Term Paper

On
Management Function
In
PRAN

 Submitted To:
Silvia Akter
Faculty of Business Administration
East West University
Submitted By:

1.

Md.Mushfiqul Haque Mukit

ID: 2010-2-18-010
2.Arafa Ferdous
ID: 2011-1-10-360
3.Mahfuz Ahmed
ID: 2011-2-10-194
Section-07
Date of Submission: 08/04/2012

EAST WEST UNIVERSITY

LETTER OF TRANSMITTAL
Date: 08/04/2012
To
Silvia Akter
2

Faculty of Business Administration

East West University.
Subject: Submission of report on Management Function of PRAN.
Madam,
This is our great pleasure to have the opportunity to submit the report on the
our course studies.

as part of

The report is prepared based on visiting company, published reports, websites and other related
documents and the documents collected from library. Through our best sincerity we have tried
to uptake all the related issues in the report within several limitations. We sincerely hope and
believe that these findings will be able to meet the requirements of the course.
Therefore we would like to place this report for your kind judgment and valuable suggestion.
Thanking you.
Sincerely yours
Md. Mushfiqul Haque Mukit
ID: 2010-2-18-010
Arafa Ferdous
ID: 2011-1-10-360
Mahfuz Ahmed
ID: 2011-2-10-194

ACKNOWLEDGEMENT

At first we are very grateful and thankful to the Almighty Allah.

For the completion of this report visiting the company, searching for websites, articles and
related documents were required. However, it was our instructor, Silvia Akter who played the
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important role by giving us an insight about the report. We express our profound indebtedness
and gratitude to her, for her valuable advice that helped immensely in preparing this report.
In addition we would also like to thank all employees of PRAN who spent their valuable time to
provide us information about their company.
We are also thankful to our fellow students, who helped us a lot to prepare this report.

Table of Content
History of PRAN

Page-1-2

Planning

Page-2-6

Organizing

Page-6-7

Leading

Page-8-10

Controlling

Page-10-13

Conclusion

Page-13

Reference

Page-14

Introduction:
PRAN stands for Program for Rural Advancement Nationally.
The largest fruit and vegetable processing industry in Bangladesh with countrywide distribution
network AMCLs PRAN is an established brand of Bangladesh with an extensive sales force all
over the country. PRAN have a well-developed infrastructure for production, sales and
distribution. PRAN has proven itself as Local product but of international standard.
AMCL was launched in 1985 as an agri-business venture to:

Serve small farmers with inputs.

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Marketing farm produce for profits.

Organizing contract growers to grow specific crops.

Exports of agricultural products.

Soon it was apparent that a processing facility was imperative for a sustainable venture. AMCL
therefore set up a factory on 8 acres in Ghorasal with machinery for bottling and canning in May
1991. The factory has expanded substantially over the last 9 years in all spheres of food
processing e.g. bottling, canning, pulping, pickling, concentrating as well as installation of
Bangladeshs first Tetra-Pack facility and a modern Extrusion plant for snack food. Machinery
for all these lines are being installed, expanded, modified and fabricated continuously.
AMCL are very keen to adopt a new technology as it is discovered because of being in such a
competitive market. PRANs R & D are always working hard for a better technology of
production. All departments administrative works are done through connected computers using
the best software and hardware.
Being a major exporter PRAN has to communicate a lot with outside suppliers, retailers or
consumers. Therefore this section is very important for AMCL. PRAN has taken this
communication issue very seriously. They often have to do meetings by doing teleconferences,
internet shopping, video conference etc.
AMCL 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. This is the first
and largest ISO 9001 certified food processing industry in Bangladesh.
Mission:
To generate employment and earn dignity and self-respect for our compatriots through profitable
enterprises.
Vision:

Improving Livelihood
Objectives:
AMCL and its Brand name PRAN have twin objectives achieving social values with
sustainable pecuniary advantage for all our stakeholders.
Goals:

To remain as the market leader with consumer items in food & beverage sector in the
country & to be the market leader in same sector in abroad with minimum NP level of
10%.
Quality maintenance and improvement.
Satisfied customers.
Hold on to the current customers and again gain customer loyalty.
Gain competitive advantage over all the competitors.
To double sales and expand production capacity every 7-8 years.
To become one of the biggest names in international fruit and vegetable processing
industry

PRAN is currently one of the most admired food & beverages brand among the millions of
people of Bangladesh and other 82 countries of the world where PRAN Products are regularly
being exported.
The company hasnt reached this position without a great management function.

