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Student ID number: 1311850 Module name: Organizational Behavior Assignment title: Unit 6 Assignment # 6.2 inal Assessment Assignment deadline: 2! "ovember 2#$%: 2%h!& '(uri)h time* +,,e)tive number o, -ords used: %$6. I )on,irm that I have read the Universit/ regulations on 0lagiarism1 and that this is m/ o-n -or2.

3uestion $. '$## 0oints* Using the Assessment tools we have discussed in unit 6, (McKinsey 7-S framework, alanced Scorecard, S!"# Analysis etc$ %rovide a com%lete assessment of the com%any you are currently working for& 'f you were ()" what would you change and why * %rovide your recommendation with a efore and After "rgani+ational chart& - 'f you are not working at this time * use a %ast em%loyer&

Brief overview of H&M Removals CC (Exhibit 1)

H&M Removals was founded and established in 1992 as a furniture removal and storage com an! in "a e #own$ %outh &frica' (nitiall! the com an! was onl! in the domestic removal$ ac)ing and storage business$ but overtime H&M Removals identified the o ortunit! to ada t its business model to include a commercial logistics solution for its customers' #he com an! toda! rovides a full national distribution and storage service$ running truc)s wee)l! throughout %outh &frica and having branches in all three ma*or cit! centers being "a e #own$ +ohannesburg and ,urban' (n addition to the logistic and storage solution$ H&M Removals rovides additional services such as s eciali-ed crating$ ac)ing$ installation services and insurance for both the rivate and commercial mar)et in order to rovide a .one sto / solution for their valued customers' #his segment of the business has grown tremendousl! over the ast 10 !ears and toda! ma)es u 102 of H&M Removals annual turnover' #oda! H&M Removals has a staff com lement of over 230 staff$ a fleet of 45 vehicles$ 6 ur ose built warehouses and client base of more than 500 commercial clients and 700 rivate clients in storage' 8oing forward$ H&M Removals has roudl! develo ed its trans ort solution of being the referred 9niche9 trans ort su lier to both the office and household furniture manufacturers in the %outh &frican mar)et$ but at the same time never loosing sight of its humble beginnings of starting in the local furniture removal industr!' Re : ;ebsite< www'hmremovals'co'-a

Vision Statement
.#o be the first choice as a logistic$ storage and moving solution rovider to the %outh &frican mar)et'/

Mission Statement
.#o remain true to our service offering of being a 9total trans ort and storage solution9 to our customers re=uirements and ex ectations with a 9real9 commercial gain'/

(U,,)-# ",.A-'/A#'"-A0 (1A,#

(Exhibit 1) Managing Director nthon! "eale!

Sales & Operational Director James Miller

Cape Town Branch Manager Wilfred Conradie

Johanne#$rg Branch Manager Deena %rishna

D$r#an Branch Manager ndre &an swegen

(leet & Wor)shop Manager ndre *eorge

"$man 'eso$rces Manager (asiela Tam#a!

+ational Sales Manager +adine ,enter

Operational Controllers - Cape Town - Johannes#$rg - D$r#an

Sales Staff - Cape Town - Johannes#$rg - D$r#an

.ocal & .ong Distance Dri&ers - Cape Town - Johannes#$rg - D$r#an

/orters0 /ac)ers & .oaders - Cape Town - Johannes#$rg - D$r#an

A detailed analysis will now be done on H&M Removals using the followings tools below, in order to provide a completed assessment of the performance of this company.

1. McKinsey & ompany !"#$ %ramewor&' (. )alance $corecard *. $+,- Analysis

As follows.

