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8/17/2019 Supply Chain Process of SQUARE Group of Ltd. of Bangladesh
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An Assignment on
The Supply Chain Process of SQUARE Group of Ltd. of angladesh.
Submitted To
rig Gen !d "ahurul Alam #Retd$
Course Teacher Of
Human Resource Management (MGT 5503)
Preared !"
Grou#$
!atch% &&'
Serial %ame &' %o. Program
(). Syed *a+le &mam !, !A
0$ Md Hea *ddin M# M!'
03 Md +mam Hossain M# M!'
0& Habibur Rashid !ubu M# M!'
05 S"fuah ',am Samrat M# M!'
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AC-%/LE'GE!E%TS
-irst of a .e .oud i/e to than/ the amight" 'ah because of successfu cometion of
this assignment e .oud i/e to than/ our honorabe Teacher rig Gen !d "ahurul
Alam0 for ro1iding us .ith the oortunit" to .or/ on ro2ect and gain a rea ifeeerience e aso than/ a our grou members 4 friends .ho insired us 4 heed us
to buid confidence and ut us in a dee concentration to carr" on our course .or/ and
suorted us at the end .ith great eceence e ast" .oud i/e to eress our
areciation to our &nternational &slamic Uni1ersity Chittagong #'ha2a Campus$ and .e
are e1entua" gratefu to the *ni1ersit" and its eceence that .or/s for education
encourages us and creates /no.edge as /no.edge is o.er
SQUARE Group of Ltd. of angladesh
&%TR'UCT&%
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6ffecti1e" integrating the information and materia fo.s .ithin the demand and su"
rocess is .hat su" chain management is a about ' su" chain management s"stem
(SCMS) is user#interfaced and designed to ro1ide information and information rocessing
caabiit" to suort the strateg" oerations management ana"sis and decision#ma/ing
functions in an organi,ation7s su" net.or/ SCMS ro1ides high 8uait" ree1ant and
time" information fo. that effecti1e" suorts decision#ma/ing for in1entor" reenishment
caacit" acti1ation and for s"nchroni,ing materia fo.s at a tiers .ithin the su" chain +n
recent "ears there ha1e been some efforts on designing an efficient information s"stem for
su" chain management9 but man" of them ha1e ed to faiure The three main uroses of
this aer are to (:) identif" SCMS and its characteristics ($) introduce and categori,e critica
faiure factors (C--s) for SCM and SCM+S and (3) in1estigate the eanator" o.er of these
C--s on the erformance of su" channe rocesses erformed through SCMS
Su" chain management s"stem (SCMS) is the o1ersight of materias information and
finances as the" mo1e in a rocess from suier to manufacturer to .hoesaer to retaier to
consumer Su" chain management in1o1es coordinating and integrating these fo.s both
.ithin and among comanies +t is said that the utimate goa of an" effecti1e su" chain
management s"stem is to reduce in1entor" and Communication is the transmission of
information from one grou or indi1idua to another !usiness communication is 1er"
essentia no. da"s to ma/e contacts .ith eoe and for trading hene1er a business .ants
to ma/e a good business roosa or introduce a ne. concet communication a"s a 1er"
big roe Communication aso hes in the con1e"ing of message among the different
emo"ees or customers of the organi,ation Communication hes to direct emo"ees to
attain their goas .ithout an" misunderstanding or confusion This aer discusses the
different roes of su" chain management different roe 4 .a"s of su" chain
management The stud" aso tried to find out .hat is the robem and shortage of S;*'R6<s
su" chain management s"stem to imro1e themse1es
R&G&% * T3E ASS&G%!E%T
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This reort has been reared to ma/e a stud" on An overview of the SQUARE =imited of
Bangladesh as a art of the fufiment of assignment re8uired for the cometion of the M!'
