Business Management and Techniques

Business Management and Techniques

Assignment - 03

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Table of Contents

Section Description Page

Executive summary 3
1 Introduction 4
1.1 Vision 5
1.2 Mission 5
1.3 Objective of this plan 5
2 Methodology used for this research 6
3 Earlier Departmental structure and predicted problems on that 7
structure
4 Recommended Solutions 9
5 Relationship & functions of departments 10
5.1 Finance Department 10
5.2 Human Resource Department 10
5.3 Marketing Department 12
5.4 Research and Development Department 12
5.5 Production Department 12
6 Recommended structure conducted with ISO 9004 standards 14
6.1 ISO 9004 principles and related departments 16
7 Conclusion 18
8 Reference 19

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Executive summary
The Golden Gate Corporation is a private telecommunication manufacturer who is producing
cat 5 and optical fiber cables for telecommunication industry and The Golden Gate
Corporation is multinational company with the simple organizational structure. They have in
heavy loss in manufacturing of the cat 5 cables in 2001 and later corporation was started to
produce fiber optical cable. So, they have captured 14% percent of the world market. But
they are still on the heavily dept laden because of their loss in cat 5 cable.

So The Golden Gate Corporation is a big company but they are in loss. So they want to
reorganize them and they want to plan to a new dawn through their restructure of the
departments.

This report is analyzing the company’s departmental status and reason to the company’s
lost.

After that a new departmental and organizational structure is proposed in this report and it is
justified with ISO 9004 standards.

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1. Introduction
The Golden Gate Corporation is the private telecommunication equipment manufacturing
multinational company. So it is selling their products through their branches to all over the
world.

The Golden Gate Corporation is producing cat5 cables and fiber optics cable. Because of
the production of the cat5 cable, the company was in heavy dept and loses in 2001.

After their heavy loss they started the fiber optics cable manufacturing. This production had
resulted to the company have 14% of the fiber optics market. As a result of this growth
company come to a level.

Departmental structure of The Golden Gate Corporation

CEO

Director

Bisiness
Human Resorce Finance Production
Development
Deparment Department Deparment
Deparment

Figure 1.1.1 Old Departmentalization structure of The Golden Gate Corporation

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1.1 Vision
The Golden Gate Corporation will be the market leader in the telecommunication equipment
productions. These products will be using by the whole world and These productions should
have this qualities:

• Long life
• New technologies adopted
• User friendly

1.2 Mission
The Golden Gate Corporation has 14% of the Fiber optical market and the other hand they
are in heavy loss and dept. so Mission of the company is capturing 25% of the fiber optical
market and arising against the dept through this.

1.3 Objective of this plan

The Golden Gate Corporation is the multinational company. If a company wants to reach its
successive peak they need to organize their departments and working staffs.

So this plane is producing a proposal to rearrange the corporation and their departments.

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2. Methodology used for this research

In this analytical report, the research I carried out to produce this report was done in three
parts:

1. Work related Research

2. Textbooks

3. Internet Research

I have used the internet extensively to look at descriptions and methods of running an
engineering business. My full list of references is included at the back of the report.

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3. Earlier departmental structure and predicted problems on

that structure
Even though The Golden Gate Corporation is a multinational company, it has a simple
departmental structure. So the corporation has CEO, like most of the companies and main
director board to over look the company’s business activities. And Corporation has some
departments. Those are: HR, Finance, Business development and production.

CEO

Director

Bisiness
Human Resorce Finance Production
Development
Deparment Department Deparment
Deparment

Figure 3.1.1 Old Departmentalization structure of The Golden Gate Corporation

Commonly a multinational company has many branches all over the world. So this
departmental structure wants to monitor all branches. Practically, this is a tuff one to do their
department’s jobs, because a simple structure or small group of people wants to monitor the
branches in all over the world. So the company is in trouble now. Following reasons are
causing to changing the departmental structure and loss of the corporation.

• Lack of goal concurrence

 Sub optimization of objectives

Company works are not the individual works. The contributions of the individual
works are guide to success of a group or company. If a company wants to be
successive one, there must be a group work. But sub optimization of objective is
employees are working to achieve only their tasks or personal objectives. So this
reason also leads to down a company. If The Golden Gate Corporation employees
working to achieve only their tasks the company will become a un successive one.

