Managing People and

Organization
Assessment-1

Khin Phyo Htike

Khin Phyo Htike Managing People and Organizations

Introduction
Fraser Foods is a family firm based in Bishop Ton and was set up by David Fraser in 1994 to tap
into the growing demand for ready meals. This is located just off the M8 near the Erskine Bridge
and close to the Fraser family home on the banks of Loch Lomond. This is a Private Limited
Company and the ownership of the company, it is hoped David’s son Robin to take control when
his father retires. The company has grown by developing ‘greenfield’ production facilities
purpose built for a specific area of the chilled food market in Scotland. A little years ago, Fraser
Foods has reduced production of its own brand products and now mainly produces meals for one
major supermarket; Perkins.

Relationship between organizational goals, objectives and policies

Goals
A goal is a future expectation, some desired future state that a person or a group of people
envisions, plan and commits to achieve. They are usually long-term and represent global visions.
Example- goals of Fraser Foods are;
 To minimize the operational use of non-renewable resources
 To improve customer services and built long standing relationship
 To introduce new products
Objectives
Objectives set out more specifically the goals of the organization, the aim to be achieved and the
desired end results. Objectives are basic tools that underlie all planning and strategies activities.
General objectives are determined by top management.
Example- objectives of Fraser Foods are;
 To help reduce their reliance and over dependence on one key customer; Perkins
 To increase market shares
 To meet or exceed the customers’ expectations
Policies
Policy is developed within the framework of objectives. It provides the basis for decision making
and the course of action to follow in order to achieve objectives. Policy is a guideline for
organization action and implementation of goals and objectives. Policy guides behavior by
defining how should be done.
Example- policies of Fraser Foods are;
 Minimum wages policy
 Training and development policy
 Insurance policy
 Health and safety policy

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Khin Phyo Htike Managing People and Organizations

 Business policies are usually showing the ways which facilitate the ability of a company or
organization to reach predetermined objectives formulated by top-level management. Business
policies are the endpoints related with plans designed to reach company goals. Both policies and
business objectives maybe added into plans as determined by a business organization. Example,
when produce a new products which can meet customer’s expectation and that have to relate
with health policy.

Composition of the open systems

The open system is a system that regularly exchanges feedback with it external environments,
PESTEL factors. Open systems are systems of course, so inputs, processes, outputs, goals
assessment and evaluation and learning are all important. Organizations can be viewed as open
systems which take inputs form the environment and through a series of activities transform or
convert these inputs into outputs to achieve some objective.
Inputs of Fraser Foods are raw materials like meat, rice and other equipment, qualified staffs,
finance and customers’ orders, etc. The processes of the Fraser Foods are preparing meals,
packaging, deliveries, sales and then the outputs of the Fraser Foods are finished ready meal,
customer’s satisfactions and feedbacks and got other ideas to create new products development.
PESTEL factors of Fraser Foods are;
Political things that could have an impact on Fraser Foods are tax reforms and health regulations.
In the economic factors, the unemployment rate and business prosperity, recession and recovery
that all can impact on Fraser Foods. In the social factors, changing in customer’s taste and their
lifestyle changes and then in the technological factors, technology is always advancing so by
making online markets, and by offering new products. Next is the environmental factor that
includes disposal of waste and recycling of packaging and the last factor that is the legal factors
and that includes health and safety law, data protection and foods labeling and tax returns.

The key stakeholders in Fraser Foods and their interest and influences in the
company
A stakeholder is a party that has an interest in a company and can either affect or be affected by
the business. Stakeholders can be internal to the organization or external.
Internal stakeholders include the owner, manager/directors and employees.
The owner wants to maximize the profit and the reputation of its business. David Fraser can
influence with a strong voice in the direction of his company takes.
Managers and directors are interested in the financial health and success of the business and to
get career development. They are also accountable for the decisions made, and act as a point of
company’s success by utilizing their skills and knowledge.
Employees want to earn high wages and keep their jobs, and safety work places. Employees who
are offered benefits packages that include stock options have an additional stake in the company.
As they give better services to the customers, Fraser Foods get more reputation.

