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INTRODUCTION TO THE COMPANY BACKGROUND

Dutch Lady Milk Industries Berhad in Malaysia is a manufacturer of full range of


dairy products. Their business is to supply quality dairy nutrition products to the
nation.
Dutch Lady Malaysia was owned by Dutchs parent company known as Royal
Friesland Campina .In the year 1963,Dutch Lady Malaysia was incorporated as
a private joint-stock limited company called Pacific Milk Industries (Malaya) Sdn
Bhd, It started with the production of a single product- sweetened condensed
milk that is imported wholesale from its parent company. In 1968,it convert into a
public company and become the first milk company to be listed on the Stock
Exchange of Kuala Lumpur and Singapore. The Company continued to
progressively manufacture and introduce new products into the Malaysian
market. In 1983, sterilized milk in plastic bottle are commenced and growing up
milk and Dutch Lady fruit yogurt are introduced in year 1988.In 1990 ,a new
warehouse was built to accommodate this companys growing business. Since
2007, Dutch Lady Malaysia has been bringing Malaysians together to participate
in the annual World Milk Day celebrations initiated by the Food and Agriculture
Organization of the United Nations. Every year in June, Dutch Lady Malaysia will
lead Malaysians in celebrating milk and its contribution towards the health of its
citizens. In 2011, Dutch Lady Malaysia was reported as the market share leader
in the growing up milk segment with the Dutch Lady brand holding 40% of
national market share.
More than 50 years have passed ,Dutch Lady Mallaysia are still operating from the same
production plant in Petaling Jaya.The current location is at Jalan 13/6, 46200 Petaling
Jaya, Malaysia. Its current products include Dutch Lady Purefarm UHT milk, Friso Gold and
formulated powder milk for children and family, Dutch Lady Nutriplan with 5X DHA, that are
distributed to Peninsular and East Malaysia.
The Dutch Lady Malaysia Corporate team is made out of a Board of Director and a
Management Team with a workforce of about 600-strong employees.

ORGANISATION STRUCTURE
Organisation structure refers on how an organization arranges people and job so
that work can be performed and its goals can be met. This structuring helps an
organization to formally divided, grouped and coordinated the job tasks.
In Dutch Lady Malaysia, managers had develops departmentalization by which
the jobs are grouped together so that common tasks can be coordinate. They
group activities by function, such as marketing, finance, sales, human resources
and operation.
Dutch Lady Industries also follows the chain of command, which those on top of
organization direct and control activities of those members below them. For
example, Ivo Ogink (Finance Director),Surasak Jintananarumit (Sales
Director),Anja Henze (Marketing Director),Kallickal Rajasekharan Pillai, R.
(Rajesh)(Operations Director) and Mahadevan Sivaramakrishnan (Human
Resources Director) follow the order of Saw Chooi Lee (Managing Director) and
report decision to her.
Dutch Lady has wide span of control. This is because it has few organization
levels and relatively wider span of management that will increase the
organizational effectiveness and efficiency. This encourages employees
autonomy because manager would not guide or motivate employees in handling
routine problems all the time.
Dutch Lady Industries practice centralization where top manager make all the
decision and the lower level of organization (employees) perform it.

MANAGERIAL FUNCTIONS
In order to achieve the goals that Dutch Lady Industries has established and to
be successful, managers need to implement and understand roles, skills and
function involved in the managerial process.
The functions of management are planning, organizing, leading and controlling.
Planning is a process involves defining goals, establishing strategy and
develops plan to coordinate activities. For example, Dutch Lady Vision is to
further strengthen their position as the leading dairy company and Its goal is to
reach 1 billion people with dairy nutritions by 2015. The second stage is
organizing, which Dutch Lady has a wide organizing structure that involves
chain of command and span of control. The third function is leading, where
Dutch Lady Industries implement the Hersey and Blanchard's Situational
Leadership Theory (SLT). In the Dutch Lady Milk Industries Berhad, there is
a Management Associate Program, which provides opportunity for selected
young graduate to work on a rotational basis in various departments.
This program also creates interaction opportunities between experienced and
younger staff to exchange ideas. The last function is controlling, the process
that ensure the activities are being accomplished as planned to meet required
standard. For example, manager will ensure all materials are enough and the
machines are in good conditions. Supervisor will also ensure the dairy products
are well packaged and no problem occurred during production process.

