About the management process of Lucky Lanka

National Institute Of Business Management i
Contents
Introduction to the Company ............................................................................................. 1
Vision of Lucky Lanka ............................................................................................ 1
Mission of Lucky Lanka .......................................................................................... 1
About the company..................................................................................................2
Major Products of Lucky Lanka Milk Processing Co. Ltd...........................................3
2 Objectives .....................................................................................................................4
3. Methodology ................................................................................................................4
4. The Organizational Environment And Management Process Of Lucky Lanka Milk
Processing Co. Ltd............................................................................................................5
What is an organization? .......................................................................................... 5
What is Management?.............................................................................................. 5
Lucky Lanka’s Organizational Environment and Management....................................5
SWOT Analysis ......................................................................................................8
Planning Process And Activities Of Lucky Lanka Milk Processing Co. Ltd............... 12
Organizing ............................................................................................................ 16
Leading (Directing) ............................................................................................... 17
Controlling............................................................................................................ 21
5.Findings ...................................................................................................................... 23
6. Managerial Issues .......................................................................................................23
7. Recommendation for Improvement .............................................................................. 24
8. Conclusion…………………………………………………………………………………25

National Institute Of Business Management 1
Introduction
Introduction to the Company
Company has started the journey back in 1991 as a small scale business with a single
household cow. At the beginning, the industry only produced 30 to 40 vanilla
yoghurts to the market. The yoghurts were distributed to shops in Kamburupitiya area
by motor bikes.
But in present Lucky Lanka has storage facilities for 30000 liters of milk and they
collects 15000 to 20000 liters of milk from about 3000 farmers and there are about
115 delivery vehicles that distribute hundred thousands of yoghurts and various kinds
of products such as vanilla, strawberry, treacle, low fat, fresh fruit, chocolate flavored
and fruit jelly yoghurts, pasteurized milk, yoghurt drink bottles, sterilized milk, milk
toffee, drinking packets, flavored drinking bottles and new products to the market
such as keerasa yoghurt and yoghurt drinks to 30 distribution centers around Sri
Lanka daily.
In present Lucky Lanka is an island wide company and their goal is to make Lucky
Lanka a worldwide company in 2020.
Vision of Lucky Lanka
 Creation of healthy generation towards prosperous future in Sri Lanka.
Missionof Lucky Lanka
• To be the leading dairy supplier for Sri Lankan consumer by year 2015
Values of Lucky Lanka
 Integrity
 Teamwork
 Customer Service
 Learning & Development
 Ownership & Commitment

About the company
More famously known as “Lucky”, they are Sri Lanka’s favorite dairy products
manufacture, currently manufacturing yoghurts and pasteurized milk. They are in the
forefront innovating nutritious products in diverse tastes and flavors.
Lucky Lanka milk processing company limited is committed to process and deliver
dairy, fruit products and flavored drinks to their customers that meet highest food
safety standards confirming to national regulations and international standards.
To meet with this goal they are committed to establish effective communication
processes within the food chain and to establish food safety objectives which shall be
reviewed at planned intervals for continual improvement.
At Lucky Lanka, their focus is directed toward producing and improving the best
processes to bring you standard quality and nutritious dairy products, from the most
advanced milk processing research technologies to the latest state-of-the-art
packaging and disposal methods. Their quality and strict standards are further testified
by the ever-growing list of loyal clients increasing in number over the years.
Major players in milk industry are:
 Newdale
 Ambewela
 Highland
 Kothmale
The main reason behind the success of this sector is their expertise in product,
development sourcing practice, quality standards, service levels and Standardized
operating procedures in their production on Quality yoghurt. Management of lucky
Lanka have Learnt a few things by competing with multinational companies such as
Newdale and they have improved in many ways, but still there is a lot of scope for
improvement.

Lucky Lanka’s Technical information
No table of contents entries found.
 Number of production units : 8
 Number of machines : 200
 Number of servings per month: 8.7 million servings including all products.
 Average production methods: They produce to the stock in rainy season and
produce to the demand in dry season.
 Raw material resources: From around 3000 registered local milk farmers and other
raw materials from local suppliers.
 Monthly production Capacity: up to 10.5 million servings.
 Machinery allocated : 180
 Storage capacity: 0.5 million servings.
 Number of delivery vehicles: 115
 Daily necessity of fresh milk for production: 15000-20000 liters.
 Technical support workers : 35
 Quality Checkers : 10
 Storage facilities for fresh milk inside production unit: 30000 liters
Major Products of Lucky Lanka Milk Processing Co. Ltd
VanillaYogurt
Made with pasteurized, organic skim milk, live active Bulgaricus, and Thermophilus
cultures live yoghurt cultures, and permitted vanilla flavors. A firm textured yoghurt
with custard-like consistency and an appealingly gentle, mellow flavor.
Strawberry Yogurt
Made with pasteurized, organic skim milk and permitted strawberry flavors. A firm
textured yoghurt with awesome strawberry flavor.
Fruit Jelly Yoghurt
Fruit jelly Yoghurt is one of the favorite Lucky products, with submerged fruits in
Jelly layer with yoghurt.
Treacle Yogurt.
You would be able to Feel the traditional treacle taste with innovative Lucky Treacle
Yoghurt. It has an incredibly smooth And creamy texture and has the same great taste
you expect from Traditional 'Kiri Pani'

