MBA501

Section :1
Submitted to
Name: Hanif Mahtab
Assistant professor,
International Business Department
Submitted By

Name Id
Julfiker Hasan 1910705

Jeffrey robin 2010515

Showkatul islam 2022900
Abdullah-Al Masud 2022915
Letter of Transmittal

Date: 13th January, 2020

To

Hanif Mahtab

Assistant professor

Independent University, Bangladesh

Subject: Submission of report on MBA501.

Dear sir,

With due respect, it is our pleasure and honor to be your students and have this opportunity to
present the report on identifying organizations which are following mechanistic or organic
structure. While preparing the report, we have given our all best focus thoroughly on the topic
regarding the report. We have provided all relevant information regarding this topic and we
believe and hope that our hard work will provide a clear conception about our assigned report.

While preparing the report, we all have given our best to accumulate needed information and we
will be more than happy to answer any question and clarify it fully to your understanding.

Thank you for your help and support which helped us significantly in preparing this report.

Sincerely yours,

On behalf of group

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Contents
Letter of Transmittal.....................................................................................................................................i
Executive Summary....................................................................................................................................iii
Company introduction.................................................................................................................................1
Planning-......................................................................................................................................................2
What types of Strategic & operation plans?.............................................................................................2
Who makes each of plan and how they do it?..........................................................................................2
How often they modified the plan?.............................................................................................................3
Cross- functional teams...............................................................................................................................3
Work Specialization................................................................................................................................4
Rigid Departmentalization...........................................................................................................................5
Cross-Hierarchical Teams............................................................................................................................6
Wide Span of Control..................................................................................................................................7
Decentralization..........................................................................................................................................8
Low Formalization......................................................................................................................................9
CONCLUSION.............................................................................................................................................10
Reference................................................................................................................................................11

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Executive Summary

In light of Bangladesh's substantial economic growth, increasing tendency and client

penetration rates and the liberalization process is taking place in the light engineering industry.
RFL is one of the largest plastic manufacturers around the world (3rd largest in Asia). RFL is a
sister concern of PRAN - RFL group.

The group has a turnover in the vicinity of USD $0.78 billion annually. Primarily
Rangpur Foundry Ltd (RFL) was founded by Maj. Gen. Amjad Khan Chowdhury (Retd) in 1981
with a vision to leveraging the farmer in irrigation through cast iron products like centrifugal
pump as well as ensuring drinking water through Tube well. It commenced its operation in
plastics business in 2003. The factory sites are in company owned industrial parks of 400,000 sq
meters, which is fully equipped with state of the art injection molding machines with a
conversation capacity of over 20,000 tons per month.

RFL Plastics currently utilizes 7500 molds through 620 machines having own tooling
facilities. Presently, it is one of the biggest sectors of Bangladesh. As a populous country, its
huge market has attracted many foreign investors to invest in this sector.

Pran-RFL group of companies is one of the leading business institutes in Bangladesh.

PranRFL group provides with good quality products conforming to local tastes, health and
hygienic standards which are of affordable price and within the reach of target consumers. Its
strategic strengths include strong recognition of brands, highly skilled work force and diversified
business mix. These six elements are – cross-functional teams, cross-hierarchical teams, free
flow of information, and wide spans of control, decentralization and low formalization.

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Company introduction
PRAN-RFL Group was started journey in 1981.This is view Observance in corporate mission of
the Group they contain over the years expand their behaviour in several areas. PRAN-RFL is
biggest strength their expert team management and dedicated employee. PRAN-RFL started its
operation in 1981 as a processors fruit and vegetable in Bangladesh. Over the years, the company
has not only grownup in stature but also contributed significantly to the overall economic
development of the country.

