Premier Cement Management

Decision Making Policies of

Premier CementPrepared For: Sutapa Bhattacharjee Assistant Professor Institute of Business Administration University of Dhaka Prepared by: Mahbub Rahman Nafee(Roll:05) Saadman Hussain (Roll : 14) Md. Rafid-ur Rob (Roll : 26) Mahee Durdana (Roll : 28) Nahian Rashid Urbee (Roll : 52)

Introduction:

Why we chose Premier Cement?

Premier Cement is one of the top cement brands in Bangladesh

Sales of BDT 6,416 million for the 2012-13 financial period

Profit of BDT 499 million (before taxes)

Provides a good and safe working environment for its 1500

employees

Mr. Khurshed AlamChief Marketing Officer

Premier Cement

Decision Making Steps

The company does not follow each of the eight fundamental steps

The steps they follow are as stated below :

1. Field engineers detect the problem and report to the top-level

managers.

2. A trend analysis is carried out and a suitable solution is found.

3. The solution is then implemented via the field engineers.

4. The field managers then evaluate the effectiveness of the

implemented solution.

Decisions that Managers make in their Four Roles

Planning:

Managers take decisions that are in the best interests of the business

During stable conditions, decisions are made by the manager himself

In the current unstable and highly competitive market situation,

brainstorming sessions are becoming necessary

Organizing:

Employs about 1500 employees

Employees are allocated to their jobs according to the functions they

will be carrying out

Resources are allocated according to the location of sales outlets and

target consumer groups

Transportation of materials and finished goods, are done using roads

and waterways

Leading:

A leader needs three important characteristics, will to do hard work,

sincerity and honesty

Motivation is done mainly through financial incentives; performance,

sales, target achieving and festival bonuses

Training and Brainstorming sessions also aid motivation

Controlling:

Controlling is done through a hierarchy of supervisors.

Regional In charge

District In charge

Route In charge

Route In charge

District In charge

Route In charge

Targets set for employees are supervised and results are

monitored.

Employee performance is checked on a regular basis and regular

appraisal sessions are held.

Employees with decreasing performance maybe transferred to

other departments or branches

Introducing a new Management Information System (MIS) for

improved controlling.

Decision Making ApproachTypes of Decisions

Decision Making Conditions

Types of Decisions and Decision Making Approach:

Types of Problems

Structured Problems

Unstructured Problems

Structured Problem

Rational

Routine Steps

Problems with load shedding

at factories

Managers take rational

decisions

Use of generators

Unstructured Problem

Intuition Based

Maybe take New Approach

Recent problems with

blockades

Managers took an

intuition based decision

Changed transportation

routes, and employee

working hours

Decision-Making Conditions:

Mostly face decision making conditions of certainty

Decisions are mostly rational, hence outcomes can be well predicted

However, some decisions do involve risk and uncertainty

Such as, when marketing to new clients, establishing marketing

targets and during political unrest

Recommendations:

Following all the eight steps of the decision making process

Such as assigning weights to the decision criteria

And developing more alternatives

To solve the problem more efficiently

Thank you!

Questions?