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Khin Phyo Htike Managing People and Organizations

The external stakeholders include the customers, suppliers, government and Bank.
Customers’ interests are to get high quality products with reasonable prices. The customer can
change other organizations if they do not get satisfaction on the products and services.
Suppliers of Fraser Foods are interested in getting back the amount of money for the raw
materials they supplied without delay. Suppliers can influence by giving its best raw materials to
Fraser Foods or not and can change giving the raw materials to other businesses instead of Fraser
Foods.
The government aims to ensure that all companies abide by the existing legal provisions.
Governments create the rules and frameworks in which business are able to complete against
each other. From time to time the government will change these rules and frameworks forcing
business to change the way they operate.
The bank will be interested in the ability to pay bank’s loan regularly or not. The bank can
influence Fraser Foods by deciding loan amount and repayment periods of loans.

Main differences between formal organization and informal organization

Formal organization
1. Formal organization is established with the explicit aim of achieving well-defined goals.
2. The formal organization is bound by rigid rules, regulations and procedures.
3. Formal organization prescribes the relationship amongst the people working in the
organization.
4. Formal organization is generally too large in size, in comparison to informal
organization.
5. In a formal organization, the position, authority, responsibility and accountability of each
level are clearly defined.
Informal organization
1. Informal organization is not established by any formal authority. It is unplanned and
arises spontaneously.
2. It is not based on rules, regulations and procedures.
3. Membership of informal groups can be overlapping as a person may be member of
number of informal groups.
4. Informal organization is generally too small, in comparison to formal organization.
5. In the informal organization is established spontaneously. It doesn’t require any rules and
regulation to emerge. [ CITATION wis19 \l 1033 ]
Fraser Foods has both of the formal and informal aspects of organization. In formal organization
of Fraser Foods, this company is the private limited company and they have their clear goals,
objectives and policies. They follow their rules, regulation and their duties for respective
department.

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In Fraser Foods, informal organisations are formed within formal organisation. Among them
there have no rules and employees can connect with each other from different departments in
their free time, they can go to the excursions on weekends freely.

An effective control strategy that applies to Fraser Foods and justify its
suitability
Control is a general concept that is applied to both individual behavior and organizational
performance. Organization implies control and a social organization restrict an ordered
arrangement of individual human interactions. It is the function of control to bring about
conformance to organizational requirements and achievement of the ultimate purposes of the
organization.
Six significant strategies of control in organizations are explained by Child;
1. Personal centralized control;
2. Bureaucratic control;
3. Output control;
4. Control through electronic surveillance;
5. HRM control; and
6. Cultural control.
An effective control for Fraser Foods is output control. Output control is for measuring
performances and results of an organization. Output control strategy is aimed at facilitating the
delegation of operational decision-making without the need for bureaucratic controls or relying
on close personal supervision. Output control would include standard quality, design and
consistent taste of products. In Fraser Foods, the weight of products, the quality of products and
the packaging of products need to balance each other but output control can help this kinds of
process. If an organization uses output control system, it needs to specify its standard. In Fraser
Foods, managers should set its output standard to maintain products quality. And then reward
and punishment system is also needed to use. In Fraser Foods, output control is the most suitable
control system to supply ready meals on time for customers.

Conclusions
The Fraser Foods Company has the goal that is to maintain the consistent level of quality and it
has the main objective which is to help reduce their reliance and over dependence on the Perkins
in next five years and this company has the good policies. And also this has formal and informal
aspects. The management should use output control strategy in Fraser Foods Company.

Bibliography

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Khin Phyo Htike Managing People and Organizations

(n.d.). Retrieved April 12, 2019, from wisdonjobs.com: https://www.wisdomjobs.com/e-

university/principles-of-management-and-organisational-behaviour-tutorial-366/formal-
and-informal-organisation-12706.html

Schaufeli and Bakker. (2003). In Managing People & organisations.

Laurie J.M (2013) Managing & People Organization, 10th edition, United Kingdom: Pearson
Education Limited