X Foods - People and Organization

Contents

01.        Executive Summary        

02.        Introduction to the organization        

03.        The Crisis        

3.2 Human Resources Management        

04.        Impact to people and Organization        

4.3 Company Decision Making Process        

4.5 Image of the Organization        

05.        Proposed Solutions and approaches        

5.1 Restructuring Chain of Command        

5.2 Personnel Management to Strategic HR        

06.        Change Management        

07.        Conclusion        

08.        References        

1. Executive Summary 

X Foods is a family owned company whose primary business is manufacturing and exporting virgin coconut oil. The company started its operations on 2008 and currently roofing more than 150 employees. During past few years, company shows little slow in revenue and profit growth. Comparing to other competing companies, X foods financials showed little growth momentum.  

After steep analyzing current operating environment, a crisis situation is identified. There are two main factors affecting to this crisis.

1. Unavailability of proper organization structure & chain of command
2. Unavailability of strategic HR practice

Above has been identified as main reason for prevailing crisis situation in the organization. This situation crates many problems to people & organization. Most of the employees are in dissatisfaction. Efficiency and productivity of the organization is in very low level. There is high labor turnover. Since employees are not motivated, their performance levels are low. The company even doesn’t have a separate HR function. Sustainability of X foods is questionable. Top management has to relay on unproductive information to make decisions and correct information is not flowing on correct direction.

To overcome the identified crisis situation two alternative solutions are identified.

1. Restructuring chain of command
2. Transformation of personnel management to strategic HR function

A new organization structure should be developed after analyzing organizational environment, strategy, technology and human resources of the company. There are few positions which need to incorporate in to the organization structure in order to stream line the operation. The middle managers ought to be given authority to make their jobs effective.

Strategic HR directives as well as preliminary HR initiatives should be implemented. Employees need to be motivated and employee performance should link with the rewarding strategy.

Top management ought to practice change management principles in order to make this transformation effective. The change should be linked with the vision of the company and top management has to take the lead and be illustration for others. They may have to face any unexpected situations as well.

Implementing above initiatives X Foods will be able to eliminate all of its inefficiencies and gain all of its success.

1.  Introduction to the organization

X Foods (Pvt) Ltd was founded on 2006 whose primary business objective is to manufacturing and exporting virgin coconut oil. The factory is located in Madampe, Halawatha which is the heart of the coconut triangle. The head office is located in sub metro of Colombo, Nugegoda.  The operations of X Foods were started in very small scale and it was able to expand it business internationally with in short period of time. Currently it roofs more than 150 employees including both operational level and administrative level. X Foods is the one of pioneer of Virgin Coconut Oil manufacturing in Sri Lanka.

Being a family owned company, the board of directors is from a same family. X Foods is one of their groups of company while core business of the portfolio is trading vehicles which is based in Japan. The chairman of X Foods is Mr. X, Managing Director Mrs. X and Director-Marketing is their son. The three members of the board are directly involved to the operations of the business.

The company markets its own products under one brand umbrella called “X Naturals” and do private labeling according to the client requirements. It exports products as a bulk packaging and bottled or pouched packs. Following are the main products of X Foods (Pvt) Ltd.

• Organic Virgin Coconut Oil
• Organic Value Added Coconut Oil
• Organic Whole Kernel Virgin Coconut Oil
• Organic Coconut Flour
• Organic Creamed Coconut
• Organic Coconut Sugar

X Foods is exporting its precious virgin coconut oil and other products mainly to USA, Japan, Taiwan, Slovekia, and South Africa.  The products are currently exported at FOB and CIF basis. 90% of exports are on private labels.

The company also has small scale local market which is currently limited to western province and southern province geographically. ”X Natural” brand name is used to market local products as well. The company is fortified with In house distribution facilities and armed with local sales team.

The state of art factory is fully powered with semi-automated machineries originated in Germany. Being a pioneering company to the industry company has competitive advantage of industry know how.  In house Quality Assurance is in place to deliver quality product and the company is awarded with quality certificates such as SLS 32, ISO 22000, GMP, HACCP, Kosher, Halal and control union certifications.

Vision

X Foods vision is to produce coconut based food products for the international and local markets while contributing towards enhancing the social status of local farmers and providing employment opportunity for the local community.