It started mainly with Foundry business and gradually diversified to Light Engineering, PVC
Fittings, Plastics, Food and Beverage and Agro-Processing. Approximately 3000 types product
PRAN-RFL have. It has organized R & D facilities to design and develop new products. They
have a well-organized owned testing laboratory is employed to make sure quality products.
PRAN is currently producing more than 200 food products under 10 different categories. Juices,
Drinks, Mineral Water, Bakery, Carbonated beverages, Snacks, Culinary, Confectionery,
Biscuits & Dairy. The company has adopted ISO 9001 as a guiding principle of its management
system. The company is complaint to HACCP & certified with HALAL which ensures only the
best quality products are reaches to the consumers table across the world.

Pran rfl exports had reached 16 billion taka by 2019, with the biggest markets for the company in
India, Saudi Arabia, UAE, Malaysia and Oman. PRAN-RFL exports to over 136 different
countries. PRAN-RFL has 80 thousand direct employees and 200 thousand indirect employees
all over the country.

The company was listed on the DSE in 1999. The share price closed at Tk126.70 on the day. The
company disbursed 23% cash dividend for three years from 2017 to 2019. The company’s paid-
up capital is Tk10 crore. The sponsor-directors own 49.89% stake in the company, while
institutional investors own 16.46% and the general public 33.65% as on December 31, 2019.

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Planning-

Planning is the fundamental management function, which involves deciding beforehand, what is
to be done, when is it to be done, how it is to be done and who is going to do it. It is an
intellectual process which lays down an organization’s objectives and develops various courses
of action, by which the organization can achieve those objectives. It chalks out exactly, how to
attain a specific goal. Planning is nothing but thinking before the action takes place. It helps us to
take a peep into the future and decide in advance the way to deal with the situations, which we
are going to encounter in future. It involves logical thinking and rational decision making.

What types of Strategic & operation plans?

The collection of the tactics need a name, and this name is the strategy. It provides the focus for
something specific, and the strategy itself contains the individual tactics. Strategies are the broad
action-oriented items that we implement to achieve the objectives. In this example, the client
event strategy is designed to improve overall client satisfaction. We may have additional
strategies aimed at improving client satisfaction, and each of these other strategies will have a
collection of tactics, too.

Who makes each of plan and how they do it?

PRAN-RFL company's all decisions are made by top-level managers. They are prepared for a
long period of time, normally more than 5 year's. They are relate to overall organizational goals.
They relate organization with the external environment. Core

Strategies dictate how to employ the organization’s resources to best achieve organizations
mission. When top- manager's once determined what they want to do then they inform the next
level manager's ( Division manager's ). Division manager's follow top-manager's. Then Division
manager's inform Department managers.

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How often they modified the plan?

Top-managements changes PRAN-RFL company's strategy by looking for opportunities and

threats in the environment and by analyzing the company’s resources to identify its strengths and
weaknesses. Management may draw up several alternative strategic scenario and appraise them
against the long-term objectives of the organization. To begin implementing the selected strategy
management fleshes it out in terms of the actions to be taken in the near future. Strategic
planning is not a one-time or static event, it is cyclical and involves strategic thinking. PRAN-
RFL also review their strategies every month, every quarter or every year. The main purpose of
strategic planning is to make sure that everyone with their organization and understand
company’s mission, vision, values. So that every organizational level of managers aligned and
empowered to make the best decisions to effectively achieve the organization goals. The first
step in creating this alignment is to communicate with every organizational level of managers
early on in the strategic planning process.

Cross- functional teams

A cross-functional team is a group of people with different functional expertise working toward a
common goal. Cross functional team has influenced decision-making processes and organizational
structures. Although management theory likes to propound that every type of organizational structure
needs to make strategic, tactical, and operational decisions, new procedures have started to emerge that
work best with teams. PRAN-RFL focuses on exploring and conceptualizing the efficiency, scope and
flexibility of knowledge integration of which limited empirical evidence has been offered. PRAN-RFL
includes people from IT department, Marketing department, HR department, Accounts department and
Financial department. Each department work separately and produce their own product. But all
departments are work together when they produce sale in the market. They work with team –Marketing
team, sales team devise team, Accounting team, Management team and all teams are work together.

