1. Institute of Human Resource Advancement
University of Colombo
Master Degree in Business Management
MBM-2013
Principles of Management (MBM 02)
Assignment-01|2013
Management Process & Functions
of
People’s Leasing & Finance PLC
1
Assignment of principles of management
MBM001

2. 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

3. Contents
1. Introduction
2. Recourse Efficiency
3. Performance and Effectiveness
4. Managerial Roles
5. Planning
6. Organizing
7. References
8. Acknowledgements
Assignment of principles of management
MBM001
3

4. 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.
4
Assignment of principles of management
MBM001

5. Product & Services
• leasing & hire purchase
• Loans
• Insurance
• Islamic Finance
• Micro Finance
• Investments
• Fleet Management
• Property development
5
Assignment of principles of management
MBM001

6. Institute of Human Resource Advancement
University of Colombo
Master Degree in Business Management
MBM-2013
Principles of Management (MBM 02)
Assignment-01|2013
The Management Process - Efficiency
K.M.P.D Jayampathi
Student No. MBM
6
Assignment of principles of management
MBM001

7. Higher productivity through
efficiency
A study with
People’s leasing and finance plc
7
Assignment of principles of management
MBM001

8. BUSINESS PROCESS
Doing thing correct
Limited Resources
Using Efficiently & Effectively
Achieving goals
8
Assignment of principles of management
MBM001

9. How People’s Leasing Use their
Resources Efficiently
1. Correct Leadership.
2. Knowledgeable Employees.
3. Real Time Decision Making
4. People friendly Service.
9
Assignment of principles of management
MBM001

10. Mechanism for Efficiency
1. 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.
10
Assignment of principles of management
MBM001

11. Assignment of principles of management
MBM001
11
0%
1%
1%
2%
2%
3%
3%
4%
0 6 9 10 11 12
Non performing ratio
NPA

12. Assignment of principles of management
MBM001
12
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
7 8 9 10 11
industry
PLC
Return on assets

13. CORE VALUES
• Economic Viability .
• Environmental Responsibility.
• Social Accountability.
13
Assignment of principles of management
MBM001

14. The right quality is achieved
when
expectations are fulfilled,
needs are satisfied
and
demands met those of customers, staff
and owners.
14
Assignment of principles of management
MBM001

15. Customer Satisfaction Survey
0
10000
20000
30000
40000
50000
60000
70000
80000
2007/08 2008/09 2009/10 2010/11 2011/12
Customers satisfied of efficiency in PLC
No; Cu;
PLC
Sustainability
Report
2011-12
Assignment of principles of management
MBM001
15

16. Institute of Human Resource Advancement
University of Colombo
Master Degree in Business Management
MBM-2013
Principles of Management (MBM 02)
Assignment-01|2013
Effectiveness
Jason Liu
Student No. MBM
16
Assignment of principles of management
MBM001

17. Organizational Performance &
Effectiveness
17
Assignment of principles of management
MBM001

18. •PLC review
18
Assignment of principles of management
MBM001
Performance Cont…..
0
20,000
40,000
60,000
80,000
100,000
2008 2009 2010 2011 2012
Rs.Mn.
Years
Assets Growth

19. 19
Assignment of principles of management
MBM001
Effectiveness
• Interest Income
• Net Interest Income
• Other Income Sources
• Loan book growth
• Investment portfolio
• Funding Strategy

20. Effectiveness
• Interest Income
Assignment of principles of management
MBM001
20

21. Effectiveness
• Net Interest Income
Assignment of principles of management
MBM001
21

22. Effectiveness
• Other Income Sources
Assignment of principles of management
MBM001
22

23. Effectiveness
• Loan book growth
Assignment of principles of management
MBM001
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24. Effectiveness
• Investment portfolio
Assignment of principles of management
MBM001
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25. Effectiveness
• Funding Strategy
Assignment of principles of management
MBM001
25

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.
26
Assignment of principles of management
MBM001

27. Institute of Human Resource Advancement
University of Colombo
Master Degree in Business Management
MBM-2013
Principles of Management (MBM 02)
Assignment-01|2013
Different managerial roles
D.R.C.P. Dasanayaka
Student No. MBM
27
Assignment of principles of management
MBM001

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…
28
Assignment of principles of management
MBM001

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….
29
Assignment of principles of management
MBM001

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
30
Assignment of principles of management
MBM001
Monitor
1
2
Disseminator
1
2
3
Spokesperson
1
2
3
0
0.5
1
1.5
2
2.5
3
3.5
Informational Roles
Segregate actions to manager roles
Monitor
Disseminotor
Spokesperson

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
31
Assignment of principles of management
MBM001
Figurehead
1
2
Leader
1
2
Liaison
1
2
3
0
0.5
1
1.5
2
2.5
3
3.5
Interpersonal Roles
Segregate actions to manager roles
Figure Head
Leader
Liaison

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
32
Assignment of principles of management
MBM001
Entrepreneur
1
2
3
4
5
Recourse
Allocator
1
2
3
4
Disturbance
Handler
Negotiator
Cont………….

