers due to wider spans of control

Contingency Factors:

Overall strategy of the organization:

D.Watson Company is very innovative with the aim to give customer experience which will give
them the feeling that this experience is similar to foreign country,
Like other Firms D.Watson also aims to reduce its costs as much as possible to earn more profit.

Technology Used:

D.Watson has average technology within the company. As D.Watson is in tertiary sector and is
more of labour incentive.

Example of Technology used

Recently by adding Biometrics Attendance system company is able to keep track on employees
working hours although it this technology is opposed by some employees as they feel being
supervised.

Traditional Design

D.Watson has Simple Structure wide spam of control with little formalization

(D.Watson Lacks in departmentalization as its HRM is just introduced and Finance Department
is still not Exists)

Work Schedule for employees:

D.Watson uses compressed Work Weak. Employees work for longer hours per day but fewer
hours a day.

Why Is HRM Important?

HUMAN RESOURCE MANAGMENT

As a significant source of competitive advantage
People-oriented HR creates superior shareholder value

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As an important strategic tool
Achieve competitive success through people by treating employees as partners
To improve organizational performance

D.Watson HRM:
Recruitment and Selection:
D.Watson has just introduced HRM to the company which will be very beneficial to the
company both in short run and long run.
D.Watson turnover rate is high as compared to Shaheen chemists which is a major fact that indicates
that Shaheen Chemists HRM policies are at their level best. After introducing HRM in D.Watson
Company is no able to retain employees and certain criteria is set to select employees.

As HRM is introduced in D.Watson which is very advantageous but it has very limited roles in
the company. The HRM of D.Watson just has responsibility to advertise and select the person
(not the right person they just select the person) as after selection the person is recommended
to a final interview with the manager and he selects the right person and short lists them
himself. After selection no recruitment and training is given by HRM. And the most important
disadvantage, HRM is only doing advertising and selection.

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D.Watson Trains its new employees by giving on the job training which is beneficial as it
reduces the training cost and person becomes functional and starts its basic sale within one week.
But on the other hand it is very time consuming and annoying for existing employees as they
sometimes feel burden to meet consumer demand or train employee first)
Due to NO HRM polices regarding salaries, it is very difficult for D.Watson for setting basic
salary for new employees. The salary set for new employee is avoided by the senior employees
as they claim that when we were hired we were paid very low and the people being hired today
have almost same salary as we have now. And they claim that we have more experience and
sometimes they are also willing to quit their job.
D.Watson gives its senior employee’s benefits like providing them with free medical and people
who are married enjoy this benefit.
As selection procedure in other companies starts from Application form which is submitted by
employee after filling important data that is required by the company. As D.Watson has used to
employ any person who could read English, but now they have set a barrier of education which is
very important and advantageous to the company. Now the interested candidate must have
passed its F.A in order to get in D.Watson.
This education criteria introduced by D.Watson is beneficial as many customers of D.Watson are
forgeries and to communicate with these type of customers one should be aware of Basic
English.
This criterion was introduced by the management after an incident which occurred a year ago,
when a foreign customer was very disappointed by the employee as employee was unable to
understand what he wanted and it took him almost 1 hour to give him the accurate medicine.
Basic English criteria can be consider as a competitive advantage to D.Watson as Shaheen and
Al-Fatah are still lacking in it and now many foreign customers have moved from Shaheen and
Al-Fatah.

Employee Performance Management:

Performance Management System: There are no Performance standards introduced by D.Watson
so the employee performance could not be evaluated.

Training and Development:

D.Watson uses Traditional training Systems which include ON-The-Job-Training
Newly selected employee is handed over to a experienced employee to give him basic training
and report the performance of new employee weekly to the manger.

BENEFITS TO EMPLOYEES:

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D.Watson Provides a place of employment that is free from hazards that may cause death or
serious physical harm (Work-Life Balance).
D.Watson has now become more attuned to their employees by offering family-friendly benefits.

Organizing
Cross-Functional Teams:

Groups that bring together the knowledge and skills of Individuals from various work areas or
groups whose members have been trained to do each others’ jobs.

Self-Managed Teams:

Groups that are essentially independent and in addition to their own tasks, take on traditional
responsibilities such as hiring, planning and scheduling, and performance evaluations

D.Watson Groups:

D.Watson has self managed teams as they take on traditional responsibilities. Managers are
independent of each other.
Managers of every Department have their own teams and they do not coordinate with other
department managers.

Recommendations:
Even though D.Watson is growing dramatically, but it is still lacking some areas which can be very
harmful for the company in future.
D.Watson Company has no FINANCE DEPARTMENT.