• Departmental conflict
Departmental conflicts are arising when inter departmental competition and not good
relationship between employees. Anyway departmental conflicts are leads to
slowness in finishing tasks. So it can make bigger losses to corporation.
If each department are doing their jobs on work on rule, departmental conflicts may
arise. So this situation is not healthy one to a big company.

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• Lack of speed in decision making

Decision making is the greater part in business environment. If we fail to make a
correct decision in correct time whole business plan can collapse. So in decision
making timing and correct decision are the important role.

• Lack of decision making is also cause to abuse things.

If a leadership fails to make good decision it will end up with bigger loss. So this
reason also suitable to The Golden Gate Corporation.

• Work on rule
A company wants to be a successor employees should be active and responsible in
their work. So they want to show their high performance in their work. Otherwise, the
company can’t achieve their goal. If employees are doing their work on rule, they will
not show their best performance. So company can’t see the good performance.

These reasons also may involve the loss of The Golden Gate Corporation.

To solve this kind of trouble company wants to motivational strategies wants to consider.
Those are salary increments, awarding methods…

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4. Recommended solutions
As The Golden Gate Corporation is a multinational company we can assume that it can have
their branches in many countries continent by continent. If The Golden Gate Corporation has
their branches in most of the countries, following disadvantages it can have.

• Transaction cost:
If the corporation has their branches in one location, end goods should send to all
countries. So end goods may send to long distance destinations. Because of this,
transaction cost may occur and at this time arriving delay may also occur. If they
have country branches, corporation can reduce this cost and delay time.
• Resource availability:
• Environmental feasibility
• Political (Law and order)
• Technology

So I am recommending a structure with finance is centralized and the other departments are
decentralized.

C.E.O

Director Board
& Advisory
Committee

Research and
Finance Asian Europe Australia Other Continent
Development
Deparment Representatives Representatives Representatives Representatives
Unit

Figure 4.1.1 Proposed Departmentalization structure of The Golden Gate Corporation

In this structural diagram each continental structure having these departments as well.

Continent
Representatives

Continental
Human Resource Marketting Continential R&D Production
Financial
Department Department incarge Department
Incharge

Figure 4.1.2 Proposed Departmentalization structure of The Golden Gate Corporation

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5. Relationships & Functions of Departments

5.1 Finance Department
The Finance Department is responsible for the financial functions and activities of the
Corporation and for the administration of the Corporation's fiscal policy. It is also responsible
for the financial activities of The Golden Gate Corporation.

• Budget preparation • General accounting records

• Budget administration • Fixed assets records
• Cost allocation • Custody of funds
• Accounts payable • Distribution of pass-through
• Payroll funds
• Fringe benefits • Cash flow
• Grants administration • Investments
• Monitoring service providers • Debt administration
• Technical assistance to service • Risk management
providers • Internal financial reports
• Contract administration • External financial reports
• Billing • Statutory reports
• Property inventory • Tax reports

Financial department of a company is always responsible and in charge to all departments of

the financial functions. Continent financial coordinator will coordinate the financial function of
the each continental department’s functions.

5.2 Human Resource Department

The primary function of the Human Resources Department is to provide a professional
service that enables Golden Gate Corporation and its employees to meet the company’s
overall objectives and by doing this it provides the following services:

 HUMAN RESOURCES PLANNING

• Forecasting
• Maintaining personnel inventories
• Succession planning
• Modeling career paths

The above process of the HR department is related with the director board
and CEO.

 EMPLOYMENT
• Recruitment
• Selection
• Testing
• Orientation

These also related work with managing board.

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 TRAINING & DEVELOPMENT

• Devising programs
• Primary Skills Training
• Advanced Skills Training
• Promoting diversity

These jobs are inter-related with R&D department through Continental in charge.

 COMPENSATION
• Administering:
 Incentive pay plans
 Job analysis
 Job evaluations
 Wage surveys
 Performance reviews

• EMPLOYEE BENEFITS
 Design of vacation & sick benefits program
 Administering policy
 401k plan
 Health insurance

These activities are interrelated finance and planning unites.