Planning:
One of the most common sets of activities in the management is planning. It is a preparatory
step. It is a systematic activity which determines when, how and who is going to perform a
specific job. It involves defining the organizations goals ,establishing strategies for achieving
7

those goals and developing plans to integrate and coordinate activities Planning is a detailed
program regarding future courses of action. It is rightly said Well plan is half done. Therefore
planning takes into consideration available & prospective human and physical resources of the
organization so as to get effective co-ordination, contribution & perfect adjustment. It is the basic
management function which includes formulation of one or more detailed plans to achieve
optimum balance of needs or demands with the available resources.
There is no mystery about how PRAN reached it todays position. All it took was great planning
involved turning ideas into actua1ities by a series of logical steps.
PRAN followed some general and logical steps and they are:
1. By defining the major objective.
The major objective is the total job, the final result. There can be only one major
objective, and this must be clearly visualized before any planning can be attempted. The
major objective for PRAN is to remain as the market leader with consumer items in food
& beverage sector in the country & to be the market leader in same sector in abroad with
minimum NP level of 10%. They thoroughly communicate this to the entire organization.

2. By choosing alternative course of action

When forecast are available and premises are established, a number of alternative course
of actions have to be considered. For this purpose, each and every alternative will be
evaluated by weighing its pros and cons in the light of resources available and
requirements of the organization. The merits, demerits as well as the consequences of
each alternative must be examined before the choice is being made. After objective and
scientific evaluation, the best alternative is chosen. Managers of PRAN always surf the
market to avoid vacuum in Market in aspect of existing product availability & in aspect
of new product.
8

The planners take help of various quantitative techniques to judge the stability of an
alternative.
3. By formulating short term plans
People fail because they try to achieve major objectives in one swoop. The task should be
broken down into contributory minor objectives, each clearly defined and each capable of
detailed planning. These plans include policies, procedures, rules, programmes, budgets,
schedules, etc. As PRAN main objective is to remain the market leader, short term plans
will include sales maximization, production maximization, and cost minimization. The
companys short term objective is to avail the target that been set before the year starts.
These targets are also a part of the long term objective as well.
Derivative plans indicate time schedule and sequence of accomplishing various tasks
4. By involving more organizational member.
Organization should involve more members in the planning process. This doesnt mean
plans are handed down from one level to the next but instead are developed by
organizational members at various level. PRAN uses this strategy very well, they help
their employee grow. They give them proper training and development and encourage
employees to ask questions and make suggestions that they think better.

5. By working out detailed plans for minor objectives and allowing flexibility.
With the overall plan broken down and correctly phased, it becomes possible to work out
details for the accomplishment of each minor objective.
At this stage the decisions which PRAN make are:
What is to be done?
How is it to be done - resources, methods and means?
Who is going to do the job?
When is the job to be done - starting and finishing times
Where is the job to be done?
9

All the facts may not be known when plans are first made. Later on, new data may
become available. For this reason, minor plans of PRAN are flexible enough to cater for
unforeseen events or emergencies.
Having considered the steps involved in planning PRAN turn their attention to the way in which
they should be applied. In PRAN planning is applied downward, with the active co-operation of
subordinate staff all down the line. It follows that every level understand the planning approach
outlined and is able to allocate priorities and work out precise details. Only in this way PRAN
break down a really major objective into the mass of detailed activities which become necessary
for its accomplishment. In the end, a proper job of planning by the entire supervisory staff of
PRAN ensure unified and successful action. PRAN is very effective in doing so as they treat
their employees as core resources and family member and encourage their participation in
decision making and in implementing plans those are formed by the top level management thus
they implement their plans easily and efficiently with the help of subordinates and staffs.

After the plans are implemented monitoring the plans are equally important to ensure that
objectives are achieved. It is also important to appraise its effectiveness. PRAN does this on the
basis of feedback or information received from departments or persons concerned. This enables
the management to correct deviations or modify the plan. This step establishes a link between
planning and controlling function. The follow up go side by side the implementation of plans
in the light of observations made, and thus help PRAN to make more realistic future plans.
In PRAN managers frequently check all the works that are to be maintained and take any
corrective actions that are needed. PRAN is one amongst the fewest in Bangladesh who has a
culture of profit sharing management as an appraisal for performing the jobs correctly.

