presentation

REGULAR IMPROVEMENT OF STRUCTURE, POLICIES AND PROCEDURES OF THE

ORGANIZATIONS IS THE PRE-CONDITION FOR GREATER PROFITABILITY

Regular Improvement of Structure, Policies and Procedures of the

Organizations is the Pre-condition for Greater Profitability

Presented By: Faisal Khan Sadequin (112 103 061)

Neeti Afsana (112 111 073)

Afsana Negar (112 111 026)

Tahera Sultana (112 111 044)

Regular Improvement of Structure, Policies and Procedures of theOrganizations is the Pre-condition for Greater Profitability

Introduction Globalization and Competition Adding Value to the customers – Directly influences

Profitability Focus on the Human Capital Focus on Structure, Policies and Procedures The focus on the project The gaming industry Who are the ultimate winners?


Organizational Structure, Polices and Procedures - Overview: Organizational Structure - By structure, we mean the

framework around which the group is organized

Organizational structure determines

1. How the roles, power and responsibilities are assigned, controlled, and coordinated.

2. How information flows between the different levels of management.

3. It is depends on organizations objective and strategy


Bureaucratic Structure and Flat Structure of an organization Bureaucratic structure is centralized. Flat structure is decentralized.


Fig: Tall Vs Flat Structure


Organizational Policies and Procedures

Policy: A Policy defines an outcome.

Procedure: A procedure is a means to an end.

Policies

- General in nature

- Identify company rules

- Explain why rules exist

- Explain when the rule applies

- Describe to whom (what position) it applies

- Explain how it is enforced

- Describe consequences

- Provide guidance for managerial thought and action

- Flexible - allows for discretion


Procedures- Identify specific and alternative actions

- Explain when to take actions

- Describe emergency procedures

- Include warnings and cautions

- Give examples

- Show how to complete a specific form

- Prescribe how to carry out the action through step by step instruction

- Less flexible - concise and exact sequence of activities


Policies and Procedures guides an organization to achieve its desired objective. It is usually formulated as follows:

1. Problem Identificatio

n

2. Policy formulation

3. Adoption4. Implementation

5.Evaluation

Fig: Formulation of Organizational Policies and Procedures


Focus on Human Resources Policies: help to achieve organizational objectives and its

strategic objectives. it meets requirements for diversity, ethics and training

as well as its commitments in relation to regulation and corporate governance of its employees.

very effective at supporting and building the desired organizational culture.


Dynamics of Video game Industry Today the video game industry has revolutionized the

entertainment world. It has been started since 1947. It would reach at mainstream until 1970s to 1980s. Some popular gaming industry like Atari, Nintendo and Sega

on that time with seventh and eight generation gaming technology .

Innovation is very important in this industry


Market Dominators: Nintendo & Sega During let 1980s Japanese Ninetendo dominants market

with the invention of 8-bit technology.

After that Sega entered with new 16-bit technology, made huge profit by holding Ninetendo’s strategy.


Nintendo46%

Sega36%

Other18%

Marketshare of Video Games (1994)


Downfall of the market dominators faced by fierce competition In 1994 industry was showing signs of downturn. Sony entered into market with play station Atari, Commorade, Phillips came out with new

technology.


GAMETRONICS

- Gaming software development company.

- produced gaming software for USA, European and Asian markets.

- Nintendo outsourced 65% gaming software from them.

- Sega outsourced 55%.

- They made huge profit.

- Introduced their share on market.


Downfall of Gametronics and findings : As mentioned before Nintendo and Sega mainly

outsourced software from Gametronics started refused their game software.

So, management tried to find out real causes.


Rise in development costs & slow paced R&D department

1985 1990 1991 1992 1993

Sales 12.81 39.09 47.81 54.02 58.34

R&D Expense 1.2 3.91 5.88 6.64 6.85

5

15

25

35

45

55

65

Sales and R&D Expenses

In M

illi

on D

oll

ars


GAMETRONICS – Overview of the ProblemsHigher cost in producing or developing games than the industry average

and had spent $3 million where industry average is $1 million. Lacking in company’s TQM effort that lead to the increased rejection rate

as it was twice the industry average. Lack of coordination between departments. These inter-departmental

conflicts has arisen.Unable to cope up with the high performance and constant shift standards,

which lead to a downfall of market share.R&D failed to define market demand, technology adaptation. Lacking the proper supply chain management that lead to unused

inventory.Employee dissatisfaction was higher.Compensation system was so poor.Policies and procedures are not implemented properly.