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Work Specialization

Work specialization makes efficient use of the diversity of skills that workers have. In PRAN-
RFL of industries which is a FMCG producer, some tasks requires highly developed skills;
others can be performed by employees with lower skill levels.
The Managing Director (MD) is the most senior role in any company. With ultimate
responsibility for the company's performance. After managing director it’s the responsibility of
Factory manager or production head to look all over the production and implementation. On the
other hand there is another root after managing director that is Industrial Engineer and
Production planning and coordination. The following jobs are done by Industrial engineer:
Skill test of the workers.
Taking order
Planning
Whereas Production planning and coordination (PPC) divides work according to time to the
workers. Factory Manager is directly linked to:
Production Manager under whom floor in charger is working who looks after the
supervisors and make sure work is done accordingly. Then line chief works under floor in
charge followed by supervisors who looks after the workers. Then operators looks after
the Raw-material area. Under them helpers are there who helps in order to pass materials
or any other thing around the factory.
Finishing and Packaging Manager belongs to the produce purpose. Under Production
manager there is assistant manager to manage the materials followed by supervisors who
gives approvals and this leads to the production man.
Quality manager looks into the quality of each products with high concern and
responsibility in order to select the best quality. After quality manager it is the job of
supervisor to approve it.
Delivery manager pack items for delivery in market, verify the contents of received
packages, monitor subordinate employees, and order supplies. Sample manger works
under Sales manger whose job is to show the samples to the distributor.

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Rigid Departmentalization

“Departmentalization is the basis by which jobs are grouped together” (P.Robinson, 2014). Earlier we
have explained that nine departments of the organization play roles in decision making:

Accounts- Account department is responsible for preparing the financial statements,

maintaining the general ledger, paying bills, billing customers, payroll, cost accounting,
financial analysis, and more.
Finance- Finance department typically include planning, organizing, auditing, accounting
for and controlling its company's finances.
HRM- HRM department’s responsibility fall into three major areas: staffing, employee
compensation and benefits, and defining/designing work.
Audit- Audit department conducts periodic audits, typically with a much greater
emphasis on detail than that of a company's independent public accountants.
Recruitment- Recruitment department refers to the overall process of attracting, selecting
and appointing suitable candidates for jobs (either permanent or temporary) within the
organization.
Fine and Security safety (security and protocol)- This department is responsible for
keeping the confidential objectives of a company safely.

Each Department are different from each other and have different jobs to execute. None of the department
head have any responsibility of other department. Each department has its own department head that
looks after all the work activities in their particular departments. Department head of another department
cannot take place in decision making. Each department perform tasks according to the departments'
specializations in the organization.

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Cross-Hierarchical Teams
PRAN-RFL is a resource and development base organization because of resource orient base all
employees can take decision. Most of time decision takes by teams and departments. If any problem or
production process than decision taken by production manager teams. Any problems of quality take
decision quality assurance team. All organizational decision taken by Managing director, Admin, Human
Resource Management, Assistant Admin.

Decision making

take decision by lower lavel employees

and free flow the information

organizational decision taken by

higher authority.all emplloyees
receive information top to bottom

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Wide Span of Control
PRAN-RFL. is a resource and development base organization. They create negotiate software and
hardware for which under one assistant manager there are lots of employees.

Senior Marketing
A ssistant A dm in Manager

Assistant sales officer

Production Manager

Junior Production
manager

Assistant production
manager

Delivery officer line manager

According to this organization designated positions are Managing Director, Admin, HR manager
and assistant admin. Under assistant admin works Senior Marketing Manager, Assistant
Marketing Manager, Production Manager, junior production manager, delivery officer, Line
manager

Free flow information

PRAN-RFL there is the system of two way communication. There is free flow of information
within organization. Top level management provides information of instruction and guidance to
subordinates and similarly, subordinates provides information of achievement and problems in
work to manager. Such two way communication helps to solve problems and to enhance
smoothness in activities. They flow their information Production to Marketing and marketing
team to sales team.

