Organisation structure of the bakhresa group of companies

Organisation organize of the bakhresa congregation of companiesIdentify the strand of organisation social makeup and regeneration draw near used by the Bakhresa Group. Is it organic or mechanistic structure followed by the Bakhresa Group? Among the 2 which one is more suit fit to grounding and why?How bed Bakhresa Group manage the tension amidst the choose for creative thinking and efficiency?Discuss the main organisational characteristics that facilitate the innovation process in the Bakhresa Group.Explain the rudimentary singular roles indoors the innovation process and the activities they perform in the Bakhresa Group.How did Bakhresa Group establish innovative environs that distributes the virtuous circle of innovation? Explain its features.This is a case study analysis report of the Bakhresa Group of companies of Tanzania, with peculiar(a) focus of its innovation focal point that led it to achieve a remarkable growth and grocery leadership in the coun campaig n and beyond.Bakhresa Group is one of the leading Industrial Houses in Tanzania, East Africa. Started in a humble manner with a smaller restaurant in the Port City of Dar es Salaam, Tanzania, in mid-s even soties, it has now emerged as a respected business group in the Region. The Group has its operations spread in Tanzania, Zanzibar, Uganda, Kenya, Ma lawfulnessi, and Zambia and most recently in Mozambique. Plans are in place to spread its wings to other countries. The group now boasts of a turnover rate of more than Three Hundred Million United Sates Dollars and is a proud employer of more than two thousand employees associated directly. There are several companies under its comprehensive and have investments mainly in Food and Beverage Sector, Packaging, Logistics and Real Estate.The study will analyse the role of organisation structure, the organisational characteristics in general and individual roles that propagate and facilitate innovative environment in spite of appeara nce the Bakhresa group and how successfully they have managed it.The analysis is based on the hand-out knowledge about the group prepared for this purpose, as well as the Bakhresa Group website (2010). intimately of the concepts and theories that precedes each item of analysis are based on the textbook by Paul Trott- insertion Management and raw(a)-fangled product Development -4th Edition (2008) others textbooks and websites have been used to complement the mentioned references.This report starts by providing background information about the group, regarding its organisations products and services in section one. To be followed by five sections one for each analysis item, that is organisation structure and innovation, managing the tension between the need for efficiency and creativity, organisational characteristics that facilitate innovation, the key individual roles within the innovation process and establishing an innovative environment that propagate virtuous circle.BACKGROU NDBAKHRESA GROUP OF COMPANIES TANZANIABakhresa Group is composed of Said Salim Bakhresa Co.s, Bakhresa Food Products ltd and large collection of other companies of various industries such(prenominal) as transport and logistics and real-estate. The group started in 1980s and ever since it has steadily been expanding its borders from Tanzania to the neighbouring countries and has been gaining a lot of market force over time. The group currently operates in the Tanzania, Malawi, Uganda, Mozambique, Zambia and ZanzibarMissionTo increase and sustain the living standards of Africans by providing them with essential products and services of global quality at affordable prices.To exceed customers expectations by dint of innovation and harnessing engineering.VisionTo be one of the internationally respected and professionally managed companies in the African Continent.To spread our wings to the other parts of the globe.Their values complicate passion for success, commitment to stakeholder s and employees as well as mutual trust and social responsibility.Figure 1. Subsidiaries companies under Bakhresa GroupSource (Bakhresa.com 2010)In the Bakhresa Group, the institution is tempered as an instrument for achieving established goals, in which the members of the organization are make to serve these goals and rewards are given to motivate them. The organization structure contributes to the dominance of the technology-push pretending of innovation.On the one hand Bakhresa Group requires st cogency and static routines to accomplish the daily tasks efficiently and quickly and on the other hand, Bakhresa Group withal necessitate to develop new ideas and new products to be competitive in future and it need to nurture a creative environment where ideas can be time- tried and developed.The channel of communication is extremely structured, there is limit information flow, and operating styles are uniform and restricted. Authority for finish is based on formal make manag ement pose and the management is reluctant to hold to changing circumstances.The management of the Bakhresa