INSTRUCTION TO CANDIDATES
1. You are given 2 questions below and you are required to choose only one.
2. Kindly note that all references are to be clearly stated.
3. Candidates can write the assignment either in Bahasa Malaysia or English.
ASSIGNMENT QUESTION
1. Question 1. Leadership and management is an art and science for interfacing man and machine to bring about organizational growth. Organisational growth and effectiveness is best described as “……meeting organizational objectives and prevailing societal expectations in the near future, adapting and developing in the intermediate future and surviving in the distant future.” Listed below are few organizational factors that can influence the effectiveness. Choose any 5 factors and describe how it is being addressed in your organization and how you would address them if you are in a position to make decisive changes.
a. Strategic Deployment.
b. Effective Leadership.
c. Policies.
d. Procedures.
e. Processes.
f. Continuous Improvement Culture.
g. Problem-solving.
h. Commitment / Culture.
i. Measures of Performance.
j. Trust, Honesty, & Ethical Behavior.
2. Question 2. Creativity and innovation are fundamentals for an organization for its continued growth and sustainability. Using the PDCA Model, explain how your organization has brought about actual innovative / creative changes. In case your organization has not used it before, using the model, explain how you would bring about changes in any situation that requires improvements.
Prepared By
First Admiral Subramaniam Raman
Executive Summary
Leadership is a process used by an individual to influence group members towards the achievement of group goals, where the group members view the influence as legitimate.
Leadership capacity means the ability of all organizational leaders to create and
sustain the vision, inspire, model, prioritize, make decisions, provide direction and
innovate, all in an effort to achieve the organizational mission
This paper shows the effective leadership criteria needed in Property Development Industry. In depth study has been done on 5 organizational factors and its effectiveness in this industry.
After evaluating the organizational factor’s in the firm, we could summarize that in order to have a continued growth of profit, a firm not only should introduce all of these organizational factors but must implement it as legitimate law.
Additionally, to increase organizational effectiveness, we should create sustainable competitive advantage by aligning our talent and business strategies
Table of Content
Table of Content
No
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Description
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Page
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Assignment Question
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3
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Executive Summary
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4
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1.0
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Introduction
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6
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1.1
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Four core capacities for organizational effectiveness
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6
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1.2
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Factors effecting the organization’s four core capacities
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6
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2.0
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Property Development Industry
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7
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3.0
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Five important organizational factors for Ikhasas Group(IG)
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8
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3.1
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Effective Leadership
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8
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3.2
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Policies
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9
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3.3
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Procedures
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11
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3.4
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Problem Solving
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13
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3.5
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Trust, Honesty, & Ethical Behavior
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14
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4.0
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Conclusion
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14
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5.0
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References
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15
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1.0 Introduction
Leadership and management is an art and science for interfacing man and machine to bring about organizational growth. Organizational growth and effectiveness means meeting organizational objectives and prevailing societal expectations in the near future, adapting and developing in the intermediate future, and surviving in the distance future.
Historically, organizational effectiveness has focused on how well organizations compete, how quickly they bring products to market, their status in the community, their attractiveness to potential employees, and their profitability. In other words, organizational effectiveness considers how well an organization performs business.
1.1 Four Core Capacities for Organizational Effectiveness
Leadership Capacity
The ability of all organizational leaders to create and sustain the vision, inspire, model, prioritize, make decisions, provide direction and innovate, all in an effort to achieve the organizational mission
Management Capacity
The ability of a nonprofit organization to ensure the effective and efficient use of organizational resources
Technical Capacity
The ability of a nonprofit organization to implement all of the key organizational and programmatic functions
Adaptive Capacity
The ability a non-profit organization to monitor, assess, respond to and create internal and external changes.
1.2 Factors effecting the organization’s four core capacities
- Organizational mission, vision, programs and services
- The external environment
- Existing organizational resources
- Organizational culture
- Organizational life cycle
2.0 Property Development Industry
The property industry involves the planning, design and construction, buying and selling, development and management of property. It is the sector where finance and the built environment meet.
There are few departments in a property developer office such as;
Marketing Department
· To sell the property on the proposed selling price.
· Explain what comes in the package and what is optional to buy if there is any renovation package
· Explain the Sale and Purchase process and provide the available panel lawyer’s and bankers information
· To do feasibility study and always aware on what the competitors are offering in market.
