At a general level, these include strategic, tactical, and operational plans.. These plans are set by the board of directors and top management, generally have an extended time horizon,
INTRODUCTION
Purpose of group assignment
After a period of study and research with the subject "Introduction to management", the faculty council of the department of management of FPT University asked its student groups to analyze specifically about a business Deeping diving and analyzing the basic elements of a business such as Organization structure, Planning and decision-making process, Human resources, is an extremely effective learning method, not only helps students remember knowledge in books but also know how to apply them in real life Therefore, the task of our group of 4 is to enhance the practicality of the course as well as make the lessons in the textbook more vivid and understandable This exercise was written for the purpose of clarifying and analyzing a company, namely Vinamilk.
Brief introduction of the company
Vinamilk's full name is Vietnam Dairy Products Joint Stock Company, established in 1976, has a tax code of 0300588569 and headquarters at address Vinamilk Building -
No 10 Tan Trao - Tan Phu Ward - District 7 - City Ho Chi Minh This is an enterprise specializing in manufacturing, trading milk, and dairy products as well as related equipment and machinery in Vietnam Vinamilk is currently a leader of enterprises in the field of manufacturing dairy products in Vietnam Products of this brand hold most of the market share across the country, specifically as follows:
• 40.6% market share of powdered milk
• 33.9% market share of drinking yogurt
• 84.5% market share of edible yogurt
• 79.7% market share of condensed milk
Products from the Vinamilk brand are distributed evenly throughout 63 provinces and cities across the country with 220,000 points of sale Besides, Vinamilk Vietnam is also exported to 43 countries around the world such as The US, France, Canada, Poland, Germany, Japan, the Middle East, etc
After more than 40 years of establishment and development, the company has built
14 production factories, 2 logistics enterprises, 3 branch sales offices, 1 dairy factory in Cambodia (Angkormilk), 1 representative office in Thailand.
Literature Review
Organization Structure is a set of personnel, departments, and relationships among individuals in the organization Besides, it also includes many other components, but all have the purpose of shaping the structure of that organization
2 Planning and decision-making process
Goals are critical to organizational effectiveness, and they serve a number of purposes Organizations can also have several different kinds of goals, all of which must be appropriately managed And a number of different kinds of managers must be involved in setting goals
• Goals serve four important purposes:
- Goal-setting practices strongly affect other aspects of planning
- Goals can serve as a source of motivation for an organization’s employees
- Goals provide an effective mechanism for evaluation and control
The planning process takes place in an environmental context Managers must develop a complete and thorough understanding of this context to define the organization's mission and to develop the strategic, tactical, and operational objectives of the organization and plans
Organizations establish many different kinds of plans At a general level, these include strategic, tactical, and operational plans
- Strategic Plans : Strategic plans are developed to achieve strategic goals More precisely, a strategic plan is a general plan outlining decisions about resource allocation, priorities, and action steps necessary to reach strategic goals These plans are set by the board of directors and top management, generally have an extended time horizon, and address questions of scope, resource deployment, competitive advantage, and synergy
- Tactical Plans : A tactical plan, aimed at achieving tactical goals, is developed to implement specific parts of a strategic plan Tactical plans typically involve upper and middle management and, compared with strategic plans, have a somewhat shorter time horizon and a more specific and concrete focus Thus, tactical plans are concerned more with actually getting things done than with deciding what to do
- Operational Plans : An operational plan focuses on carrying out tactical plans to achieve operational goals Developed by middle- and lower-level managers, operational plans have a short-term focus and are relatively narrow in scope Each one deals with a fairly small set of activities
- Decision-making is the act of choosing one alternative from among a set of alternatives
- Decision-making process: Recognizing and defining the nature of a decision situation, identifying alternatives, choosing the best alternative, and putting it into practice
- Programmed decisions : A decision that is relatively structured or recurs with some frequency (or both)
- Nonprogrammed decisions : A decision that is relatively unstructured and occurs much less often than a programmed decision
- Decision Making Under Certainty : A condition in which the decision-maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative
- Decision Making Under Risk : A condition in which the availability of each alternative and its potential payoffs and costs are all associated with probability estimates
- Decision Making Under Uncertainty : A condition in which the decision-maker does not know all the alternatives, the risks associated with each, or the likely consequences of each alternative
• Steps in Rational Decision Making
1 Recognizing and defining the decision situation
Some stimulus indicates that a decision must be made The stimulus may be positive or negative
Both obvious and creative alternatives are desired In general, the more important the decision, the more alternatives should be generated