Recommendations based on Needs AssessmentA Needs Assessment is a systematic exploration of the way things are

and the way they should be. Through proper need assessment one can answer the following questions:

• What learning will be accomplished? • What changes in behavior and performance are expected? • Will we get them? • What are the expected economic costs and benefits of any projected

solutions?


i. The need for Total Quality Management (TQM)

Problems –GAMETRONICS faced constant rejections of their products

or softwareGAMETRONICS was having problems with production and

inventory control

Solutions –

The need for proper total quality management (TQM) would make sure the quality of the product of GAMETRONICS is maintained and their products become more superior to their competitors.


TQM

Effeciency

Quality

Achieving Total Quality Management


ii. Assessing the inter-departmental conflict

Problems –Critical internal problem at the GAMETRONICS

managementEach department is blaming others for not having enough

sales

Solutions –

In such occurrence the company needs to assess Inter-departmental conflict in order to run the organization smoothly.


iii. Predicting the demand of the products

Problems –

Because of performance inconsistencies and a negative symbiosis between demand and supply, GAMETRONICS were facing poor sales growth.

Solutions –

The need for predicting the demand of the products correctly would ease supply and ultimately reduce the inventory.


iv. Identifying the correlation effect between sales growth and profit

Problems –

Sales department of GAMETRONICS has some shortcomings. The rejection of their products are quotable and this is a cause for weak quality management by the company.

Solutions –

Need to identify the correlation effect between sales growth and profit is necessary.


v. Increasing the employee morale

Problems –Lack of motivation which is due to weak performance

appraisal system induced by the company.

Solutions –GAMETRONICS needs to revitalize them and need to create

a motivated workforce which will help increasing the productivity.

Employee development could be an ultimate option that can be applied.


vi. The need of being proactive in adopting new technologies

Problems – GAMETRONICS have a hard time keeping up with their competitors

in adopting new technologies The budget is not there to hire the new talent coming on the market. In addition, whatever they do does not seem to be good enough. A lot of people are getting disheartened. Solutions – The company should learn to adopt with modern technology rapidly. Employee development could be a critical option that can be applied.


vii. Recruiting talented software developers

Recruiting talented software developers could be an asset for GAMETRONICS. By hiring new talent, GAMETRONICS can develop fresh game titles and will likely to compete with the competition.


Recommendations based on External Needs Assessment

i. Creating a long term relationship with the customersProblems –

Sales did not materialize because of low customer contact so the performance discrepancies exist which is seriously affecting the organization’s reputation among customers. It is extremely an important issue for a company like GAMETRONICS.

Solutions –

Employee development could be a decisive option that can be applied in order to create a long term relationship with customers, make them loyal to the product.


ii. Review of training and development process

Problems –

There are inconsistencies in external training and development phases. Less trained employees and weak developmental session can be quite disastrous.

Solutions –Through proper integration with the community colleges where

employees are properly trained prior their entry, GAMETRONICS can achieve better results.

Employee development that can be applied for assessing higher training and development.


iii. Collaboration

Problems –

Performance discrepancies, which could affect the company.

Solutions –

If the company could have alliance with such acclaimed software giants, GAMETRONICS would gain significantly.

iv. Improving the development team

Problems –

Inconsistencies exist at GAMETRONICS development team. A gap remains among their activities.

Solutions – Appraise current development panel Employee development


v. Conduct market research and analysis

Problems –

Lacking in understanding its market and competitors.

Solutions –

The need for conducting researches on both competitors’ and market for better prediction is necessary.

vi. Entering into new markets

The decision to move into new and untapped markets can be highly profitable.


Recommendations based on Training and Development Training and developing employees on the strategic

‘fit’ between a company’s objective and each employee’s objective department wise

Training employees, to raise awareness – Helps develop objectives goals and values.

Training the concept of Supply Chain Management – understanding the buyers

Implementing performance management programs - which would help reduce interdepartmental conflicts.

Train their employees on research and development to be more competitive with their products


Training TQM – Efficiency and High Quality Products

Constant Monitoring, feedback, training, meeting, and a solid leadership can eradicate conflict

train employees to utilize technological resources so that they can come up with the best games or software

Familiarizing the employees with new technology - In house training

Developing quality improvement and auditing team to reduce errors.


Other Recommendations Compensation and benefits plan has to be introduced

Improving the compensation structure - in which incentives, bonuses, commissions, profit sharing or lump sums are awarded periodically in addition to base salary.

Benefits Plan – refining the benefits plan as per employee needs. Eg Extra pay or extra vacation


Conclusion Understanding the norms of an organization Understanding its people and its resources Be innovative Be a Leader not a follower Build proper structure, policies and procedures.


Questions

presentation

Documents

long term

made huge

video game

benefits plan

employee development

greater profitability

sales growth

recommendations