Group is committed to long- limit growth rather than short- survive profit and the organization is willing to invest in the long-run development of technology and is aware of its threats and opportunities.The Bakhresa Group engages commercial scanner, gatekeeper and project leader and sponsor to facilitate the innovation process.The Bakhresa Group, given the importance of innovation, has spent enormous sums of money trying to develop an environment that fosters innovation. The Bakhresa Group is aware of developing a reputation for innovation which helps propagate a virtuous circle that reinforces Groups abilities.The Bakhresa Group has established companies dealing with variety of products from manufacturing of Food and Beverage Sector, Packaging, Logistics and Real Estate and has become a market leader because of innovation and entrepreneurship.Figure 2 below shows a vari ety of products/ services offered by the Bakhresa group.Source (Bakhresa.com 2010)The new and different product added to the list of achievements marks the creative thinking abilities and adds to value, and enhance the competitive edge of the company. For example, the launching of state of the art packaging industries for food and beverage products as well as the technological advancement on the telecommunication via satellites.1. ORGANIZATION STRUCTURES AND INNOVATIONIdentify the strand of organisation structure and innovation approach used by the Bakhresa Group. Is it organic or mechanistic structure followed by the Bakhresa Group? Among the two which one is more suitable to innovation and why? placemental StructuresOrganizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. When a work group is very small and face-to-face communication is frequent, formal structure whitethorn be unnecessary, but in a larger organization decisions have to be made about the delegation of various tasks. Thus, procedures are established that assume responsibilities for various functions. It is these decisions that determine the organizational structure. In an organization of any size or complexness, employees responsibilities typically are defined by what they do, who they report to, and for managers, who reports to them. (Referenceforbusiness 2010)InnovationInnovation is the act of developing a new process or product and introducing it to the market. It is essentially an entrepreneurial act, whether it takes place in a start-up firm, a large organization, a not-for-profit, or a public-sector agency. Innovation means change sometimes radical change, such as the development of the computer, and sometimes incremental change, such as the fitting of existing computer software (Referenceforbusiness 2010)Innovation is the act of introducing something new or doing something in a different way. I nnovation in business differs from creativity in that the latter is generally associated with the generation of new ideas. In contrast, innovation refers to taking those new ideas and actually implementing them in the marketplace. Thus, creativity is simply one element of the innovation process through and through which new ideas lead to new products, procedures, or services. Business scholars often prop company success to innovation. Because of growinginternational competition,innovation became even more vital for companies toward the end of the 20th century (Referenceforbusiness 2010)Organizational Structures and InnovationThe structure of an organization is the sum total of ways in which it divides its labour into obvious tasks and then achieves coordination among them. One of the problems is recognizing that different groups within an organization behave differently and interact with different parts of the wider external environment. None the less, there have been numerous use ful studies exploring the link between the organizational structure and innovative performance. (Trott 2008)Organizational structures can be sorted between organic and mechanistic. Organizational cultural also plays a big role when implementing change. Some resistance forces we are likely to encounter are within our organization. Once the organizational structure and cultural attribute is determined then the designing process can begin.Organic and mechanistic are on different ends of the spectrum. In contingency theory, the term organic structure is used to describe an organizational structure that is designed to promote flexibility so that employees can initiate change and adapt quickly to changing conditions (George Jones, 2005, p. 508). This compromising structure is more like a team environment in which all the employees are able to handle any of the tasks. In contingency theory, the term mechanistic structure is used to describe an organizational structure that is designed to induce employees to behave in predictable, accountable ways (George Jones, 2005, p. 508). All of the employees working in a mechanistic structure have assigned duties that they must perform and are prohibited to take on additional duties unless they are told so by management.