rogram (3rd semester) of the business facut" of +nternationa +samic *ni1ersit" Chittagong
The reort .as reared under the suer1ision of rig Gen !d "ahurul Alam0 Lecturer of
&nternational &slamic Uni1ersity Chittagong0 'ha2a e are 1er" much than/fu to him for
assigning such t"es of ro2ect .or/
4ECT&5E * T3E ASS&G%!E%T
The Main Ob2ecti1e of the stud" are to earn ho. to reare an assignment Our honorabe
course teacher assigns us to reare this assignment so that is the 2obs mar/et .e can erform
effecti1e" and aso enighten the good.i of our *ni1ersit" as .e as our teachers Other
ob2ecti1es of this assignment are%
Su" chain
Oerations rocess
>istribution oic"
Communication rocess
-orecasting Panning
O1er1ie. of su" chain management Cororate oerationa resut
The Process of +nformation Sharing and +ts !arriers etc
ac2ground of SQUARE
SQUARE toda" s"mboi,es a name ? a state of mind !ut its 2ourne" to the gro.th
and roserit" has been no bed of roses -rom the incetion in :@5A it has toda" burgeoned
into one of the to ine congomerates in !angadesh S8uare Pharmaceuticas =td the
fagshi coman" is hoding the strong eadershi osition in the harmaceutica industr" of
!angadesh since :@A5 and is no. on its .a" to becoming a high erformance goba a"er
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SQUARE the most inno1ati1e coman" in !angadesh ioneered eorts of medicine from
the countr" bac/ in :@AB The" ha1e aso been acti1e in eorting other harmaceuticas and
this is one of the main reasons for their success and their increased credibiit" as a coman"
The founding chairman of this high" inno1ati1e coman" .as Samson H Cho.dhur" .ho
died in $0:$ Mr Samson H Cho.dhur" .as abe to ut together S8uare .ith three of his
friends +t .as then aroriate" named S8uare because it .as started b" four friends
6ecuti1e management of the coman" is ed b" the managing director The eecuti1e
manager has a di1ersified roe in that the" an the segment ans for each di1ision .ithin
S8uare S8uare reai,es that the" o.e a certain ortion of their success to their sharehoders
The" rotect their caita and this ensures the highest gro.th for assets and it increases their
otentia for future success S8uare<s emo"ees are .hat ma/e u the bac/ bone of this u
and coming coman" The" are aso the oerationa strength of the coman" S8uare stri1es
to comensate their emo"ees .ith ac/ages that gi1e them saar".ages bonuses
ao.ances and retirement benefits
S8uare .or/s hard to ha1e a coman" that is de1oid of maractice and is socia" a.areThe" a1oid an" /ind of beha1ior that is corrut for the en1ironment or dishonest to societ"
This is a socia" and en1ironmenta" a.are coman" that a.a"s oerates at the highest of
mora standards The" a.a"s reort to their sharehoders and the" stri1e for eceent
go1erning in a areas of the coman" The" 1ie. business as a means to gain materia and
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cutura .e# being This eads to a buid#u of .eath and mora integrit" This is art of the
norma socia and economic rocess that the .ord faces dai" through ci1ii,ation
The" ma/e it their goa to ro1ide their customers .ith the highest 8uait" heathcare
roducts that the" ossib" can This ensures good benefits to their sharehoders and
sta/ehoders The" aim to retain their ob2ecti1es that the" ha1e free" stated in their mission
Recent" S8uare has etended their ser1ices to e1en a broader area and are eected to
continue their successfu ath
'E*&%&T&% * SUPPL6 C3A&% !A%AGE!E%T #SC!$
Su" chain management (SCM) is the o1ersight of materias information and finances as
the" mo1e in a rocess from suier to manufacturer to .hoesaer to retaier to consumer
Su" chain management in1o1es coordinating and integrating these fo.s both .ithin and
among comanies +t is said that the utimate goa of an" effecti1e su" chain management
s"stem is to reduce in1entor" (.ith the assumtion that roducts are a1aiabe .hen needed)
's a soution for successfu su" chain management sohisticated soft.are s"stems .ith
eb interfaces are cometing .ith eb#based aication ser1ice ro1iders ('SP) .ho
romise to ro1ide art or a of the SCM ser1ice for comanies .ho rent their ser1ice
'E*&%&T&% * SUPPL6 C3A&% !A%AGE!E%T #SC!$ *L/
Su" chain management fo.s can be di1ided into three main fo.s%
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• The roduct fo.
• The information fo.
• The finances fo.