Human Resource Department can have this kind of departmentalization to admin their
department.

Figure 5.2.1 HR’s Departmentalization Structure

This type of arrangement will way to give good training to Golden Gate Corporation’s Staffs

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5.3 Marketing Department

Marketing department of The Golden Gate Corporation will do some jobs independently and
corporate with other departments. Some jobs are listed below:

• Focus on the Customer

• Monitor the Competition
• Own the Brand.
• Find & Direct Outside Vendors.
• Create New Ideas.
• Communicate Internally.
• Manage a Budget.
• Understand the ROI.
• Set the Strategy, Plan the Attack, and Execute.
Here, first four activities are interrelated with research and development and
business development unit.
The rest of the activities are connected with the planning board and they can
implement those activities themselves.

5.4 Research and Development Department

The aim of research and development is to improve existing products, create new and better
products, improve production methods, and create effective processes. This will enable the
organization to reduce costs, increase profitability and remain ahead of the competition.
Companies will need to allocate a specific portion of their budget to research and
development activities.

When researching and developing new products, both the R&D managers and their staff
take responsibility of performing the following key tasks:

• Ensuring the new product meets the product specification

• Researching the product according to allocated budget
• Checking if the product meets production costs
• Delivering products in time and in full range
• Developing the product to comply with regulatory requirements and specified
quality levels

Budgeting and costing activities are finance department’s related activities. R&D department
is the department which is mostly guiding to innovation to company. The Golden Gate
corporation is an Engineering business company. So there should be innovation. So this
department is to work hard to an engineering organization such as Golden Gate corporation.

5.5 Production Department

Production department is the functional area responsible for turning inputs into finished
outputs through a series of production processes. The Manager of the production
department is responsible for making sure that raw materials are provided and made into
finished goods effectively.

The production department of the Golden Gate Corporation wants to do their activity
effectively. So I am suggesting 5 sub departments under the production department.

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1. The production and planning department will set standards and targets for each
section of the production process. The quantity and quality of products coming off a
production line will be closely monitored. This department is closely connected with
research and development department.

2. The purchasing department will be responsible for providing the materials,

components and equipment required to keep the production process running
smoothly.

3. The stores department will be responsible for stocking all the necessary tools,
spares, raw materials and equipment required to service the manufacturing process.

Here, purchasing and stores department is doing the jobs with finance department.

4. The design and technical support department will be responsible for researching
new products or modifications to existing ones, estimating costs for producing in
different quantities and by using different methods. The technical support department
may also be responsible for work study and suggestions as to how working
practices can be improved.

5. The works department will be concerned with the manufacture of products. This will
include the maintenance of the production line and other necessary repairs. The
works department may also have responsibility for quality control and inspection.

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6. Recommended structure conducted to ensure ISO 9004

standards
ISO 9004 standard is to achieve benefits for all stakeholders groups through sustained
customer satisfaction. This ISO 9004 Standard is explained with this diagram.

Figure 6.1.1 ISO standards

ISO 9004 standard has eight principles to standardize an organization. Those principles are
given below.

Principles ISO 9001 ISO 9004

Customer-Focused Assure conformance to defined Understand current and future
Organization customer requirements. Ensure customer needs and
effective response to customer expectations. Address customer
feedback. loyalty. Measure customer
satisfaction and act on it.
Leadership Set and deploy policy and Establish vision, direction and
verifiable objectives, provide shared values. Set challenging
resources and establish an goals and implement strategies
environment for Quality. to achieve them. Coach,
facilitate, and empower people.
Involvement of People Establish competency levels, Create personal ownership of
train and qualify personnel. an organizations goal, by using
Provide clear authority and its people’s knowledge and
responsibility. experience, and through
education achieve involvement
in operational decisions and
process improvement.
Process Approach Establish, control and maintain Explicitly identify
documented processes. internal/external customers and
suppliers of processes. Focus
on use of resources in process
activities, leading to effective
use of people, equipment,
methods and materials.
System Approach to Establish and maintain a Identify a set of processes in a
Management suitable and effective system. Understand their
documented Quality interdependencies. Align the

