Application of management theories in srilankan business organization

NAME STUDENT ID

Siham M.F.M BM16428348

Sridaran T.R BM16432994

Samarathunga.D.M.T BM16432208

Thamiran V. BM16432826

Introduction Of The Company

Business Name : Mahanama Paint Centre (PVT)LTD. Business Address : No.336 A, Hospital Road , Kalubowila, Sri Lanka Legal Status : Private Limited Liability Company Incorporated in Sri Lanka Board Of Directors

Mr. M.V.G. Premadasa : Chairman and Managing DirectorMRS. D.M Mahanama : Director

Bankers : Seylan Bank : Sampath Bank : Hatton National Bank Auditors : A.S.S.Associates : Charted Accountants Secretary :MR. Isuru Mahanama :Company Secretary Nature Of The Business : Wholesale , Retail sale , &

Distributions of paint products

Products selling by the company

Vision, Mission and goals of the Company

VisionTo be the dominant market leader in both Automotive and Decorative coatings, retail and wholesale market.

MissionProvide innovative, superior quality and environmental friendly products with constant sstandards, giving the highest value to our customers while satisfying our employees, and other stakeholders in a socially acceptable manner

Goals Being innovative, Productive, resourcing, employee development and relation and profitability

Distribution In Colombo And Gampaha District

Colombo District

40 parch of stores complex at 89 / 1 Jambugasmulla MW, Kalubowila 30 parch bare land at No. 49 , Anderson Road, Kalubowila

Title No. Of Units Cost

Furniture, computers ,printers and office equipment's

- 10Mn.

Lorries 05 20Mn.

Motor Cycles 02 5Mn.

Expected staff recruitment as follows.

Monthly salary No. of employees Monthly total salary-RS.

General Manager 50000 01 50000Stores 22000 6 132000Accounts assistants 22000 2 44000

Cash Collectors 20000 2 40000Drivers 30000 5 150000Helpers 25000 5 125000Security 45000 2 90000Salary for the month

23 631000

Distribution in the Gampaha District

Monthly salary p.p No. of employees Monthly total salary-RS.

General Manager 50000 1 50000Stores 22000 4 88000Accounts Assistant 22000 2 44000Cash Collectors 20000 2 40000Drivers 30000 5 150000Helpers 35000 5 125000Security 45000 2 90000Salary for the month 21 587000

Introduction to the company

Introduction to Mahanama paint Centre (PVT) LTD

The founder of Mahanama paint Centre , Mr. M.V.G. Premadasa started his business in 1984 in at 99/1 , High level road , Maharagama as sole proprietor organization and opened it’s first branch in 1987 at No 336A, Hospital road , Kalubowila.

Same time he obtained dealership for Causeway , Multilac , Nipolac , Jat Holdings , CIC ,Robialac and Asian Paints etc.

Now Kalubowila branch function as its main paint shop and also head office is function in the same place.

In 2006 Mahanama Paint Centre got registered as Limited Liability Company as Mahanama Paint Centre (PVT) LTD. And opened up its second branch at NO. 137, Horana Road, Panadura.

Its Athurugiriya Branch opened in 2010 at No. 106 / D / 1, Borrela Road , Athurugiriya.

As its forth branch opened up new branch at No. 45 / N3 , 10th Mile Post , Boralasgamuwa , Katuwana.

Organizational Structure

Chairman (MR.Premadasa

Mahanama)

Manager (KALUBOWILA)

MR.Isuru Mhanama

ACCOUNTS

ACCOUNTS TEAM

SALES

SALES TEAM

DRIVERS COLOUR MIX( (AUTO PAINT)

Manager(MAHARAGAMA)

MR. Stanley Makuloluwa

ACCOUNTS

ACCOUNTS TEAM

SALES

SALES TEAM

DRIVERS COLOUR MIX(AUTO PAINT)

Manager(PANADURA)

MR.Isuru Porambage

ACCOUNTS

ACCOUNTS TEAM

SALES

SALES TEAM

DRIVERS COLOUR MIX(AUTO PAINT)

Manager(ATHURIGIRIYA)MRS.Chamila Kumanayake

ACCOUNTS

ACCOUNTS TEAM

SALES

SALES TEAM

DRIVERS COLOUR MIX(AUTO PAINT)

Manager (BORALASGAMUWA)MR.Prabash Mendis

ACCOUNTS

ACCOUNTS TEAM

SALES

SALES TEAM

DRIVERS COLOUR MIX(AUTO PAINT)

Advantages and Disadvantages of Wide Span of Control

Advantageso Few supervisors, it results in few managerial cost.o Direct contact and more corporation with superiors.o Communication system is more effective

Disadvantageso Difficult to control – More subordinateso More Work loado Late decisionso Less creative due to daily routineo Higher administration cost

Background and Duties of the

Manager

The Manager Mr. Isuru Mahanama has the following qualifications. He has completed B.Com and specialized in Accounts at Australia. He has a diploma in Supply Chain Management and International Business. He has 05 Years of working experience as a manager and as soon he completed his

higher education he has joined this company.

In Mahanama paint Centre (Pvt) Ltd has no any HR department and purchasing department.