(associated content 2010)Through their Theory of Mechanistic and Organic Systems, Tom Burns and G.M. Stalker (1961) have submitd a way to understand which organization forms fit to limited circumstances of change or stability. In their highly influential work The Management of Innovation, they provide the following characteristics of Mechanic vs. Organic SystemsMechanistic vs Organic Organization StructureMechanistic Organization Form / Management SystemOrganic Organization Form / Management SystemAppropriate ConditionsStableChanging dispersion of tasksSpecialized differentiation of functional tasks into which the problems and tasks facing a concern as a whole are broken downContributive nature of special ex perience and experience to the common task of the concernNature of Individual taskThe abstract nature of each individual task, which is pursued with techniques and purposes more or less distinct from those of the concern as a whole i.e., the functionaries tend to pursue the technical improvements of means, rather than the accomplishment of the ends of the concernThe realistic nature of the individual task, which is seen as set by the total situation of the concernWho (re)defines tasksThe reconciliation, for each level in the hierarchy, of these distinct performances by the immediate superiors, who are also, in turn, responsible for seeing that each is relevant in his own special part of the main taskThe adjustment and continual redefinition of individual tasks through interaction with others childbed scopeThe precise definition of rights and obligations and technical methods attached to each functional roleThe shedding of responsibility as a limited field of rights, obligations and methods (problems may not be posted upwards, downwards or sideways as being someone elses responsibility)How is task conformance ensuredThe translation of rights and obligations and methods into the responsibilities of a functional positionThe spread of commitment to the concern beyond any technical definitionStructure of catch, authority and communicationHierarchic, ContractualNetwork, Presumed Community of InterestLocating of experienceReinforcement of the hierarchic structure by the location of knowledge of actualities exclusively at the top of the hierarchy, where the final reconciliation of distinct tasks and assessment of relevance is madeOmniscience no longer imputed to the head of the concern knowledge about the technical or commercial nature of the here and now may be hardened anywhere in the networkCommunication between members of concernVertical i.e., between superior and subordinateLateral i.e., between people of different rank, resembling reference book rather th an commandGovernance for operations and working behaviorInstructions and decisions issued by superiorsInformation and advice rather than instructions and decisionsValuesInsistence on the true to the concern and obedience to superiors as a condition of membershipCommitment to the concerns task and to the technological ethos of material progress and expansion is more highly treasured than loyalty and obediencePrestigeGreater importance and prestige attaching to internal (local) than to general (cosmopolitan) knowledge, experience, and skillImportance and prestige attach to affiliations and expertise valid in the industrial and technical and commercial milieux external to the firmIt is evident that among the two organisation structures, the Organic one is more suitable for promoting and fostering innovation within an organization as it encourages creativity has values of Commitment to the concerns task and to the technological ethos of material progress and expansion that mostly requ ires creativeness and new innovations allow excuse flow of communication and flexibility and adaptation to changing circumstancesThe Bakhresa group seems to follow the Mechanistic organization structure, because their channel of communication is highly structured, there is restricted information flow, and operating styles are uniform and restricted. Authority for decision is based on formal line management position and the management is reluctant to adapt to changing circumstances.Mechanistic organization structure tends to offer a less suitable environment for managing the creativity and the innovation process. Because of its degree of formalisation, centralisation, Size and complexity of its organisation, formalizationThere is some evidence of an inverse relationship between formalization and innovation. That is an increase in formalization of procedures will result in a ailment in innovative bodily function.ComplexityWhere these are several different type of professional group s are working in an organization, it would represent a complex organizationCentralisationIt refers to the decision making activity and the location of power within an organization. In a decentralized organization fewer levels of hierarchy are unremarkably required This tends to lead to more responsive decision making closer to the action.Organisational SizeA small business with fewer employees differs significantly on impairment of resources from an organization