From the Finance department´s point of view one of D.Watson's principle advantages is that it
to a great extent computerizes the successive manual work with spreadsheets and different
laborious apparatuses which require noteworthy specialized abilities. A few advantages: the
super clients can deal with the framework organization and maintenance, without help of
exorbitant advisors diminish the expenses of information handling lessen the need to utilize
extra assets the back division can address the issues of administration all the more broadly and
rapidly speeds up a more exact two-route stream of data through the association

Another Area in which D.Watson lacks is that the HRM department have very limited role in the
company it is only limited to advertising only. They should allow HRM to recruit the employees
and create a unique environment for existing employees to cut back turnover rate.

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Leading Under D.Watson:

Leading is the third function of management in which the manager connects with employees on
an interpersonal level. Leading demands a manager to communicate openly with employees
motivate employees to higher level of productivity, inspire employees to be innovative, and also
encourage employees to achieve their goals.

LEADERSHIP
Path-Goal Theory:
Path-Goal theory focuses on the kinds of leader behaviors that allow subordinates to achieve
their personal and organizational goals. This theory is applied in our chosen organization,
D.Watson. The manager tells the subordinates what and how to do a particular task, fulfilling the
Directive Leadership style. The manager also shows concern and allows the subordinates to
participate in the decisions that affect their work.

Human Relations Approach

The managers at D.Watson believe that
“Workers are to be treated as people, not cogs in a machine.”
Human relations approach is compatible with Theory Y as the employees find satisfaction in
their work and they work best under a participatory leader.

Implicit Theory
At D.Watson, we interviewed the employees about the managers’ attitude and behavior towards
them, and the employees were satisfied with the behavior. When we interviewed the employees
at Al-Fatah, the employees said that the managers were very demanding.

Leader-Member Exchange (LMX):

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Subordinates are of two types:
1. “In-group”: Employees are viewed to be trustworthy competent and highly motivated.
2. “Out-group”: Employees are viewed to be incompetent, untrustworthy and demotivated.
In the chosen organization, old employees are considered to be “In-group” as they are very loyal
and committed to their job; hence, leader and in-group members have established a personal
relationship that leads to mutual support and a better understanding.
However, new employees are considered to be “Out-group” members as they are not committed
to their work.

Leadership Styles:

Authoritarian
Democratic
Transactional
Transformational
Charismatic
Pace Setting
Coaching
Affiliative
Coercive

D.Watson follows Democratic and Transactional leadership styles since the leaders and
followers discuss problems and make decisions jointly. The needs of the followers are also
identified and they are given reward in exchange of performance.

Power:

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 Expert

Referent Reward

Legitimate
Powe Coercive
r

The manager of D.Watson possesses reward power as well as legitimate power. Legitimate
power is due to the formal position he holds in his organization’s hierarchy of authority. All
those managers who give a reward to an employee in order to influence the employee to act will
use reward power.

Pygmalion Effect:
Pygmalion effect occurs in an organization when a manager raises his expectations hoping for a
better performance from his workers. However, this effect cannot be found in our chosen
organization, D.Watson.

Functions of Leadership:

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  The leaders of D.Watson have set goals and policies to persuade the employees to
work with full confidence.
 The leaders have assigned appropriate roles depending on the individual abilities
so they can operate sensitively towards the achievement of organizational goals.
 It is very important for a leader to motivate the employees so they can work with
full enthusiasm. D.watson fulfills this function by providing incentives to the
employees such as good salary, life insurance, and free medical services. All the
married employees are very positive about the mentioned incentives.
 D.watson tries its best to unite all the ideas of the individual members of the
group with that of the organization but sometimes they fail to do so.
 However, the subordinates may be dependent on others decisions and judgment.
An initiative needs to be taken in all matters of interest to the groups.
Trait Theory:
1. Drive: Leaders have a high desire for achievement; they are ambitious, and they have
high energy.
2. Desire to lead: Such leaders have a strong desire to influence and lead others.
3. Honesty and integrity: Leaders develop an interpersonal relationship with their
subordinates by showing high consistency between word and deed.
4. Self-confidence: Followers look to their leaders for an absence of self-doubt.
5. Intelligence: leaders need to be intelligent enough so they can interpret information and
create visions effectively. Intelligence will also help them to solve problems and make
decisions.
6. Job-relevant knowledge: if a leader has a good knowledge about an organization, the
followers will then be allowed to make well-informed decisions.
7. Extraversion: Such leaders are energetic, assertive, and sociable.

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 All the above mentioned traits are found in the leaders of D.Watson to some extent. In
my opinion, the leaders need to work on the aforementioned traits as they play a
significant role in the success of an organization.

