Bakhresa Group Organisational Structure

  • Identify the strand of organisation structure and technology approach employed 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 just why?
  • How can Bakhresa group manage the strain between the need for imagination and efficiency?
  • Discuss the primary organisational characteristics that help the development process in the Bakhresa group.
  • Explain the main element individual assignments within the creativity process and the actions they perform in the Bakhresa group.
  • How do Bakhresa group create impressive environment that propagates the virtuous group of innovation? Describe its features.

BACKGROUND

BAKHRESA BAND OF COMPANIES - TANZANIA

Bakhresa Group is one of the leading Industrial Residences in Tanzania, East Africa. Started in a humble manner with a small restaurant in the Slot City of Dar Ha sido Salaam, Tanzania, in middle seventies, it has emerged as a well known business group in your community. The Group has its functions multiply in Tanzania, Zanzibar, Uganda, Kenya, Malawi, and Zambia & most just lately in Mozambique. Programs are in location to propagate its wings abroad. The group now provides of a turnover of more than Three Hundred Mil United Sates Dollars and it is a proud workplace of more than two thousand employees associated immediately. There are several companies under its umbrella and also have purchases mainly in Food and Drink Sector, Packaging, Logistics and PROPERTY.

The Bakhresa band of companies offers two sets of product and services that is food and drink, and services. Types of food and beverage companies owned or operated by Bakhresa includes; Bakhresa Grain Milling (Malawi) Ltd, Salim Bakhresa & Co Ltd, Bakhresa Grain Milling (U) Ltd, Bakhresa Grain Milling (Mozambique) Lda, Zanzibar Milling Firm Ltd, Bakhresa Food Products Ltd, Azam Bakeries Company Ltd, Salim Bakhresa & Co Ltd and those of services includes; Omar Presentation Business Ltd, Said Salim Bakhresa & Co Ltd, Paper Kraft International Ltd, Bakhresa FOODS Ltd, etc

ORGANISATION Framework AND INNOVATION

Identify the strand of organisation structure and advancement approach utilized by the Bakhresa group. Could it be 'organic' or 'mechanistic' framework, among the two which one is more suitable to innovation and why?

The composition of an organization is described by Mintzberg (1978) as the total of ways that it divides its labor into specific responsibilities and then achieves coordination included in this. One of the problems is spotting that different communities within an business behave in another way and connect to different parts of the wider exterior environment. None the less, there were numerous useful studies discovering the link between the organizational structure and innovative performance.

Trott (2005) detailed both organizational constructions such as Organic and Mechanistic composition as follows:-

Organic

Mechanistic

1. 0

Channels of Communication

Open with free information move throughout the organization

Channels of Communication

Highly structured, restricted information flow

2. 0

Operating styles

Allowed to vary freely

Operating styles

Must be consistent and

restricted

3. 0

Authority for decisions

Based on the skills of the individual

Authority for decisions

Based on formal line

management position

Free Adaptation

4. 0

Free Adaptation

By the organization to changing circumstance

Reluctant Adaptation

5. 0

Emphasis on getting things done

unconstrained by formally laid down procedures

Emphasis on getting things done

Emphasis on formally laid

down procedures

6. 0

Loose informal control

with emphasis on norm of cooperation

Loose casual control

Tight control

7. 0

Flexible on-job behavior

permitted to be formed by the requirement

Flexible on-job behavior

Constrained on-job behavior

8. 0

Decision Making

participation and group consensus

Decision Making

Only superiors make decisions

Source: D. P Slevin and J. G Covin (1990) 'juggling entrepreneurial style and organizational structure: ways to get your act along', Sloan Management Review, Winter 43 - 53

Mechanistic organization will offer a less appropriate environment for managing the creative imagination and the invention process. From Bakhresa group of companies' case study analysis the next facts were deduced "The channel of communication is highly set up, there is fixed information circulation, and operating styles are even and restricted. Expert for decision is based on formal brand management position and the management is reluctant to modify changing circumstances". Therefore Bakhresa group of companies use the mechanistic firm structure which offer less ideal environment for development and imagination. The seminal work by Melts away and Stalker (1961) on Scottish electric organisation viewed the impact of technical change on organisational buildings and on something of social connections. It shows that 'organic and natural', flexible constructions, characterized by the absence of formality and hierarchy, support innovation better than do 'mechanistic' structures.