which is big size is a proxy variable for more meaningful dimensions such as economic and organization resources, including number of employees. (Trott 2010)MANAGEMENT group BOARD OF DIRECTORS STRUCTUREChairman, Bakhresa Group of Companies express SALIM AWADH BAKHRESA is the founding father and the Chairman of the Bakhresa Group Of Companies. He is a well-known industrialist in the mainland of Tanzania and island of Zanzibar. With a humble arising as a small restaurateur in seventies, he created the business empire with in a span of three decades. He is the mastermind butt end the success of all the businesses within the group. His vision and excellent managerial skills contributed to the growth of this group to dandy heights.Executive Director of SS Bakhresa Co. ltdMOHAMED SAID BAKHRESA is the Managing Director of Bakhresa Grain mill (Uganda) special(a) and is the Executive Director Of Said Salim Bakhresa Company Limited. He is also holding Director-Ship in most of the Group Companies. Mr Mohamed is a graduate in finance, law and accounting from Southbank University, United Kingdom. He is a well-known industrialist in Uganda and Tanzania and is successfully managing Bakhresa Grain Milling (Uganda) Limited, which is the largest wheat milling industry in Uganda. Mr Mohamed is also actively involved in the policy decision making process of the Bakhresa Group Of Companies.Managing Director of Bakhresa Grain Milling ltdABUBAKAR SAID SALIM BAKHRESA is the Managing Director of Bakhresa Grain Milling (Malawi) Limited and Bakhresa Grain Milling (Mozambique) Limitada. He also acts as Executive Director of Said Salim Bakhresa Co. Ltd. Mr. Abubakar has done his B.Sc in Business Administration, majoring in Finance from Georgetown University, Washington D.C., USA. He is primarily involved in the wheat milling businesses of the Group and looks after the wheat procurement for the Group.Executive Director of Logistic Division of Bakhressa GroupOMAR SAID SALIM BAKHRESA, a Mechanical Engineer, is the Executive Director in charge of the Logisitic Division of Said Salim Bakhresa Co Ltd. He has over a decade of experience in logistics transportation industry.Managing Director of Bakhresa Food Products LtdYUSUF SAID SALIM BAKHRESA is the Managing Director of Bakhresa Food Products Limited and is holding Director-Ship in other Group Companies. He is actively involved in the twenty-four hours to day operations of Bakhresa Food Products, which is based in Tanzania and is successfully managing its operations.Senior ManagementEach Group Company/Division is professionally managed by a full complement of local/expatriate managers having expertise in their respective fields.Regardless of the mechanistic structure in use by the Bakhresa Group, its great achievements are obviously due to its continuous innovation in new products and new markets. One can conclude that due to the large size and complexity organisation of the Group as a whole, it is necessary to apply the centralisation and formalisation. But the style of operations and management at the subsidiary companies level may be allowing real flexibility that is promoting creativity and innovation.2. MANAGING THE TENSION BETWEEN THE NEED FOR CREATIVITY AND EFFICIENCYHow can Bakhresa Group manage the tension between the need for creativity and efficiency?The Dilemma of Innovation ManagementWithin virtually all organizations there is a fundamental tension between the need for stability and the need for creativity. On the one hand, companies require stability and static routines to accomplish daily tasks efficiently and quickly. This enables the organization to compete today. For example processing of millions of cheques by banks each day or delivery of food and beverage products by multiples to their retail outlets all over the country by the Bakhresa Food Products Ltd, demands high levels of efficiency and control.On the other hand, companies also need to develop new ideas and new products to be competitive in the future. Hence they need to nurture a creative environment where ideas can be tested and developed. This poses one of the most fundamental problems for management today. That is managing the tension between the need for creativity and efficiency.Efficiency gainsThe efficient day to day operations within an organization require stable routines which can be achieved in stable and controlled environmentsThe development of new products/services requires creativity and room to try out new idea s this is achieved in a loose and flexible environmentCreativity gainsTake any medium to large company and examine its operations and activities. Every company has to ensure that their products are carefully manufactured to precise specifications and that they are delivered for customers on time day after day. In this hectic, repetitive and highly organized environment, the need to squeeze out any slack or inefficiencies is crucial to ensure a firms costs are lower than their competitors. However the long-term economic growth is dependent on the ability of firms to make improvements to products and