2 Objectives
Objectives of the Study
Certainly there are objectives in selecting Lucky Lanka Milk Processing Co. Ltd to
make out its management process,
 To identify the management process of selected organization.
 Get to know about the business procedures of organization.
 To get to know how to handle the employers
 How to finish or achieve targets.
 Put the theory into practice and identify the areas needed to be improved in
management process.
3. Methodology
Our report is an analysis of the management process of a well-established company in
Sri Lanka. The company we choose is “Lucky Lanka Milk Processing Co. Ltd” a
leading company which produces quality dairy products to the local market of Sri
Lanka. The Lucky Lanka Milk Processing Co. Ltd consists of factory located in
Kamburupitiya, Sri Lanka. Lucky Lanka is a dominant company with a vast array of
modernized and complex processes.
On 26th December 2012, we visited the factory and office situated in Kamburupitiya.
Mrs. Badra Gunawardana the director of administrations and head of marketing of
Lucky Lanka Milk Processing Company Ltd., warmly welcomed us, and we were
directed to the Engineering Manager Mr. Thissa Disanayaka, then both of them
conduct a brief seminar about the company and the company’s production process.
Then conduction of the study was initiated by asking questionnaires from the
management. Additionally we drew our attention to the managerial issues that the
company has faced in the past and the issues that could occur in future. And also they
allowed us to visit and examine their production fields. To seek for new bends over
the field of view Internet also involved in fetching data.

4. The Organizational Environment And Management Process Of
Lucky Lanka Milk Processing Co. Ltd.
What is an organization?
Organization is a set of people working together in a structured and a coordinated
fashion to achieve a set of goals.
What is Management?
When managing people, it is not just a matter of having the right employee in the
right place at the right time; it is also about developing and improving that resource.
Management is like investment, its goal is to get the most out of resources, add the
most value or get the best return. Management can be defined as: achieving goals in a
way that makes the best use of all resources.
A Smart manager will think carefully on a regular basis about how to get the best
return on these resources.
Also, managers should pay attention to the welfare of the workers, consumers need
and their safety, the interest and the rights of creditors, government regulations and
the obligation of the organization towards as whole. Management comprises
planning, organizing, leading and controlling an organization or effort for the purpose
of accomplishing a goal.
Lucky Lanka’s Organizational Environment and Management.
Lucky Lanka milk processing company has successfully completed 22 years in the
Sri Lankan market, providing Quality dairy product to the public through an
environmentally friendly process.
They are well on the way to achieving their vision, as they are currently in a good
position in Sri Lanka, having over 37% of the market share. Lucky Lanka milk
processing company Steered by Mr. Lal Keerthi Amarasiri Gunawardhane the
chairman of lucky Lanka who won the platinum award for the best entrepreneur in Sri
Lanka in year 2011, produce around 350,000 yoghurts per day, entirely for Sri
Lankan consumption.

Clients, Government
Unions,Media,
Social,Competitors,
suppliers
Srtategic clients,
Strategic partners,
Current employees
Lucky Lanka
milk processing
company
The aim of organization is to reach and achieve optimal function. According to
research we can define Lucky Lanka Milk Processing Company’s internal
environment is composed of the element within the organization, including Current
employees, material, management, and specially cooperate culture, leadership.
From the details that the research defined Lucky Industry’s is using Stakeholder
Analysis. A Stakeholder Analysis is an approach that is frequently used to identify
and investigate the Force Field formed by any group or individual who can be
affected by the achievement of the objectives of an organization. According to the
stakeholder Value Perspective of Edward Freeman (Strategic Management: a
Stakeholder Approach 1984).And the CEO of Lucky Lanka Milk Processing Co. Ltd
says management is formulated and implements strategies and to make decisions to
satisfy all or most of the stakeholders. Mostly they are focusing on managers and
employees those who are situated within the company and affect the ‘day-to-day’
running of the organization. At the same time they are implementing strategies for
 Suppliers
 Customers
 Government
 Local councils and the surrounding community.