SQUARE toda" is a name considering Pharmaceutica .ord as .e as s"non"m of 8uait"#
be it toietries heath roducts teties 'gro Det roducts information technoog" and fe.
more !ut in the "ear :@5A the coman" .as origina" started .ith Pharmaceuticas Eo.
that sma coman" of :@5A is a ubic" isted di1ersified grou of comanies emo"ing
more than :$000 eoe The current "ear" grou turno1er is more than 300 miion *S>
' these .ere ossibe due to Samson H Cho.dhur"<s inno1ati1e ideas tireess efforts
erse1erance and dedication .ith sef#confidence .hich contributed to his successfu
achie1ements
The roduct fo. incudes the mo1ement of goods from a suier to a customer as .e as
an" customer returns or ser1ice needs The information fo. in1o1es transmitting orders and
udating the status of dei1er" The financia fo. consists of credit terms a"ment
schedues and consignment and tite o.nershi arrangements There are t.o main t"es of
SCM soft.are% anning aications and eecution aications Panning aications use
ad1anced agorithms to determine the best .a" to fi an order 6ecution aications trac/
the h"sica status of goods the management of materias and financia information
in1o1ing a arties
Some SCM aications are based on oen data modes that suort the sharing of data both
inside and outside the enterrise (this is caed the etended enterrise and incudes /e"
suiers manufacturers and end customers of a secific coman") This shared data ma"
reside in di1erse database s"stems or data .arehouses at se1era different sites and
comanies !" sharing this data FustreamF (.ith a coman"7s suiers) and Fdo.nstreamF
(.ith a coman"7s cients) SCM aications ha1e the otentia to imro1e the time#to#
mar/et of roducts reduce costs and ao. a arties in the su" chain to better manage
current resources and an for future needs
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+ncreasing numbers of comanies are turning to eb sites and eb#based aications as
art of the SCM soution ' number of ma2or eb sites offer 6#Procurement mar/etaces
.here manufacturers can trade and e1en ma/e auction bids .ith suiers !asic research
8uestion of the stud" is .hether S8uare Coman" as a .hoe can manage su" chain
roer"
'E*&%&T&% * C!!U%&CAT&% R S3AR&%G &%*R!AT&%
' modern communications s"stem is first concerned .ith the storing rocessing and
sometimes storing of information before its transmission The actua transmission then
foo.s .ith further rocessing and the fitering of noise (6EE6>I :@@A)
Communication must incude both the transference and understanding of meaning
(RO!!+ES $003) Communication is the transmission of information and meaning from
one indi1idua grou to another (G*--I $000) Communication means encoding the idea
or concet and getting the feedbac/ of ho. the recei1er is decoding the idea or concet
Therefore .ithout feedbac/ no communication .i haen or eist (H*SS'+E $005)e
said communication is Jho. .e share an" information .ith othersK So .e can define
communication as a transfer of meaningfu message to the recei1er .ith the hoe to recei1e a
feedbac/
A% 5ER5&E/ * SUPPL6 C3A&% !A%AGE!E%T
Su" Chain Management as a concet has been .ide" accredited to a !oo, 'en
consutant named eith Oi1er .ho in :@A$ defined the concet as foo.s% JSu" chain
management (SCM) is the rocess of anning imementing and controing the oerations
of the su" chain .ith the urose to satisf" customer re8uirements as efficient" as ossibe Su" chain management sans a mo1ement and storage of ra. materias .or/#
in#rocess in1entor" and finished goods from oint#of#origin to oint#of#consumtionK
This seems to be the eariest ubished definition and therefore aces the concet of Su"
Chain Management at aroimate" $L "ears od e can see that JSu" ChainK .ithout
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the JManagementK is referenced in the definition so .e /no. that the genera idea of a
su" fo. through a business .as recogni,ed rior to Oi1er<s definition hat Oi1er
rea" catured .as the conscious and deiberate contro integration and management of the
business functions contributing to and affecting that su" fo. through the business for
the urose of imro1ing erformance costs feibiit" etc and for the utimate benefit of
the end customer
The concet has been defined in simer terms since that time and is often catured .ith fi1e
.ords% Pan Source Ma/e >ei1er and Return !oth of these definitions aude to a
manufacturing origin but of course Su" Chain Management is as ree1ant to ser1ice
retai distribution and most other t"es of comanies as it is to manufacturing The area of
Su" Chain Management has en2o"ed a meteoric rise in significance o1er the ast t.ent" to
thirt" "ears as businesses ha1e tried to estabish ad1antage and fet the ressure to /ee u
in an increasing" homogeneous and cometiti1e goba business en1ironment
aanese manufacturing comanies brought great emhasis to the area of Su" Chain
Management in the :@A0<s and ear" :@@0<s '.areness of Su" Chain Management toos
such as Just +n TimeK and Jan !anK sread raid" and became goba" acceted best
ractice amongst 1oume manufacturing businesses estern businesses raced to /ee ace
.ith a raid" changing en1ironment dragging their su" bases and sometimes emo"ees
behind them 't the same time comanies i/e S'P and Orace .ere de1eoing the come
+T s"stems that .oud be essentia for enabing arge come businesses to effecti1e"
integrate and managing the sub areas that combined to ma/e come su" chains