· To collect the booking fee and assist customer to complete sales form
· To forward the collected booking fee together with the sales form to HQ
Sales Admin Department
· To collect all payment from property selling, issue receipt and forward the collection to finance department
· Too keep all customer info in proper system(softcopy) and purchaser individual file(hardcopy)
· To follow up with panel lawyer on Sale and Purchase Agreement signing and to assist purchaser on their loan application if any
· To follow up with loan solicitor on loan documentation process until the disbursement by bank
· To issue progress billing, timely reminders and notices to customers
· To hand over the property to customer upon completion of construction
Project Department
· To make sure the construction go on according to schedule
· To maintain all type of safety during and after construction
· To apply and obtain permit and licence needed for the construction
· To liaise with Architect on building plans and drawings
· To attend to any defect on the property after being hand over to customer
Finance Department
· To open and manage Housing Development Account with any local banks
· To bank in all collection within 24 hours
· To prepare payment to contractors, suppliers, lawyers and agents if any according to proposal of payment prepared by other department
· To do bank reconciliation and prepare cash flow for management review
This entire department staffs report to the respective Head of Department @ managers and being directed by company Directors
3.0 Five important organizational factors for Ikhasas Group Sdn Bhd (IGSB)
3.1 Effective Leadership
Leadership success always starts with vision. Henry Ford dreamed of a car families could afford. Steve Jobs dreamed of an easy-to-use computer that would unleash creativity. Nelson Mandela dreamed of an integrated, prosperous South Africa.
These were heady ideas, and they attracted more than a few sneers. But they weren't the daydreams of lazy people with too much time on their hands. They were deep-seated passions, magnetic enough to capture the minds of just a few devoted followers at first but ultimately the imaginations of millions of women and men.
Similarly IGSB’s vision is to be the nation’s major building milestone and has a mission to provide high quality, state of the art viable solutions in design, development, construction, consultancy and support in every aspect.
In addtion to having a clear vission and mission, in IGSB, all staff are encouraged to communicate. Group Chief Evxecutive of IGSB always gives speech and expects all staff to response to his talk. He is open to all sub-ordinates idea and always welcome the staff to write or talk to him. The idea to promote communication between employer and employees is to avoid clamp mouths within the workforce.
Nevertheless this method of course is not appreciated by many especially those who are shy and afraid to talk. They are afraid to being misunderstood by management on their point of view. Besides that most staff enjoys accepting orders and instruction to complete their work rather than to think and take decision. Leadership is zeroised here. Certainly more time and continuous oppurtunity should be given to staffs to include themselve in ‘talking’ community.
A third key element of successful leadership involves judgment. Good strategy judgment frequently means a leader must find a new path when his organization is heading in the wrong direction. This depends on the leader’s ability to scan the horizon and ask the right questions. But unless there are right people on board, the leader can't execute his strategy. He needs to get the right talent, and to ensure that it's positioned appropriately throughout his organization--and this is a constantly evolving process.
For example, when there are 3 candidate applies for the same vacancy, a good leader should meet all three candidates and finally decide which one truly suitable for his organization. A good leader should be able to judge a person by communicating with them.
No doubt by having a good vision, prompt communication and sharp judgment are all essentials for IGSB to have an effective leadership in their firm.
3.2 Policies
Policies means a plan or course of action, as of a government, political party, or business, intended to influence and determine decisions, actions, and other matters. There are so many different policies in this world, sales policy, HR policies, insurance policies and so on. For a corporate firm as IGSB, the most important policies are sales policy, refund policy, and housing development policy.
Sales policy
Before a project launch, sales policy must be implemented and should be written clearly in Sales Form. As in property line, the product we are selling worth from hundreds of thousands to few millions, therefore all policies regards to the sales of the property need to be clearly understood by both party, the seller and the buyer.
Some common matter mentioned in the sales policies are as follows;
a. Booking fee, amount and whether refundable or non refundable
b. Balance 10% is to be paid during signing of Sale & Purchase Agreement.
c. Terms in signing the agreement and the consequences if remain unsigned after the period of 14 days.
d. Purchaser may choose to change or add name to the Sales Form but need to be finalised before signing the agreement.
e. Terms in Sales & Purchase Agreement shall supersede the term policies in the Sales Form.
f. Those purchaser who wish to buy the property in company’s name, need to provide a company resolution signed by all the Directors.
Refund policy
What is refund policy? Let’s say John bought a property worth RM400k form IGSB on 1/8/2012. He went and applies for bank loan the very next day with only the booking sales form and receipt for payment of booking fee RM5k. On 8/8/2012, the bank called John and regret to inform him that they are unable to grant him 90% loan for the purchase of the property. John would only be able to get 60% loan due to his current commitments and financial status. With this, John needs to fork out another 40% from his savings to pay the developer. John feels that this is too heavy for him to pay and decides to withdraw from the purchase of the property. Can John withdraw from the sales and get back his RM5k that he pays as booking fee?
According to housing development law, yes John may get back his booking fee but on curtain term and condition. Firstly John need to write in formally to the Developer on his wish to withdraw from the property before 14 days from the date he signs the Sales Form. Then he needs to provide evidence for his withdrawal such as bank rejection letter if he is cancelling the sale due the loan unavailability, medical report if he is unable to get an Mortgage Reducing Term Assurance(MRTA) and others.
