Analyse The Organization Named Caltex Management Essay

Analyse The Organization Named Caltex Management Essay
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Dated: _____________________________


1.1 Terms of Reference
This report was written at the request of Leonard, Organisation and Management tutor, to investigate and analyse management in an organisation in the context of current management theory.

1.2 Scope and Methodology
The report considers a range of organisation issues, researching key aspects of management within the organisation. The organisation’s management structure and processes are analysed and evaluated in relation to current theory.

The following sources were consulted:

Manager: Gopal Shah

Ast Manager: Vasantha Krishnan

I have taken hard work in this project. Still, it would not have been achievable without the kind support and assist of Manager and Asst Manager of Caltex Fanshawe ltd. I would like to expand my sincere thanks to all of them.

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I am highly thankful to my tutor Leonard for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project.

1.3 Executive Summary
The purpose of this report was to investigate and analyse the organization named Caltex. And also includes the management system of company, Caltex was established in 1936 as the California Texas oil company and it was renamed in 1968 as Caltex petroleum corporation. It is brand name of Chevron Corporation, Chevron is one of the world’s leading integrated energy company. There is more than 182 outlet stores of Caltex in New Zealand, This report is describing the information of an specific branch named Caltex Fanshawe ltd. It is located in Auckland city central at Fanshawe street, This report covers detailed findings and analysis of Structure, Size, Type, Environment, strategies, Team structure, and Leadership of organisation.

Type and size of organization
Organisation type in brief and its goal

Product and service of organisation

Organisation structure
Hierarchical structure Diagram


Lines of reporting

Environmental factors


Planning and control system, processes and strategies



Team structures and dynamics




2.1 Type and size of organization
2.1 a Findings
This Company is an globalised brand it is located in 56 country of world, the type of Caltex fanshawe ltd organization is an 24 by 7 days open service station which includes Convenience retail store (FIX),and one automatic touch free carwash this Franchise is leased by an private organization named Starmetro . They sell three different Categories of fuel and also gas, (91 is an type of an regular fuel, 95 is type of an premium fuel which is bit high in price then 91 because it is highly refined and also known as turbo fuel, and diesel this were the three types of fuel). In Convenience retail store they sell grocery, engine oils, car accessories, and soft and energy drinks, Also they have one coffee shop in store which belongs to the same organization. It is an a large organization having more than hundreds of employee, but in specific Caltex fanshawe ltd branch there is an 15 employee staff which includes site leaders, in this there is three part time employee and 12 full time employee . Caltex is a public listed company in the Newzealand Stock Exchange (NZX) with the code CTX. It is the fifth largest integrated energy company in the world.

b Analysis
This is an large organization and it is broad as an grapevine in world, This branch is one part of this big organization named Caltex fanshawe ltd. They have different kind of service for serving a wide range of services to their customers, and the size of whole organization is too large but in this specific branch it is small organization.

2.2 Organisation Structure
2.2 a Findings
As the below diagram shows, the organization is a tall hierarchical structure.

This is a tall organization structure. There are four position in this organization, Customer service representative (CSR) who do the customer service and being direct in touch with customer and do face to face communication. Managers have the responsibility to initiate allocated tasks, the reason for that being their experience and information on Caltex. Manager and Asst manager mange the organization and lead the management of the branch and they report to Area manager, Area manager is on the top of all who manage several branches of allocated region. And owner is the one to whom area manager do report. There is three department in this organization first the shop floor department (Staff) , Admin department (Managers), And Head office.

b Analysis
These results in one long chain of command. This organization provides a clear, distinct layer with obvious lines of responsibility, control, promotion structure. All lines report clear and efficient in the organization.

Owner gives information to Area Manager directly through email or formal letter. Area manager gives information to Manager directly through email or formal letter. Manager gives information to Assistant Manager directly face to face. Assistant Manager gives information to CSR directly face to face.

In this structure there is lots of gap in communication in between lower level to higher level. Like CSR cannot communicate direct with Area manager for that they have to make a bridge of manager to communicate with Area manager. And also it can create negative feedback.

2.3 Environmental factors
a Findings
Environmental factor is important for every organization, There are two types of factors Internal and External environment.

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External Factors:

Competitors: In this organization there is lot of competition between competitors , Caltex competes against Mobil, BP, G.A.S, and Z , this are the companies which is running same business as Caltex, for the Caltex fanshawe ltd its competitor is BP which is located on opposite side of Caltex on same street. For being in the competition Managers of this organization are keeping up their standards of customer service by giving regular training to CSR, also as per competition they always keep their fuel price down then their competitor and they have every week different specials on products In Convenience retail store.