Within the period of research Lucky Lanka CEO says that the internal environment,
forces are under the control of the organization. But the external environment is
typically made up of things, situations, and events that occur outside of an
organization, (usually beyond the organizations control), and affects the organization
in either a positive or negative way because of the uncertainty, it means lack of
accurate external information, events that can’t be predict can affect the deciding of
organizational goals. Lucky Lanka Milk Processing Company, is dividing its external
environment into two parts with the help of management concepts as:
 Task Environment.
 General Environment.
The task environment is usually the environment that most organizations like to focus
on. The task environment is very helpful to the organization because it helps them to
specifically identify environmental factors that are important in the company’s
success. This environment is made up of four parts.
 Competitors
 Customers
 Suppliers
 Distributors
Customers-An organization like Lucky Lanka’s customers and clients are those
individuals and organizations that purchase its products. It is becoming increasingly
important to stay in touch with customers’ needs. There are about 40000 customers of
lucky products island wide.
Some supreme customers are:
 Cargill’s food city
 Keels super
Competitors – Lucky Lanka’s competitors are other organizations that
either offers or have a high potential of offering rival products especially
like,
 Newdale
 Kothmale
 Highland
 Ambewela

Suppliers-An organization like lucky Lanka’s suppliers are those who supply the
resources (such as raw materials, products, or services) the organization needs to
conduct its operations. But in this case Lucky Lanka company Ltd, is gathering the
milk as the main input from the recommended milk centers around Sri Lanka under
the Ministry of Healthcare and nutrition. That’s why they thought it’s a main strength
of them in production.
Distribution - The Company delivers its products directly from manufacturing plants
and warehouses to customer warehouses and retail stores. This is part of a three
pronged approach which also includes employees making direct store deliveries,
perfect supply through 115 delivery vehicles.
Distributors -The distribution has is perfect because they need to supply their
products to customers on time. To achieve on-time deliveries, the company has
decentralized the delivery process.115 delivery vehicles which carry over 350000
yoghurts all over the country, driven by an uniformed route-staff, accompanying
these vehicles, are well-trained to handle the operational aspects of sound
distribution, and are customer-friendly at all times. Deployment of a few three-
wheelers has become a necessity to cater to emergencies in view of their ability to
make prompt deliveries on time through traffic snarls. Lucky Lanka is the sole
yoghurt company which operates an extensive delivery network which covers almost
the whole island.
The starting point for an environmental research is an inventory of community
resources, and ensuring sustainability of their growth strategy. Just take a looks at
Lucky Lanka Milk Processing company’s Strengths, Weaknesses, Opportunities and
Threats.
SWOT Analysis
Strengths:
 With balancing equipment, they can keep on adding to their product line. Because of that
flexibility of product mix is tremendous.
Strengths Weaknesses
Opportunities Threats

 Availability of raw material is abundant. Presently, more than 80 % of milk produced is
flowing into the unorganized sector,which requires proper channelization.
The whole staff is Professionally-trained and technical human resource pool that
built over last 20 years is in perfect standard.
 Demand profile for dairy products is absolutely optimistic because these products
contain essential nutritional factors for every human being living on the earth.
 Price margins are quite reasonable. Lucky Lanka is providing their products at very
low price when comparing with their competitors.
 That we get the service providing by the Lucky Lanka is to 5 star hotels like
Cinnamon Garden, Cinnamon Lakeside, Hotel Hilton, Galadari.
 The company have gained recognition from various organizations such as,
 The ISO 2200 certificate with HACCP points
 The highest achievement in the yoghurt industry of which Lucky Lanka is the first
to get the Sri Lankan Quality Standards[SLS]824 throughout the manufacturing
process.
 The chairman of Lucky Lanka milk processing company Mr. Lal Keerthi Amarasiri
Gunawardhana won the award for the best entrepreneur in Sri Lanka in year 2011.
Weaknesses:
 Usually dairy products are highly perishable. Pasteurization has overcome this
weakness partially. UHT gives milk long life. Surely, many new processes will
follow to improve milk quality and extend its shelf life.
 Lack of control over yield is another main problem that we can see in Sri Lankan
dairy industry. Though cross breeding programs have significantly improved animal
productivity, milk production system in many parts of the country is still largely
dominated by low yielding animals.Theoretically, there is little control over milk
yield.However, increased awareness of developments like embryo
transplant, artificial insemination and properly managed animal husbandry
practices, coupled with higher income to rural milk producers should automatically
lead to improvement in milk yields.
 Poor condition of roads around the mother branch of Lucky Lanka milk processing
company: Logistics of procurement Woes of bad roads and inadequate
transportation facility make milk procurement problematic. But with the overall
economic improvement in Sri Lanka, we can hope these problems would solve.