33. 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….
33Assignment of principles of management
MBM001
Disturbance
Handler
1
2
3
4
Negotiator
Entrepreneur
1
2
3
4
5
Recourse
Allocator
1
2
3
4

34. Negotiate…..
• IT requirement for new implementation
• With people’s bank for FD & Saving
• To issue same PET card for PLC
34Assignment of principles of management
MBM001
Disturbance
Handler
1
2
3
4
Negotiator
1
2
3
Entrepreneur
1
2
3
4
5
Recourse
Allocator
1
2
3
4
0
1
2
3
4
5
6
Decisional Roles
Segregate actions to manager roles
Entrepreneur
Disturbance
Handler
Resourse Allocator
Negotiator

35. 0
1
2
3
4
5
6
Informational Roles Interpersonal Decisional Roles
Summary
35Assignment of principles of management
MBM001
Cont…………

36. Above roles compliance with Mintzberg’s
Observations well
36
Assignment of principles of management
MBM001
0
2
4
6
8
10
12
14
Manager Roles
Summary Chart
Informational Roles
Interpersonal Roles
Decisinal Roles

37. Institute of Human Resource Advancement
University of Colombo
Master Degree in Business Management
MBM-2013
Principles of Management (MBM 02)
Assignment-01|2013
Planning Process
A.A. Samitha Jayaweera
Student No. MBM
37
Assignment of principles of management
MBM001

38. Assignment of principles of management
MBM001
38
Planning
•Planning involves defining organizational goals and ways to
meet them
The Organizational Planning Process
Develop the plan
vision, Mission, Goals
Execute the plan
Management by
objectives
Plan operation
Operational plans
Monitor and learn
Planning and
operational reviews
Translate the plan
tactical
plans, strategy map

39. 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.
39
Assignment of principles of management
MBM001

40. Assignment of principles of management
MBM001 40
Mission
Statement
Strategic
Goals/Plans
Senior
Management
Tactical 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)

41. •Vision
To provide dedicated value added customer service to
accomplish organizational service excellence whilst
maintaining a sustainable competitive advantage.
annual report plc 2011/2012
•Mission
To become legendary in the financial service scene as a
provider of customer-friendly, creative and innovative
total solutions.
annual report plc 2011/2012
Assignment of principles of management
MBM001
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Planning process

42. Making goals and plans
Assignment of principles of
management MBM001
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Vision
And
Mission
External
environment
analysis
O/T
Internal
environment
analysis
S/W
Strategy goals and plans
Tactical goals and plans
operational goals and
plans
Feed back

43. Opportunities and threats
Opportunities
• 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
43
Assignment of principles of management
MBM001

44. Strengths and weakness
Strengths
• 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
Assignment of principles of management
MBM001
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45. Assignment of principles of management
MBM001
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

46. 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.
Assignment of principles of management
MBM001
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47. 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.
Assignment of principles of management
MBM001
47
Tactical goal:
While increasing the customer base associated services
also will be expanded .( Insurance, Hire purchase etc.)

48. Institute of Human Resource Advancement
University of Colombo
Master Degree in Business Management
MBM-2013
Principles of Management (MBM 02)
Assignment-01|2013
Management functions (Organizing)
A. B. Wellappili
Student No. MBM/B02
48
Assignment of principles of management
MBM001

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.
49
Assignment of principles of management
MBM001
( 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
50
Assignment of principles of management
MBM001
DGM (Finance &
Administration)
IT HRM MIS
CEO
BOD
( Peoples Leasing & Finance Annual Report 2011/12 )

51. Assignment of principles of management
MBM001
51
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.
( Peoples Leasing & Finance Annual Report 2011/12 )

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.
52
Assignment of principles of management
MBM001
(Annual Report 2011/12 & www.assignmentpoint.com/business)

53. The Elements of Organizing
• Job Design - Recovery officers.
• Work Specialization - Marketing Officers, Cashier
53
Assignment of principles of management
MBM001
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).
(Annual Report 2011/12 & www.assignmentpoint.com/business)

54. Assignment of principles of management
MBM001
54
Distributing Authority
Branch 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
(Annual Report 2011/12 & www.assignmentpoint.com/business)

55. Assignment of principles of management
MBM001
55
Coordination
The process of linking activities of the various departments
the Organization.
Top
Management
(CEO, BOD)
Middle
Management
(DGM, AGM)
First line Management
(Executives, officers)
• 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.
56
Assignment of principles of management
MBM001

57. Assignment of principles of management
MBM001
57
Thank You