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Decentralization
Decentralization is the process of redistributing or dispersing functions, powers, people or things
away from a central location or authority the more that lower-level employees provide input or
actually decisions. Decentralization environment is complex, uncertain. Lower- level managers
are capable and experienced at making decisions and lower-level want a voice in decisions and
decisions are significant. Company strategies depend on managers having involvement and
flexibility to make decisions.

There is less weight on the CEO as on account of centralization. 

In decentralization, the subordinates get an opportunity to choose and act autonomously
which creates aptitudes what's more, capacities. Along these lines the association has the
capacity procedure store of abilities in it. 
In decentralization, expansion and even can be effectively embedded. 
In decentralization, concern expansion of exercises can put viably since there is more
degree for making new offices. In this way, expansion development is of a degree. 
Because decentralization structure, there is more prominent inspiration and resolve of the
workers since they get more independent to act and decide

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PRAN-RFL is a kind of organization was the principals of decentralization are followed. The
make decisions in a decentralized way. That is, from both direction lower to upper or upper to
lower class employees decisions are made. As it is a PRAN-RFL for that reason the Marketing
department can make decision on the benefits of Sales department. Here the head of the
department passes their created decision to the upper levels; like that head of Marketing and head
of sales passes their decision to the upper levels gradually like Assistant, HR, Admin, and MD.

Low Formalization
PRAN-RFL is an organic organization. According to organic organization structure they
maintain low formalization. There is no time limited for the employee’s entry there is no formal
dress code for the employees. Their salaries are never deducted for late participation. Their
employee evaluation is not done so strictly under upper level. After joining the organization
(during the six months) the evaluation of the fresher’s are done with flexibility. This organization
has become more flexible and responsive to environmental trends and a flexible job environment
is created. There is a system of two holidays in a week and the employees enjoys different
occasion. Their designation is based on experience and skills. For the requirement of
organization any time staffing can be done or the jobs of the employees can be sacked.

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CONCLUSION

PRAN-RFL is one of the best it companies which have seen tremendous success since its
establishment. It has been possible only because of its skilled management, well trained,
dedicated employees and excellent quality products. It has earned very impressive operating
income over the previous years. The company tries to hold a good corporate governance by
maintaining discipline and sincerity all over the organization through its skilled and dedicated
employees.

PRAN-RFL of industries are now one of the most successful industry in our country. They are
trying to increase their business line and their own brand. From this report we will able to know
about their important stakeholder and external environment. After doing research we find out
why they should follow management style. Moreover, the survey that we conducted gave us a
stronger and more helpful knowledge about the entire research. This report may contain few
flaws yet I have tried my best to maintain accuracy. we hope this report can be a helpful resource
to use in future.

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Reference
Abdul Latif Alhassan, G. K. (2015). Market structure, efficiency and profitability of insurance
companies in Ghana. International Journal of Emerging Markets, 53-62.
al, A.-Q. e. (2014). Comparison of Product Bundling Strategies on Different Online. journal of
marketing , 322.
Berman, K. (2013). Financial intelligence: a manager's guide to knowing what the numbers
really mean. Harvard Business Review Press, [2013].
P.Robinson, C. (2014). Management (Vol. 12th). (C. P.Robinson, Ed.) Halow, England: Pearson
Education Limited.
Palmal Garments. (2017, March 18). Retrieved March 18, 2017, from Palmal Garments Web
site: palmalgarments.com
Pran-rfl. (2021, january 09). Retrieved from Pran-rfl: https://www.rflbd.com/
PRAN-RFL Group. (2021, january 09). Retrieved from PRAN-RFL Group:
https://www.pranfoods.net/brands/beverages
slides share. (2021, january 08). Retrieved from slides share:
https://www.slideshare.net/seamemon/jpran-rfkl-jpiorduct-klione

For Organic organization most of the information collected from Electronic engineer department
of PRAN-RFL GROUP

Ruman Ahmed Rony

Assistant Manager (RFL)
Phone-01738711737

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