 Intense Competition - The Newdale Company is Lucky Lanka’s primary
competitor. But others include Highland; intense competition may influence
pricing, advertising, sales promotion initiatives undertaken by Lucky Lanka Milk
processing Co. Ltd. With so many newcomers entering this industry, competition is
becoming tougher day by day. But then competition has to be faced as a ground
reality.
 Low Productivity - In 2012 Lucky Lanka had approximately 500 employees. Its
revenue per employee was Rs.20, 439, which was lower than its competitors. This
may indicate comparatively low productivity on the part of Lucky Lanka’s
employees.
Opportunities:
"Failure is never final, and success never ending”. Mr. Lal Keerthi Amarasiri
Gunawardhana bears out this statement perfectly. He entered the industry when there
were only threats. He met failure head-on, and now he clearly is an example of “never
ending success”
 Especially Sri Lanka’s weather condition is the main Opportunity for the Lucky
Lanka because yoghurts are help to retain the body heat, and giving the natural
nutrition.
 Value addition: There is a phenomenal scope for innovations in product
development, packaging and presentation. Given below are potential areas of value
addition:
1.. Addition of cultured products like yoghurt and cheese lend further strength - both
in terms of utilization of resources and presence in the market place.
2.Yet another aspect can be the addition of infant foods, geriatric foods and nutritionals.
 Export potential: opportunities will increase tremendously for the export of dairy-
products in next few years.
Threats :
 Lucky has not yet produced a product that is less perishable. Only milk toffee and
pasteurized milk is less perishable. It is hard to manage milk in rainy seasons and if
the management makes a bad purchase plan, a huge amount of milk will be wasted.
 Indiscriminate crossbreeding for raising milk productivity could lead to
disappearance of valuable indigenous breeds.

 Organized dairy industry handles only 50% of the milk produced n Sri Lanka. Cost
effective technologies, mechanization, and quality control measures are seldom
exercised in unorganized sector and this remains to be a key issue to be addressed.
 Reputation at the middle class families in developing countries like Sri Lanka are
seeking for the high quality for lowest cost mean while number of companies are
producing low quality yoghurts for the cheapest price.
 There is a gross lack of awareness among farmers about the quality parameters,
including microbiological and chemical contaminants as well as residual antibiotics
 And the main threat is rapidly increasing trend of inflation in Sri Lankan economy
and increase of taxes.
How departments are coordinated,
The director board is controlled by Chairman or Managing Director. Director Stores
& Purchasing, Finance Director, Director of operations Director of administrations
and head of marketing and Director engineering & brand are persons that must report
to the Chairman or Managing Director.
Director Stores & Purchasing has to control purchasing and stocks of raw material
through purchasing managers and stock managers. Director of finance have to control
all the financial things inside the company through accountants and clerks
Operation head has to take control of security, production, transportation in the
company through security managers, transport managers, production managers and
with the help of HR division.
Director of administrations and head of marketing must take care of marketing and
sales sides’ through regional sales managers, marketing service managers and sales
coordinating managers.Director of engineering and brand must take control of
maintenance and IT department through maintenance managers and IT managers.
(Refer appendix to see the hierarchy and the organizational structure of Lucky Lanka)

Planning ProcessAnd Activities Of Lucky Lanka Milk Processing
Co. Ltd.
Planning means:
The process of determining organization objectives and selecting a future course of
action for their accomplishment.
Planning of Lucky Lanka is done by the top management and the planning managers.
The IT department of Lucky Lanka directly help in this process through delivering
forecasts created by the software that could analyze the past data and information of
the company to the management.
The top level managers should:
 Decide which goals the organization will pursue
 Decide what courses of action to adopt to attain those goals
 Decide how to allocate organizational resources
 What, when, and how things should be accomplished in view of the organization’s
capabilities and the environment’s uncertainties.
Strategic Planning
Top managers determine what the organization long team goals should be for the next
1-10 years with the resource they expect to have. The main purpose of creating
strategic plans is to achieve large scale objectives. Accordingly Lucky Lanka’s
operation managers prepare strategic plans their plan limit between 6 - 14 months.
Strategic plans of Lucky Lanka
 Zero employee layoff
 Excellent service to customer
 Enough money return on investment
 Constant improvement of the quality of all products
Tactical Planning
Prepared within the scope of functional management areas such as marketing,
Finance, HR, operations managers. They determine what contribution their
department or similar work units can make with their given resources during the next
4 weeks to 4 months. The main purpose of creating functional plans is to coordinate
plans between strategic and operational plans.