Organizing:
Production system:
The practical expression of PRANs people and customer-oriented philosophy is known as the
PRAN production system. This is not a inflexible company-imposed procedure but a set of
principles that have been proven in day to-day practice over many years. Many of these ideas
have been adopted and imitated all over the world.
10

PRAN production system has three desired outcomes:

To provide the customer with the highest quality product, at lowest possible cost, in a

timely manner with the shortest possible lead times.

To provide members with work satisfaction, job security and fair treatment.
It gives the company flexibility to respond to the market, achieve profit through cost

reduction activities and long-term prosperity.

PRAN production system strives for the absolute elimination of waste, overburden and
unevenness in all areas to allow members to work smoothly and efficiently. The foundations of
PRAN production system are built on standardization to ensure a safe method of operation and
a consistent approach to quality. PRAN members seek to continually improve their standard
processes and procedures in order to ensure maximum quality, improve efficiency and eliminate
Managing Director

waste.
Manufacturing Process:

PRAN control and monitor every aspect of the manufacturing process. PRAN ensure the
integrity of the enterprise and to maintain quality assurance, the implementation of standards.
This means installing efficiently designed processes throughout the operation from product
CFO By adopting a strong, process-centric culture, your
development, to supply chain and shipping.
(Chief Financial Officer)
company
can smoothly transition from chaotic and ad hoc management
systems
to a smooth
Retail Marketing
Manager
HR
Manager

running operation that increases profits.

PRAN Company gains the accountability and consistency that will give them a cutting edge. All
the tools ensure that all processes are properly understood, allowing you to increase the safety as
well as the efficiency of the operation.
Retail Services
Manager
Wholesale

Merchandising
MIS Manager
Export Manager
Manager
Costing & Efficiency Manager
Plant Manager
Manager

Wholesale Services Manager

Dept.
Area Manager
Merchandising
Exp. Supervisor
Costing OfficerProgram
Manager
Officer
Officer

11
Shop Manager
Area Manager
Distributor

Leading:
PRAN is the largest processors of fruits and vegetables in Bangladesh. The management of this
GROUP is modern adapted to our environment and culture. PRAN has some enthusiastic leaders
who are always lead the company very well.
The most gifted athletes rarely make good coaches. The best violinist will not necessarily make
the best conductor. The company higher managers will seek out the scope from how they their
employers. Nor will the all the managers take effective decision for the company so they
cooperate with all employers and they also distinguish between the skill of performance and
achieving task performance. PRANs management group also determines whether a person is
capable to finish his task or not.
As the PRAN is a huge organization it leading style varies with the employee and environment
of the company. Whenever they fall in a tough situation they will find the way to overcome the
situation with effective leadership style.

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Leadership Style in the Organization

Leadership differs or varies man to man. Leadership works best when employee and employer
are works towards organizational goal. PRAN has its clear vision and planning overall the
organization and they go ahead with their goal to achieving this. As its a huge organization
comprises 10 companies so it tough to organize the whole work activity and maintain the worker.
The companys largest asset is its competent team of hands-on-managers and their dedicated
employees. The manager of the organization treats their subordinates with very friendly way and
also plays very important role to leading them effective way. The organization differentiates
manager leadership power in different sector. The entire organizational strategies are worked
with to achieve the companys goal.

Democratic leadership: The Company wants to share their views and ideas with worker and
from them the company also expects some valuable ideas whenever take any decision. So the
company believes in democratic leadership which gives importance to all the employer.
Transactional leadership: Sometimes Company offer reward for some specific task they did it to
motivate employee. PRAN has some expertise those make strategy for long-term motivating
work environment and they used it towards the workers.
Motivating Employee
Motivation is the process that account for an individuals willingness to exert high levels of effort
to reach organizational goals, conditioned by the efforts ability to satisfy some individual need.
Motivation mostly needed when the workers are low in their effort or performance. The simplest
and most intuitive approach to motivation is to satisfy an employees need. The management
leader of the company motivates their employers giving reward, special offer, promotion and
many others ways like:

