Case Study Presentation of Perera Confectioneries

1. 1
Who we are?
TEAM ONE CONSULATACIES

2. 2
Why we are here?
Mr. Nimal Perera & His Remarkable
journey
New Management & Failure
Analysis & Recommendations

3. 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. 4
VISION + MISSION
High Staff
Turn Over
New HR
Policies
Customer
Complains
Debts

5. (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. 6
Planning WHAT ? + WHERE? + HOW ?

7. 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.

8. (2) Strategy Formulation (where we are +How + what to do)
8

9. (3) Designing Strategies
9
Short Term
Intermediate
Long Term

10. (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. 11
Uniform Policy – Provided with Shoes
Free Lunch Policy

12. 12
(4) Organizing
it is the process of sourcing, allocating &
arranging of resources + activity + authority

13. 13
NP Meets &
delivers Work
plan to each
department.
Structuring continued..
Practices &
guidelines staff
has to follow.

14. 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,

15. 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. 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

17. French Raven’s 5 forms of Power
17
Leading continued….

18. 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…

19. (4) Controling
19

20. (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. 21
Organizing

22. 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

23. 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

24. 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.

25. Finding
25

26. 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.
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