An organogram of a business company reflects the pattern of its internal management. Square Toiletries has a standard organogram. Square Toiletries is a private limited company. It was established in 1988. Its products include: soap and liquid soap, tooth paste, tooth powder, sanitary napkin, hair oil, lip gel and so on. The study was conducted to collect the organogram of Square Toiletries Limited and have a thorough analysis of the same. The study was conducted following scientific methodologies. The study of the organogram of Square Toiletries Ltd (STL) shows most of the characteristics features of a successful management.
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The STPL has a strong management with a Board of Directors with a Chairman at the top of the PYRAMID. The Board decides on all policy matters while the Managing Director leads the whole process of implementing the policies. The Board sits in annual general meeting (AGM) once in a year. The Board also meets monthly to review business progress in terms of both quality and quantity, solve problems, to draw new project proposals, review monthly fund requirements and so on. Monthly/periodic coordination meetings are used as another major management tool for monitoring. Besides the Board, an Advisory body does also function to provide timely guidance.
The Managing Director functions as the CEO and is supported by a strong team comprising Generals Managers, Deputy General Managers, Assistant Managers, Zonal Managers, Area Managers and other executives. STPL divides Bangladesh into 6 zones including 2 (two) in Dhaka for facilitating satisfactory promotion/sales of the company’s products.
The STPL runs as many as 12 (twelve) departments and 18 brands.
An 8-member Board of Directors provides all policy supports. Decisions are taken at the Body’s meetings with vote of the majority members. Operational matters are decided by particular departments. Directors are shareholders and owners of the company.
The Marketing Department is especially entrusted with the task of ensuring profitability of the company.
The company’s activities are regularly monitored by field visit, coordination meeting and, monthly/periodical progress report.
The services of the employees of STPL are regulated under standard service rules. STPL follows a women friendly HR policy. STPL is an equal opportunity employer. Quality and skill are what counts with STPL.
Manpower setting is planned prior to their employment. At Square Toiletries, over 2, 200 employees are employed.
The organogram of Square Toiletries Ltd is one of the standard organograms usually found among business houses.
1. 0 Introduction
An organogram of a business company reflects the pattern of its internal management. It is like a mirror wherein different features of management of a company as well as its major involvements and functions are reflected. World famous Square Group in general and its sister concern Square Toiletries in particular do have their respective organogram like many other corporate business houses doing big business in Bangladesh. To understand the secrets of successes of this reputed corporate Group it is necessary to have a clear idea of their management pattern and the study of Organogram of Square Toiletries Private Limited (STPL) offered such an opportunity to young business administration students of IBA, Dhaka University. 1. 1 An Overview of Square Toiletries Ltd
Square Toiletries is a private limited company limited by shares. It was established in 1988 and launched its business as Jui hair care oil. It became a private limited company in 1994. It is one of the many concerns of the world famous Square Group. The company deals in short-lived goods called FMCG, i. e., Fast Moving Consumer Goods and so there is no provision for share market in the company. STPL manufactures and markets a wide array of consumer toiletries products ranging from Hair Oils, Toilet Soaps, Baby Care, Dental Care, Shaving products, Fabric Care, summer to winter products. A small study was conducted recently (April 2013) to have an analysis of the organogram of this company with a view to understand their management pattern and to have an insight into their successful business in Bangladesh in the field of toiletries. Renowned business icon Samson H. Chowdhury founded the Square Group in 1958. Since inception, it has today burgeoned into one of the top line conglomerates in Bangladesh. With an average Annual turnover of over US$ 200 million and a workforce of about 3500 the SQUARE Group is a true icon of the Bangladesh business sector. Square Toiletries Limited (STL) is the leading Bangladeshi manufacturer of toiletries and cosmetics products operating with over 50 international quality products. STL started its challenging journey with branded coconut oil under the brand “ Jui” in 1988. Currently STL, an ISO 9001: 200 certified company, is operating with the trust of Bangladeshi consumers with 18 famous brands.
2. 0 Objectives
The present study was conducted to achieve the following objectives: 1- To collect the organogram of Square Toiletries Private Limited and have a thorough analysis of the same; 2- To find out different features of management pattern of the company as presented in the organogram 3- To identify different aspects of an ideal organogram of a successful business concern.
3. 0 Methodology
The study was conducted following scientific methodologies as listed below: 1- Literature survey: study of the publicity materials
2- Website browsing: to get more info including their logo etc 3- Interview with management: discussion with key personnel
4- Field visits: to physically visit one/more of their offices and inspect their environment.
4. 0 Major Findings
A study of the organogram of Square Toiletries Ltd (STL) shows most of the characteristics features of a successful management. The following is brief presentation of the findings of this study:
4. 1 Management Pattern
The STPL has a strong management with a Board of Directors with a Chairman at the top. Square’s Graphical presentation of hierarchy is PYRAMID. A Chairman heads the Board as the formal head of the company and a Managing Director (MD) as the executive head of it. The Board decides on all policy matters under the wise and active leadership of the Chairman while the Managing Director leads the whole process of implementing the policies. The MD works under the supervision of Board of Directors led by the Chairman. The MD is reportable to the Board for his duties and responsibilities. The Board sits in annual general meeting (AGM) once in a year (usually in February) and takes policy decisions. The AGM decides about future projects, appoints auditors, adopts annual business reports, audit reports, annual budget, announce dividends, and appoints MD and other key executives and so on. The Board also meets monthly as well as occasionally on emergencies to review business progress in terms of both quality and quantity, solve problems, to draw new project proposals, review monthly fund requirements and so on. Monthly/periodic coordination meetings are used as another major management tool for monitoring. The Board comprising the shareholders, the Chairman and the Managing Director functions as the pivotal policy and management elements as appears in the organogram of the Square Toiletries Ltd. An Advisory body does also function to provide timely guidance and advices covering policy and strategic issues of the company.