13

 They make most workers motivated as they always try to make the best result out of their
employees.
They set a personal example to follow by their subordinates.
The company shows the employees future basing on their job regarding their
achievements and other staffs.
Sometimes they offer outing beyond the job.
Sometimes they give employees different incentive offer like- performance based
reward, task based reward etc.
For motivating the employer they set the right job and well environment for the
employer.
They also give the right to make effective decision for organization.
How changes affect workers productivity
PRAN has different sector and all the sector strategy are not same so they set different strategy
for the entire sector to increasing companys productivity. Whenever any changes are made the
team manager let all know about the changes and make them training what will be done at the
forefront. This change also is not tough to the employer because seniors are come to
communicate with the employer and make them understand about the changes. They also make
them know about the productivity of their work performance and give some target oriented task
which may increase the productivity.
Right Time of Stimulate Conflict
Stimulate confliction happened for some unusual reason which could be very complicated for the
company to solve this problem. As PRAN is a huge company some work could not be done time
to time when a gap created between management and employee and for this confliction occur.
Another problem for the company is when the employee leave from company. As the Company
build their planning with a clear vision so PRAN overcome this.

Controlling:
What is controlling?
In todays competitive global marketplace, managers want their organizations to achieve high
levels of performance, and one way they can do that is by searching out the best practices
14

successful organizations are using. By comparing themselves against the best, managers look for
specific performance gaps and areas for improvement where better controls over the work being
done are needed.
So Control is the process of monitoring activities to ensure that they are being accomplished as
planned, and correcting any significant Deviation.

Importance of control for PRAN-RFL group:

In an organization planning can be done, an organizational structure can be created to efficiently
facilitate the achievement of goals and employees can be motivated through effective leadership,
still theres no assurance that activities are going as planned and that the goals managers of
PRAN-RFL group are seeking are, in fact being attained. Therefore control is important because
its the final link in the management function.
The value of control lies in the relation to:
Planning
Employee Empowerment
Protecting the Workplace
The Control Process of PRAN-RFL group:

15

2. Comparing Actual Performance against

Standard

1. Measuring Actual
Performance

3. Taking Managerial
Action

Common sources of information for measuring performance:

Personal observations:
Managers of PRAN-RFL group get firsthand knowledge. They emphasis on Intensive coverage
of work activities
Statistical reports:
Managers of PRAN-RFL group can easily visualize the performances of employees. They can
build relationship through this source.
Oral Reports:
This is the fastest way to get information for the Managers of PRAN-RFL group. They allow
both verbal &nonverbal feedback
Written Reports:
This is comprehensive & the formal way for the company. This is easy to file & retrieve

Comparing:

16

The comparing step determines the degree of Variation between actual performance and the
standard. Although some variation in performance can be expected in all activities, its critical to
determine the acceptable range of Variation. PRAN-RFL group offers themselves the standard
in the Bangladeshi Food and beverage sector.
Taking Managerial action:
The third & final step in the control process is taking managerial action.

Correct actual performance of the organization

Revise the Standard of productivity

Marginal Decisions in the control process:

The standards evolve out of goals which are developed during the planning process. These goals
then provide the basis for the control process which essentially a continuous flow between
measuring, Comparing and taking managerial action.
Controlling for Organizational performance:
They Measure organizational Performance through:

Productivity of PRAN-RFL group

Effectiveness of PRAN-RFL group

Management Information System:

Management information system should be IT based. PRAN-RFL
group majorly focus on IT based MIS.
More automation wills easy your life more with better control.

Tools for controlling organizational performance:

17

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Controls Measures for reducing workplace violence:

The organization is very much concerned about the workplace violence for maintain the
organizational productivity and organizational effectiveness.

Conclusion
No ideology, no ism, no political theory can win a greater output with less effort from a given
complex of human and material resources, without sound management. Although this firm is in a
very good position in the market, we would just make a suggestion that, they should offer more
and more differentiated products through segmentation of the current market in more details. Of
course, the economic capability of target customers must be carefully analysed. Managers can
communicate more and make survey to reach closer to the customers and create market offerings
which are both for the betterment for the firm as well as for the society. This practical experience
gathered from observing these established company of Bangladesh has just helped us to reach to
a conclusion that What nurtured the success of PRAN-RFL group?

18

References:
I.
II.
III.
IV.
V.
VI.
VII.

MD: Shahan Shah Azad

COO, PRAN-RFL Group
WWW.pranrflgroup.com
www.Google.com
http://www.pranfoods.net/employee_care.php
Management by Stephen P. Robbins
EWU library.

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