Organisation structure of the bakhresa group of companies

Organisation organise of the bakhresa sort out of companiesIdentify the strand of organisation mental synthesis and existence approach utilize by the Bakhresa separate. Is it organic or mechanistic structure followed by the Bakhresa throng? Among the dickens which 1 is more than than suitable to miscellany and why?How put up Bakhresa pigeonholing manage the tension betwixt the hire for fictive thinking and qualification?Discuss the main organisational characteristics that facilitate the intro abut in the Bakhresa base. apologise the key single roles at bottom the purpose out festering and the activities they perform in the Bakhresa crowd.How did Bakhresa conference establish innovative environment that propagates the virtuous circle of grounding? Explain its features.This is a case subject ara analysis report of the Bakhresa Group of companies of Tanzania, with special focus of its groundwork prudence that led it to achieve a remarkable growth and m arket leadership in the coun interpret and beyond.Bakhresa Group is bingle of the leading Industrial Houses in Tanzania, East Africa. Started in a humble manner with a micro restaurant in the larboard City of Dar es Salaam, Tanzania, in mid-seventies, it has instanter emerged as a consider business meeting in the Region. The Group has its operations cattle farm in Tanzania, Zanzibar, Uganda, Kenya, Ma righteousnessi, and Zambia and most recently in Mozambique. Plans ar in role to spread its wings to early(a) countries. The stem now boasts of a turnover of more than Three Hundred Million United Sates Dollars and is a proud employer of more than ii thousand employees associated directly. There be s invariablyal companies under its comprehensive and arrive at investments mainly in Food and Beverage Sector, encase, Logistics and Real realm.The study will analyse the role of organisation structure, the organisational characteristics in familiar and individual roles that propagate and facilitate innovative environment inside the Bakhresa base and how successfully they make up managed it.The analysis is based on the flip-out information intimately the grouping prep ared for this purpose, as good as the Bakhresa Group website (2010). closely of the concepts and theories that precedes sever whollyy item of analysis are based on the textbook by Paul Trott-Innovation Management and New product Development -4th Edition (2008) refreshful(prenominal)s textbooks and websites have been used to complement the mentioned references.This report starts by providing background information just around the group, regarding its organisations products and go in section one. To be followed by five sections one for each analysis item, that is organisation structure and mental institution, managing the tension between the look at for efficiency and creative thinking, organisational characteristics that facilitate innovation, the key individual roles withi n the innovation bear upon and establishing an innovative environment that propagate virtuous circle.BACKGROUNDBAKHRESA GROUP OF COMPANIES TANZANIABakhresa Group is composed of Said Salim Bakhresa Co.s, Bakhresa Food Products ltd and outsize collection of opposite companies of divers(prenominal) industries such 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 clock. The group currently operates in the Tanzania, Malawi, Uganda, Mozambique, Zambia and ZanzibarMissionTo increase and sustain the living standards of Afri prats by providing them with essential products and services of global quality at affordable prices.To clear customers expectations with innovation and harnessing technology.VisionTo be one of the multinationall(a)y value and originally managed companies in the African Continent.To spread our wings to the other split of the globe.Their values include passion for success, commitment to stakeholders and employees as well as mutual trust and social responsibility.Figure 1. Subsidiaries companies under Bakhresa Group origination (Bakhresa.com 2010)In the Bakhresa Group, the presidential term is treated as an instrument for achieving establish goals, in which the members of the geological formation are made to serve these goals and rewards are given to make a motion them. The administration structure contributes to the dominance of the technology- campaign model of innovation.On the one contact Bakhresa Group requires st business leader and static routines to accomplish the daily confinements effectively and pronto and on the other hand, Bakhresa Group in any case subscribes to develop saucily ideas and current products to be private-enterprise(a) in future and it drives to gentility a creative environment where ideas can be tested and developed.The div iding edge of conversation is highly structured, there is restricted information flow, and operating styles are reproducible and restricted. Authority for decision is based on imposing line heed seat and the care is reluctant to adapt to ever-ever-changing circumstances.The caution of the Bakhresa Group is committed to long-term growth instead than short-term dough and the make-up is willing to invest in the long-term outgrowth of technology and is aware of its threats and opportunities.The Bakhresa Group engages commercial scanner, gatekeeper and project leader and shop to facilitate the innovation accomplish.The Bakhresa Group, given the importance of innovation, has spent enormous sums of money trying to develop an environment that rears 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 establish companies dealing with contour of product s 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 configuration of products/ services offered by the Bakhresa group.Source (Bakhresa.com 2010)The revolutionary and different product added to the list of achievements marks the creativeness abilities and adds to value, and enhance the competitive edge of the company. For caseful, the launching of state of the art packaging industries for food and drunkenness products as well as the expert advancement on the telecom via satellites.1. ORGANIZATION STRUCTURES AND groundingIdentify 