The Managerial Grid Analysis –D.Watson ISLAMABAD:

The type of management found in D.Watson is “Country Club Management” as they believe
that customers are more important than profit.

CHANGE PROCESSES
It is not easy for everyone to work in an organization as employees have to face certain changes
and they are bound to manage them. Similarly, D.Watson also faces uncertainties with respect to
structure, technology, and people. The most important task for D.Watson is to hire trained staff
as well as managers who know how to deal with people. In the case of technology, D.Watson has
a computerized billing system and CCTV cameras. However, their inventory management needs

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to be improved. The employees may face a few difficulties in understanding the technology, and
the managers will work as a change agent as they will bring about the change in the organization.
Change also needs to be managed within an organization in terms of interpersonal relationships.
This type of change can be encountered through non-verbal and verbal communication.
People can also have an adverse reaction as a result of change, because they don’t feel
comfortable. This adverse reaction is known as stress.Role overload is one of the reasons
causing stress as the accomplishment of work becomes difficult to manage. Role ambiguity is
another reason for stress the role expectations are not understood completely. Lastly, role
conflicts may also cause stress when work expectations become hard to satisfy. All the three
roles can be found in our chosen organization, D.Watson. However, psychological barriers, such
as job-related dissatisfaction, anxiety and boredom, may affect the routine task of the employees.
Such barriers need to be encountered by D.Watson through creativity and innovation. Innovation
turns the outcomes of the creative process into useful products and services. Furthermore,
human resource variables also help employees to stimulate innovation.
Talking about the organizational behavior, the turnover rate is high as the new employees get
less salary compared to the old employee and also the new employees are untrained. Employees
getting low salary shift their job to Shaheen Chemist or Al-Fatah due to better wages. The old
employees of D.Watson are more committed to their organization as compared to the new
employees and they wish to maintain membership within the organization.
Attitude surveys are conducted annually to know how employees feel about their jobs, work
groups, supervisors, and the organizations. These surveys are also conducted at Al-Fatah.
Furthermore, D.Watson’s manager told us that their personality is also measured on the scale of
Big Five Model. It is a personality trait model that includes extraversion, agreeableness,
conscientiousness, emotional stability and openness to experience. The managers at D.Watson
believe that it is important to develop the trust of the employees by allowing them to say
whatever they wish to. Furthermore, the managers are unable to solve political issues being faced
by the employees. To overcome this factor, the managers should
 Focus on organizational goals.
 Avoid gossip and backbiting.
 Engage in fact finding missions.
 Observe the unspoken rules of the office.
 Observe the respected behavior of the employees and company leaders.

CHANGE AND INNOVATION

When we asked about the attitude of manager with employees, we were told that they are both
commanding and friendly. This is the kind of environment needed to develop interpersonal
skills. Interpersonal skills are important for an organization while working in groups to form
effective teams, and socializing at workplace. The interpersonal skills at D.Watson are not very
effective, however, they can be improved by paying attention to others, being appreciative,
communicating clearly, and resolving conflicts. Even though the managers have a legitimate

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power but still they need to improve their negotiation skills and persuasion skills. The managers
need to have an effective communication and understand their audience to persuade the
employees to agree on something. Negotiating skills require the managers to act energetically to
achieve their objectives.

Emotional Intelligence:
“An individual’s success in work is 80% dependent on EQ and 20% dependent on IQ.”
(Goleman)
All organizations have their own policies and they have an influence of emotional IQ to some
extent. Similarly, D.Watson also has a great impact of emotional IQ on their decisions. The CEO
of D.Watson told us that they provide free medical to the employees when needed. This results in
Effective Emotional Intelligence as it reduces stress and promotes understanding relationships.
The employees and managers of D.Watson develop effective relationship among each other.

“A struggle to resist or overcome; contest of opposing forces or powers; strife; battle. A state or
condition of opposition; antagonism; discord. A painful tension set up by a clash between
opposed and contradictory impulses.”
All employees at D.Watson try their level best to achieve their goals, deal with the customers
effectively, and utilize their skills to influence the customers. However, conflicts still arise in the
organization as everything can never be perfect. Conflicts may result in resentment, verbal
assault, and inability of employees to work together. D.watson uses problem solving technique
to encounter such cases. In this technique, it is important to share information and identify the
common ground of both the parties. Lastly, they will identify the potential solution to satisfy
both the parties.

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Controlling Under D.Watson:

According to Stafford Beer:

“Management is the profession of control.”

It is the process of monitoring activities to ensure that they are being accomplished as planned
and of correcting any significant deviations.