Housing Development Policy
During the signing of the Sale & Purchase Agreement, purchaser needs to sign a Deed of Mutual Covenant and abide with the following rules;
(a) the Purchaser shall not cause any accumulation of dirt rubbish refuse in or outside the said Parcel, the entrances, stairways, passages, corridors or any part of the common property,
(b) the Purchaser shall not do or allow anything to be done which might result in clogging of the sewerage and drainage pipe serving the said Project.
(c) the Purchaser shall not place any flower pots or other objects whatsoever on the couplings of the balcony’s balustrades, window sills, any passage or stairs leading to the said Parcel or the exterior of the s aid Parcel or in any way create a danger to the safety of the Other Purchasers, his tenants, servants, invitees and licensees,
(d) the Purchaser shall not, except with the written consent of the Vendor and to the Vendor’s specifications, make any structural or material alterations to the said Parcel and its electrical system including the installation of electrical sockets or power points;
(e) the Purchaser shall not install in the said Parcel any electrical socket or power points or any air-conditioning units or electric motor that will cause overloading or cause damage to the power supply or to any of the existing electrical installation in the Building. The Purchaser shall abide by the rules imposed by and/or prescribed by the Vendor and/or Tenaga Nasional Berhad.
(f) the Purchaser shall not injure, damage or weaken any structural beams, pillars, floors, landings or staircases serving the said Parcel or any part of the Building or hack up or install any floor tiles or other floor coverings, or injure, damage or weaken the floors and ceiling of the said Parcel and the internal and external walls thereof.
(g) the Purchaser shall not permit any child to play on or remain upon the common property of the said Project in particular the car parking areas UNLESS accompanied by an adult exercising effective control.
(h) the Purchaser shall not hold or permit to be held any funeral or other religious ceremony whatsoever in the said Parcel or accessory parcel or common property.
(i) the Purchaser shall not affix or install anything non-removable including but not limited to grilles, shades, awnings, window and doors or screens which are visible from outside without the written consent of the Vendor.
What is the consequences if sales, refund and housing development policies are not followed by the purchaser? In most cases after the 14 days from the sales if the purchaser failed to signed Sale & Purchase Agreement, the developer has full right to terminate the sale and forfeit whatever fee paid to them, thereafter they may resell the property to third party without prejudice. Hence it is very important to everyone to fully understand the policies lying behind before buying anything for our own safety.
3.3 Procedures
Procedure means a fixed, step-by-step sequence of activities or course of action (with definite start and end points) that must be followed in the same order to correctly perform a task. Repetitive procedures are called routines. Setting procedures for a firm is very important as it stands as a backup copy when we forget something and also act as teacher whenever there is new staffs.
In IGSB, management has set the following procedures in a very brief and easy to understand manner without much elaboration;
A. Deposit
Full payment of 10% is to be collected upon signing Sale & Purchase Agreement Part payment Pay RM2,000 (balance to be paid within 14 days) & Sign deferrment letter
B. Discount
Staff discount as per the approval by the management Bumi discount is nil Early Bird discount is subject to management's discretion and to be given by way of credit note. Others Subject to management's discretion and to be given by way of credit note.
C. Execute Sale & Purchase Agreement and payment of balance 10% reminders
1st Reminder after the due date 2nd Reminder is 14 days after 1st Reminder Final Reminder is 7 days after 2nd Reminder Notice of Termination is 7 days after Final Reminder
D. Progress billing reminders (normally inclusive of interest dues)
1st Reminder after the due date 2nd Reminder is 14 days after 1st Reminder Final Reminder is 7 days after 2nd Reminder Notice of Termination is 7 days after Final Reminder
E. Work certification
Certification of work done is given by Architect / Engineer Certified true copy to be given together with the progress billing as to support the invoices to purchaser(s) & banks Internal (own staff)
H. Loan Grace given to purchaser
< 35% work progress 21 days > 35% work progress 30 days 100% pending CF 60 days After CF 60 days / 90 days Federal Treasury financing 60 days
I. Interest
Standard grace period from Progress Billing - 21 days Interest charged per annum 10%
J. Interest outstanding reminders
1st Reminder > RM500.00 due 2nd Reminder 14 days after 1st Reminder
K. Assignment / transfer
Consent to transfer 0.5% of Purchase Price or RM500.00 whichever lower Consent to refinance is not allowed
L. Defects liability
Period of 18 months from date of Vacant Possession Make good by Developer within 30 days from receipt of defects listing
M. Liquidated Damages
Liquidated Damages is 10% per annum
N. Vacant possession
Delivery of the property within 36 months from date of Sales & Purchase Agreement Deemed to have taken possession on 14 days after notice of delivery.