THE DILEMMA OF INNOVATION MANAGEMENT

How can Bakhresa group manage the strain between the dependence on creative imagination and efficiency?

Trott (2005) explained that in a organization there is a fundamental tension between the need for steadiness and the necessity for creativity. On the main one side, companies require stability and static exercises to perform daily tasks successfully and quickly. This enables the business to remain competitive today, for example control of millions of cheques by banking companies everyday. On the other hand, companies also have to develop new ideas and services to compete in the future. Hence they have to nurture an innovative environment where ideas can be examined and developed. This poses one of the very most fundamental problems for management today.

The diagram below by Trott (2005) clarifies the tension Management between the need for creativeness and efficiency.

Organization

Efficiency gains

The efficient day to day operations in a organization require stable routines which may be achieved in steady and manipulated environments

The development of new products/services requires creativity and room to try out new ideas this is achieved in a loose and adaptable environment

Creativity gains

From the Bakhresa band of companies study circumstance analysis demonstrates "The management of the Bakhresa Group is committed to long-term growth somewhat than short-term income and the organization is willing to invest in the long-term development of technology and knows its threats and opportunities" and therefore comply straight to the organization imagination gains and effective gains as explained by Trott (2005) above.

ORGANISATIONAL CHARACTERISTICS THAT FACILITATE THE Advancement PROCESS

Discuss the main organisational characteristics that help in the technology process in the Bakhresa group.

Trott (2005) explains the next organizational Characteristics that Facilitate the Invention Process

Growth Orientation

It is seen as a a commitment to long-term growth rather than short-term revenue. Not absolutely all companies' first of all objective is progress. Some companies are set up merely to exploit a short-term opportunity, others would like to maintain the company at its existing size: the aim of ground breaking companies is to develop the business enterprise the actively arrange for the long-term, as it has been seen in the Bakhresa group of companies "The management of the Bakhresa Group is committed to long-term growth rather than short-term revenue and the business is willing to invest in the long-term development of technology and knows its dangers and opportunities. "

On top of this Trott (2005) added the following characteristics that assist in the invention process.

Vigilance

It is seen as a the ability of the business to understand its hazards and opportunities. Vigilance requires continual exterior scanning e. g. within the marketing function the activity would form part of general market trends and competitor examination collecting valuable information is a very important factor, but relaying it to the required individuals and functioning on it are two necessary associated requirements. Presently Bakhresa group is catering the fuel needs of customers in Zanzibar and Local bunkers. The eye-sight is to get into the international bunkering business in forseeable future since Zanzibar is the gateway to the East African shoreline.

Commitment to Technology

It is seen as a the willingness to invest in the long-term development of technology. Most impressive firms exhibit fortitude in permitting ideas to geminate and develop overtime. This need to be accompanied by a commitment to resources in terms of intellectual type with out a long-term treat it would be extremely difficult for the business to entice good experts. As observed in the Bakhresa group of companies technology is highly applied, most of the responsibilities are machinery operated. On the other hand the Company has a well reinforced IT system to perform its day to day operations.

PC Workstation

Internet Access

Satellite basic Fleet Management Alternatives - Tracking System

Fleet Cost and Maintenance Management System - Road Base

Daily Reporting - Fleet Management System

Real time location of vehicles at finger tips

Speed monitoring responses on screen by any means times

Telephone and Text message availability at all times

Acceptance of RISKS

It is characterized by the willingness to include high-risk opportunities in balanced portfolio. It means the determination to consider carefully risky opportunities. Capability to take measured risks and include them in a healthy portfolio of jobs. As an entrepreneur Bakhresa got risky to even in the international land but still think to disperse its wings all over the African countries.

Cross-functional Cooperation

It is seen as a mutual admiration among individuals and a willingness to interact across functions. Inter-departmental turmoil is a proper documented barrier to advancement. Often turmoil has been observed between marketing and R & D functions as the two groups often have very different hobbies.