The Purpose of Controlling:

To ensure that activities are completed in ways, that leads to accomplishment of organizational
goals.
D.Watson is using a tool of controlling to manage their daily life problems and activities.
Controlling as a function is performed by mangers at all levels, regarding all types of activities
that are taking place in an organization.

Importance of Controlling for D.Watson:

Like all other organizations D.Watson is vulnerable to different threats.

Control system is mainly used by D.Watson to re-plan their goals after monitoring of their
activities. It also helps to empower the employees of an organization; managers are updated and
are provided with the feedback on employee’s performance. Also Controlling ensures the
protection of D.Watson as a workplace.

Adapt to environmental change Limit the accumulation of error

Control helps the organization

Cope with organizational complexity Minimize costs

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The Controlling Process:

Step 1:
Measuring:

D.Watson firstly measures the actual performanceof their organization.

For measuring the Present performance, D.Watson use Personal Observationsby managers as a
source of information.

Sometimes it’s might lead to personal biasing, which cannot give an accurate result.
D.Watson can use other tools like Statistical Reports, Oral reports, and written reports as well for
more accurate observations.

Step 2:
Comparing:
In comparing, D.Watson determine the degree of variation between actual and the standard
performance. And then analyze it with reference to the set targets.
They set their targets according to their competitors. Like, Shaheen Chemist, Al-Fatah and Metro
cash and carry/

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Step 3:

Taking Managerial Action:

Immediate corrective action and Basic corrective action both are used for managerial
decisions, which is very effective to solve all types of problems.
There are some problems which require sudden correction as delay in that will lead to more
damage. While in some other problems like if there is complaint by customer concerning the
performance of D.Watson, in any aspect, first the management finds the cause of the deviation
and then rectifies it.

D.Watson also uses controlling as to measure their overall Organization performance.

Controlling is being use to Check their Productivity, effectiveness, and also their industrial
ranking.

D.Watson is using three different controlling tools to measure their Performance; mainlyFeed
Forward Control, is being used to predicted problems which can be prevented before their
occurrences. But in some cases Concurrent control and Feedback control are used because
D.Watson belongs to wholesalers category so different tools are required at different situations.

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AREAS OF CONTROL:
Areas of control under D.Watson management includes
 Human resources
 Information resources
 Financial resources

Types of Controlling:

Financial:
It is use to Control the Financial Resources.

D.Watson makes Earnings and Financial Statements, to clarify their financial positions. Budgetary
Control and Financial audits are also made to help managers to evaluate their performance
accurately.

Operational:

Operational Control focuses on the Preliminary, screening, and postaction control. They
treated as inputs, transformation and outputs.

Structure:

For Structural Control, D.Watson prefers Clan controlling which is an approach to

organizational control characterized by informal and organic structural arrangements.

D.Watson should be using Bureaucratic control technique as it is more formal and mechanistic
structural arrangement.

Strategic:

Strategic Control aimed at ensuring effective alignment with its environment and achieving its
strategic plan.
D.Watson focuses on structure, leadership, technology, human resources, and informational and
operational systems, so this Strategic controlling technique goes in their favor.

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Benchmarking of Best Practices:

Benchmarking is the search for the best practices among competitors or non Competitors that
lead to their superior performance, and D.Watson is using it for improving their performance.
They specially prefer Shaheen and al-Fatah for comparison.

Shaheen and D.Watson have some common strategies, which they use for controlling of your
respective organization.

Workplace concerns:

Employee Theft

Recently in D.Watson f-10 branch, there was a robbery and after investigation it was declared that it was
done by the employee himself.

D.Watson should done careful pre-hiring screening, should establish specific policies, educate and train
employees about the policies. And also professionally review their internal security controls.

Communication:
Communication is the transfer and understanding of the meaning.
Transfer means the message was received in a form that can be interpreted by the receiver.

D.Watson uses both, Interpersonal and Organizational communication for transferring of

information more precisely and accurately. There is a Positive interpersonal Dynamics in
D.Watson, which is in favor of their organization. But sometimes, they also have to face the
Negative interpersonal Dynamics as they have to deal with their suppliers, their competitors,
distributors etc.

Barriers to communication:

Information Overload:
Store Managers, while giving instructions to their stuff leads to overloading of information
which affects the performance of the employees
Jargon:
As D.Watson stores have stuff which are not that much educated, and lacks in technical
Vocabulary, the uses of Jargon also make an impact on their performance.

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Communication methods used by D.Watson:
For Lower Stuff:

Face to Face
Telephone Calls

These methods may have High Feedback potentials, High complexity Potentials, High
confidentially, High Encoding Ease.

For Executives:

Formal Presentation
E-mail
Memos

These may have Low Scan-ability, High Formality.