1. McKinse & Com!an "#S $ramewor%&

#he .6>%/ ers ective is a management tool that describes the different framewor)s in a business environment in a holistic and effective wa!' #here are seven )e! elements that will be a lied below$ to show how H&M Removals is im lementing it9s strateg! in the %outh &frican mar)et lace' Strate' ( H&M Removals strateg! is based around a 9business strateg!9 of being sustainable and focused in its core com etencies' #he )e! services offered$ relates s ecificall! to the furniture removal and storage mar)et' #his is a ver! s eciali-ed s ace? as H&M Removals is dealing with both low>end and high>end manufacturers of retail and office furniture' (t has therefore been im ortant for H&M Removals to strategicall! )ee its staff continuousl! trained in the household removal segment$ in order to )ee its com etitive advantage of handling$ storing and moving of new furniture roducts' #his a roach b! the com an! has develo ed a sustainable and .niche/ advantage in the mar)et lace for H&M Removals$ due to its clear understanding of its service offerings$ against it9s otential com etitors' Str)ct)re( H&M Removals over the last 10 !ears has evolved its organi-ational structure through necessit! of having a clear and s eciali-ed a roach in the functioning of the business' ,ue to the nature of the business the two business artners have divided the business into two main business areas : o erational and strategic' #he one artner loo)s after the sales and o erational functions of the business$ while the other artner oversees the finance$ (#$ HR and rocurement' @urther to this? clear management controls and administration structures have been centrali-ed in the com an!9s head office in "a e #own$ which has allowed the other two branches to focus on o erations and sales as its core functions' S stems( Arocedures and rocesses has been identified as a com etitive advantage in the industr! that H&M Removals com etes in' (t is for this reason that H&M Removals understands the im ortance of having a strong management team$ with clear management functions in order to evolve and innovate within its mar)et segment' %trategic realignment is done monthl! with the branch managers in order to ada t to the re=uirements of the customers needs and mar)et d!namics'

(f it is identified that changes need to ta)e lace$ s!stems are immediatel! im lemented to meet the recruiting$ training$ ca ital e=ui ment or financial lanning of the business$ in order to rectif! the o erational issues$ so that the com an! can ta)e advantage of the new business o ortunities' S)!eror*inate +oals( H&M Removals su erordinate goals being defined as .guiding conce ts/ > set of values & as irations has not been clearl! defined b! the com an! as er .Big Hair! &udacious 8oals/ coined b! +im "ollins and +err! Aorros boo)$ .Built to Cast< %uccessful Habits of Disionar! "om anies/ (;ebber$ 1991)' #he com an! has a .Dision %tatement/ and .Mission %tatement/ as shown in the introduction to the com an!$ but .BH&8s/ will be a recommendation for change in the new organi-ational chart$ which is to follow in this a er' St le( %hared values and norms is extremel! im ort to H&M Removals ethos of management st!le' #he com an! leadershi is extremel! conscious of staffs .bu!>in/ relating to the business culture and strategic vision and goals' #he com an! is ver! .team>oriented/ and instills the value of ta)ing .ownershi / for !our *ob descri tions as well as those of their colleagues$ which ultimatel! benefits all the team la!ers in achieving the organi-ations ob*ectives' Staff( H&M Removals values it9s eo le as its most im ortant asset in achieving its business goals' #his is clearl! shown in the com an!9s a roach of first romoting within$ before em lo!ing from the outside' #he com an! management st!le also rides itself of having a strong staff retention' #his is evident to the fact of still em lo!ing some of the same staff since the ince tion of the business$ being now 22 !ears old' #he com anies management is ver! aware of its social res onsibilit! towards its staff$ es eciall! due to the olitical legac! of the ast and the tough economic environment the staff have to live in' S%ills( #he com an! is aware of the im ortance of having the right s)ill set$ es eciall! relating to the core service offering of the business$ being trans ort' #he long distance drivers are not onl! drivers of the vehicles$ but also the .ambassadors/ of the com an!' Management therefore has clearl! reconsigned the im ortance of em lo!ing a higher caliber of driver that can not onl! drive the vehicle$ but can also su ervise the moving rocess with the staff and dealing with the customer needs at the same time' #his a roach of identif! the right su ervisorsEdrivers$ has set H&M Removals a art from the com etitors in the mar)et lace'

,. Balance* Scorecar*
Balance scorecard is a four view framewor) : (@inancial$ "ustomer$ Cearning & 8rowth$ (nternal Business Arocess)$ which has been develo ed to evaluate organi-ations strategic ob*ectives in

erformance metrics' #his tool will be used b! the leadershi of H&M Removals to demonstrate the balance scorecard and how the business strategic lan is being executed and what identified strategies the com an! is ursuing at resent' &s follows< (m rove and increase utili-ation of services (ncrease revenues b! 12 2 without com romising gross margins Maintain and rovide high =ualit! service (m rove motivation and recogni-e =ualit! staff

H&M Removals has enlisted the hel of the Branch managers to im lement Balanced %corecards for each branch$ based on the strategies as listed above'

4earning and 5ro-th 6ers0e)tive 'Sta,, 7 Managers* (m rove motivation and recogni-e =ualit! staff
,ision and Strateg!