Tactical plans of Lucky Lanka
 Increasing manufacturing productivity
 Focus of contributing the majority of its donations to increase awareness among
farmers about the quality parameters, including microbiological and chemical
contaminants as well as residual antibiotics related projects.
Operational Planning
Lucky Lanka has a daily planning system because of the high perishable nature of
their main raw material. Middle level planning managers determine how to
accomplish tasks with available resources within the next day, especially operational
plans is very vital concept in operational system.
 Focuses on how activities will be carried out.
 On time
 With available resources
 Without wasting raw materials
In Lucky Lanka, operational planning consists of 4 main types of plans. They are,
 Purchasing plan
 Production plan
 Delivery Plan
 Marketing plan
Purchasing plan
In Lucky Lanka, Purchasing plan is prepared by the Purchasing manager. When
preparing the plan, purchasing manager should consider about the production plan for
the day and also have to think how to balance purchasing fresh milk from about 3000
farmers without crashing. The most important thing is the amount of milk and other
raw materials that have purchased must match the daily necessity of production. The
daily necessity of fresh milk is 15000-20000 liters and the production unit has storing
capacity up to 30000 liters if necessary. They can’t calculate how much milk that a
cow will produce for a day. Because of that they have developed a system to manage
the processes, no matter what the amount of yield is.

Production place
Warehouse/
Distribution centers
Consumer Warehouse Customer/Vendor
Production plan
Lucky Lanka’s Production plan is prepared by the Production manager. Before
preparing the production plan he/she should consider about the weather forecasts,
because in rainy season the demand for cooled items in the market rapidly falls down.
Therefore in the rainy season Lucky Lanka usually don’t produce to the stock. They
usually produce to the Order in rainy season in order to minimize sales return.
Delivery/ Distribution Plan
In Lucky Lanka, Delivery plan is prepared by the Transport manager. when preparing
the production plan he/she should consider about the vehicle capacity, weather, Rout
plan, Demand for the area, Availability of drivers and helpers and condition of
roads(traffic) . Delivery planning is also a daily planning process. Under the main
delivery plan, there are two sub plans.
 Primary distribution plan
 Secondary distribution plan
Primary Distribution
Primary distribution means delivering the products from production place to
warehouses/ Distribution centers. There are about 30 distribution centers island wide
and they usually deliver the products to main distribution centers twice or thrice a
week through about 20 big delivery trucks. The rout plan might change according to
the weather other natural or manmade disturbances such as traffic jam.
Secondary distribution
Secondary distribution means delivering the products from warehouses to customer/
vendors. Sometimes Lucky Lanka also delivers their goods directly to consumers if
the amount that they ordered is big. There were about 40000 registered direct
customers with Lucky Lanka at the end of 2012.
All these plans are made according to the ERP system.

Common Goals of the Company
 To provide the best quality, high nutritious all natural and certified products.
 To make their consumers and farmers aware on the value of protecting the
environment and of supporting family farmers, sustainable & productive farming
methods.
 To serve as an environmental friendly business model which is sustainable and
being socially responsible that will also be profitable.
 To provide a healthful, productive, enjoyable and pleasant work place for all
employees, accompanied by skills development and career advancement
opportunities.
 To recognize & fulfill their obligations towards the stakeholders and lenders by
providing an excellent return on their investment.
The Way The Organization Has Planned Their Office Environment.
 In the organization, interior decorations are related to milk.(painted in white and blue)
 They have posted charts regarding the importance and nutritional values of milk.
 In the reception hall they have posted a weekly plan chart.
 In the office room they can see each other face. The rooms contain glasses where the
employees can see each other and also they don’t feel loneliness.
 Minor staffs are requested to wear the company t-shirts.
Programmed Decisions
 If three days continuously employees get late, there will be a deduction in the half day
salary of the employees.
 Customer’s orders should be fulfilled within 24 hours. If not necessary action will be
taken.
 Employees are responsible for their work if they do any mistakes, they will have to bear it
up.
 If an employee meets with an accident while working, lucky Lanka Company will take
care of him/her and will cover all the expenses through an insurance facility that operates
inside the company.