3 Evaluating alternatives Each alternative is evaluated to determine its feasibility, its satisfactoriness, and its consequences
Consider all situational factors, and choose the alternative that best fits the manager’s situation
The chosen alternative is implemented into the organizational system
6 Following up and evaluating the results
At some time in the future, the manager should ascertain the extent to which the alternative chosen in Step 4 and implemented in Step 5 has worked
Business strategy can be understood as the course of action or set of decisions that assist the entrepreneurs in achieving specific business objectives
It is nothing but a master plan that the management of a company implements to secure a competitive position in the market, carry on its operations, please customers and achieve the desired ends of the business
In business, it is the long-range sketch of the desired image, direction, and destination of the organization It is a scheme of corporate intent and action, which is carefully planned and flexibly designed with the purpose of:
- Directing efforts and behavior and
- Gaining command over the situation
- Corporate level strategy : Corporate level strategy is a long-range, action- oriented, integrated, and comprehensive plan formulated by the top management It is used to ascertain business lines, expansion and growth, takeovers and mergers, diversification, integration, new areas for investment and divestment, and so forth
- Business level strategy : The strategies that relate to a particular business are known as business-level strategies It is developed by the general managers, who convert mission and vision into concrete strategies It is like a blueprint of the entire business
- Functional level strategy : Developed by the first-line managers or supervisors, functional level strategy involves decision making at the operational level concerning particular functional areas like marketing, production, human resource, research and development, finance, and so on
HR contains the following sequenced activities: Job analysis and design, Human resource planning and forecasting, Employee recruitment, Employee selection, training and development, performance planning and evaluation, and Compensation and benefits
• Human resource management (HRM): The set of organizational activities directed at attracting, developing, and maintaining an effective workforce
- HR planning: Creating a strategy for meeting current and future human resource needs
- HR forecasting: Determining the number of people needed by some future time; Estimating the number of people currently employed by the organization who will be available to fill various jobs at some future time
• Employee Recruitment: Internal Labor Market; External Labor Market; Electronic Job Boards; Recruitment Branding
• Employee Selection: 1 Initial Screening → 2 Employment testing → 3 Selection Interview → 4 Background and reference check → 5 Physical exams and drug testing → 6 The decision to hire
• Employee Training and Development: Activities that provide learning situations in which an employee acquires additional knowledge or skills to increase job performance
• Performance Planning and Evaluation: A comparison of actual performance with expected performance to assess an employee's contributions to the organization.
Critical Analysis
Organization structure
Organization Structure is a set of personnel, departments, and relationships among individuals in the organization Besides, it also includes many other components, but all have the purpose of shaping the structure of that organization.
Planning and decision-making process
Goals are critical to organizational effectiveness, and they serve a number of purposes Organizations can also have several different kinds of goals, all of which must be appropriately managed And a number of different kinds of managers must be involved in setting goals
• Goals serve four important purposes:
- Goal-setting practices strongly affect other aspects of planning
- Goals can serve as a source of motivation for an organization’s employees
- Goals provide an effective mechanism for evaluation and control
The planning process takes place in an environmental context Managers must develop a complete and thorough understanding of this context to define the organization's mission and to develop the strategic, tactical, and operational objectives of the organization and plans
Organizations establish many different kinds of plans At a general level, these include strategic, tactical, and operational plans
- Strategic Plans : Strategic plans are developed to achieve strategic goals More precisely, a strategic plan is a general plan outlining decisions about resource allocation, priorities, and action steps necessary to reach strategic goals These plans are set by the board of directors and top management, generally have an extended time horizon, and address questions of scope, resource deployment, competitive advantage, and synergy
- Tactical Plans : A tactical plan, aimed at achieving tactical goals, is developed to implement specific parts of a strategic plan Tactical plans typically involve upper and middle management and, compared with strategic plans, have a somewhat shorter time horizon and a more specific and concrete focus Thus, tactical plans are concerned more with actually getting things done than with deciding what to do
- Operational Plans : An operational plan focuses on carrying out tactical plans to achieve operational goals Developed by middle- and lower-level managers, operational plans have a short-term focus and are relatively narrow in scope Each one deals with a fairly small set of activities
- Decision-making is the act of choosing one alternative from among a set of alternatives
- Decision-making process: Recognizing and defining the nature of a decision situation, identifying alternatives, choosing the best alternative, and putting it into practice