Customers: customer Is the important factor for organization, it is the customer who absorb the organization’s output. The income source of the organization is customers, if customer will be dissatisfied then it can create uncertainty like drop of annual sale. This is service station if customer comes to buy fuel and if the station is running out of fuel it can create big crisis, For maintaining this important factor managers are being accurate in managing products, Customer satisfaction is the first motto of his organization, They are doing regularly survey of their business in market to complete the customers need.

Legal: The laws of a country determine, licensing laws, union laws, the labor laws, etc this is service station so this factor is having more importance in business for selling fuel they need the license and a permission from government to keep the tanks in proper place, and also labor law applies on this organization they are intend to pay minimum wedges to the employee, in this organization there no union law because it been franchised by an private organization.

Internal Factor:

Employee : There is two categories in employees part-time and full-time, employee is the one who are dealing with the customers and effecting to the organization positively and negatively, in this organization all employees are well trained in every task they don’t need any specific skill to work in here, all employee is aware about their work and responsibilities.

Organisation culture : Every organization have their own culture, to define the internal environment of organization Caltex fanshawe ltd also have its unique culture, Every employee have dress code of red t-shirt and gray trouser which is provided by company, manager have different code of white shirt and black paint, this dress code is for identity of organization and everyone have their own name badge for their own identity. They do monthly meetings and also celebrate Christmas together by going out every year.

Vision and mission statement of Caltex is "Enjoy the journey" Because their goal is to make customers journey successful with happiness.

Ethics and social responsibility:

There are firm practices that are termed as unethical, and if these practices are never start out it does not denote that those are ethical. Ethics defines how a person deals with what is right and what is wrong. For example, it might not be considered ethical for an organization to on purpose put the health of its employees at risk, even if there were no change that the organization would be create out.

In Caltex fanshawe ltd before joining they provides an handbook to employees in which they provide all information about their responsibility ethics and code of conduct, here every staff work ethically they respect the work. Example like ethically they have to start their work on time according to their roaster, They have to fully dressed properly with clean shave and proper haircut there is much more things in this organization.

2.3 b Analysis

In this organization some of the main external factors described are Competitor, customers, and legal in the terms of competition there is almost every business have competition, In Caltex fanshawe ltd manager are taking part in competition against BP. They always keep 10 to 15 cent less price of fuel than BP, also by giving importance to competition they maintain well service, They keep specials in store like one packet of chips is for $5 they keep it on special for two for $5 like this they attract customers.

For customers they provide very polite and respectful service by greeting them in soft tone, And by keeping their entire stock full they make happy to customers, also they maintain hygiene in food area for customer satisfaction, They keep their pumps clean and tidy, there is two restrooms which they have facilitated for customers.

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In legal factor they have an permission of Auckland city council to place service station at that place, they give every employee certificate training of gas bottle filling without that they cant fill gas bottles, and also they have food and safety certificate to sell food contain products

2.4 Planning and control system, Processes and strategies
2.4 a Findings
This is the stage where finance of each of the branches is looked into. The Area manager is responsible to do budgeting for the overall organization. He makes plans to see how much money is to be invested in each of the branch like how much labor should add on or cut down. He even distributes salary to all the employees on a weekly basis and this is done with the help of a database name roster where he records the hours of each and every employees. These details are given to him by the store manager.

The employees play their part of running the day-to-day activities of the organization every employee is aware from the task they have to complete during shifts which is given by manager. The till persons are responsible for handling the customers, Night staff is responsible to fill the stock in shelf from time to time and administrative staff is responsible for regular reports and managing whole store .

Tactical planning is absolute by the central management where unit dissection, or branch makes its own, general plans that add to the on the whole organization .Store managers are responsible for the operation and management of each of the store. They look into information management where information is received from the general manager and further passed on to the employees. The store managers handle human resource where they are responsible to train and develop the employees after they have been hired.

This branch also have its head office from where whole information of oranisation is managed, if any new law comes from government side which affect this organization then the whole information is been researched by this management office and they send it to the branch. All duplicate records of employees is also stored in this head office any time manager can ask an information regarding any employee, And they gives information to branch of any changes to do in organization.

2.4 b Analysis
In finances planning area manager plays a main role, he do analyse of the organization and fix the financial issues. In this organization there is major use of technology for finance planning, in the manager have an specific software in his office computer from which he can direct enter every financial reports. For example Caltex fanshawe ltd has an special software for roster named rocket roster, Mangers have to enter just the hours of employee works. From it automatically every employee will get their pay by calculation of their wedges into salary.