Organizing
Formalization, Departmentalization, Centralization and Decentralization, Chain
of command, Span of control and Work specialization of Lucky Lanka.
The management of Lucky Lanka has appointed people for duties due to their work
specialization. Work specialization also known as division of labours, it means the
degree to which organizational tasks are sub-divided into individual jobs When they
appointed a supervisor for a production line considers the work experiences and work
performance of that particular person. When they selected an executive level officer
for the executive job they always consider their education level, work experiences,
attitudes and which stream that person, is specialized. After they recruit they give a
special training for them to do their job efficiently. For an example a worker who
works in the pasteurization process, that person specializes in pasteurizing milk,
methods of pasteurizing and that person also become updated on latest technologies
and issues in that process. Currently that person is in grade 3 level, after that when
she become more specialized for that particular job then she will be promoted to level
as grade 2. After that when that person gets most specialization for that particular job
that person’s position will upgraded to level 1. In that position he/she will get more
benefits than the previous level.
Departmentalization concentrates the capacity of the production toward a high level.
Departmentalization refers to the process of grouping activities into departments. Division of
labor creates specialist who need coordinate. This coordination is facilitated by grouping
specialists together in departments. The process of grouping jobs together so that common
task can be easily being coordinated and controlled. We also were able to see this
application in Lucky Lanka Milk Processing Company Ltd. According to HRM, there
are five main sections under the chairman and managing director. They are
Department of IT, Financial Department, and Department of operations, Department
of administration and marketing and department of engineering.
Lucky Lanka Company is a company that has an Open Door policy. It means even a
cleaner who works for the company could directly communicate with the Chairman
or the Managing director of the company.

Chain of command means the continuous (unbroken) line of authority that extends
from upper levels of an organization to the lowest levels of the organization and
clarifies who report to whom.
Span of control means the number of employees who can be effectively and
efficiently supervised by a manager. This span of control is one of a factor to achieve
their organizational goals and targets.
Lucky Lanka has a narrow structure and has many hierarchical levels and narrow
span of control. But their communication is not difficult. Because of the Open door
policy, the labors can easily communicate their ideas with the top level of the
management. There are some advantages, like the supervisor can well control their
subordinates and get well performance from the subordinates.
Decentralization is the location of decision making authority near lower
organizational levels. Centralization is the location of decision making authority near
top organizational levels. According to Lucky Lanka Company policies, they get
correct decisions suitable for the time.
Formalization is the degree to which jobs within organization are standardized. A Reference
to formalization of the Lucky Lanka Company is given below.
Usage of formal leaves, Prohibition of Child labor, To comply with Laws & company
regulation, Hours of Work, Report to the work at in time, Prohibition of Forced labor,
Freedom of Association, Prohibition of Harassments & Abuse, Compensation &
Benefits, Prohibition of Discrimination, Health and Safety.
Leading (Directing)
Leading is the process of directing members of the organization to move in the
direction that will achieve the objective. This involves providing overall leadership
and directions towards clear goals of the organization through effective
communication, clear work procedures, responsibility, delegation and empowerment.
In management process leading divide into three major parts,
 Leadership
 Motivation
 Communication

Leadership of Lucky Lanka
Leadership plays vital role in managerial operations. If there is any single factor that
differentiates between successful and unsuccessful organization, it could be consider
as dynamic and effective leadership.
It’s the ability to influence people toward the attainment of organization goals. At
Lucky Lanka the manager has certain powers when handling with their employees
Basically the chairmen of Lucky Lanka have delegated his power to the managing
director. The manager has deep human qualities beyond conventional notions of
authority. The manager has legitimatized power in the organization. It’s the power
coming from a formal management position of an organization and the authority
granted. The manager assigns task to employees. If they refuse it and provide a
reasonable reason the manager will accept it if not the person will be reprimanded.
Reward power also can be seen where positive benefits are provided to employees.
Once the employees achieved their targets, promotions, pay increase, recognition,
appreciation, bonus are provided. At the same time when the employees are
irresponsible or employees doesn’t finish their targets at the correct time they will be
demoted, job rotated, or a reduction from the salary.
To perform tasks within a company, they also use leadership powers,
 Legitimate power
This means position power or official power comes to the leader when the
organization’s authority is accepted. It comes from the rules of the organization, in
Lucky Lanka executive mangers; supervisors use this power to lead their followers.
 Coercive power
This power comes from authority; it is the ability to punish. This power also use by
managers and supervisors in Lucky Lanka.
 Expert power
Expert power can be defined as the authority of knowledge that comes from
specialized learning. This is the power of knowledge and skills of special kind that
are important in getting the job. In Lucky Lanka this power mostly use by line leaders
and line supervisors to leading their followers.