O. Manner of delivery for documents/billings
Registered post is deemed receive after 5 days from posting date. By hand is deemed received immediately Courier service is deemed received within 3 working days from pick up by courier agent deemed receive.
Generally procedures are made to help us but should we follow the procedure strictly no matter in what kind of situation? Will this procedures applies to all customers?
Obviously no, procedures act only as a guide for us, not a must abide law. For example if Encik Najib, a good friend of CEO bought a unit of property from us as a sign to support the development of IGSB, when he fails to pay on time, we can’t send him the reminders as per the procedure. Definitely there will be a different way to tackle this kind of situation. We can either choose to ask the CEO’s help to pass of the message to Encik Najib or may give him a friendly notice reminding of the payment due instead of the formal Reminders.
3.4 Problem solving
Problem solving is the process of transforming the description of a problem into a solution by using our knowledge of the problem domain and by relying on our ability to select and use appropriate problem-solving strategies, techniques and tools.
Described below what type of problems are normally faces at IGSB and what is the problem solving method being used.
Problem 1
Mr Tan just bought Property A from IGSB on 1.8.2012 but even after 14 days he didn’t sign the Sale & Purchase Agreement and when being called he informed IGSB that his loan with PBB does not approved yet and he only be able to sign the agreement once he manage to secure a loan. How to help Mr Tan to sign the Agreement
To solve this problem and to get Mr Tan to sign the Agreement is to check his loan status. At the same time, we can help Mr Tan to apply loan in many other bank. In order to do this, staff of IGSB should have all contacts of bankers as handy as possible.
Problem 2
Mr Selva bought property B from IGSB and he declared himself as cash buyer and not applying any bank loan. Mr Selva is a very busy man and recently he was billed for 20% of the purchase price. The due date is next week and Mr Selva still has not settle his outstanding. How to make Mr Selva to pay his outstanding promptly?
In this situation, first of all, IGSB staffs need to make a friendly call to Mr Selva and inform him on the outstanding own by him and inform him that he would be saved from any interest penalised on him if he pays before the due date. In Mr Selva is outstation and could not send the cheque over, IGSB need o provide bank account number so that he could do direct transfer online or if Mr Selva is not in overseas but has no time to visit IGSB office to pay, IGSB may offer to collect from Mr Selva’s office or home provided it is in the nearby town
3.5 Trust, Honesty, & Ethical Behaviour
Trust means reliance on the integrity, strength, ability, surety, etc., of a person or thing. Meanwhile Honesty refers to a facet of moral character and denotes positive, virtuous attributes such as integrity, truthfulness, and straightforwardness along with the absence of lying, cheating, or theft. Besides that Ethical behavior is characterized by honesty, fairness and equity in interpersonal, professional and academic relationships and in research and scholarly activities. Ethical behavior respects the dignity, diversity and rights of individuals and groups of people.
In IGSB, all employees including the top management level believes and visualizes to deliver 100% correct information to customers. To make this reality, all IGSB staffs need to know what exactly that they are selling, how the product works, what are the terms and policies. All the information need to be digested before they face customers. When this actually materialized, very soon IGSB will earn the customers trust and confidence against its trade name and its products.
Meanwhile, to deliver the product as what was promised will reflect IGSB’s honesty. For example, during launching of property, the specification of the house is clearly stated in the leaflets or brochures. IGSB need to be honest to use the same product or materials as what was promised during the launches.
What will happen when IGSB failed to deliver the product as promised to customers? Definitely the trade name fails, existing customers won’t give their support for the next project and disappointed or angry customers would sometimes make complaint to authority such as Kementerian Perumahan Dan Kerajaan Tempatan (KPKT), House Buyers Tribunal (HBT) or Lembaga Architect Negara (LAN). When these complains and being investigated by the authority, all works going on for IGSB will be stopped and Developer License will be terminated. So to avoid all these unwanted problems IGSB need to follow the motto “Honesty is the best policy”.
4.0 Conclusion
We can conclude by saying that leadership is important because it provides an inspirational figure to lead groups of people towards great accomplishments. Leadership can provide a foundation for ideas and excellence, showing others that anything is possible.
Great leaders are almost always great simplifiers, who can cut through argument, debate and doubt, to offer a solution everybody can understand. Colin Powell
THE END
5.0 Reference
a) Four core capacities retrieved from
b) Organizational Effectiveness retrieved from
c) Organizational Effectiveness retrieved from
d) Property Industry retrieved from
e) Leadership and management retrieved from
f) Definition of procedure retrieved from
g) Problem solving retrieved from
h) Honesty reference retrieved from
i) Great leaders quote retrieved from
j) Leadership is important; retrieved from
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