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To understand the usage of management principles in practice and the Behaviours in a organization operating in Sri Lanka
Presentation Flow
Introduction Literature Survey Ceylon Tobacco History Start of a new journey Management principles in practice Critical evaluation of management principles in practice Conclusion Our observation Bibilography A big thank to CTC HR Team
Introduction
The Ceylon Tobacco Company is a subsidiary of British American Tobacco headquartered in Colombo, Sri Lanka. Companys factory located in Colombo & Kandy. Ceylon Tobacco manufactures and markets cigarettes and smoking tobacco and operates primarily in Sri Lanka. It employs approximately 325 people. The company recorded revenues of LKR46,827.1 million (approximately $425.2 million) in the fiscal year ended December 2007, an increase of 9.5% over 2006. Its net profit was LKR1,894.2 million (approximately $17.2 million) in fiscal year 2007, an increase of 28.6% over 2006. Its brands include; Dunhill, John Player, Gold Leaf and Pall Mall. Its subsidiaries include; - CTC Services Limited, CTC Leaf Exports
GLTP Kandy
Mahiyangana Ududumbara
Colombo Plant
Nildandahinne
Haliela
Buttala
325 Employees
Fortune 500 Company In business for over 100 years Over 300 brands being sold in 180+ countries Leadership in over 50 countriesIncl. PAK 47 factories in 40 countries 53,907 + employees- around the world Supporting 280,000 farmers in 23 countries
Gross Turnover Operating Profit Tax Contribution 26,234mCeylon Tobacco Plc 2,905 m 16,216m
Literature Survey
What is Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives efficiently and effectively.
Management comprises;
Management Theories
The management theories and approaches are as follows; - Classical approach - Human approach - Modern approach -
Management Theories
Classical Approach
Classical perspective to management emerged during the nineteeth century and continued into the twentieth century. Due to the challenges organizations faced management methods of efficiency which included a rational and scientific approach. Scientific Management by Fedrick Taylor Administrative Principle by Henry Fayol Bureaucratic Organization by Max Weber
CTC History
Company with lot of labor disputes Dominant/ aragont union both in management and labor level Lack of transparency in Management processes Misaligned thinking between management and workforce Aggressive management style- Controlling employees with the help of Army and Police Highly influenced by External political environment
Formed a cross functional team representing all levels Conducted many brainstorming sessions to understand the root causes Employee opinion was represented Leadership team took the responsibility and lead for change Change principles were properly communicated with a robust communication plan
Workshops Training
egnahcl an dui tt A i t
Effective Execution Link rewards to business results and performance Credibility Co performance Productivity Quality
Social Upliftment Common facilities Family events Social events
Journey at a glance ..
16000 14000 12000 10000
700 1300
1100
900
8000
500
100
-100
No of Employees
Volume in Mn
C.P.M.H
Well accepted organizational strategy Robust communication process Talent development philosophy Rewards Philosophy Performance management process Common Employee Relations Strategy
Communication Process
BAP St.Plan EXCO / OPCO
COPLAN Cascade
All Employees
Electronic
Internal electronic mail system (Lotus Notes) CTC Bulletin Board Desktop - Internet facility Interact
Broadcasting System
Sun Rise News
Company Notices
Productivity Improvement teams KAIZEN teams Food committee EHS committee CA team BCP steering committee etc. e v
at s tr on em D
in e
at i iti
Growth
St r a t e g ie s
Winning Organization Developing Extraordinary People whilst Creating A Great Place o Work !
To maintain market leadership in order to deliver on reliable and sustainable growth in UOP , OCF and GDB's .
TO HAVE OUTSTANDING PEOPLE AND TO BE A GREAT PLACE TO WORK TO DELIVER EXCELLENT BUSINESS PERFORMANCE
Prioriti es
W/O Role
HR Priorities
Strategy
Organisation
Culture
Reward
Create sustainable Create an agile, fit for purpose organization & inspire people to Drive for high performance & Lead change perform talent pipelines with leadership at all levels motivation
Strategy in Execution
Personal Development for current role, future career & external marketability
Passage #6
Passage #5
Passage #4
Passage #3
Passage #2
Passage #1
BAT Competencies
BAT Leadership Capabilities Functional Capabilities
Training Programmes
ELP
Assessor Training
SCQuARE
Negotiation Skills
PRINCE2
MDC
CORA Appreciation
Product Knowledge
Language of Finance
Communication Skills
Influencing Skills
Resource Mgt
Executive Development
Company Induction
Financial Rewards
Recognition Responsibility Learning & Devp Career Opportunities TOTAL REM NON FINANCIAL REWRADS
+
Benefits
Medical Transport Loans Bungalows Cigarettes Self Study Club Membership ETC.
Performance Indicators Productivity
Sub Element
Quality MQI
Profit sharing
Company Performance Measures Operating Profit Volume Share Cash Flow GDB Volume Net Turnover Total Weightage Company Bonus Allocation based on overall company performance (months of salary) Threshold Target Normal Max Extra Max 0.2 0.2 0.2 0.2 0.2 0.2 0.4 0.4 0.4 0.4 0.4 0.4 0.6 0.6 0.6 0.6 0.6 0.6 20% 20% 20% 20% 20% 100%
Enabling Performance
During Year On going Mid Year Review July
Performance Review
End of Year 31 Jan
Common Facilities
ov em
gh in
Canteen Car Park Time Entry Open Office l ica Search h ar c r ieProcedure
ba
er s rri
rea C
ne ow ing t
hip rs
Union Representation
for ties towards society Responsibility uni ort ip pp s h & o der tion lea Suppliers briefed gni THE o H ec W IT R S TY I ING
N N AR MMU E G L R CO IN AR WIDE SH
ion un
Children's Party
ga tin mo Pro
ily fam
ure ult c
Annual excursions
din uil
re g
ns tio la
ips h
it w
all h
S e n i
En
ing giz er
eo th
CTC was able to Achieve Operational Excellence in all segments It transformed to a award winning Company It became a talent source for Global BAT Productive and harmonize work force One of the best socially responsible organization with high CSR spent
Los of employment due to periodic restructuring (1800 300) Aging work force creating a life time employment ( Non management) Standardize global management decisions not applicable to local environment Employment principles for senior management disrespecting social values
Conclusion.
Our Observations.
In the past went thru many difficulties due to dominant management & employee behaviours. After the change management process CTC went thru for two decades and the implementation of the current management principles the organization has achieved its operational excellence giving high share holder returns and global recognition. A good simple example that can prove our statement here is the share value from Rs.15/- then to Rs.365/- today (within a decade of time).
Achievements
MRPII - 1 st in the World to be certified in V5 All chapters
Gold Zero Accident Award & The Gold EHS Merit Award
Achievements..
Achievements..
Category 1 CSR in Employee Relations
Category 2 Being in the top ten Companies for the Best Corporate Citizen
PRIZE
1st
Won the
Practices
2006 Profits 10 Turnover 33 Market Share 94 Productivity 410 Illicit Cigarettes 45Mn Talent Export 8 People CSR Spent 2 MN GBP
Bibiliography
http://en.wikipedia.org/wiki/Management#History http://hbr.org/ http://www.hbrsolutions.com/itofferings.html Fred Luthans, Organizational Behaviour, 11th edition, McGraw-Hill International edition
Bs
Thank You..