Institute of human resource advancement assignment of peoples leasing company sri lanka 09 th aug 2013

Institute of Human Resource AdvancementUniversity of Colombo

Master Degree in Business ManagementMBM-2013

Principles of Management (MBM 02)Assignment-01|2013

Management Process & Functions of

People’s Leasing & Finance PLC

1Assignment of principles of management MBM001

Group Members

• K.M.P.D Jayampathi• Jason Liu• D.R.C.P. Dasanayaka• A.A. Samitha Jayaweera• A. B. Wellappili

Assignment of principles of management MBM001 2

Contents

1. Introduction 2. Recourse Efficiency 3. Performance and Effectiveness4. Managerial Roles5. Planning6. Organizing7. References8. Acknowledgements


Introduction

• People’s Leasing & Finance PLC was established in 22nd August 1995 currently the leading leasing & finance company in Sri Lanka.

• Peoples Leasing Company is fully owned subsidiary of Peoples Bank.

• In 2010 PLC is ranked as A+ by CRIB.

• The Company brand is rated AA- by Brand Finance UK.

• 2012-12-04 got finance license.


Product & Services

• leasing & hire purchase• Loans• Insurance• Islamic Finance• Micro Finance• Investments• Fleet Management• Property development





The Management Process - Efficiency

K.M.P.D JayampathiStudent No. MBM


Higher productivity through efficiency

A study withPeople’s leasing and finance

plc


BUSINESS PROCESS

Doing thing correct

Limited Resources

Using Efficiently & Effectively

Achieving goals


How People’s Leasing Use their Resources Efficiently

1. Correct Leadership.

2. Knowledgeable Employees.

3. Real Time Decision Making

4. People friendly Service.


Mechanism for Efficiency1. Team work

2. Introducing successful business plans for their

customers

3. Continues follow up

4. Individual business targets for employees.

5. Document management system with paperless

office environment.

6. Good IT network system.

7. Mail wise business circulation.



0 6 9 10 11 120%

1%

2%

3%

4%

Non performing ratio

NPA


7 8 9 10 110%1%2%3%4%5%6%7%8%9%

10%

industryPLC

Return on assets

CORE VALUES

• Economic Viability .

• Environmental Responsibility.

• Social Accountability.


The right quality is achieved

when

expectations are fulfilled,

needs are satisfied

and

demands met those of customers,

staff and owners.


Customer Satisfaction Survey

2007/08 2008/09 2009/10 2010/11 2011/120

10000

20000

30000

40000

50000

60000

70000

80000

Customers satisfied of efficiency in PLC

No; Cu;

PLC Sustainability

Report 2011-12


Assignment of principles of management MBM001

16




Effectiveness

Jason LiuStudent No. MBM


17

Organizational Performance & Effectiveness


18

•PLC review

Performance Cont…..

2008 2009 2010 2011 2012 0

10,00020,00030,00040,00050,00060,00070,00080,00090,000

Assets Growth

Years

Rs.

Mn.


19

Effectiveness

• Interest Income• Net Interest Income• Other Income Sources• Loan book growth• Investment portfolio• Funding Strategy


20

Effectiveness

• Interest Income


21

Effectiveness

• Net Interest Income


22

Effectiveness

• Other Income Sources


23

Effectiveness

• Loan book growth


24

Effectiveness

• Investment portfolio


25

Effectiveness

• Funding Strategy


26

Future

We believe PLC will continue to be the

dominant player in the high growth leasing

& HP industry reaping the benefits of the

post war economic boom.


27




Different managerial roles

D.R.C.P. DasanayakaStudent No. MBM


28

• PLC was specialized Leasing Company• Obtained finance license from CBSL• wants to launch new products (FD &

Saving)to market• Lack of knowledge of FD & Saving

within the staff.• How to give good service to customer• He appointed as a senior manger-FD &

Saving

Background of Situation…


29

•Now chief manager in People’s Leasing & Finance PLC•28 years experienced in Leasing & Finance sector•Worked as branch manager, Department Head last 10 years in PLC•MBA holders

Mr. Saman Liyanage is….