4. 1. 1 The MD and Key Players
The Managing Director functions as the CEO and is supported by a strong team working under his direct supervision. The MD is assisted by one/more Deputy Managing Directors ranking next to him. Then several Generals Managers (GMs) hold charge of one or more specific departments. The GMs are assisted by respective DGMs and AGMs. Next to them Managers play key role leading one or more sections/programs who are assisted by Assistant Managers and senior and junior executives. Zonal Managers, Assistant Zonal Managers and Area Managers also play key role. According to Sales Department, Bangladesh has been divided into 6 zones including 2 (two) in Dhaka for facilitating satisfactory promotion/sales of the company’s products. Zonal Managers
report to national AZM. In each Zone, there are a number of Area Coordinators followed by Supervisors and Sales Representatives.
4. 2 Departments
The STPL runs as many as 12 (twelve) departments for proper management of businesses with Sales & Production being the largest departments. The STPL Departments include:
1. Product Development: mainly Chemistry background people are engaged 2. Marketing: activities are directly related to profitability 3. Sales: export is done under this dept
4. Technical Service Department (TSD): deals with Purchase of a machine for making new Products
5. Commercial: deals with buying of raw & packaging materials) 6. Production
7. Production Planning Inventory Control (PPIC)
8. Engineering: required when a new machine is installed
9. Quality control
10. Human Resource
12. Finance: deals with all monetary activities
It may be mentioned that the company has been running 18 brands in total including 16 Pabna made brands and 2 Rupshi made brands.
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4. 3 Policy Formulation & Decision Making process
A 7-member body provides all policy supports required for the company. Founder Chairman Samsung H. Chowdhury used to lead the process till his demise (1926-2012) and the current Chairman Mr. Samuel H. Chowdhury has recently replaced the former Chairman. Decisions are taken at the Body’s meetings with vote of the majority members although the first option is always to reach a consensus. At executive level, HR plays key role in reaching overall policy decisions that are most suitable for company. However, operational matters are decided by particular departments. A matter about which at least 3 departments agree, higher management usually does not disagree. Thus, operational policies/strategies are formed through participatory method within STPL management.
4. 4 Finance
Directors are shareholders of this company. They are the owners. They always provide all required funding for business. They solely share profit/loss of the company. They may pursue the option for bank loan or other sources as well.
4. 5 Business and profitability
All twelve Departments work in chain system to implement the policies and decisions in a consistent manner. The Marketing Department is especially entrusted with the task of ensuring profitability of the company. They do their job through pursuing different activities including: brand, media, MIS (marketing Info System), research, event and trademark and so on. Within Square Toiletries there are 4 musts for any factory: production, QC, engineering and inventory. These are considered fundamental elements for ensuring profitability of the company. 4. 6 Monitoring system
All levels of manpower engaged in STPL serve the purpose of monitoring for the activities of their respective immediate next level. Field visit is regarded as an important tool for monitoring. Coordination meetings at different levels are another effective tool. Monthly/ periodical progress reports are also considered as important. Three Departments including Quality Control, Accounts & Finance directly report to MD. They also serve monitoring purpose for the MD who regards them as the third eye.
4. 7 Adaptation with Organizational Culture
4. 7. 1 Common Issues: The services of the employees of STPL are regulated under standard service rules that is in effect at present. Under the rules, activities like hiring, firing, motivation and incentives etc are done fairly without any scopes for any irregularities. Reference is strongly discouraged. Fair Selection process is maintained in all matters of hiring staff. Employees are offered fair package including basic salary, house rent, daily allowance, transport allowance, medical allowance and so on besides retirement benefits including provident fund, gratuity etc. Secured transport is given to the factory workers. New policy of dining within office campus in the visited Square office and doctor’s daily visit to the factories are motivational programs of the company that testify to practice of standard organizational culture within STPL management environment. 4. 7. 2 Gender Sensitivity: STPL follows a women friendly HR policy. With STPL gender discrimination is very LOW. Females comprise about 60% of non-management staff. At Pabna plant, 50% of the staff are females. Transport facilities are provided to 100% of the female staff at Pabna. Supporting the females is a constant policy of the Square Group. At Pabna, females are not required to work outside the factory which is a favour to them.
4. 8 Diversity Management
STPL is an equal opportunity employer. Quality and skill are what counts with STPL. Its HR policy does not prevent members of any ethnic or minority group, religion, PWDs, females, and other backward sections from applying for jobs.
4. 9 Manpower Setting
At Square Toiletries, over 2, 200 employees are employed. Employees are posted to their work places on the basis of their skill only. Manpower setting is planned prior to their employment. Main transfers are done due to market gap, promotion and personal reasons. Only a few cases of transfer take place at Production department. Transfers in other departments are just office transfers only. Often, to help peers to improve, they are transferred to other markets.
5. 0 Concluding Remarks
The organogram of Square Toiletries Ltd is one of the standard organograms usually found among business houses. Its uniqueness lies in the fact that its only body that is, the Board of Directors, functions both as General Body and Executive Body. Unlike many other corporate business houses, the Square Toiletries Ltd has an Advisory body. Square is a leading corporate business house in Bangladesh contributing largely to our economy. Its multiple products are widely popular for their quality and reasonable price. The owners/members of this company are renowned business magnets and leaders
in the field of entrepreneurships.