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Application of management theories in
srilankan business organization
NAME STUDENT ID
Siham M.F.M BM16428348
Sridaran T.R ...
Introduction Of The Company
 Business Name : Mahanama Paint Centre (PVT)LTD.
 Business Address : No.336 A,
Hospital Road...
 Bankers : Seylan Bank
: Sampath Bank
: Hatton National Bank
 Auditors : A.S.S.Associates
: Charted Accountants
 Secret...
Products selling by the company
Vision, Mission and goals of the Company
 Vision
To be the dominant market leader in both Automotive and Decorative coati...
Distribution In Colombo And Gampaha District
Colombo District
 40 parch of stores complex at 89 / 1 Jambugasmulla MW, Kal...
 Expected staff recruitment as follows.
Monthly salary No. of employees Monthly total salary-
RS.
General Manager 50000 0...
Distribution in the Gampaha District
Monthly salary p.p No. of employees Monthly total salary-
RS.
General Manager 50000 1...
Introduction to the company
Introduction to Mahanama paint Centre (PVT) LTD
 The founder of Mahanama paint Centre , Mr. M...
Organizational Structure
Chairman
(MR.Premadasa Mahanama)
Manager
(KALUBOWILA)
MR.Isuru Mhanama
ACCOUNTS
ACCOUNTS TEAM
SAL...
Advantages and Disadvantages of Wide
Span of Control
Advantages
o Few supervisors, it results in few managerial cost.
o Di...
Background and Duties of the
Manager
The Manager Mr. Isuru Mahanama has the following qualifications.
 He has completed B...
Management Functions
INTRODUCTION TO MANAGEMENT FUNCTIONS
 Management is a process of Planning , Organizing , Leading and...
Planning
 For each month the organization will set company targets for 5 branches as a whole.
 Each paint centers analyz...
Organizing
 The company delegates the authority and tasks to the employees according to their skills and
technical abilit...
leading
 The company lead the employees by having a good employee – employer relationship.
 The company normally gives t...
Leadership structure
 Leadership is the process of influencing a group towards the achievement of goals. (Stephen P. Robi...
Autocratic Leadership Style
 The Leader keeps the authorities centered in his hands and the employees have to perform the...
Laisses Fair Leadership Style
In this leadership style, the leader takes little interest in managerial functions and subor...
controlling
 The company will go through the Management cycle until they found out that the expected targets
and actual r...
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 compan...
Disadvantages Faced by the Company
 Higher time consuming for decision making.
 Potential loss of control.
 Employees a...
Company monthly average turnover
At present monthly average turnover in its branches as follows.
 KALUBOWILA 15Mn
 MAHAR...
 Mahanama Paint Centre (PVT) LTD. Intends to open up new subsidiary company for
its group functions as a distributor for ...
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PM Group Assignment SLIIT BM Year 01 Semester 01

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  1. 1. 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
  2. 2. 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 Director MRS. D.M Mahanama : Director
  3. 3.  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
  4. 4. Products selling by the company
  5. 5. Vision, Mission and goals of the Company  Vision To be the dominant market leader in both Automotive and Decorative coatings, retail and wholesale market.  Mission Provide innovative, superior quality and environmental friendly products with constant s standards, 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
  6. 6. 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.
  7. 7.  Expected staff recruitment as follows. Monthly salary No. of employees Monthly total salary- RS. General Manager 50000 01 50000 Stores 22000 6 132000 Accounts assistants 22000 2 44000 Cash Collectors 20000 2 40000 Drivers 30000 5 150000 Helpers 25000 5 125000 Security 45000 2 90000 Salary for the month 23 631000
  8. 8. Distribution in the Gampaha District Monthly salary p.p No. of employees Monthly total salary- RS. General Manager 50000 1 50000 Stores 22000 4 88000 Accounts Assistant 22000 2 44000 Cash Collectors 20000 2 40000 Drivers 30000 5 150000 Helpers 35000 5 125000 Security 45000 2 90000 Salary for the month 21 587000
  9. 9. 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.
  10. 10. 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)
  11. 11. Advantages and Disadvantages of Wide Span of Control Advantages o Few supervisors, it results in few managerial cost. o Direct contact and more corporation with superiors. o Communication system is more effective Disadvantages o Difficult to control – More subordinates o More Work load o Late decisions o Less creative due to daily routine o Higher administration cost
  12. 12. 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.
  13. 13. 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.
  14. 14. 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
  15. 15. 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.
  16. 16. 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.
  17. 17. 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.
  18. 18. 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
  19. 19. 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 capability He uses his power very rarely Gives the group complete freedom Allows subordinates to set their goals and the means for achieving them Avoids giving feedback
  20. 20. 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.
  21. 21. Multilac Magic Paint which was a Failure
  22. 22. 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.
  23. 23. 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.
  24. 24. 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
  25. 25.  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.

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