30

Now he is …• Identifying in the existing process in Sri

Lanka• Identifying new requirements to better

service• Designing new process to PLC• Buildup new department • Create procedure manual• Organizing training programs• Distribute user manual • Send operational guide lines via E-mail

Monitor12

Disseminator123

Spokesperson123

Informational Roles0

0.5

1

1.5

2

2.5

3

3.5Segregate actions to manager roles

MonitorDisseminotorSpokesperson


31

As a manager…..• Responsible for all FD & saving • Authority for signing FD certificate• Communicate with other department

personally• Counsel subordinates • Update all new information via E-Mail• Collect information CBSL• Arrange meeting via video conference

Figurehead12

Leader12

Liaison123

Interpersonal Roles0

0.5

1

1.5

2

2.5

3

3.5Segregate actions to manager roles

Figure HeadLeaderLiaison


32

then…..• Introduce signature capturing method• Same day same time launch product island

wide• Promotional gifts for first month• Delegate the targets• Create individual responsibility• No new recruitments• Purchase & distribute hi-tech. scanners• Guide the logistic department for

requirement• Communicate with branches for what their

needs

Entrepreneur12345

Recourse Allocator

1234

DisturbanceHandler Negotiator

Cont………….

How it handle…..• No promotion new products inside

People’s Bank• New recruitments for Head Office unit• Continuous training for relevant staff• Activate phone loop method

• Union of People’s Bank• Unable to cater internal service present

team• No clear idea of CBSL rules & regulation• Not answering phone in head office unit

Disturbances after lunching….


DisturbanceHandler

1234

Negotiator

Entrepreneur12345

Recourse Allocator

1234

34

Negotiate…..

• IT requirement for new implementation• With people’s bank for FD & Saving• To issue same PET card for PLC


DisturbanceHandler

1234

Negotiator

123

Entrepreneur12345

Recourse Allocator

1234

Decisional Roles0

1

2

3

4

5

6 Segregate actions to manager roles

EntrepreneurDisturbance HandlerResourse AllocatorNegotiator

35

Informational Roles Interpersonal Decisional Roles0

1

2

3

4

5

6

Summary


Cont…………


36

Above roles compliance with Mintzberg’s Observations well

Manager Roles0

2

4

6

8

10

12

14Summary Chart

Informational RolesInterpersonal RolesDecisinal Roles




Planning Process

A.A. Samitha JayaweeraStudent No. MBM



Planning •Planning involves defining organizational goals and ways to meet them

The Organizational Planning ProcessDevelop the plan

vision, Mission, Goals

Execute the planManagement by

objectives

Plan operationOperational plans

Monitor and learnPlanning and

operational reviews

Translate the plantactical plans, strategy map

Planning process

Planning methods of PLC•Brain storm session•Annual recovery officers meeting •Annual marketing officers meeting•Online visual discussion with each and every manager before implementing executive committee decisions.•Monthly branch wise meeting.



Mission Stateme

ntStrategic

Goals/Plans Senior

ManagementTactical

Goals/Plans Middle

Management

Operational Goals/Plans Lower Management

Levels of Goals and Plans

Core Business Systems

Management Information

System (MIS)

Decision Support System (DSS) and

Business Intelligence (BI)

•VisionTo provide dedicated value added customer service to accomplish organizational service excellence whilst maintaining a sustainable competitive advantage. annual report plc 2011/2012

•MissionTo become legendary in the financial service scene as a provider of customer-friendly, creative and innovative total solutions.

annual report plc 2011/2012


41

Planning process

Making goals and plans


42

VisionAnd

Mission

External environment

analysisO/T

Internal environment

analysisS/W

Strategy goals and plans

Tactical goals and plans

operational goals and plans

Feed back

Opportunities and threatsOpportunities• Increasing per

capita(GDP) income has improved the standard of living of the population.

• Brand image• Mega Economic

development projects in the country

• Unlimited development potential to Micro Finance and Islamic Finance segments

Threats• Intensified

competition in all operating sectors

• Highly regulated business environment

• Bearish stock Market conditions

• Rise in import duty• Funding• An increase in interest

rates


Strengths and weaknessStrengths• A strong branch

network throughout the island.