Of course the eements of Su" Chain Management ha1e a.a"s eisted in business hat
changed .as the .iingness of businesses to recogni,e the inter#reationshi of the 1arious
sub areas and to ursue the benefits generated through coordination and integration both
from a strateg" anning ersecti1e and oerationa"
The sub areas comrising a su" chain incude%
-orecastingPanning PurchasingProcurement =ogistics Oerations +n1entor" Management
Transort arehousing >istribution Customer Ser1ice
Toda" Su" Chain Management is an acceted term in our business gossar" Ho.e1er it
is difficut to find a standard mode of Su" Chain Management oerating in the business
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communit" e continue to see 1ariations on the theme Some business .i refer to and
manage their su" chains in a coordinated and a encomassing fashion incuding a of
the sub areas defined abo1e Others .i integrate some eements of the su" chain for
eame urchasing and ogistics and ca this Su" Chain Management Man" .i refer
concetua" to Su" Chain Management but on" address it secifica" at the genera
management e1e
One area of confusion arises because Su" Chain Management is both a hori,onta
business function (ie managing the su" chain in a business) and a 1ertica industr"
sector (ie businesses in1o1ed in managing su" chains on behaf of their cients) '
coman" i/e T>G oerates as a su" chain ser1ices ro1ider .ithin the 1ertica su"
chain industr" sector !ut each of the cients ser1iced b" T>G .i emo" su" chain staff
.ithin their business oerating on a hori,onta basis across their organi,ation The Jsu"
chain industr"K sector as the 1ertica is often referred to is arge" restricted to transort and
storage t"e oerations >istributing roducts on behaf of cients hereas the hori,onta
su" chain functiona areas encomass the entire su" chain sectrum across a business
Su" Chain Management has matured from a comeing method of deri1ing cometiti1e
ad1antage to a Jtic/et to rideK +t is no. a baseine eectation for an" coman" .ishing to
comete in the $:st Centur" and .ith that the rofessions and occuations comrising
Su" Chain Management are no. firm" entrenched in the armor" of essentia business
eecuti1es
T3E SU AREAS C!PR&S&%G SUPPL6 C3A&% !A%AGE!E%T
The sub areas comrising Su" Chain Management are defined further beo.%
*orecasting 7 Planning
' business needs to forecast and an To oo/ for.ard and redict .hat .i be re8uired in
terms of resources and materias in order to dei1er their roduct or ser1ice to their customer
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in a time" manner +n this area .e find acti1ities such as demand anning in1entor"
anning caacit" anning etc
Purchasing 7 Procurement
The commercia art of the su" chain is urchasing Other.ise it<s /no.n as !u"ing or
Procurement This is .here a business identifies suiers to ro1ide the roducts and
ser1ices that it needs to ac8uire in order to create and dei1er its o.n ser1ice or roduct
Costs and terms of business are negotiated and agreed and contracts created Thereafter the
suiers< erformance and future contractua arrangements .i be managed in this area
This area of the business is sometimes referred to as urchasing sometimes rocurement
bu"ing sourcing etc Ho.e1er a tites reate to the ac8uisition of materias and ser1ices
The difference bet.een urchasing and rocurement is arge" academic as .hist there is a
theoretica difference bet.een them businesses use the tites interchangeab" for the t.o
1ariations of acti1it" Iou .i for eame find manufacturing comanies .ith urchasing
deartments that are actua" doing rocurement roes and "ou .i find ser1ice based
organi,ations .ith rocurement deartments but in fact doing urchasing roes +n its strictest
definition urchasing is imited to the actua commercia transaction and no more .hist
rocurement incudes the .ider eements of the ac8uisition incuding ogistics and
erformance management
Logistics
+n its strictest definition ogistics refers to the mo1ement of goods or materias .hether
inbound through or outbound +n some manufacturing businesses forecasting and anning
.i be found .ithin a ogistics deartment in other businesses ogistics .i be ecusi1e"
managing the mo1ement and transortation of goods and materias
perations
Oerations are a genera management t"e acti1it" ensuring that a business uses its resources
effecti1e" to meet its customer commitments *sua" referring to the con1ersion acti1it" of
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the business ie the oint .here the ac8uired resources andor materias are con1erted into
the roduct or ser1ice that the business is seing on to its customers
&n1entory !anagement
Sometimes found .ithin =ogistics Management or >emand Panning or Oerations
+n1entor" Management t"ica" ta/es resonsibiit" for both the reenishment of h"sica
stoc/ the e1es of h"sica stoc/ and of course storage and issue of h"sica stoc/ Stoc/
ma" be materias and goods sourced from suiers .or/ in rogress or finished goods
a.aiting saedisatch
Transport
Transort management can in1o1e the contro of a coman" o.ned feet of 1ehices
coecting mo1ing or dei1ering materias and goods or managing transort ser1ices
sourced from a 3rd art" transort ro1ider
/arehousing
=i/e transort management .arehousing can in1o1e the contro of coman" .arehouse
sace or managing .arehouse sace sourced from 3rd art" ro1iders.