Receptivity

It is seen as a the capability to be aware of, to identify and take effective benefit of externally developed technology. Most technology structured innovations require a combo of a number of different technologies. It would be unusual for all your technology to be developed in-house. That's the reason business is witnessing an in chasing volume of joint endeavors and alliances.

Slack

It is characterized by an ability to manage the innovation problem and offer room for imagination while organizations place a great emphasis on the need for efficiency, there is also a need for a degree of 'slack' to allow individuals room to think, experiment, discuss ideas and be creative.

Adaptability

It is seen as a a readiness to accept change. The development of new product improvements will invariably lead to disruptions to set up organizational activities. Major or radical inventions may lead to significant changes, although the two are not necessarily linked. The organization must be ready to accept change in the way it manages its interior activities. Otherwise suggested inventions would be stifled due to a reluctance to alter existing ways of working or even to learn new techniques.

Diverse Range of Skills

It is characterized by a blend of specialty area and variety of knowledge and skills organizations require people of a hybrid character who are able to understand a variety of technical content and help in the copy of knowledge within the company. It is the ability of the business to control this diversity of knowledge skills effectively that is placed at the heart of the advancement process. Bakhresa Group were only available in a humble manner with a small restaurant in the Slot City of Dar Ha sido Salaam, Tanzania, past three generations, it has emerged as a respectable business group in your community. The Group has its functions distributed in Tanzania, Zanzibar, Uganda, Kenya, Malawi, Zambia & most recently in Mozambique. There are several companies under its umbrella and also have investment funds mainly in Food and Drink Sector, Packaging, Logistics and PROPERTY.

The Bakhresa Group has generated companies working with variety of products from making of Food and Drink Sector, Packaging, Logistics and Real Estate and has become a market leader because of creativity and entrepreneurship.

THE ROLE OF THE AVERAGE PERSON IN THE Technology PROCESS

Explain the main element individual tasks within the creativity process and the actions they perform in the Bakhresa group

Trott (2005) points out innovation process is essentially a people process and that organizational composition, formal decision making operations, delegation of expert and other formal aspects of a so-called well run company aren't necessary conditions for successful technological innovation. The study of Rubenstein has revealed that certain individuals had satisfied a variety of roles that acquired added to successful know-how.

Technical Innovator:

This individual can be an expert in one or two domains. Generates new ideas and considers new and various means of doing things. Also referred to as the 'mad clinical'. Inside the Bakhresa band of companies there is no specialized innovator.

Technical/Commercial Scanner

This individual acquires vast levels of information from outside the group, often through online working. This might include market and complex information. For the company to endure and perform effectively, technical information is vital as observed in the Bakhresa group of companies.

Gatekeeper

This individual keeps enlightened of related advancements that occur beyond your organization through publications, conferences, colleagues and other companies. Passes information on to others, sees it easy to talk to colleagues. Serves as an information resource for others in the organization, as a result for the company to meet customer needs it's important to search for the exterior information to see what other organisation do.

Product champion

This individual sells new suggestions to others in the business. Acquires resources, intense in championing his/her cause, requires risks. According to Bakhresa group of companies there is no product champ.

Project Leader

This individual provides the team with authority and motivation. Plans and organizes the task ensures that administrative requirements are attained. Provides necessary coordination among team members sees that project moves onward effectively. Balances Project goals with organizational needs

Sponsor

This specific provides access to a power bottom within the business: a senior person. Buffers the Job team from unnecessary organizational constraints, helps the job team to get what it needs from other parts of the organization. Provides legitimacy and organizational self confidence in the project. The Bakhresa Group engages commercial scanner, gatekeeper and project innovator and sponsor to accomplish the innovation process. Even though the Bakhresa Group of companies lack product champion and complex innovator still the technology activities within the organization is great.

