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Contents . . . . . . . .

ACKNOWLEDGEMENT EXECUTIVE SUMMARY QUESTION NO 01 QUESTION NO 02 QUESTION NO 03 LIST OF REFERENCES

Acknowledgement

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It has been a great privilege for us to study at the IPM institute, and it is a remarkable opportunity for all of us and it has been a great pleasure working together with such an educated and well-disciplined group. We would like to express our humble gratitude towards our instructor Mr. Manoaj Keppetipola, whose valuable guidance helped us to capture the case study properly. His constant guidance and willingness to share his vast knowledge made us understand it more clearly. Our thanks and appreciation goes to our colleagues in nourishing us by sharing their knowledge on various other case studies and for the willingness of them to help us in all the ways to make our report a success. And last but not least thanks for world wide web.

TEAM-B
Qualification in Human Resources Management Institute of Personnel Management Sri Lanka

Executive summary

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QUESTION NO 01
Page |3 Discuss about the leadership approach of Rolex Mudalali and how the company was benefitted for many years with his self-learned management skills?

Rolex Mudalali who doesn't have any managerial or academicals qualification but his Art Biscuits company become the leading business in Sri Lanka. How he achieve this? Simply he had won the loyalty among his employees. He always looks after his employees and provided all sort of benefits to his employees and their families. The production and the quality of production were high and these biscuits were exported to many countries around the world. After a while Rolex Mudalali decided to hand over his business to his children who well qualified academically.
After the Children took over the business initially they have done major changes in whole area of the business. They have tried to run the organization without any previous experience. These major changes affect concern very gravely. Some of those were not healthy and not suitable for the internal environment of the business. Soon the employees loosen loyalty towards the management and labor turnover ratio increased. Very short time after the production and the quality of the products become close to the ground.

Leadership defined as:-

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A process of social influence in

which one person can enlist the aid and support of others in the accomplishment of a common task"

There are 3 type of leadership approach according to(U.S. Army Handbook, 1973) Authoritarian or autocratic Participative or democratic Delegative or Free Reign

But there are other kinds of leadership approaches coming day by day.

rolex mudalali also not applied a sole method of leadership he use selected methods. Even though he didnt have academicals knowledge. his approaches can be coined as follows .

No single style can be a perfect model for it cannot encompass every situation nor we can have leaders to suit different situations. A good leader has to transform himself according to the situation and wear a style suiting to the situation. That is to say that an amalgamation of traits of all three styles is the best suited approach. Thats good leadership.

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Consideration approach (employee orientation or people orientation)

rolex mudalali use the special type of approach call people orientation approach He concerned about the human needs of their employees. Takes an indirect approach, motivating and encouraging the team toward success. There was a result for this leadership style is higher performers and is more satisfied with their job. He uses rewards, such as education, independence, etc. to motivate employees. He implemented the following to take care of his employees, having in mind that people are the best asset he possesses in the company. bonus ration pack Distribution Salaries above the market rates. Soft loan to for experience person Gift a plot of land yearly for best employee. Educational assistance for employees children

He had magnetic personalities and boatloads of charisma. The rolex mudalali tries to make people comfortable in their roles, but when he leave, the team end up in shambles.

As Charismatic leader

Charismatic leaders rely on their personality, their inspirational Qualities and their aura. They are visionary leaders who are achievement-oriented, calculated risk takers and good communicators.
-OF HUMAN RESOURCE MANAGEMENT PRACTICE

ARMSTRONGSHANDBOOK

He planned for future and aware about it. that is clear from his children educational qualifications. With the vision in his mind he inspire the workers and lead them to achieved the goal. And have wonderful relationship with workers here he plays Charismatic leader roll

As Autocratic leader
Autocratic leaders impose their decisions, using their position to force people to do as they are told. Democratic leaders encourage people to participate and involve themselves in decision making.
-OF HUMAN RESOURCE MANAGEMENT PRACTICE

ARMSTRONGSHANDBOOK

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QUESTION NO 02
P a g young What are the short comings of the new approach by e | 6 directors and their team in the change process?

Without discus with the labor he took his own decision to retire and handed over the company to his childrens here he act as autocratic leader roll

Rolex mudhalali had an ability to judge correctly what is going to happen in the future and plan his actions based on this knowledge. Thats why he send his twin children to study abroad. Specially India, Bangalore to complete Masters Degree in IT and Fashion Design. He knew India is rapid developing country. Trendy ideas and methods gather from such country enable the changes quickly. Changes could be made easily according to the situation in future. With all of these thoughts in his mind he was waiting to retirement from his position. When they return back Twin children were appointed as Director Operations and Director Marketing while Rolex mudalali washed off his hands from responsibilities and got his retirement. Which was a sudden move result in having little knowledge or experience people try to apply their theoretical knowledge in well established business in current world? Those approaches fail to reach a particular standard. From that shortcoming following areas was affected
Human resource department Marketing department Production department Finance department