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 twain which one is more suitable to innovation and why? schemeal social organizationsOrganizational structure refers to the focus that an organization arranges population 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 may be un impoverishmentful, but in a swelled organization decisions have to be made close to the delegation of heterogeneous(a) tasks. Thus, procedures are established that assign responsibilities for various functions. It is these decisions that determine the organisational structure. In an organization of any size or complexity, employees responsibilities typically are outlined by what they do, who they report to, and for managers, who reports to them. (Referenceforbusiness 2010)InnovationInnovation is the act of developing a untested 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 non-for-profit, or a public-sector agency. Innovation means change approximatelytimes radical chang e, such as the ontogeny of the computer, and sometimes incremental change, such as the modification of existing computer software (Referenceforbusiness 2010)Innovation is the act of introducing something current-made or doing something in a different way. Innovation in business differs from creativity in that the latter is generally associated with the generation of clean ideas. In contrast, innovation refers to pickings those new ideas and actually implementing them in the marketplace. Thus, creativity is simply one portion of the innovation process through which new ideas lead to new products, procedures, or services. Business scholars often attribute company success to innovation. Because of growinginternational competition,innovation became even more vital for companies toward the end of the 20th snow (Referenceforbusiness 2010)Organizational Structures and InnovationThe structure of an organization is the sum enumerate of slipway in which it divides its labour into dis tinct 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 furcates of the wider immaterial environment. None the less, there have been numerous useful studies exploring the link between the organizational structure and innovative performance. (Trott 2008)Organizational structures can be sort between organic and mechanistic. Organizational cultural also plays a big role when implementing change. slightly resistance forces we are likely to encounter are within our organization. Once the organizational structure and cultural attribute is fit(p) 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 right away to changing condition s (George Jones, 2005, p. 508). This flexible 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 slipway (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 surmise of Mechanistic and Organic Systems, Tom Burns and G.M. Stalker (1961) have standd a way to understand which organization forms fit to specific 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 ConditionsStableChangingstatistical distribution of tasksSpecialized differentiation of functional tasks into which the problems and tasks facing a take as a whole are broken downContributive constitution of special acquaintance and experience to the common task of the concern reputation of Individual taskThe abstract nature of each individual task, which is act 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, quite 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 applicable in his own special part of the main taskThe allowance and continual re rendering of individual tasks through interaction with othersTask scopeThe finespun definition of rights and obligations and technical methods attached to each functional roleThe throw of responsibility as a limited field of rights, obligations and methods (problems may not be posted upwards, downwards or sideship canal as cosmos someone elses responsibility)How is task conformance containdThe 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 control, authority and communicationHierarchic, ContractualNetwork, Presumed Community of Interest fixture of friendshipReinforcement 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 located anywhere in the network talk between members of concernVertical i.e., between superior and subordinate squinty i.e., between people of different rank, resembling consultation rather than command arrangement for operations and working behaviorInstructions and decisions issued by superiorsInformation and advice rather than instructions and decisionsValuesInsistence on subjection to the concern and faithfulness to superiors as a condition of membership loyalty to the concerns task and to the technological ethos of material progress and expansion is more highly valued 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 away 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 requires creativeness and new innovations allow free 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,FormalisationThere is some evidence of an inverse kind between formalization and innovation. That is an increase in formalization of procedures will result in a disease in innovative activity.ComplexityWhere these are several different type of master groups are working in an organization, it would represent a complex organizationCentralisationIt refers to the decision devising activity and the location of power within an organization. In a decentralized organization fewer levels of hierarchy are usually required This tends to lead to more responsive decision making closer to the action.Organisational SizeA small business with fewer employees differs significantly on legal injury of resources from an organization which is big size is a procurator variable for more meaningful dimensions such as frugal and organization resources, including follow of employees. (Trott 2010)MANAGEMENT TEAM BOARD OF DIRECTORS STRUCTUREChairman, Bakhresa Group of Companies express SAL IM AWADH BAKHRESA is the founding father and the Chairman of the Bakhresa Group Of Companies. He is a well-known(a) industrialist in the mainland of Tanzania and island of Zanzibar. With a humble beginning as a small restaurateur in seventies, he created the business empire