These ways of communication of D.Watson is so accurate according to their demands.

D.Watsonuses chain communication Networks, which help them to satisfy their employees as
they communicate anything, it also have a high accuracy and moderate speed of transferring.

The Direction of communication used by D.Watson is downward communication and Formal

communication at the same time. In this type, communication flows downward from managers
to employees.

D.Watson recognize the three different components of the customer service delivery process:
The customers
The Service Organization and
The Service provider.
And now Communication is playing vital role for D.Watson to serve their customers
appropriately. They listen and respond to their customers and provide access to needed service
information.

Management information System is not being applied in D.Watson. We do recommend them

to make it applicable as it is the system based on the data base of the organization evolved for the
purpose of providing information to the people in the organization.
At least D.Watson should use Decision Support System (DSS) for compilation of information
from different sources to support problem solving and decision making.

PRODUCTIVITY:
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Method used to calculate productivity of D.Watson is Company Productivity. As at the time of
analysis output is measured against per unit of input including labor and investment required to
achieve the target.
D.Watson is using almost all 14 points put forward by Deming for improving productivity.

Deming’s 14 Points for Improving Productivity

•Plan for the long-term future. •Drive out fear.

•Never be complacent concerning the quality of •Encourage departments to work closely

your product.
•Establish statistical control over your
production processes and require your suppliers
to do so as well.
together rather than to concentrate on
departmental or divisional distinctions.
•Do not adopt strictly numerical goals.

•Require your workers to do quality work.

•Deal with the best and least number of •Train your employees to understand
suppliers. statistical methods.

•Train your employees in new skills as the

•Find out whether your problems are confined
to particular parts of the production process or
stem from the overall process itself.
need arises.
•Make top managers responsible for
implementing these principles.

•Train workers for the job that you are asking •Raise the quality of your line supervisors.
them to perform.

Technology:

D.Watson understands the importance of IT in business so they are making use of it. Technology
used is computer assisted as D.Watson is neither a manufacturing organization nor a service
organization, it falls in wholesaler’s category so there is huge amount of data and record to be
kept and it’s all possible with the help of computers. Inventory management is done by the help
of latest technologies. Other than this though it’s not a manufacturing company but it do have
their own label products especially food items. For managing all this, technology plays a vital
role.

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Supply chain management, it manages resources and inventory acquisition and purchasing of
D.Watson.
Purchasing Management helps D.Watson to Control the buying of the materials and resources
is at the heart of effective supply chain management.

Just-in-time (JIT) method is being applicable at D.Watson. It is an inventory system that has
necessary materials arriving as soon as they are needed (just in time).
D.Watson should prefer more mass customization, as it creates an important relationship
between the firm and customers. And also improve loyalty-building value to customers.

For Quality improvement, D.Watson should make Strategic commitment for Employee
involvement, materials, technology, and methods. It wills them to improve their overall quality
and performance.

If we compare D.Watson with Shaheen chemist, as they are strong competitors in markets, their
overall controlling and communication strategies are same.

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 Analysis:
All functions of management i.e. planning, organizing, leading and controlling are practiced in
D.Watson one way or the other. All these pillars have distinct methods and lead to a higher and
extra sophisticated overall performance of the organization. These pillars have helped D.Watson
gain their goals and pursuits till now. It helps them drive the interpersonal components which
boosted their morale and group spirit. Although they give themselves 6 points when we asked
them to give points to their own company out of 10.But we give them 8 out of 10 because they
are managing their company so well as compared to their competitors like Shaheen Chemist,
Metro Cash and Carry and Al-Fatah. There are some flaws in their HRM but that can be resolved
and we strongly recommend them to adopt those strategies that will make their company more
organized and profitable. They are currently thinking about expansion in market, this decision
will give them First Mover Advantage for many localities in Pakistan because we believe that
there is still a big market for the company like D.Watson in Pakistan. Summarizing on
the whole, we have analyzed most points which may be the resultants of failures and we
have advised the strategies to rectify them in order to be environment friendly in every manner
and keep its situation and be the market leader of the cash and lift business in Pakistan.

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 Conclusion:

D.Watson has a very organized system which enables them to utilize their resources efficiently
with different set of blocks. With competitive over other firms, like advantages of having
experienced people employed and their premium customers and their unique locations.
D.Watson Company is very innovative with the aim to give customer experience which will give
them the feeling that this experience is similar to foreign country.

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References:
 An Interview from D.Watson Managerial Personnel
 Course Slides Provided by Ms. Sara Qazi
 Leadership Slides Provided by Ms. Farah Naz

Note:

Red High-lighted part in the report, are the recommendations.

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