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Page |7 A small analysis like SWOT could help to understand the reasons for the shortcoming. Following page show how this organization affect after management change

Strength

SWOT analysis after market management change

70% Market share in the local

Weaknesses Demotivated employees Rejection of shipments High Labor turnover Bankruptcy of company

Exports to 20 countries 50years of good will over the country Support of other business

Lets discuss about the short comings of the approaches they adopted in order to run the business

Labor turnover Increased to 25 % the first 03months

Opportunities Well educated directors New management team with trendy technology New vision and a mission Best management consultant
Foreign consultants

ratio during

Threats Highly competitive market Loss the senior employees Poor quality of production Fresh managers

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Page |8 Wickipedia.com clearly stat that causes of high turnover will be follows employees are unhappy with the work or compensation poor candidate screening dissatisfaction with the job-scope or conflict with the management

With all other then above some specific reasons increased ratio of labor turn over

Fail to Understand the industrial relationship:Understand the culture of the concern is the primary duty of the new leader when he appointed as director he should learn good value and effective culture prevail in business. Here the new directors without consider the culture try to implement the theory which they learn. Which not producing the effects that are wanted

Fail to recruitment Competence HR manager The two new directors recruit their classmate friends as managers where they fail by not having the right person, right place and at the right time. If they follow the theories instead of practice, they should know that recruitment should be done in a proper procedure but they work via Personal Feelings. Payroll Mistake Payroll system was a stable when Rolex muthalali was there. Sudden changes in payroll like festival bonus, and all other welfare measures, incentive scheme, annual bonus. Payroll system should be fair and should be clearly defined. This rapid changes effect employees they become demoralize

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Shipments were rejected

From the above shortcoming it is obvious management fail to accomplish their control function. Quality issues Production target was well below the average throughout

Because of that now export unit lost their business opportunity

Fail To Achieve Production target

Lack Of Man Power Planning It is clearly noted that the new HR plan had no intention on man power planning and reducing the turn over when it starts to rise. The
employees had attended series of seminars meeting during their work time. This result in poor quality of product and unable to attain target

Unsuccessful training programs Without emphasize the production line the employees force to attend series of seminars for weeks and most of their time devoted for endless meeting in the work floor on various disciplines. This was result in poor quality of production and, production target was well below the average

Bankrupt
Of course this doesn't mean that a lack of financial management measures will automatically cause a business to fail. But it's instructive to see where failed businesses went wrong and therefore, what a business should avoid to become successful www.businessplanninghub.com Here it is apparent where failed businesses went wrong in following areas has been made in following way

New Air conditioned rooms Unnecessary foreign trip Heavy cost on consultancy Heavy cost on printed material related to vision statement.

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QUESTION NO 03
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Being the HR Manager, what is your proposal to young directors

Study the previous hr activity Refer the Current and previous human resource policies, human resource activities such as rewarding system, bonus scheme, performance appraisal system, recruitment policy, other welfare benefits to the employee can help the future human resource activities

Human resource analysis One of the professional researcher website (www.factumgroup.com) in Czech Republic says Committed and satisfied employees are the key to satisfied clients. Human Resources Analysis (HRA) is a sophisticated research tool for complex company climate analysis They have to include a demographic employee profile and the skill levels of them this will help hr team to plan a training and development program.

Made HR strategic plane By refer the prevailing human resource management system they can made new human resource strategic plan. if they made SHRM plan with the help of business plan In a long run this plan will help to improve the HR management effective. Most of the new organizations successfully following this way and they proof this strategy.

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Consult with senior managers and with previous director Young directors could use the experience personalities to implement the new plan an exclusive suggestion could be collect only from them. Advice from the previous director will help to understand the industrial culture and relationship. According the suggestion\ advice changes can be made in new HR strategic plan.

Training /development With the help of good evaluating system managers could understand the necessity of employee then he can select the person for training or development programmers. That systematic move will made training effective and efficient.

Implementation of Human resource policy

If there is a HR policy already implementation of absolute new policy will make employee unpalatable. If the organization currently has no HR policy new can implement gradually. Sudden changes will affect employee moral as well as their working surrounding. New policy shall consider following components with other important elements Leave policy TA/DA policy for management and employees
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P a g e | 12 Remuneration policy Joining Performa of new joining Joining formalities. Reporting structure between HR and other department Earned leave

Recruit through Management trainee programs Recruit the new managers through the management training programs will help more in future. ehow define management training as Management training is the knowledge gained from training that improves leadership, supervising and managing. Skills like handling interpersonal relationships, communicating and handling stress are also gained. There is an opportunity for New managers to study the organization. Well qualified fresh employee can be converting as perfect manager in this method.

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