- Programmed decisions : A decision that is relatively structured or recurs with some frequency (or both)
- Nonprogrammed decisions : A decision that is relatively unstructured and occurs much less often than a programmed decision
- Decision Making Under Certainty : A condition in which the decision-maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative
- Decision Making Under Risk : A condition in which the availability of each alternative and its potential payoffs and costs are all associated with probability estimates
- Decision Making Under Uncertainty : A condition in which the decision-maker does not know all the alternatives, the risks associated with each, or the likely consequences of each alternative
• Steps in Rational Decision Making
1 Recognizing and defining the decision situation
Some stimulus indicates that a decision must be made The stimulus may be positive or negative
Both obvious and creative alternatives are desired In general, the more important the decision, the more alternatives should be generated
3 Evaluating alternatives Each alternative is evaluated to determine its feasibility, its satisfactoriness, and its consequences
Consider all situational factors, and choose the alternative that best fits the manager’s situation
The chosen alternative is implemented into the organizational system
6 Following up and evaluating the results
At some time in the future, the manager should ascertain the extent to which the alternative chosen in Step 4 and implemented in Step 5 has worked.
Business strategies
Business strategy can be understood as the course of action or set of decisions that assist the entrepreneurs in achieving specific business objectives
It is nothing but a master plan that the management of a company implements to secure a competitive position in the market, carry on its operations, please customers and achieve the desired ends of the business
In business, it is the long-range sketch of the desired image, direction, and destination of the organization It is a scheme of corporate intent and action, which is carefully planned and flexibly designed with the purpose of:
- Directing efforts and behavior and
- Gaining command over the situation
- Corporate level strategy : Corporate level strategy is a long-range, action- oriented, integrated, and comprehensive plan formulated by the top management It is used to ascertain business lines, expansion and growth, takeovers and mergers, diversification, integration, new areas for investment and divestment, and so forth
- Business level strategy : The strategies that relate to a particular business are known as business-level strategies It is developed by the general managers, who convert mission and vision into concrete strategies It is like a blueprint of the entire business
- Functional level strategy : Developed by the first-line managers or supervisors, functional level strategy involves decision making at the operational level concerning particular functional areas like marketing, production, human resource, research and development, finance, and so on.
Human resource management
HR contains the following sequenced activities: Job analysis and design, Human resource planning and forecasting, Employee recruitment, Employee selection, training and development, performance planning and evaluation, and Compensation and benefits
• Human resource management (HRM): The set of organizational activities directed at attracting, developing, and maintaining an effective workforce
- HR planning: Creating a strategy for meeting current and future human resource needs
- HR forecasting: Determining the number of people needed by some future time; Estimating the number of people currently employed by the organization who will be available to fill various jobs at some future time
• Employee Recruitment: Internal Labor Market; External Labor Market; Electronic Job Boards; Recruitment Branding
• Employee Selection: 1 Initial Screening → 2 Employment testing → 3 Selection Interview → 4 Background and reference check → 5 Physical exams and drug testing → 6 The decision to hire
• Employee Training and Development: Activities that provide learning situations in which an employee acquires additional knowledge or skills to increase job performance
• Performance Planning and Evaluation: A comparison of actual performance with expected performance to assess an employee's contributions to the organization
Like most companies in Vietnam, Vinamilk uses a functional structure design It is based on the functional approach to departmentalization, members and units in the organization are grouped into functional departments But functional structure designs are most commonly used in small organizations Vinamilk used this old organizational structure for years, in which the Supervisory Board did not fully perform its role as well as it could On the other hand, it promotes a functional, rather than an organizational, focus and tends to promote centralization
The old organizational structure of Vinamilk
This leading to some disadvantages for the long-term development of Vinamilk:
- Easy conflicts between functional units when setting goals or strategies
- Lack of coordination of actions between functional departments
- The supervisory board does not meet the supervisory role, does not have access to the administrative reality → the function is almost disabled
Vinamilk is not the first firm to set up a new model, but Vinamilk is a pioneer in deploying the world's advanced model (without a Supervisory Board) and has been stipulated in the Enterprise Law 2015 which came into effect from 1/7/2015
Instead, the Auditing Subcommittee under the Board of Directors will be primarily responsible for ensuring that the Company has an effective internal control and risk management system
The new organizational structure of Vinamilk
New structure → remove Board of Supervisors