Internal Business 6ro)esses 'Meeting 8ustomers +90e)tations* Maintain and rovide high =ualit! service

8ustomer 6ers0e)tive '8reate the right image to )ustomers 7 mar2et 0la)e* (m rove and increase utili-ation of services

inan)ial 6ers0e)tives ':eturn on Investment ,or shareholders 7 ,inan)ial develo0ment* (ncrease revenues b! 12 2 without com romising gross margins

Fnce the strategies have now been categori-ed into the four ers ectives$ it is now ossible to determine if there is imbalances in the strategies$ which need to be removed or added accordingl!' #he next rocess for the management of H&M Removals is to determine that the causal lin)ages between the strategies of the .Balance %corecard/$ which visuall! ortra!s and su ort9s the vision and mission statement of the com an!' #he strateg! ma below is an excellent communication tool to show the connection between strategies of the .Balance %corecard/ and the Mission %tatement of H&M Removals'

Mission Statement
.#o remain true to our service offering of being a 9total trans ort and storage solution9 to our customers re=uirements and ex ectations with a 9real9 commercial gain'/

inan)ial 6ers0e)tives ':eturn on Investment 7 develo0ment ,inan)ial ,or shareholders* (ncrease revenues b! 12 2 without com romising gross margins Res)lts in 8ustomer 6ers0e)tive '8reate the right image to )ustomers 7 mar2et 0la)e* (m rove and increase utili-ation of services Res)lts in Internal Business 6ro)esses 'Meeting 8ustomers +90e)tations* Maintain and rovide high =ualit! service

Res)lts in 4earning and 5ro-th 6ers0e)tive 'Sta,, 7 Managers* (m rove motivation and recogni-e =ualit! staff

Gow that the strateg! ma has been im lemented$ H&M Removals can start to identif! what actions it can ado t in order to achieve the strategies and how it will be able to measure the rogress relating to the initiative' Exam les of actions and measures will now be shown below to illustrate the ossible o tions that H&M Removals might im lement to measure and trac) the ossible accom lishments of each strateg!' &s follows<

0earning and .rowth 2ers%ective (Staff 3 Managers$4 'm%rove motivation and recogni+e 5uality staff &ctions< ,evelo eer recognition initiatives' ,evelo based on ."lient retainer/ com ensation' Review salaries half !earl! to ensure staff are being aid com etitivel!' Measures< %taffs satisfaction (show as a lag indicator)' #urnover with gross rofit im rovement (lead indicator)' 'nternal usiness 2rocesses (Meeting (ustomers )6%ectations$4 Maintain and %rovide high 5uality service &ctions< Review flow rocess from initial en=uir! to *ob com letion' %treamline o erational functions internall! to im rove efficiencies' Review o erations staffing is ade=uate for o erational re=uirements' Measures< %taff com laints dro due to im rovements service' Meeting deadline and romises as to customers service ex ectations' (ustomer 2ers%ective ((reate the right image to customers 3 market %lace$ 'm%rove and increase utili+ation of services &ctions< @ocus on im lementing u dated and better mar)eting lan' @ollow u before and after on customer service' Measures< ;ee)l! re orts on customer satisfaction H 93 2 goal (lag indicator) @ocus on dail! overall census through sales managers (lead indicators)

7inancial 2ers%ectives (,eturn on 'nvestment for shareholders 3 financial develo%ment$ 'ncrease revenues 8y 9: ; without com%romising gross margins &ctions< Coo) at client base in order identif! bad business and low margins' "ategori-e clients as &$ B or " clients in order of riorit! based on turnover$ a!ment and margin' Measures< Iualit! business results gross increase in margins over rior !ear (lag indicator) Ris) to debtors boo) decreases and nett da!s in account receivables decreases (lead indicator)
H&M removals now has data that is clearl! defined through the .Balanced %corecard/' ;hat is now im ortant from management is to assign res onsibilit! for the collection of this data through the team administrators and de artment managers' ,eadlines have to also be im lemented b! management$ in order to establish the actions and measures that have been ut in lace through all the different de artments in the business' #his will then indicate and allow the management team to be able to discuss o tions$ modif! actions or activities in order to achieve the desired strategies$ or *ust )ee tabs on the overall com an!9s rogress'