manufacturing processes. This means that the firms need to make room for creativity and innovation, that is, allow slack in the system. present then is the plight how do firms try to reduce costs and slack to improve competitiveness on the one hand and then try to provide slack for innovation on the other? The firm has to do balancing The firm needs to ensure there is a constant pressur e to fight down costs and improve efficiency in its operations. At the same time it needs to provide room for new product development and improvements to be made the most obvious way forward is to separate production from R D. However there are many improvements and innovations that arise out of the operations of the firm.On the one hand Bakhresa Group requires stability and static routines to accomplish the daily tasks efficiently and quickly and on the other hand, Bakhresa Group also needs to develop new ideas and new products to be competitive in future and it needs to nurture a creative environment where ideas can be tested and developed.The Bakhresa group has shown that it can utilely manage this tension by the way it has been producing new and innovative products, while also managing to efficiently distribute its food products end-to-end the region.The diversification of the industry by entering into new businesses that support or complement existing businesses, such as ma nufacturing of packaging products by the Omar Packaging industries, as well as diversification of product range in the juice factories at the same time the Group timely deliveries through its wide dissemination network and logistic system shows that the Bakhresa Group well manages the tension between the need for need for creativity and efficiency.The group can do better management of this tension by ensuring that there is just enough slack at the subsidiaries or functional organisational level to foster creativity, but have stringent control at the higher management level of the Group to maintain its efficiency. Because this higher management which is the board of director of the group is the one that oversees the cross functional coaction and integration of the various units that collaborate or complement each other in achieving its missions. For example the need to have frequent ferries to Zanzibar, so that fresh breads and ice-cream could be delivered on time.3. ORGANISATIONAL CHARACTERISTICS THAT FACILITATE THE INNOVATION PROCESSDiscuss the main organisational characteristics that facilitate the innovation process in the Bakhresa GroupOrganizational Characteristics that Facilitate the Innovation subroutineThe innovation process is complex in nature as it involves the relationship between the stimulus, capacity and performance of such innovation. This complex relationship need to be nurtured by favourable characteristics of the organisation such as growth orientation, vigilance, commitment to technology, acceptance of risk, cross functional cooperation, receptivity, slack, adaptability and diverse range of skills.Growth OrientationThis is characterized by a commitment to long-term growth rather than short-term profit. Not all companies first and foremost objective is growth. Some companies are established barely to exploit a short-term opportunity, other companies would like to maintain the company at its existing size the objective of innovative compa nies is to grow the business the actively plan for the long-term.VigilanceIt is characterized by the ability of the organization to be aware of its threats and opportunities. Vigilance requires continual external scanning e.g. within the merchandising function the activity would form part of market research and competitor analysis. Collecting valuable information is one thing, but relaying it to the necessary individuals and acting on it are two necessary associated requirements. An open communication system will help facilitate thisCommitment to TechnologyIt is characterized by the willingness to invest in the long-term development of technology. Most innovative firms exhibit patience in permitting ideas to geminate and develop overtime. These needs to be accompanied by a commitment to resources in terms of intellect input without a long-term approach it would be extremely difficult for the company to attract good scientists.Acceptance of riskAcceptance of risk is characterized by the willingness to include risky opportunities in a balanced portfolio. It means the willingness to consider carefully risky opportunities. Ability to take calculated risks and include them in a balanced portfolio of projects.Cross-functional CooperationIt is characterized by mutual respect among individuals and a willingness to work together crossways functions. Inter-departmental conflict is a well-documented barrier to innovation. Often conflict has been observed between marketing and RD functions as the two groups often have very different interests.ReceptivityIt is characterized by the ability to be aware of, to identify and take effective advantage of externally developed technology. Most technology based innovations involve