ESTABLISHING AN INNOVATIVE ENVIRONMENT AND PROPAGATING THE VIRTUOUS CIRCLE

How performed Bakhresa group set up innovative environment that propagates the virtuous group of innovation? Clarify its features

As from (Porter's 1985 cited in Trott 2005) explained that, given the value of invention, many businesses have spent enormous amount of cash trying to develop an environment that fosters advancement.

Creating a virtuous group of innovation means getting competitive benefit over others.

Virtuous group of innovation

The organization's

Reputation for innovation

High morale and Attraction of

Retention of creative creative people

people

Motivates people and organizational

Reduce stress encouragement of

Creativity and innovation

A determination in the

Org. to accept new

ideas

Development of

Innovative

Product

Reputation of the Organization

It takes many years to develop. It is strongly associated with overall performance. Some companies are able to achieve wide subjection of new products or new research as seen in the case evaluation Bakhresa band of companies were only available in a humble manner with a small restaurant in the Dock City of Dar Sera Salaam, Tanzania, in mid seventies, it has now surfaced as a respected business group in your community. The Group has its operations pass on in Tanzania, Zanzibar, Uganda, Kenya, Malawi, and Zambia and most lately in Mozambique.

Attraction of creative people

Creative people will be attracted to those companies that themselves are viewed as creative. TOP researchers and analysts will seek employment with such companies. Presently Bakhresa group of companies is an employer of more than two thousand employees associated immediately.

Organizational encouragement of creativity

The creativity should be supported with actions and resources with the time to be creative: Organization can try to build sufficient slack in to the system to allow for creative thinking and tolerates mistakes and faults and successful ideas need to be rewarded.

Development of Progressive Products

Developing new products that are genuine improvements weighed against products available. Taking an example of Bakhresa Food Products Limited (BFPL) is situated in Dar Sera Salaam, Tanzania and produces high quality, scrumptious and wholesome "Azam" brand Snow Creams, Fruit Juices, Frozen Chapattis and "Uhai" (means "Life" in Kiswahili) brand Pure Drinking Water.

Azam Bakeries, the greatest bakery in Tanzania, produces the favorite Azam brand bread, cakes and donuts. The state of the art technology is utilized for producing the bakery products making the business proud of supplying essential food in the united states.

It has today's biscuit factory producing the best possible varieties of biscuits. Many varieties of biscuits such as Chai, Creams, Sugar, Coconut, Nice, Marie, and Shortcake are popular in the united states.

Willingness to simply accept New Ideas

Many organizations suffer from an incapability to implement changes and new ideas even after rewarding the people involved with expanding those ideas. Once a new product idea has been accepted it is important that it's carried to conclusion. In future Bakhresa band of companies expect to trade

Lubricants

Jet A1

LPG

With 60odd resorts of 150beds capacity each, in Zanzibar there is also ample opportunity for bulk supply LPG (In tanks), if indeed they will able to organise logistics.

Increased Motivation and Reduced frustrations

Individuals within the business can see their ideas and work contributing to the performance of the business; they'll be encouraged still further: on the other hands if seemingly guidelines are constantly overlooked, this will lead to increased frustrations.

High Morale and Retention of Creative people

A rewarding and enjoyable working environment will hold on to creative people. This in turn should reinforce the business's innovative functions.

The Bakhresa Group, given the value of invention, has spent tremendous amounts of money trying to develop an environment that fosters advancement. The Bakhresa Group is aware of creating a reputation for advancement which helps propagate a virtuous circle that reinforces Group's expertise.

RECOMANDATION AND CONCLUSION

As observed in the case study analysis, Bakhresa group of companies is now expanding towards all over the Africa supplying products. The company mainly caters through the meals and drink products and service products. The organisation composition of Bakhresa group of companies is characterized by 'mechanistic' structure which is not significant conducive for boosting creativity process within organisation, to get more efficiency and efficiency I would recommend Bakhresa group of companies to get started on adopting 'organic' structure. Meanwhile the structure of Bakhresa group of companies lacks the product champion and technical innovator therefore i suggest also including those two individual assignments for maximum output of companies. Despite various company that falls under the umbrella of the Bakhresa band of companies the very best management of most sub companies is comprised by family members, something that might bring trouble when family instability happens.

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