3. S-./ 0nal sis

#his is a framewor) tool which has been used to anal!se H&M Removals strengths$ wea)nesses$ o ortunities and threats' H&M Removals criteria answers has been based around the following .%;F#/ =uestions< Stren't1s ;hat does the com an! do well atJ ;hat defines the com an! strengths in its mar)et segmentJ ,oes the com an! have a strong sense of ethos and ur ose in it mar)et segmentJ -ea%nesses ;hat does the com an! lac) in s)ills in its mar)et laceJ ;hat otential roblems could be avoidedJ ,ue to the high gearing otential$ does the com an! have serious financial liabilitiesJ .!!ort)nities (s the moving and storage industr! business trends moving u wardJ ,o new mar)ets o ortunities exist for the com an!Ks service offeringsJ &re there new technologies or mar)et o ortunities that the com an! can ex loitJ /1reats (s there otential ris)s in the mar)et for H&M RemovalsJ ;hat financial economic obstacles does the com an! faceJ &re there troubling changes in the com an!Ks business environment ( olitical$ technologies$ laws$ health issues and regulations)J

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0s follows(
S/R23+/HS Mar)et leader in the logistics E su l! chain environment relating to furniture and office furniture manufacturers in the %outh &frica mar)et' Fne sto solution for the customer base' &ble to offer local$ long distance$ s eciali-ed ac)ing$ crating$ insurance and storage' %torage revenues is a strength to the H&M Removals business model as this form of business creates a strong annuit! with low ris) to the business' H&M Removals has strong management ex erience$ with the two founding artners of 22 !ears still strongl! involved in the da!>to>da! running of business' Fne artner loo)ing after the %trategic$ financial and HR side of the business and the other loo)ing after the %ales and o erational re=uirements' -20K32SS2S Cabour intensive o eration : at the ris) of drivers and staff not meeting the service levels re=uired to meet the com etitive mar)et lace' .44.R/536/62S Merger and ac=uisitions are revalent in the %outh &frican mar)et lace due to the wea) economic environment$ this has created bu!ing o ortunities for H&M Removals to bu! out smaller com etitors' /HR20/S

Aolitical unrest in the %outh &frican mar)et is becoming more of an issue' %tri)es are ha ening more fre=uentl! in the trans ort sector and higher wages 9Barriers of Entr!/ for settlements are "om etitors are re> com etitors to enter having a larger evaluating their business im act on the the local and long models and outsourcing economic viabilit! of distance mar)et their trans ort lace is low and the business' re=uirements$ which is therefore creates giving us good imbalances it the ,rivers resources are o ortunities due to H&M ricing models for being threatened due Removals s ecialising in to scarcit! of s)illed structured this mar)et s ace' businesses' drivers coming into this rofession as %maller com etitors in #rans ort business is the household storage well as the highl! geared due to s ace are having to close revalence of H(D the high cost of u their storage facilities effecting this s)ill set' im lementing due to high rental costs vehicles into the Regulations are from landlords' #his is fleet' #he balance creating o ortunities for continuousl! sheet is therefore H&M Removals due to it becoming more alwa!s a contentious owning its own remises stringent and costl! issue with ban)ers and having critical mass due to government who do not and munici alities and a strong debt understand the collecting administration seeing financial business or do not benefits of tolling team' have the ris) more roads and a etite' Enhancements in the easil! fining technolog! of the long o erators for traffic Return on investment distance truc)s has violations as the! are ta)es over two !ears im roved the margins on .soft targets/' er vehicle$ which the tri s due to better fuel has ris) on the consum tion' #his has business from a created better cash>flow oint of o ortunities for H&M view' Removals to sta! com etitive due to its High ris) can be vehicle re lacement revalent towards rogramme'

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H&M Removals is well ositioned strategicall!$ due to its diversit! of revenue streams in its business mix' (t does not *ust rel! on commercial clients$ but also trades in the domestic and national household removal mar)et'

the business$ if !our fleet is not clearl! managed b! an ex erienced fleet controller and wor)sho manager'

H&M Removals margins are continuousl! under ressure due to the resent current economic climate and new com etitors tr!ing to enter into H&M Removals mar)et segment due to slowdown in their traditional trading segments'

Recommen*ation for c1an'es to H&M Removals (Exhibit 2)

%trategic management as ex ressed in (,u #oit$ 2010) considers the organisation9s environment (internal and external) to identif! o ortunities and threats$ as well as internal strengths and wea)nesses' @urther to this$ ,u #oit states that (t rovides direction and intent to the organisation$ and identifies the most suitable wa!s of creating value for sta)eholders' #herefore$ based on the evaluations and tools that have been used above$ the following recommendation should be im lemented to im rove the com an!9s structure and organi-ationals goals' H&M Removals should start b! reviewing its organi-ational chart to define its different de artment heads' #he businesses organi-ational chart as shown below$ now shows the @inancial Manager$ the HR Managers$ the @leet Manager and the ;or)sho Manager as the as core com etencies and therefore should be structured above the Branch Mangers on the chart$ due to them feeding their resources and res onsibilities into all three of the H&M Removals branches' #his structural change now gives em hasis on the four )e! de artmental heads that drive the su ort to the branch managers in the organisation' ,evised organi+ational chart as follows4

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,)<'S)= ",.A-'/A#'"-A0 (1A,#

(Exhibit 2)

Managing Director nthon! "eale!

