Case Study " Perera Confectioneries"

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1 Who we are? TEAM ONE CONSULATACIES

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Case Study Presentation - Perera Confectioneries IPM Sri Lanka (PQHRM)

Transcript of Case Study " Perera Confectioneries"

  • 1 Who we are? TEAM ONE CONSULATACIES
  • 2 Why we are here? Mr. Nimal Perera & His Remarkable journey New Management & Failure Analysis & Recommendations
  • 3 1941 Nimal Perera started Perera Confectioneries. It was a small shop in Bambalapitya 1970 NP was able to own 80% of market share. 2004 Owned 80% of market Share. 750 Employees Lowest Staff turnover. 200 Million Net worth. 2005 NP a True leader ended his remarkable journey . His Two Nephews & Niece Took over PC
  • 4 VISION + MISSION High Staff Turn Over New HR Policies Customer Complains Debts
  • (1)Management Functions & Positive approaches of NP 1. Planning Setting +Developing+ Implementing +Strategies. 2. Organizing Structuring Organization & Individuals 3. Leading Directing +Motivating 4. Controlling - Evaluating & actions for deviations. 5
  • 6 Planning WHAT ? + WHERE? + HOW ?
  • 7 PEST Analysis Tax on import goods. SWOT Analysis Strengths - Fleet of Vehicle for Sales executives + location of the factory. Weakness- Higher education & knowledge in Accounting. Opportunity Current economical situation Threats Educated Managers could out smart NP.
  • (2) Strategy Formulation (where we are +How + what to do) 8
  • (3) Designing Strategies 9 Short Term Intermediate Long Term
  • (4) Developing Policies. Recruitment Policy- G.C.E A/L Qualification + Industry Experience. Service Policy - 5 Years & + Serviced Employees gets 6months Bonus. 10 years & + Serviced employees Rs. I Million.
  • 11 Uniform Policy Provided with Shoes Free Lunch Policy
  • 12 (4) Organizing it is the process of sourcing, allocating & arranging of resources + activity + authority
  • 13 NP Meets & delivers Work plan to each department. Structuring continued.. Practices & guidelines staff has to follow.
  • 14 (2) Organizing Continued. (a) Allocating Resources Bambalpity as PCs home office. as it situated in the heart of Colombo. Helps to find resources cost effectively. Allocating Vans for sales executives for efficient & effective product distribution (b) Structuring Organization & employees. PC had a clear, goal driven Functional OG structure ( c) Authority +Empowerment PC has employees in all levels From managers , executives to factory worker demonstrates the practices of chain of command. Centralized decision making system better control & uniformity,
  • Theories of Leadership Trait Behavior Managerial Grid by Robert Blake +Jane Mouton Best Manager/Team Manager 9.9 Task oriented 9.1 Country club1.9 Middle Range Manager 5.5 Disappear manager 1.1 Kurt Lewin Autocratic Leader Democratic Leader Laissez Leader Contingency Fielders Model Leadership Style Situation Position power Ken Blanchard & Paul Hersey Directing Leader Coaching Leader Supporting Leader Delegating Leader 15
  • 16 (3) Leading - inspiring, influencing, directing & motivating . Getting work done by others effort with their willingness. NPs personality showed mix of all three theories.Trait Theory : The correct vision when taking important business decisions Behavioral Theory : Autocratic Leader He promoted employees who he thinks as good. Democratic Leader : Employees are his family . Their feedback is important to him. Contingency Theory : Strong relationship with his employees. motivated them to grow and retain. Supportive Leader
  • French Ravens 5 forms of Power 17 Leading continued.
  • 18 Expert Power NP is groomed by his 64 years of successful industry experience. which naturally gave him the expert power to influence his employees, which resulted employees to retain in a stabilized organization as PC. Rewarding Power Rewarding was NPs nature, happy and motivated employees resulted NP to be best selling confectionery businessman in the country. Referent Power NP was a role model to his employees. Employees Like NPs Personality as their boss. Leading Continued
  • (4) Controling 19
  • (2) Negative Approaches of the New Management lead to failure. Planning Lose of the KEY MAN & Plan of the NEW PC was not communicated to the employees.( as to WHAT + WHERE + HOW) Adverse Recruitments of Secretaries, Local & foreign consultants, Managers without Industry experience. Wrong ways of Introducing Vision & Mission. Increased Performance Targets HR policy in uniforms.
  • 21 Organizing
  • 22 Sudden CHANGE in the organization lead employees blind of the big picture . Employees lost respect & faith towards management. Job insecurity & high turnover Created unwanted costs . Resulted poor quality, increased customer complaints and brand name was damaged. Negative Approaches Continued Organizing
  • Leading Heads of the organization lacked in expert power and reward power. Demonstrates autocratic leadership styles. Wrong analyzing of performance targets resulted low performance from employees and low incentives. Employees were not treated as part of the organization and lost sense of belongingness. Seminars were conducted without getting input from employees as to what they need train in. resulted low efficiency. 23
  • Controlling 24 Feed Forward Unrealistic Performance & Sales targets. Bad Selection and recruiting. Concurrent Performance measurements & evaluations were bureaucratic. NO adaptive culture. Feedback Control Poor Analyzing of Sales per employee. Poor quality of the final product. Duly customer surveys were not done.
  • Finding 25
  • 26 Immediate Get out of Debt ( Financial Consultant) Creating awareness among employees Cost reduction program Intermediate Vision mission planning + Implementing Out Source Managers Redesigning sales +performance targets Redesigning Incentives systems. New Code of conduct Clear Organization Structure Long term Worker Recognition Programs. Customer Retention Programs. KEY MAN insurance. R e c o m m e n d a ti o n s