'istri8ution
>istribution in1o1es the h"sica distribution of the coman"<s roducts to the sub#
distributor or direct" to the customer base T"ica" this is a combined transort and
.arehousing oeration resonsibe for storing and dei1ering roducts to meet the
customer<s needs 'gain this combined acti1it" .i often be aced .ith a 3rd art" ser1ice
ro1ider .ho .i contro and imement the rocesses
Customer Ser1ice
Most eoe do not recogni,e customer ser1ice as art of su" chain management but it is
in fact the fina iece in the 2igsa. Ha1ing ta/en the business inuts created and dei1ered a
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roduct or ser1ice the fina eement is to chec/ that the customers eectations .ere
achie1ed and manage an" actions necessar" to meet "our customer obigations and
commitments
Supply Chain !anagement System &n S9uare
-or an" organi,ation su" chain management communication rocess is 1er" imortant 't
resent e1er" coman" is tr"ing to grab the atest su" chain management communication
method to get the best benefit !efore going to discuss the su" chain management
communication s"stem of S;*'R6 + .ant to discuss a itte about the coman"
An 1er1ie: f SQUARE
The coman" .as founded in :@5A b" Samson H Cho.dhur" aong .ith three of his friends
as a ri1ate firm +t .ent ubic in :@@: and is current" isted on the >ha/a Stoc/ 6change
S8uare Pharmaceuticas =td the fagshi coman" is hoding the strong eadershi osition
in the harmaceutica industr" of !angadesh since :@A5 and it has been continuous" in the
:st osition among a nationa and mutinationa comanies since :@A5 S8uare
Pharmaceuticas =td is no. on its .a" to becoming a high erformance goba a"er The
8uait" of S;*'R6 and en1ironmenta concerns are cear" stated through decared
oicies +n the "ear of :@@$ it had on" A0 miion turno1ers but in the "ear $00& it .as
around $&00 miion
STRATEG&C US&%ESS U%&T ; SUS&'&AR&ES
SQUARE has 3 Strategic !usiness *nit%
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14
Crop Care & Public Health
Animal Health
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S Q U A
R E T r a d i n g
L t d .
S Q U A R E F o r m u a t i o n ! L t d .
S Q U A
R E
" # a r m a $ % u t i & $ a ! L t d .
S Q U A
R E ' o n ! u
m % r ( o o d ! L t d .
SQUARE has 4 subsidiaries:
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CRPRATE PERAT&%AL RESULT
5ALUE,!&SS&%,5&S&% * SQUARE
Daue of S;*R6%
• Quality
• Customer Focus
• Fairness
• Transparency
• Continuous Improvement
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The mission S;*'R6 .i%
S;*'R6<s mission is to enrich the 8uait" of ife of eoe through resonsibe aication
of /no.edge s/is and technoog" S;*'R6 is committed to the ursuit of eceence
through .ord#cass roducts inno1ati1e rocesses and emo.ered emo"ees to ro1ide the
highest e1e of satisfaction to its customers
To reai,e the 1ision S;*'R6 .i%
6ndea1our to attain a osition of eadershi in each categor" of its businesses
'ttain a high e1e of roducti1it" in a its oerations through effecti1e and efficient
use of resources adotion of aroriate technoog" and aignment .ith our core
cometencies
>e1eo its emo"ees b" encouraging emo.erment and re.arding inno1ation
Promote an en1ironment for earning and ersona gro.th of its emo"ees
Pro1ide roducts and ser1ices of high and consistent 8uait" ensuring 1aue for
mone" to its customers
6ncourage and assist in the 8uaitati1e imro1ement of the ser1ices of its suiers
and distributors
6stabish harmonious reationshi .ith the communit" and romote greater
en1ironmenta resonsibiit" .ithin its shere of infuence
T3E RLE * SUPPL6 C3A&% !A%AGE!E%T ; S3AR&%G &%*R!AT&%
-or an" organi,ation Su" chain management and sharing information is the mortar that
hods organi,ations and the entire /no.edge ithout sharing information coud not be
rocessed or echanged9 .ords and data .oud remain isoated facts So it is easi"
understandabe that the success of S;*'R6 deends a ot on their su" chain management
s"stem The resent success of S;*'R6 is the resut of their successfu su" chain
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management s"stem ith the he of .e organi,ed SCM s"stem S;*'R6 ta/es the
satisfaction from their suiers and aso from the consumers S;*'R6 can transmit
roer" .hat the" are oo/ing from the suiers and mar/eters9 S;*'R6 aso ma/es a
friend" en1ironment .ith their sharing rocess To te about the roe of sharing .e can
remember another eame .hen the Sara =ee Cororation .ants to determine customer
roduct satisfaction it conducts a sur1e" The sur1e" is useess ho.e1er unti the data are
ana",ed and the resuts shared to management On" .hen .ords and data are transated
into meaningfu /no.edge and shared to decision#ma/ers do the" become 1auabe to the
econom" So it is 1er" cear that roe of sharing is 1er" imortant for S;*'R6 To su"
the goods roer" S;*'R6 uses their o.n ogistics and transortation s"stem
T3E RLE * SUPPL6 C3A&% !A%AGE!E%T ; S3AR&%G &%*R!AT&%
Sharing is the transmission of information and meaning from one indi1idua or grou to
another Sharing information has its centra ob2ecti1e #The transmission of meaning The
rocess of sharing information is successfu on" .hen the recei1er understands an idea as
the sender intended it !oth arties must agree not on" on the information transmitted but
aso on the meaning of that information
Sending and Receiving Messages: In the rocess of sharing information in S;*'R6
in1o1es fi1e stes%
Sender has idea<
The sharing rocess of information in S;*'R6 begins .hen the idea .i be infuenced b"
come factors surrounding the sender% mood frame of reference bac/ground cuture and
the osition or the dignit" of the emo"ees as .e as the contet of the situation and man"
other factors *sua" S;*'R6 starts .ith Good morning good e1ening SometimesS;*'R6 is aso using Hi Heo
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)%!! ag% to* %!%n tE n $odin
g)%!!ag%
'#a nn% )%!!ag%R%$%i+%r
)%! !ag%d%$ oding
-ig% The Communication Process
Sender Encodes &dea in !essage<
The net ste in the information sharing rocess in1o1es encoding con1erting the idea into
.ords or gestures that .i con1e" meaning ' ma2or robem in sharing an" message
1erba" is that .ords ha1e different meanings for different eoe hen misunderstandings
resut from missing meanings it<s caed b"assing +n seecting roer s"mbos senders
must be aert to the recei1er<s sharing s/is attitudes bac/ground eeriences and cuture
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Noise
Feedback
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Ho. .i the seected .ords affect the recei1er To so1e these sorts of robems S;*'R6
Chooses aroriate .ords or s"mbos is the first ste
!essage tra1els o1er channel<
The medium o1er .hich the message is h"sica" transmitted is the channe Messages are
dei1ered b" comuter teehone etter memorandum reort announcement icture
so/en .ord fa or through some other channe in S;*'R6 !ecause sharing channes
dei1er both 1erba and non1erba messages senders must choose the channe and shae the
message carefu" S;*'R6 uses its annua reort for eame as a channe to dei1er
man" messages to stoc/hoders The 1erba message ies in the reort<s financia and
organi,ationa ne.s Eon1erba messages though are con1e"ed b" their aearance a"out
and tone
Recei1er decodes message<
The indi1idua for .hom the message is intended is the recei1er Transating the message
from its s"mbo form into meaning in1o1es decoding On" .hen the recei1er understands
the meaning intended b" the sender that is successfu" decodes the message Such success
ho.e1er is difficut to achie1e because uni/e" t.o eoe share the same ife eeriencesand because man" barriers can disrut the rocess
+n this case .e can te that in S;*'R6 a memo that refers to a the .omen in an office as
JgirsK so it ma" disturb its recei1ers so much that the" fai to comrehend the tota
message
*eed8ac2 tra1els to sender<
The 1erba or non1erba resonse of the recei1er is feedbac/ -eedbac/ hes the sender /no. that the message .as recei1ed and understood +f as a recei1er "ou hear the message
JHo. are "ouK% "our feedbac/ might consist of .ords (J+<m fineK) or bod" anguage (a smie
or a .a1e of the hand)S;*'R6 is a.a"s tr"ing to a1oid the feedbac/ from bod" anguage
as in our cuture it is not fair
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*U%CT&% * &%*R!AT&% &% T3E SECTR * SC! &% SQUARE
Functions:
,n t#% -o* on% $an !#ar% inormation int%rna/ and %t%rna/. nt%rna/
SQUARE i! %$#anging id%a! it# !u%rior! $oor%r! and !u*ordinat%!.
#%n t#%!% m%!!ag%! mu!t *% ritt%n SQUARE $#oo!%! %mai! or a
rint%d m%morandum. #%n SQUARE i! !#aring inormation %t%rna/
it# $u!tom%r! !ui%r! go+%rnm%nt and t#% u*i$ SQUARE i
g%n%ra/ !%nd %tt%r! on $oman/ !tation%r/.
&nternal functions in SQUARE<
• +ssue and cassif" rocedures and oicies
• +nform management of rogress
• Persuade emo"ees or management to ma/e changes or imro1ements
• Coordinate acti1ities and ro1ide assistance
• 61auate comiment re.ard and disciine emo"ees
• Get to /no. indi1iduas ersona"
E=ternal functions in SQUARE<
• 'ns.er in8uiries about roducts of ser1ices
• Persuade customers to bu" roducts or ser1ices
• Carif" suier secifications and 8uait" re8uirements
• +ssue credit and coect bis
• Resond to reguator" agencies
• Promote a ositi1e image of the organi,ation
*L/ * &%*R!AT&% S3AR&%G
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Seecting the best rocess for sharing information form demands some understanding of ho.
messages and information fo. through organi,ations !oth forma and informa sharing
channes eist ' free echange of information hes S;*'R6 to so1e robems cut costs
better ser1e the ubic and ta/e fu ad1antage of toda"<s /no.edge .or/ers ' the
foo.ing channes are used in S;*'R6 .ith the demand of situation
*ormal channels<
-orma channes of sharing information genera" foo. an organi,ation<s hierarch" of
command hether an organi,ation has de1eoed such a sharing oic" or not officia
information among .or/ers t"ica" fo.s through forma channes in three directions%
do.n.ard u.ard and hori,onta"
'o:n:ard *lo:<
+nformation fo.ing do.n genera" mo1es from decision N ma/ers incuding the C6O and
managers through the chain of command to emo"ees One robem in do.n.ard
communication is distortion resuting from ong ines of communication
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CE
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: Upward flow: +nformation fo.ing u.ard ro1ides feedbac/ from emo"ees to
management +dea" the hea1iest fo. of information shoud be u.ard .ith information
being fed steadi" to decision#ma/ers .ho can react and ad2ust 8uic/"
$ Horizontal Flow: =atera channes transmit information hori,onta" among .or/ers at
the same e1e such as bet.een the training suer1isor and maintenance suer1isor These
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Lo:er Le1el
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channes enabe indi1iduas to coordinate tas/s share information so1e robems and
reso1e conficts
3 Informal Channels% Eot a the information .ithin an organi,ation asses through forma
channes9 often it tra1es in informa channes is caed the grae1ine These channes are
based on socia reationshis in .hich indi1iduas ta/ about .or/ .hen the" are ha1ing
unch 2ogging 6mo"ees using the JGrapevine” aso consider it 1auabe for t.o reasons%
a 6mo"ees can get information .ithout forma" ha1ing to admit that the" need it
b. 6mo"ees can Jthin/ out oudK about robems thus increasing their sef#confidence
and robem#so1ing abiit".