MANAGERIAL ROLES
For Interpersonal Roles, managers like Dutch Lady supervisor that perform
duties that are ceremonial and symbolic in nature is acting in a figurehead role.
All managers in Dutch Lady Industries also have a leadership role that involves
motivating and disciplining employees. For example, the employees
physiological needs such as food and water are being fulfilled as there are
cafeterias in the workplace. When their social needs are met, the leader will try to
fulfill the employees self-esteem needs. The third role is the liaison role,
contacting others who will provide the manager favors and information. When
that sales manager in Dutch Lady Berhad contacts with other sales executives
through a marketing trade association, he has an outside liaison relationship.
For Informational Roles, Dutch Lady Managers collect information from outside
organizations, by scanning the news media (including the Internet) and talking
with other people to learn of changes in the publics tastes in milk, yogurt and
juices, get information about competitive dairy products are known as monitor
role. Managers also act as a disseminator role to transmit information to
organizational members. For example, manager has a meeting to inform
employees about companys plan on a new dairy product. In addition, managers
perform a spokesperson role when the Public Relation manager does a press
conference to introduce its market leading ready-to-drink milk under the new
name of Dutch Lady PureFarm with a new refreshed packaging design.
For Decisional Roles, managers with entrepreneur role initiate new projects that
will improve their organizations performance. For example, lately in this month,
Dutch Lady Malaysia has collaborates with Masjid Tun Abdul Aziz to distribute
3,000 packs of specialty porridge to local community and aprons to Ramadhan
Bazaar hawkers. As disturbance handlers, managers take corrective action in
response to unforeseen problems. For example, managers sometimes will
handle staff conflicts. As resource managers are responsible for allocating
human, physical, and monetary resources. Finally, managers also represent
negotiator, in which they discuss issues and bargain with other units to gain
advantages. For example, milk powders were sourced through global
procurement by its mother company and Dutch Lady management has guided for
continuous volatility on the milk powder prices, thus the lower material costs are
a net positive to their bottom lines.

MANAGEMENT SKILLS
Management Skills are another way of considering what managers do, by looking
at the skills or competencies they need to achieve their goals. First are the
Technical skills which are the ability to apply specialized knowledge or
expertise. For example, Dutch Lady was the first Malaysian dairy company that
use Ultra-High Temperature (UHT) in processing and packaging. Human Skills
is the ability to understand, communicate with, motivate, and support other
people, both individually and in groups. For example, Dutch Lady Management
develops motivation skills by give award to the best worker. In Conceptual
Skills, managers must have the mental ability to analyze and diagnose complex
situations. For instance, Malaysia was ranks eighth highest in the world in sugar
consumption that is known as complex situation; Dutch Lady Malaysia has
launched its two-year plan to reduce sugar consumption via its product .This
campaign also aims to raise the awareness and understanding of consumers
habits related to sugar consumption by making relevant changes to its products

Job Design for Motivation


Job rotation group the employees into a team might be giving a chance to them in job
rotation which is provides employees with the opportunities to experience different job
regularly. Rotation can occur within a department or between departments. This allowed
employees to learn the new skills and therefore provide opportunities for personal
advancement and growth that might be lead to the increase of company productivity. For
the organization like Dutch Lady, it builds up by various department to support the
operation of company such as finance, human resource and administrative department.
Dutch Lady might provide job rotation programme in order to enrich the work experience
of the employee by giving them variety and also develops the skills of the employee in
many areas related to work. For example, an employee who is into accounting may be
moved into auditing for a month to ensure that he is developing a new skill set and also
ensures that the employee gets a new environment to work in within a different
department.
Job enlargement is an increase in job tasks and responsibilities to make a position more
challenging. It is a horizontal expansion, which means that the tasks added are at the
same level as those in the current position. Dutch Lady Company having their own farm
in Malaysia and its owned by generations of farmers. Dutch farmer families have been
mastering the art of producing milk, handing down the very best practices, principles and
knowledge. Even the grasslands that their cows roam and graze upon have been carefully
cultivated by their farmers. Dutch farmer families have been producing milk that is full of
wholesome goodness for generations.
Besides that, job enrichment stresses that job content and structure as the critical issues in
job design. Job design would increase the tasks and duties of a job, it also include more
responsibility for decision-making, planning, and control. The organization of the Dutch
Lady are having all of the marketing people in one department, with supervisors directing
who works on which project, they could split the department into specialized project units
such as specific storyboard creators, copywriters, and designers could all work together
for attract they customer. Allowing employees to build client relationships is an excellent
way to increase autonomy, task identity, and feedback.