Sales & Operational Director James Miller

(inancial Manager Michelle 'ansom

"$man 'eso$rces Manager (asiela Tam#a!

Wor)shop Manager ndre *eorge

(leet Manager ngela J$lies

Cape Town Branch Manager Wilfred Conradie

Johanne#$rg Branch Manager Deena %rishna

D$r#an Branch Manager ndre &an swegen

Operational Controllers - Cape Town - Johannes#$rg - D$r#an

+ational Sales Manager +adine ,enter

.ocal & .ong Distance Dri&ers - Cape Town - Johannes#$rg - D$r#an

Sales Staff - Cape Town - Johannes#$rg - D$r#an

/orters0 /ac)ers & .oaders - Cape Town - Johannes#$rg - D$r#an

&fter a

l! the .6>%/ framewor) to the H&M Removals business model$ the following

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recommendations need to be a &s follows<

lied to further im rove certain areas in the business'

Strate' < H&M Removals needs to focus on develo ing further annuit! streams from its storage business' #he strategic advantage to the business is that H&M Removals .owner occu ies/ its own buildings$ which in time will become bond free and create a .cash cow/ financial stream to cover all the o erational overheads for both the trans ort and storage divisions' S)!eror*inate +oals( #he recommendation for H&M Removals is based around as irational envisioned future and core values based around the organi-ation (;eber$ 1991)' #herefore$ it argued that the .BH&8s/ for this com an! should be as follows > .& com lete trans ort and storage solution not onl! for our clients base$ but also our com etitors in the &frican mar)et'/ S-./ anal!sis has highlighted and olari-ed some )e!s areas which need to be changed to im rove the com an!9s efficiencies' (t is therefore recommended that H&M Removals acts on the following strengths$ wea)nesses$ o ortunities and threats' &s follows<
H&M Removals can further ca itali-e on its mar)et stren't17s in its logistic

segment b! im roving its trans ort fre=uencies between all 5 ma*or cities in the %outh &frican regions$ from 7 da!s a wee) to 4 da!s a wee)' #his means its com etitors can also im rove their .service offering/ to there clients$ which further cements them into a s!mbiotic business relationshi with H&M Removals' & further wea%nesses that was identified$ was the high gearing on the H&M Removals balance sheet$ due to the high cost of im lementing new vehicles for o erational re=uirements' (t is suggested that 232 of new vehicles become leased (off balance sheet) instead of urchased' #his strateg! will then bring down the gearing ratio on the balance sheet and strengthen the balance sheet for other long term borrowing re=uirements from it9s lenders' .!!ort)nities in the storage mar)et must be continuousl! identified' ,ue to the economic climate$ man! storage com anies are ri e for ta)eover' H&M Removals advantage of owning its own warehouses and additional land for further ex ansion must be ca itali-ed on$ in order to grow the annuit! income' & t1reat that has been identified is a structured .succession lan/ for the two business artners' #he business is tightl! run b! the two business artners as resent' But$ going forward$ the artners need to strategical forward lan for the .leadershi and sustainabilit!/ of the organi-ation$ as the management de th is lac)ing at resent'

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Bibliogra0h/:
rticle from (or$m Boo) /rescri#ed Te?t Boo) We#site rticle from (or$m "errin0 89*ro$p :ditor;92771;8 Decision Making: The Heart of Strategy(A collection of articles)< #! "ar&ard B$siness School /$#lishing8 D$ Toit0 *S= :rasm$s0 BJ= Str!dom0 JW8 92717; >ntrod$ction to B$siness Management< :ighth :dition 9Chapter 12; 'o##ins0 S8/= J$dge0 T8 92775;8 9Chapter 12; (o$ndations of Organi@ation Str$ct$re< (o$rteenth :dition "&M 'emo&als www8hmremo&als8co8@a at 2713 We#er0 J8 91665;8 A Leader's Guide to Understanding o!"le# $rgani%ations: An &#"anded '()S* +ers"ecti,e: #! Ani&ersit! of ,irginia Darden School (o$ndation0 Charlottes&ille0 , 8