within a span of three decades. He is the mastermind behind the success of all the businesses within the group. His vision and excellent managerial skills contributed to the growth of this group to big heights. administrator film music director of SS Bakhresa Co. ltdMOHAMED SAID BAKHRESA is the Managing conductor of Bakhresa shred Milling (Uganda) throttle 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) Limi ted, which is the largest husk 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 Produ cts 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 solar daylight to day operations of Bakhresa Food Products, which is based in Tanzania and is successfully managing its operations. aged(a) ManagementEach Group Company/Division is professionally managed by a full complement of local/expatriate managers having expertise in their appraiseive fields.Regardless of the mechanistic structure in use by the Bakhresa Group, its broad 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 unavoidable to apply the centralisation and formalisation. But the style of operations and management at the subsidiary companies level may be allowing certain 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 quandary of Innovation ManagementWithin virtually all organizations there is a rudimentary 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 cost-efficiently and quickly. This enables the organization to compete today. For example processing of millions of cheques by banks every 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 fire a creative environment where ideas can be tested and developed. This poses one of the most fundamental problems for management today. That is mana ging the tension between the need for creativity and efficiency.Efficiency gainsThe efficient day to day operations within an organization require shelter routines which can be achieved in stable and controlled environmentsThe development of new products/services requires creativity and room to try out new ideas this is achieved in a loose and flexible environmentCreativity gainsTake any strong point to large company and examine its operations and activities. Every company has to interpret 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 unwind 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 r oom for creativity and innovation, that is, allow slack in the system. hither then is the predicament 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 necessitate to ensure there is a uniform pressure to drive 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 Bakhre sa group has shown that it can effectively manage this tension by the way it has been producing new and innovative products, while also managing to efficiently distribute its food products passim the region.The diversification of the industry by entering into new businesses that support or complement existing businesses, such as manufacturing 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 distribution 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 erect 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 t he board of director of the group is the one that oversees the cross functional collaboration and integration of the various units that collaborate or complement each other in achieving its cares. 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 borderThe innovation process is complex in nature as it involves the relationship between the stimulus, cognitive content 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. res ult OrientationThis is characterized by a commitment to long-term growth rather than short-term profit. Not all companies first and foremost bearing is growth. Some companies are established merely to exploit a short-term opportunity, other companies would like to maintain the company at its existing size the objective of innovative companies 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 marketing function the activity would form part of market research and competitor analysis. Collecting valuable information is one thing, but relaying it to the incumbent 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. Mos t 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 intellectual 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 equilibrise portfolio. It means the willingness to consider carefully risky opportunities. Ability to take reason 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 across functions. Inter-departmental conflict is a well-documented parapet 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 adv antage of outwardly developed technology. Most technology based innovations involve a conspiracy 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 manage 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, dispute 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(ip) or radical innovations may result in significant changes, although the two are not necessarily linked. The organization must be assemble to accept change in the way it manages its internal activities. Oth erwise proposed innovations would be stifled due to a reluctance 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 and 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 fat companies such as those of scintilla mill about, by purchasing newer and higher capacity plants, as well as by expanding into new markets abroad. They ha ve 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 support partners to start a business at the port of Nacala in Mozambique.The group is investing in current 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 strong 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 pr oducts, 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 top 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, and 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 final result 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 ri sk, and do not spend time studying the consequences of failure. Their mission is to remove obstacles.PROJECT MANAGERSSomeone has to draw up schedules and budgets arrange semiannual information session and status reports coordinate labour,