• Advantages of the new structure:
- Promote the expertise of each unit
With the model without a supervisory board (the supervisory function was transferred to the Board of Directors, removing the Supervisory Board) The Board of Directors now will have the participation of independent members with prestige and professional competence, especially in control and auditing
1.2 Attribute analysis of organization structure
- Combine groups or departments by separate areas such as production, marketing, accounting, human resources, media, and finance
- Functional specialization groups employees according to areas of expertise and resources so that they work together to perform the tasks set by the company
• Specialization of parts by address:
- Group of all features in another area of another address includes International, North, South, Central
• Specialization of parts by-product:
- The organization is divided into units where each unit is capable of designing and marketing products such as marketing department, sales department, design product
• Specialization of parts according to customers:
- Grouping departments by type of customer served such as pregnant women and babies, children, adults b Parts form
The company has divided the parts in the following ways:
- Division by time: The form of division of departments used at all levels in the company is the grouping of activities by time (shifts, crews)
- Division by function: The grouping of activities with the same expertise into functions that are widely used in practice Here, Vinamilk Vietnam dairy company has established departments to take care of functions such as raw material area development, production and product development, information technology, human resources, marketing, sales, etc Each of those departments is further divided into small units to take care of the development of new products, supply of raw materials, materials, marketing research, propaganda, and advertising
- Division by territory: This method is applied in the establishment of divisions and branches of the company by territory
- Segmentation by product: Because Vinamilk Vietnam dairy company deals in many types of products, they have established specialized trading units for each different product type and introduced production technology and production processes different marketing strategies
- Segmentation by customer: Reflects the company's interest in the different requirements of each type of customer through the marketing or sales department
- Division by process or equipment: This method is illustrated by the production, human resource development, sales, marketing with separate processes c Management level and management level
- Senior managers: Board of Directors, Board of Directors
- Intermediary managers: Finance and Accounting Department, Human Resources Department, Communication Department, Board of Directors control,
- Grassroots managers: System of factories
- Executors: The employees and workers of the company
- The organizational chart of Vinamilk dairy company is narrow management d Rights and responsibilities in the organization of Vinamilk
- Facilitating decision-making on issues discussed in the meeting agenda
- Encourage open discussion of issues in a friendly and constructive atmosphere
- Provide opportunities for members to express their views on the issues being discussed
• Deputy Director of Administration - Human Resources:
- Commenting on proposals on appointment and dismissal of members of the Board of Directors and members of the management apparatus
- Directing the preparation of documents on the company's labor rules, labor contracts with the management apparatus, the company secretary
- Develop a process to evaluate the activities of the Board of Directors, propose objective criteria for evaluating the activities of the Board of Directors Evaluate the effectiveness of the Board of Directors and each member's contribution to publishing in the annual report
- Perform other tasks assigned by the Board of Directors related to the Company's human resource policy
• Deputy Director of Finance - Accounting:
- Monitor the application of accounting standards for the preparation of financial statements
- Assess the accuracy and completeness of financial information prior to disclosure
- Supervising the company's risk management
- Review the effectiveness of internal audit activities
- The purpose of the Audit Committee is to assist the Board of Directors in monitoring the integrity of the Company's financial statements, the Company's compliance with legal regulations, the capacity and independence of the independent auditors, capacity and effectiveness of the internal audits
- Identify the Company's development strategies, goals, and plans, as well as key performance indicators
- Evaluate the long-term effectiveness of the Company's activities
Group Assignment MGT103 – e Concentration and concentration fees in Vinamilk's organization
• Decentralization: diversified use in both authorization and empowerment forms:
+ The General Director empowers the CEO to perform the tasks, the CEO is responsible for reporting the performance f Coordination between departments in Vinamilk
Joint coordination mechanism and linkage coordination mechanism
- There is a connection between departments and modules in the organizational apparatus
- The General Director receives reports according to ministry functions In addition, there was the appearance of the Supervisory Board, who received reports directly from the director of the internal audit and risk management, and then reported directly to the general meeting of shareholders
- Information streams can be received from many sources
- The General Director receives reports from the directors under him
- After receiving the report, the Board of Directors will make a decision
2 Planning and decision-making process
Mission: