Analysis of four functions- Leading, Organizing, Planning, Controlling for Pakistani Brokerage house, KASB securities

1. K.A.S.B Securities
Sunday, December 18, 2011

2.  Video

3. COMPANY PROFILE
Industry Investment Services
Core areas of business business of stocks, money market,
foreign exchange and commodity
broking, economic research and
investment consultancy services
Registered Capital in PKR 249.56 million
Total assets in PKR 2,027.4 million
Years in business 11 (since 2000)
Number of employees Not mentioned
Net income in PKR -24.75m

4. DIVISIONS
KASB
Bank
KASB KASB
Modraba Remit
KASB KASB
Funds Securities
KASB
Direct

5. • Research Question - How does management
at KASB Securities plan, organize, lead and
control its resources to achieve organizational
goals?
FOUR FUNCTIONS OF
THEMES
MANAGEMENT
Planning Process of planning
Types of planning
Functions involved in the planning
Frequency of planning
Organizing Resource allocation
Specific individual responsibility
Leading Leading through motivation
Controlling Controlling by monitoring
performance
Controlling by supervising
implementation
Controlling by taking corrective
actions

6. METHODOLOGY
• Inductive approach
• In-depth interviews with higher management
• Each interview lasted from 30 to 45 minutes
• Profile of Managers - five employees at managerial level
volunteered to participate but chose the option of anonymity
Manager Gender Education Years at KASB
Mr. Ali M Bachelors 1
Mr. Ashar M Masters 2
Mr. Sohraib M PhD. 4
Mr. Abdullah M Masters 2
Mr. Huzaifa M Masters 3

7. PLANNING
“Defining goals, setting specific performance
objectives, and identifying the actions needed to
achieve them”
(Schermerhorn et al., 2000, p. 11)
Four aspects in relation to planning
• 1. Process of planning
• 2. Types of planning
• 3. Functions involved
• 4. Frequency of planning

8. THEME 1:PROCESS OF PLANNING
• Corporate Management goals identified at the beginning of year.
• Broken and passed down to subsidiaries.
• The fundamental goal of KASB Securities is to be Pakistan's
premier Brokerage Franchise.
• Managers also contribute to the
overall organizational planning
• First job is to build good
understanding of the vision, goals and
the expected role of his department.

9.  Speaking of the different roles employees have in the
organization, Mr. Abdullah stated:
“All the employees here are assigned strategic goals.
These goals, even though not exceedingly clear cut
or very specific, provide the employees with enough
direction to perform their tasks. There are no
established or conventional departments, and
everyone in the organization serves multiple roles.
This allows them to be well-rounded have know-
how of how everything works.”

10. THEME 2: TYPE OF PLANNING
• They used was basically time-wise planning
• E.g. long versus short term
• He said that mostly managers used time lines to
define primary plans.
• Usually annual plans and quarterly
plans.
•Their plans fall under the category of
short-term planning

11. THEME 3:
FUNCTIONS INVOLVED IN THE PLANNING PROCESS
• The planning indicated that there was employee
participation
• Staff members were invited to the table to brainstorm
and swap ideas.
• Feedback is sought afterwards and then incorporated
into the final plan.
• However, the responsibility of the final decisions rests
by the managers themselves.

12. THEME 4:FREQUENCY OF PLANNING
• Annual decisional plans were to be formulated at
the start of the year,
• These plans were formulated through meetings
and formal as well as informal gatherings.
• “Done through mainly the
internal discussions.”

13. ORGANIZING
• Organizing is usually interpreted as creating work structures and
systems, and arranging resources to accomplish goals and objectives
(Schermerhorn et al., 2000)
• One aspect of this function is organizing work by dividing up tasks.
another essential aspect is matching people with work by delegating
tasks and the authority to use the organization’s resources.
(Mescon et al., 1981).
There were two main areas of Organizing
1. Resource allocation
2. Specific individual responsibility

14. THEME 1: RESOURCE ALLOCATION
• How the managers decided on resources allocation and
what criteria they used to divide up work?
• First priority is to create the annual divisional business
plan, according to the urgency of task
• There are fundamentally two major departments within
KASB Securities
1. The Front Office
2. The Back Office

15.  Step by Step deployment
 Employees share resources
 Employees have no specified roles and
perform a multitude of tasks.
 To have a flatter structure within the
organization.
“A clear division of tasks without boundaries allows for better
collaboration among employees.”
(Mr. Abdullah, KASB Securities)
 KASB Securities has their own award
winning research department

16. THEME 2: SPECIFIC INDIVIDUAL RESPONSIBILITY
• Managing the HR is very important for
an organization.
• At KASB Securities, the specific
individual tasks are more reflective of
function-based jobs.
• Mr. Sohraib’s role in HR is of a
facilitator.