a combination of several different technologies. It would be unusual for all the technology to be developed in house. That is why business are witnessing an increasing number of joint ventures and alliances.SlackIt is characterized by an ability to manag e the innovation dilemma and provide room for creativity while organizations place a great emphasis on the need for efficiency, there is also a need for a certain amount of slack to allow individuals room to think, experiment, discuss ideas and be creative.AdaptabilityIt is characterized by a readiness to accept change. The development of new product innovations will invariably lead to disruptions to established organizational activities. Major or radical innovations may result in significant changes, although the two are not needs linked. The organization must be ready to accept change in the way it manages its internal activities. Otherwise proposed innovations would be stifled due to a waver to alter existing ways of working or to learn new techniques.Diverse Range of SkillsIt is characterized by a combination of specialization and diversity of knowledge and skills organizations require individuals of a hybrid nature who are able to understand a variety of technical subjects an d facilitate the transfer of knowledge within the company. It is the ability of the organization to manage this diversity of knowledge skills effectively that lies at the heart of the innovation process.The management of the Bakhresa Group is committed to long-term growth rather than short-term profit and the organization is willing to invest in the long-term development of technology and is aware of its threats and opportunities.The Bakhresa group is heavily investing in its profitable companies such as those of grain mills, by purchasing newer and higher capacity plants, as well as by expanding into new markets abroad. They have bought and renovated grain mills in Malawi, and build a new one in Uganda and Rwanda.Bakhresa group is vigilant on its environment, and has been able to capture emerging opportunities of privatisation programmes in Tanzania and elsewhere (Malawi) to start businesses. Has been able to capture the interest of International financing partners to start a busin ess at the port of Nacala in Mozambique.The group is investing in latest technologies across all the industries its operating, it has purchased new plants and mills from Italy and Sweden, it has ordered brand new ferry boats from Australia. Its communication company SatAfrik ltd is utilising latest satellite, GPS and GSM technologies and it effectively support its transport and logistics companies.The group has whole Cross-functional Cooperation because most of the companies were established with a view to integrate with the existing companies and businesses. Packaging company was established to support grain mills and food products, transport and logistics companies to run efficient distribution and suppliesBakhresa group has good receptivity of technologies developed in other areas such as Europe and Australia. It provides some amount of slack for creativity behaviour although it does not easily adapt to changing environment.The group shows the diverse range of skills from its to p management to the other members of functional areas. It has business management experts, engineers, logistics, marketing and great sales force.4. KEY INDIVIDUAL ROLES WITHIN THE INNOVATION PROCESSExplain the key individual roles within the innovation process and the activities they perform in the Bakhresa GroupThe Role of the individual in the innovation ProcessInnovation process is essentially a people process and that organizational structure, formal decision making processes, delegation of authority and other formal aspects of a so-called well-run company are not necessary conditions for successful technological innovation. The study of Rubenstein has revealed that certain individuals had fulfilled a variety of roles that had contributed to successful technological innovation. (Trott 2010)GATEKEEPERSThese people collect and channel information about changes in the technical environment. They stay current with events and ideas through personal contacts, professional meetings, an d news media. When gatekeepers find relevant information, they send it to the appropriate person or unit for follow up.IDEA GENERATORSThis role involves analysis of information about new technologies, products, or procedures in order to yield a new idea for the company. The fresh idea may be innovative resultant role to an existing problem in product or business development or the identification of a new marketplace opportunity.CHAMPIONSChampions advocate and push for the new idea. This role involves obtaining and applying the resources and staff to demonstrate the ideas feasibility. Champions are concerned about results, not risk, and do not spend time studying the consequences of failure. Their mission is to remove obstacles. pop MANAGERSSomeone has to draw up schedules and budgets arrange periodic information session and status reports coordinate labour,