Organizations need to do human resource planning thus they can convene business objectives and get a competitive benefit over competitors. Human resource planning compares the current state of the organization with its goals for the future. Then identify what changes it have to make in its human resources to congregate individuals goals.

2.5 Team structures and dynamics
2.5 a Findings
Teams are made to complete an specific task with accurately and proper with different ideas. Teams are very useful in all organizations, from planning a trip to managing financial issues work teams are almost mandatory. In this organization teams are formed with an appropriate number of staff depending on the team’s job type.

All teams have someone who supervises the team, there is four team in the organization day cashier who handle the register in day and provide customer service, administration work is done by admin team in this team there is manager and asst manger, Another team is of coffee shop this whole team is formed by females who take charge of coffee shop, and the fourth is graveyard team (Night Shift) they work throughout whole night they do deep cleaning of store and outside forecourt and fill the stock in appropriate shelf and also serve customers.

The supervisor role is not that dynamic but the group members still follow him. There is a manager for each group who manages their salaries, performance, shifts, etc.

One of the key processes followed is the staff performance review. It is held every 6 months and outlines the productive team performance and explains what could be improved. If the performance of the employees is excelling then they don’t train them. Further training is only provided to those who really need it.

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In this organization Managers have the responsibility to initiate allocated tasks; the reason for that being their experience and information on Caltex. Managers maintain task and role performance by checking the CSR (Corporate Social Responsibility) works.

Once a month a mystery shopper comes for shop audit. He observes the performances of the Employee who serves him, he visit whole store and check that every shelf is properly stocked he check forecourt area is clean and tidy. And if the mystery shopper pass the store with 100% then that employee who serve him he will get $100 worth of reward and manager will get extra bonus.

The teams here do well in practice. The evidence for that are the customers and their feedback. If you satisfy the customer they will come back and provide positive feedback. For this purpose we do surveys and provide 3 weeks of monitored training to staff. Employees with unsatisfactory performances are given extra training.

b Analysis
This organization is having a formal team structure. Every team is allocated for their specific task, in this teams there is no fix team members every time members are being changed depending on their avabilities.But there is only two persons who manage the team and distribute the members for team, Manager and Asst manager the leaders of store.

The day shift team have less physical work and more customer service because in the day time service station remains busy, so to keep maintain good customer service, and in night time there is an night pay window for safety of night team and door will remain close so customers cannot step in, That’s why there is some more physical work on graveyard team. and admin team do all paper work of the store in back office the fully authorized team. And coffee team serves good coffee to customers with their pretty smiles.

2.6 Leadership
2.6 a Findings
The Manager changes his leadership method with the condition,When he hire new employee he deals with him in an autocratic manner where the manager retains as much control and decision-making ability as possible. Autocratic leadership style has received criticism but it is effective when employees are new or untrained.

As the employee gets practiced the manager and the Asst manager take on democratic style where they facilitate support, employees and consult them for decision making. This makes employees believe that they are part of the organization which increases job fulfillment.

As the Area manager and the store manager are well skilled in their own role and their own personal jobs, the owner prefers liberal move toward them. Here the owner gives them all the decision making authority and keeps check on the overall process of the organization.

Motivation : is the force that initiates, guides and maintains goal-oriented behaviors. It is what causes us to take action, whether to grab a snack to reduce hunger or enroll in college to earn a degree. The forces that lie beneath motivation can be biological, social, emotional or cognitive in nature.(Kendra cherry)

The manager and the Asst manager motivate the employees in the course of empowerment and entrustment. The store manager has the responsibility to take of the entire store but he sometimes empowers his most experienced employee which motivates his employee to do hard work and get achievement.Store manager are rewarded for excellent success, and in turn the store manager shares the incentive with their employees. This motivates the store manager and his staff as well.

On the other hand the store manager makes sure that the authority and liability is delegated according to the requirements of the employees. The employees are disperse work based on their ability and skill.

2.6 b Analysis
There is total eight type of leadership theories,

"Great Man" Theories : in this theory he said that leader are born , no made.

Trait Theories: It is some what similar to "Great Man" Theories, but it describe the qualities and personality of leadership.

Contingency Theories: This theory is related to environment and situation.

Situational Theories: Based ahead situational variables.

Behavioral Theory: this theory is depend on the behaviorism of leadership.

Participative Theories:this theory based upon the ideal style of leadership to encourage participation.

Management Theories: this theory is also known as transactional theory it focus on the role of supervision.

Relationship Theories: Focus upon the relations created between leaders and supporters.

In this organization the original leaders of store is store manager and asst manager. Who have the perfect knowledge about leadership and well experienced, And Company motivate the employee by giving them reward through mystery shoppers and appreciate them to do more hard work.
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