17. “There are functional and departmental heads in the
organization and the HR department decides which
talent is most suitable for which job.”
(Mr. Sohraib KASB Securities)
•Each employee within the
organization has know-how of the
way each department works and
functions
•New employees are “rotated
around”. They spend
approximately three months each
in the different departments

18. CONTROLLING
“We have a hands off approach with the smaller
results; but a strong focus on long term results”
(Mr. Nadir Rehman,
CEO of KASB securities)

19. THEME 1: MONITORING PERFORMANCE
• Employee empowerment
• Lack of interference by Management
“Qualitative performance appraisal is not a part of the
system. The HR assembles details of whether and how
set targets are realized (thus performance appraisal is
predominantly quantitative)”
(Mr. Sohraib, KASB Securities)

20. THEME 2: SUPERVISING IMPLEMENTATION
• Minimum need of supervision
• Progress reports
• Informal communication (e.g. grapevine)
Every day when I come to office, I
•“
begin my day with taking my cup of
tea and moving around to strike up
conversations with other people in my
department.”
(Mr. Asher, KASB Securities)

21. THEME 3: TAKING CORRECTIVE ACTION
• Importance of providing constructive criticism
• Work is evaluated by the HR department
“If some employee consistently fails to complete
“
his/her tasks and meet targets, they are given a
warning. Then a special assignment is given to
him/her in order to check his/her ability. If the
person fails to produce effective results, he/she
is given a time of 2 months to find a new job
and then he/she is sacked.”
(Mr. Asher, KASB Securities)

22. LEADING
“Leading is when managers instill enthusiasm by
communicating with others, motivating them to work
hard, and maintaining good interpersonal relations”
(Schermerhorn et al., 2000)

23. COMMUNICATION
• Mr. Asher at KASB securities: he finds motivation
through verbal communication an integral component
of “inspiring employees”
“It is profits that matter at the end of the day”

24. ROLE OF MOTIVATION
• Tasks are increasingly complex and demanding.
• Employees are requires to “do more” at all times.
• Task of motivating then becomes more difficult and
challenging.

25. STRATEGIC INITIATIVES
Training
programs
(analyst
programs)
Strategic
Initiatives
Investing
in service
culture

26. TRAINING PROGRAMS
• Securities market in Pakistan is still in its “embryo
phase”
• Essential for management to provide continuous
training
• Initial resistance to training from employee side
• Slowly and gradually they opened up to training and
development.

27. DEVELOPMENT OF SOFT SKILLS
• Relatively new trend: development of soft skills.
• Plays a critical role in personal development.

28. CULTURE
Four categories of cultures have been formally
defined on the basis of focus on human needs
and the task needs.
• Achievement culture
• Adaptive culture
• Involvement culture
• Bureaucratic culture

29. “The basic sources of motivation for staff at
KASB Securities are Job enrichment and
employee empowerment”
(Mr. Ali, Manager)

30. CLASSIFICATION OF CULTURE
• The overall culture at KASB securities is an
Achievement Culture.
• Tasks are assigned to individuals or usually
teams.
• The final result and its details such as deadline
are provided.
• The entire responsibility and authority regarding
execution is left on employee.

31.  Thus employee empowerment.
 Quantitative results (i.e. numerical facts/results) are
then evaluated to judge the overall performance.
 Hence achieving the targets is what is essential.

32. ROLE OF ETHICS
• The group chairman Nasir Ali Shah
Bukhari is very particular about this.
• Exercises his power as well as
position to emphasize the role of
ethics and integrity
• Insider trading practice is strongly
discouraged
• Top management is extremely
critical of such activities.

33. Conclusion

34. Purpose
Planning
Controlling Organizing
Leading

35. Planning
top individual
short-term
management: goals are tasks:
goals
strategic goals then divided function-
identified
and objectives based jobs

36. Organization
• Basic principle: Employee empowerment
• No specified tasks for individuals
• Job enrichment & job rotation
• Best department: the research department

37. Leading: culture
• Culture of organization: Achievement Culture
• Employees are encouraged to work to their
best and give as much as they can to complete
a task.

38. motivating
growth
through verbal
incentives
communication
Job enrichment Significant
(and weight on ethics
empowerment) and morality

39. Controlling
• Keeping check on employee activities is
discouraged.
• Constructive criticism is provided
• HR is involved in evaluation of performance
• Technology oriented.

40. Questions?