Mr. Isuru Mahanama is the person who is handling the purchasing orders and other HR functions, Such as –

Training Recruitment Selection and induction These sales employees are selected only based on their experiences and technical

knowledge.

Management Functions

INTRODUCTION TO MANAGEMENT FUNCTIONS

Management is a process of Planning , Organizing , Leading and Controlling the work of the organization members and using all available organizational resources to reach stated organizational goals, efficiently and effectively in an ever changing business environment.

It is the process of directing the efforts of organizational members and of using all other organizational resources productively to achieve organizational goals and objectives.

It’s the art of getting things done through the other people.

Planning

For each month the organization will set company targets for 5 branches as a whole. Each paint centers analyze and decide the targets according to the research. Dulux-Akzonobel paints lanka pvt ltd Causeway Paints Lanka pvt ltd Nippon Paints Lanka pvt ltd Asian paints lanka pvt ltd Lankem Paints Lanka Pvt Ltd Weekly Companies will check & fulfil the stocks according to the inventories

Organizing

The company delegates the authority and tasks to the employees according to their skills and technical ability.

Specially based on the experiences they have. The company recruits the employees such as drivers, color mix and site visitors based on

their expertise knowledge and technical ability. The other employees such as accountants and accountant assistants are recruited based

on the professional qualification that they have. The managers are almost the family members because the company is a private limited

and can issue shares only foe the relations. There are only two shareholders and they the chairman MR.Premadasa Mahanama and

MRS.premadasa Mahanama.

leading

The company lead the employees by having a good employee – employer relationship. The company normally gives the incentives to the employees. When a site visitor gain more than a 30 Lakhs from a company in a month they will get

an incentives. As well as the when the company achieved the monthly targets which are set by the

Paint Centers, the company will also get the incentives and it depends on the Paint Centers and the target Quantity.

Leadership structure

Leadership is the process of influencing a group towards the achievement of goals. (Stephen P. Robins) Leadership is the non-coercive influence to shape the group or organizational goals , motivate

behavior toward the achievement of those goals and help define organizational culture.(Ricky Griffin) According to Mahanama Paint Centre (PVT)LTD the managing director MR.Isuru Mahanama handles the

employees on the following two leadership structure. Autocratic Leadership Style the managing director MR .Isuru Mahanama takes decisions without involving the participants. Laissez Leadership Style Some times MR.Isuru Mahanama delegates the authority to the employees due to the situation. Ex: when a site visitors who go to paint at homes are delegated the authority by the Manager.

Autocratic Leadership Style

The Leader keeps the authorities centered in his hands and the employees have to perform the work without changing his orders.

He motivates his subordinates through commands He makes decisions without involving subordinates He decides the work methodology

Laisses Fair Leadership Style

In this leadership style, the leader takes little interest in managerial functions and subordinates are left on their own.The subordinates are allowed to work on the principle of leisser fair, they will have to perform harder and make use of their full capabilityHe uses his power very rarelyGives the group complete freedom Allows subordinates to set their goals and the means for achieving themAvoids giving feedback

controlling

The company will go through the Management cycle until they found out that the expected targets and actual results are unmatched.

When the Paint Centers are introduced the Moving Products, then the Company will pay the whole amount and buy the products.

But when the Paint Centers are introduced the non-moving or a newly product then the company will apply the terms and conditions on that.

The good example is Multilac was introduced the newly product called Multilac Magic. This product was had a huge failure in the market. Due to this the company was not having a loss because of the terms and the conditions that they were applied. Just the company did was return the products to the Multilac company.

Mahanama Paint Centre (PVT)LTD. Maintains the accounts period on an yearly basis. Usually on the end of March.

Multilac Magic Paint which was a Failure

Advantages faced by the company

Mahanama Paint Centre (PVT)LTD is company having a geographical structure. So the company enables the geographical growth.

It allows the area decision making and can improve the decision making. It gives the clear responsibility for areas. The company Administrative costs will be reduced. Employees are motivated on giving incentives. Company can gain incentives from the Paint Centers on achieving the targets.

Disadvantages Faced by the Company

Higher time consuming for decision making. Potential loss of control. Employees are demotivated on the wide area network. Sometimes the company has to bear the loss of taking non-moving products to the

company.

Company monthly average turnover

At present monthly average turnover in its branches as follows. KALUBOWILA 15Mn MAHARAGAMA 09Mn BORALESGAMUWA 06Mn ATHURUGIRIYA 05Mn PANADURA 05Mn TOTAL 40Mn

Mahanama Paint Centre (PVT) LTD. Intends to open up new subsidiary company for its group functions as a distributor for CIC Auto Paint – (Duco Paint and Sikkenz Paint) in Colombo and Gampaha Districts.

Initially , as a first step Auto Paint Distribution will be launched in Colombo district. It hopes to start its distribution in Gampaha district after six months from the Colombo Launched.

The proposed sales portfolio is 80% cash sales and 20% credit sales. It further hopes to offer 30 days credit period for credit sales

Purchases from CIC will be done only for cash basis for getting maximum discount percentage.

It hopes to retain minimum of 18% gross profit margin for selling CIC Auto Paints.

Company hopes to have sales staff directly from CIC Paints (PVT)LTD.. Other staff members such as drivers , helpers , office staff , store keepers ,

cash collectors are appointed.