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Management System. processes with the

organizations goals. Measure
results against key objectives.
Continual Improvement Through management review, Set realistic and challenging
internal/external audits and improvement goals, provide
corrective/preventive actions, resources and give people the
continually improve the tools, opportunities and
effectiveness of the Quality encouragement to contribute to
Management System. continual improvement of
processes.
Factual Approach to Decision Management decisions and Decisions and actions are
Making actions on the Quality based on the analysis of data
Management Systems are and information to maximize
based on the analysis of factual productivity and to minimize
data and information gained waste and rework. Effort is
from reports on audits, placed minimizing cost,
corrective action, improving performance and
nonconforming products, market share through the use of
customer complaints and other suitable tools and technology.
resources.
Mutually Beneficial Supplier Adequately define and Establish strategic alliances or
Relationships document requirements to be partnerships, ensuring early
met by sub-contractors. Review involvement and participation
and evaluate their performance defining the requirements for
to control the supply of quality joint development and
products and services. improvement of products,
processes and systems.
Develop mutual trust, respect
and commitment to customer
satisfaction and continual
improvement.

Figure 6.1.2 ISO 9001 & 9004 Principles

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6.1 ISO 9004 principles and related departments

Customer-Focused Organization

Understand current and future customer needs and expectations. Address customer loyalty.
Measure customer satisfaction and act on it.

Golden Gate Corporation’s R&D Department and production department should consider
this principle because these departments are related with innovation. Innovation and designs
wants to be needful to customers. Marketing department is also doing their job according
with this principle.

Leadership

Establish vision, direction and shared values. Set challenging goals and implement
strategies to achieve them. Coach, facilitate, and empower people.

Golden Gate Corporation has director board and advisory board to lead the company to top
of the success. And each department have department in charge or managers. They must
give the correct leadership to achieve their department’s vision and tasks.

Process Approach

Explicitly identify internal/external customers and suppliers of processes. Focus on use of

resources in process activities, leading to effective use of people, equipment, methods and
materials.

Production department, finance department and HR department are mostly related with this
principle. Resource usages and equipments methods are monitored by production
department. People usages and stuffs related with human are related with HR department.
Stock and other costing events with finance departments.

System Approach to Management

Identify a set of processes in a system. Understand their interdependencies. Align the

processes with the organizations goals. Measure results against key objectives.

The Golden Gate Corporation has a systematic managing approach in HR department and
production department through their sub departmentalization. All the measurement of
improvements is undertaken by R&D department.

Continual Improvement

Set realistic and challenging improvement goals, provide resources and give people the
tools, opportunities and encouragement to contribute to continual improvement of processes.

HR department is giving compensation and employee benefits. These facilities guide to extra
effort of employees.

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Factual Approach to Decision Making

Decisions and actions are based on the analysis of data and information to maximize
productivity and to minimize waste and rework. Effort is placed minimizing cost, improving
performance and market share through the use of suitable tools and technology.

This is what, advisory board has appointed with director board. R&D department will run a
big role in the shape decision making because data analysis will be done by this department.

Mutually Beneficial Supplier Relationships

Establish strategic alliances or partnerships, ensuring early involvement and participation

defining the requirements for joint development and improvement of products, processes
and systems. Develop mutual trust, respect and commitment to customer satisfaction and
continual improvement.

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7. Conclusion
The Golden Gate Corporation is a private telecommunication equipment provider. But the
corporation is to do a departmentalization change because of their loss.

This analytical report is analyzing status of the company and problems on their departments.
After analyzing of the problems, solutions were produced to rebuild the Golden Gate
Corporation.

A new departmentalization structure has suggested to The Golden Gate Corporation. That
departmentalization structure is conducted with ISO 9004 standards.

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8. Reference
Books
• ANSI/ASQC Q9001- 1994, Quality Management and Quality Assurance Standards--
Guidelines for Selection and Use, ASQ, Milwaukee, WI, 1994

• Ludwig-Becker, M., Electronics Quality Management Handbook, McGraw-Hill, 1998,

becker2@worldnet.att.net

Internet
• http://www.taskmanagementsoft.com/ Home » Solutions » For Departments »
Research and Development Department
• http://www.blacksacademy.net/
Managerial functions of production<
• http://www.kristerforsberg.com/
The Roles of ISO 9001 and ISO 9004

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