Motivation theories of Dutch Lady


First of all the basic motivation concepts used by Dutch lady are using Maslows
Hierarchy of Needs and Douglas McGregors Theory X and Theory Y. Moreover,
Maslows Hierarchy of Needs included five needs physiological, safety, social, esteem,
and self actualization. The employees physiological need such as good and water are
being fulfilled as there are cafeterias at the workplace selling food for the employees.
Their safety needs are also fulfilled as they do not have to worry about their position in
the job or being fired. Next, the Dutch Lady Milk Industries Berhad conducts a daily
review for supervisors to discuss the previous days performance and issues. When their
social needs are met the managers will try to fulfill the employees self-esteem needs.
They will be highly motivated to be the best worker of the company and this will help to
increase production as well as efficiency and effectiveness of the company.
Self-actualization
Personal growth &fulfillment
Esteem needs
Achievement, status, responsibility, reputation
Social needs
Family, affection, relationships, work group, etc
Safety needs
Protection, security, order, law, limits, stability
Physiological needs
Basic life needs air, food, drink, shelter
Douglas McGregors Theory Y is another important motivation theory that used in Dutch
Lady. It is also assumed that Theory Y covers individuals with higher order needs such as
employees like work, seeks responsibility, is capable of making decisions, and employee
that apply self-control and self-direction in the pursuit of organizational objectives,
without external control or the threat of punishment. Dutch Lady Malaysia treats its
employees well in terms of compensation and benefit. For example, Dutch Lady is
provided a very good condition working environment for the employee and it motivates
employee to work harder. Moreover, the Dutch Lady Malaysia is giving the freedom and
authority to let their employee to make their own decision. Dutch Lady Malaysia also
looks after their employee very well and constantly takes steps to ensure their
development. So, it is easy for employee to devote themselves and be loyal to the
company. The employees are working in Dutch Lady Company having self-control and

self direction such as take the addition courses are related to business and provided by the
company to improve their knowledge and skill.

Flextime
As an advantage of having job position in Dutch Lady Malaysia is that, Dutch Lady did
provide the policy of flextime. Flextime is a variable work schedule, in contrast to
traditional work arrangements which requiring employees to work a standard hours of 9
am to 6pm daily.
Under the Dutch Ladys flextime policy, there is typically a core periods, which is
between 10am to 12pm and 1pm to 3pm daily when the employees of Dutch Lady are
expected to be at work. While the rest hours except the core periods is the flexible time.
As long as the employees of Dutch Lady are achieving 8 hours per day or 40 hours per
week in region what the Dutch Lady expects, they can decide themselves when they
wants to work.
A flextime policy provided by Dutch Lady allows their employees to coordinate their
own working hours with the public transport schedules, with the schedules of their
children school hours, and with daily traffic patterns to avoid high congestion times such
as rush hour. In such working condition that provided by Dutch Lady, the employees are
able to work with a happier mood which will increase the productivity as well.
Telecommuting
Dutch Lady Malaysia is a manufacturer of dairy products in Malaysia. Marketing and
Sales Department took a very important role in order to expand and reinforce the market
position of Dutch Lady. To sign a contract for collaboration or to let more consumers
from different states or different countries to know more about Dutch Ladys products,
representatives from the marketing and sales department are required to go overseas or
outstation for work purposes.
However, these representatives have to connect with the head of department of Dutch
Lady through the usage of ICTs as technical support for telecommuting.

Telecommuting refers to a more specifically to work undertaken at a location that reduces


commuting time. These locations can be inside the home or at some other remote
workplace, which is facilitated through a broadband connection, computer or phone lines
or any other electronic media used to interact and communicate.
Within the period of working outside of Dutch Ladys office, the representatives of the
Marketing and Sales Department must maintain the connection with the head of
department either through Facebook, Whatsapp, Skype, Wechat or any other channel.
This is to help the department to keep track of employees who are performing work at
different states or countries. Through telecommuting, the department of Dutch Lady can
also make sure that every employees are performing at their peak, regardless of location.