Case Study " Perera Confectioneries"
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Case Study " Perera Confectioneries"



Case Study Presentation - Perera Confectioneries

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



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  • Explaining functions of managemennt by the consultant
  • Planning heading comes first. Then explain the planning proces.Then the first sub heading determing vision & mission appers. Then discuss a –done by one.
  • Should NOT be in the slides but for notes when presenting
  • Explain about.. No written charts but informal structures was maintaines. And other importance of NPs approachs.
  • Discuss e.g Trait theory – correct judgment of expanding the business when tax increased. Contingency E.g NP had his foundation to prove that the employees + their familes are well looked after. Service based bonuses gave employees the monitory assurance and jub security.
  • To be discussed
  • Discuss the impact of NPs death as eployees future was dependent on NP. <br /> New management lack of communication employee increased queriosity as to what will happen to them lead to jjob insurerity. <br /> Adverse recruitments ( 3secreteries, friends as managers for KBA without industry experience.forieghn consultants <br />
  • 1)resulted Heigh employee turnover, demotivation & reduced quality product. No bonuses due to low performance & customer complains were not considerd as importnt resulted decresed loyal customers & brand identity.
  • Reschedualing the loan + discussion with bank (2) General meeting employees – directors (3) present situ +Feed back from employees +job assurance. 4) getting rid of inwanted expences 5) Communication of company’s vision mission in simpler terms .6)Heads to the key areas of the bussines should be out sourced.7)redesighning sales & performance targets with the contribution of the waorkers.

Case Study " Perera Confectioneries" Case Study " Perera Confectioneries" Presentation Transcript

  • 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 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,
  • 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 Fielder’s 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 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
  • French Raven’s 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