The grape1ine has three main characteristics<
First, management does not contro it Second, it is ercei1ed b" most emo"ees as being
more beie1abe and reiabe than the forma communi8us issued b" to management and
third it is arge" used to ser1e the sef#interests of the eoe .ithin it
't resent there is a change in the fo. of sharing information Eo. .e can define the abo1e
three fo. in different .a"
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SQUARE is not follo:ing this method no:<
SQUARE is not follo:ing this channel also<
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Wheel
All
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SQUARE is tr"ing to foo. this channe though S;*'R6 can not imement this channe
comete" in their organi,ation This the best fo. of sharing information channe for an"
organi,ation
REC!!E%'AT&% *R T3E SC! A%' C!!U%&CAT&% S6STE! * SQUARE
Though S;*'R6 is tr"ing to foo. the best method to maintain su" chain management
and communicate S;*'R6 has some robems The recommendations for the robems are
as foo.s%
: S;*'R6 foo.s a the channes of communication in their organi,ation do.n.ards
and u.ards and the emo"ee can s.itch off an" hierarch" in the immediate
situation .hich is the great ad1antage for communication !ut the coman" does not
foo. the secific method of the etter and memo .riting The" foo. a singe
method to .rite the memo and etter .hich ma" confuse the emo"ees and the
eterna eoe .ho are reated to the comanies continue oeration (Suiers
customer etc) !ecause memo is .ritten for the emo"ees and etters are .ritten for
the eterna eoe i/e suiers and customers
$ So S;*'R6 shoud foo. the traditiona method to .rite the etters and memo
3 S;*'R6 foo.s ='E in the organi,ation<s comuter s"stems !ut the" don<t use
the +ntranet in the s"stem .hich is a great disad1antage for the organi,ation because
an"bod" from the coman" can access another to the coman"<s restricted .eb site
So S;*'R6 shoud introduce intranet in their coman"
& S;*'R6 cannot foo. the a channe method tota" 's a resut it is not getting the
:00 benefit of a channe method So9 S;*'R6 shoud tr" to imement it as ear"
as ossibe
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5 S;*'R6 has not "et introduced etranet faciities for the suiers 's a resut the
suiers cannot get enough information about the comanies or organi,ations
demand So S;*'R6 shoud introduce etranet in their coman"
6. S;*'R6 shoud gi1e more concentration to imro1e the 8uait" of .or/ers in the
foor of Shono !ecause the" are the erson .ho direct" deas .ith the eoe 4
suiers direct" hich is 1er" much imortant for maintaining su" chain
management
B S;*'R6 aso shoud be more concern about their transortation s"stem for the
su" !ecause the" usua" bring their agro based roducts from the 1er" rura area
Their roads are not that much standard So beside truc/s and co1ered 1an the" aso
shoud ta/e care of the transort .hich can be used on .ater Refrigerating s"stem is
aso imortant
C%CLUS&%
The re8uest for eceent communication s/is is robab" the most fre8uent" seen re8uirement
in 2ob ads toda" 6mo"ers and emo"ees ai/e consistent" ran/ communication s/is at the
to of the 2ob s/is ist 61en in technica fieds communication s/is are demanded The chief eecuti1es of cororations send huge sums of mone" on trainers and consutants to imro1e
emo"ees< su" chain management s/is
Organi,ations 1aue these s/is because good organi,ations successfu"
Ma/e mone"
Sa1e mone"
Good communicators ma/e mone" b" erforming .e themse1es and b" moti1ating others to
achie1e The" are ersuasi1e in romoting the organi,ation<s roducts ser1ices and reutation6mo"ees too areciate the 1aue of eceent communication s/is Such abiities enabe
them to comete their .or/ efficient" and effecti1e" N and to earn recognition and
ad1ancement 's indi1iduas ascend the career adder ora and .ritten communication s/is
become more imortant than technica s/is That<s because managers send most of the time
communicating#suer1ising deegating e1auating carif"ing and interacting 61en though
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.riting on the 2ob is an imortant s/i m"ths and misconcetions about it ersist So + thin/ not
on" S;*'R6 e1er" organi,ation shoud emhasi,e on the roer .a" of communication
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