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Who we are?

TEAM ONE CONSULATACIES

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Why we are here?

Mr. Nimal Perera & His Remarkable journey

New Management & Failure

Analysis & Recommendations

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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

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VISION + MISSION

High Staff Turn Over

New HR Policies

Customer Complains Debts

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(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.

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Planning WHAT ? + WHERE? + HOW ?

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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.

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(2) Strategy Formulation (where we are +How + what to do)

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(3) Designing Strategies

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.

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Uniform Policy – Provided with Shoes Free Lunch Policy

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(4) Organizing it is the process of sourcing, allocating & arranging of resources + activity + authority

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NP Meets & delivers Work plan to each department.

Structuring continued..

Practices & guidelines staff has to follow.

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(2) Organizing Continued….

(a) Allocating ResourcesBambalpity as PC’s 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,

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Theories of Leadership

Trait BehaviorManagerial Grid by Robert Blake +Jane

Mouton

Best Manager/Team Manage

r 9.9

Task oriente

d 9.1

Country club1.9

Middle Range

Manager 5.5

Disappear

manager 1.1

Kurt Lewin Autocra

tic Leader

Democratic

Leader

Laissez Leader

ContingencyFielder’s Model

Leadership

Style

Situation

Position power

Ken Blanchard

& Paul HerseyDirectin

g Leader

Coaching

Leader

Supporting

Leader

Delegating

Leader

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(3) Leading - inspiring, influencing, directing & motivating .Getting work done by other’s effort with their willingness.

NP’s 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

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French Raven’s 5 forms of PowerLeading continued….

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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…

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(4) Controling

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(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.

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Organizing

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•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

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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.

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ControllingFeed Forward Unrealistic Performance & Sales targets.Bad Selection and recruiting.

ConcurrentPerformance measurements & evaluations were bureaucratic.NO adaptive culture.

Feedback ControlPoor Analyzing of Sales per employee.Poor quality of the final product.Duly customer surveys were not done.

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Finding

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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.

Recommendations