• Subsidiary of People’s Bank

• Operating excellence• Dominance in the

leasing industry.• Cost advantage due to

window offices

Weakness• Limited Product mix• Possible internal

disputes over IPO


44


45

Strategic Goal • Be the premier leasing & finance company in Sri Lanka in future.

Strategic map

Accomplish Mission

Increase revenues in existing markets

Build & maintain good customer relationships.

Promote employee development via ongoing

training - HR department

- Marketing department

- Finance department

Planning process Strategy plans•which facilitates a high level of integrity and professionalism, and enhances productivity to maximize profitability.•Use young fresh blood in their company as much as possible.•Complete Financial Services Provider.•Promoting the People’s Leasing group image.•Employee Motivation.•Expansion of the branch network.•Excellence in Customer Service.


46

Tactical plan• Giving targets to branch type wisely to

branches.• Selecting main business type according to

area. • Area wise marketing.• Give more responsibility to ground level

managers.• Evaluating the branches process.• Corporate Social Responsibility (CSR) projects.


47

Tactical goal: While increasing the customer base associated services also will be expanded .( Insurance, Hire purchase etc.)

48




Management functions (Organizing)

A. B. WellappiliStudent No. MBM/B02


49

•Deciding the best Organizational activities and Resources.

Organizing

From People’s Leasing & Finance PLC………..

•Building Management system designed to take natural lights.

•Head office and other Island wide branches connected through an IT System.

•Competent marketing officers placed in all Island wide branch networks.


( Peoples Leasing & Finance Annual Report 2011/12 )

50

Organizational Structure & Departmentalization

DGM (Operations)

AGM (Operations)

Branch Operations

Documentation

Customer Care Unit

Branch Managers Figure 1


DGM (Finance & Administration)

IT HRM MIS

CEO

BOD



Organizational Structure•The flat organization structure empowers employees at levels creating flexibility and delegation of authority to the respective levels.

•The company entertains vertical and horizontal communication despite the structure and formal operations.

•This fosters the company’s ability to respond to the customer requirements in the prevailing competitive business environment.


52

Functional Departmentalization Is the grouping of jobs involving the same or similar

activities.

Advantages –• Each department can be staffed by functional area

experts.• Coordination inside each department is easier.

Disadvantages - • Decision making becomes slow and bureaucratic.• Employees narrow their focus to the department and

lose sight of organizational goals.


(Annual Report 2011/12 & www.assignmentpoint.com/business)

53

The Elements of Organizing

• Job Design - Recovery officers.

• Work Specialization - Marketing Officers, Cashier


Alternative to Specialization.

Job Rotation - The branch managers head office experienced staff are rotated throughout the branches. Establishing Reporting Relationships

• Chain of Command - Normally chain of command is going through organizational chart.• Span of Management – Branch operations report to a DGM (Operations).



Distributing AuthorityBranch Manager

2 nd Officer

Decentralization/Centralization It will change due to the type of decision.• Decentralization – Branch targets are given by Senior

Manager.• Centralization – Company targets are given by the Director Board.

Account officer HR officer Marketing officer

(Discuss with Branch Managers)

•Lease approval•Branch operations•Credit evaluation•Accounts evaluation•Payroll Activities



CoordinationThe process of linking activities of the various departments the Organization.

Top Manageme

nt (CEO, BOD) Middle

Management (DGM, AGM)

First line Management (Executives, officers)

Nee

d

to

Coo

rdin

atio

n Need

to

Coordination

• Staff Positions – Provide expertise, advice support to line Positions.• Line Positions- Responsible for the achievement of organization’s goals.

Figure 3 (www.assignmentpoint.com)

56

sincerely thank you……

• People’s Leasing & Finance PLC staff for giving details and dedicate their time to discuss us.

• Mr. M.G.G. Hemakumara, Senior Lecturer, Institute of Human Resource Advancement, University of Colombo and the non-academic staff of the Institute, for providing the relevant guidance and support from the Institute.



Thank You