Self
Actlization
Estreem Need
Belonginess needs
Safty Needs
Physcological
Employees Commitment and Level Of Motivation.
Human nature can be very simple, yet very complex too. An understanding and
appreciation of this is a prerequisite to effective employee motivation in the
workplace and therefore effective management and leadership.
In early 1900’s during classical perspective employees were treated as machines. No
humanity was shown. Employee motivation was very less. Organizations just wanted
to increase their productivity and profits. So they used employees as a tool to achieve
it. Now in this dynamic world, everything is totally changed. People are being more
educated. The employees working in an organization are very knowledgeable and
they know there rights. There is an old saying “you can take a horse to the water but
you cannot force it to drink”so with people they will do what they want. Motivation
plays an important role among the employees. Managers are challenged to motivate
employees to do two things. 1st challenge is to motivate employees to work toward
helping the organization to achieve goals and 2nd is to motivate employees to work
toward achieving their personal goals. Nowadays it has become an essential thing for
any business to survive and succeed.
ABRAHAM MASLOW shows the gradual escalation of workers drives and
motivation in the pyramids.
The manager of Lucky Lanka Milk Processing Co. Ltd. says that they give more
priority in motivating the employees. All the needs according to the Maslow’s theory
are required to an employee.
Basically employees need to fulfill their physiological needs. Lucky Lanka Milk
Processing Co. Ltd. provides a suitable working environment for all employees.
Especially the factory in Kamburupitiya provides suitable environment which is fully

surrounded with green trees with a calm environment. And also it offers a
comfortable, healthy and attractive indoor environment for everyone. Lunch break is
provided for one hour and also the employee’s in factory and office is provided with
free tea/coffee. The manager says that there are no restrictions to have more. Working
hours for factory employees are from 9am to 5.30pm and office employees should
work from 8.30am to 5pm.Employees specially see into how far there job is safety
and secured. So for this, each every employee is provided with an insurance policy
and medical allowances.
It is an employee protection against injuries that unexpectedly happen while at work.
And also sick leaves are also provided. When recruiting employees an initial training
is provided. Their performance is checked and then they will be made permanent for
the jobs. Not only are the new ones, the senior employees also provided training it’s a
must to attend the training. Most of the training programs were conducted by the
Firm’s trainers circle consisting talented and experienced senior employees at Lucky
Lanka. Annual health evaluation is done to determine whether the employees are
able to do the task. Women employees are entitled for materiality leave. Counseling
services are provided annually. Employee working in factory should handle with
machines, chemical and also work with high noise. So to safeguard them protective
equipment’s are provided, they are:
 Hearing protection
 Eye protection
 Hand, Head and Face protection..
 Foot protection.
Monthly attendance bonus:
The workers are encouraged to report for the work without getting absent thus
enabling the respective section to be in difficulty where production is concerned.
Lucky Lanka pay Rs 1500/= if they report to work without getting absent throughout
the month. If any employee takes more than a day up to the maximum of two days Rs
500/= will be forfeited.
Through above motivation program Lucky Lanka expect,
Productivity –Motivation helps in increasing the productivity of the employees that
helps the organization further to achieve its long-term goal.

Team spirit – Motivation helps in inculcating the sense of team work, team spirit,
and inter-team collaborations. It helps in inculcating the zeal to learn within the
employees.
Organization Culture –Motivation helps to develop and improve the organizational
health culture and effectiveness. It helps in creating the learning culture within the
organization.
Quality – Motivation helps in improving upon the quality of work and work-life.
Communication
Because of the open door policy of Lucky Lanka, the communication inside the
company is astounding. This process required a vast repertoire of skills in inter
personal processing, listening, observing, speaking, questioning, analyzing, and
evaluating. Communication is defined as a process which is assigned to convey the
meaning in an attempt to create shared understanding. Uses of these processes is to
develop and transfer to all areas of life, home, school, community, work and beyond.
It is through proper communication, collaboration and cooperation will occur and it
will lead the company to a issue free environment. Communication important for
Lucky Lanka, to obtain a common direction among members, to aid in making high
quality decisions, to build a community of employees with high morale and trust
among themselves and for Organization’s success is related to effectiveness of
organizational communication.
Controlling
Management control is the process of ensuring that actual activities conform to
planned activities.
The IT department of Lucky Lanka has developed amazing software that could help
organization’s controlling process and it has proven to work. This software is able to
analyze each and every bit of data that has been entered and through proper
calculations and analysis it can deliver a forecast on anything. That software is able
to identify the threats that could affect to the company in near future and it is even
able to find which employee has cheated on their company. According to the
management of Lucky Lanka, the advancement of the technology has simplified the
most complex processes of management including controlling. In present the
controlling is almost handled by the IT department of Lucky Lanka. There are about
10 employees that have been appointed to collect the data from each department and

they have to submit the data to the IT department at the end of the day. The data
includes all the transactions, current conditions of vehicles and employees, purchases
made, cheques issued, Problems occurred during processes, orders to be delivered,
amounts of salaries paid and etc.
Then the staff of the IT department enters the data to particular software and it will
give the managers of each department, a clear picture about the things that took place
inside their department during the day and it’ll help the managers to measure their
progress.
There are two main types of control. They are:
 Operational Control
 Structural Control
Training and evaluating the quality of staff in Lucky Lanka
It is the prime responsibility of the senior quality staff to train all the new staff to
achieve skilled levels within a short frame of time. A training program should be
designed which will enable to execute simple and proper training to enhance the skill
levels of the staff up to standard. In Lucky Lanka the system of evaluating is 360
degree evaluating system. 360 degree evaluation is the system that takes judgments
about how good, useful or bad a person, from the people who work below, above and
parallel to him or her.
Operational Controlling
It happens under three main methods,
 Feed- forward Control
 Concurrent Control
 Feedback Control
Lucky Lanka have a production planner. He has done production review hourly, daily
and weekly. When production planner find mistake in production process he does a
plan to overcome from that matter and he should get permission from general
manager to conduct that plan. Always company should conduct their production
process under rules and regulations of SL and consumers.
Financial Controlling
In management process financial controlling plays a major part of which an
organization achieve their targets and effectively. In Lucky Lanka financial
controlling is done by Financial Director.

5.Findings
When analyzing the management process of Lucky Lanka, these are the things
which we found as findings.
 They have lots of good motivation campaigns.
 They always think about the employees.
 They have good financial ability.
 Use 5s concept, eco- friend, Carbon foot print concept.
 They have unbroken trust with their customers.
 They have an open door policy inside their company. So there are no unions formed
inside the company.
 They have successfully achieved their goals during past few years.
 They have 360 degree evaluation system which gives the best evaluation about the
employees.
6. ManagerialIssues
 Main managerial issue occurs due to the highly perishable nature of the main raw
material. They can only keep fresh milk in the production plant more than 72
hours even in freezers. In rainy seasons the yield of milk from cows are very high
due to the freshness of the environment and plants they consume. In rainy season,
usually the demand for the products that people store in refrigerators or cooled
foods falls down due to the weather condition. For an example, demand for ice
cream, cooled beverages and yoghurts fall down. Though the yield is high, the
demand is very low. This is the main managerial issue that Lucky Lanka faces in
the rainy season of the year.
 Another main managerial issue in Lucky Lanka is the high amount of salaries and
allowances that they have to pay for the managers that live in western province
and travel daily from Colombo to Kamburupitiya. They don’t have
accommodation facilities in Kamburupitiya.
 And they have faced another major issue in March of 2012. A main machine in
the Production Process failed and there were no spare parts to repair it. Then the
whole production process had to be stopped for a week.

 Another issue is waste management. They already have started a waste water
treatment plant. But there is a problem when disposing plastic waste and other
waste. They are already constructing a bio gas unit but they have to transport
plastic waste to a recycling plant that is somewhat far away from the Lucky Lanka
production center.
7. Recommendationfor Improvement
 The main managerial issue is the wastage of fresh milk in rainy season of the year.
We recommend Lucky Lanka to start producing milk powder to overcome that
problem. By producing milk powder they can overcome many current issues such
as wastage of milk in rainy season and by starting producing a product that can keep
for a long time they could gain more profit by reducing sales return.
 The issue occurred due to the accommodation problem for managers that come
from western province could be overcome by building new quarters in
Kamburupitiya area. For the employee of Lucky Lanka.
 They have faced to a huge problem when a major machine of their production unit,
“the boiler” failed to work during the production process. We recommend them to
keep extra stock of spare parts of the major machines in order to repair them as
soon as possible if a machine fails to work.
Because they have to transport the plastic waste in to a recycling facility that is
somewhat far away to the production unite, so we recommend them also to start a
new recycling facility in their company.

8.Conclusion
Today lucky Lanka Milk processing company has become one of the largest milk
processing company in Sri Lanka by providing high quality dairy products to their
customers, in addition to that millions of people trust their products. By maintaining
high quality standard they can obtain much profit to their company.
As our selected organization, Lucky Lanka Milk Processing Company has achieved
lots of their targets and goals. Day by day their products are innovated. So that in
future they will become the largest dairy processing company in Sri Lanka and their
target is to make their company worldwide in 2020.
Through this research we got an accurate idea about the management process of
Lucky Lanka and we wind up our research with the help of Lucky Lanka’s
management and our group members.

References
http://en.wikipedia.org/wiki/Management_process
http://en.wikipedia.org/w/index.php?title=Special:Search&search=SWOT+analysis&
fulltext=1&redirs=1&profile=default
http://en.wikipedia.org/wiki/Strategic_planning
http://www.google.lk/url?q=http://www.dairyfarmingtoday.org/&sa=U&ei=b978UN_
-
JcTtrAfH9YDYBw&ved=0CC0QFjAF&usg=AFQjCNEUdhb14xuV3m2zguDJhTT
B83H_5Q
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About the management process of Lucky Lanka

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