assignment 05 - people organization- ctc 2

8/6/2019 Assignment 05 - People Organization- CTC 2

http://slidepdf.com/reader/full/assignment-05-people-organization-ctc-2 1/58



To understand the usage of management

principles in practice and the Behaviours in a

organization operating in Sri Lanka

Aim of the Assignment



Introduction



The Ceylon Tobacco Company is a subsidiary of British American Tobacco

headquartered in Colombo, Sri Lanka. Company’s factory located in Colombo& Kandy.

Ceylon Tobacco manufactures and markets cigarettes and smoking tobacco andoperates primarily in Sri Lanka.

It employs approximately 325 people.

The company recorded revenues of LKR46,827.1 million (approximately $425.2million) 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) infiscal 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

Ceylon Tobacco Plc



Ceylon Tobacco CompanyCeylon Tobacco Company

Maha AreasMaha Areas

Yala AreasYala Areas

Burley (North )Burley (North )

Burley (South)Burley (South)

Anuradhapura

Buttala

MahiyanganaUdudumbara

HalielaNildandahinne

GLTP Kandy

Colombo Plant

DepotsLeaf growing

Manufacturing

Market Leader Volume & Value

84% BAT Share holding

325 Employees



British American Tobacco – Parent CompanyBritish American Tobacco – Parent Company

BRITISH AMERICAN

TOBACCO

BAT



British American Tobacco at a GlanceBritish American Tobacco at a Glance

Fortune 500 Company In business for over 100 years Over 300 brands being sold in 180+ countries Leadership in over 50 countries–Incl. PAK 47 factories in 40 countries 53,907 + employees- around the world

Supporting 280,000 farmers in 23 countries

Gross Turnover £26,234mCeylon Tobacco Plc

Operating Profit £2,905 m

Tax Contribution £16,216m



Management in all business and organizationalactivities is the act of getting people together to accomplishdesired goals and objectives efficiently and effectively.

Management comprises;

Planning, Directing, Organizing, &Controlling

What iWhat is Managements Management



The management theories and approaches are asfollows;

- Classical approach-

- Human approach

-

- Modern approach-

Management Theories



Classical Approach

Classical perspective to management emerged during the nineteethcentury 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

Management Theories



CTC History



CTC Journey so far……History 15 Years backCTC Journey so far……History 15 Years back

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



CTC Journey so far……Critical issueCTC Journey so far……Critical issue……

Evidence of failure

in Leadership and Proper Managementpractices

Poor organisational

performance in a changing business environment



What have they done….What have they done….

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 arobust communication plan



Achieve commonality in thinking and mindset

Management Unions Workforce

Establish key processes

Education Communication Consultation

SurveysWorkshopsTraining

Structured

Regular InformativeRelevantTwo-way

Involvement in

decision makingEmpowerment

Feedback

Link rewards to business results and performance

Productivity Quality Co performance

Social Upliftment

Common facilities Family events Social events

Recognition & opportunities for union leadership

A

ttitudinalchang

e

D e c i s i v e

a c t i on & i m pl em

en t a t i on

Building Trust throughBuilding Trust through

• TransparencyTransparency•• Effective ExecutionEffective Execution•

• CredibilityCredibility

Credible Change PhilosophyCredible Change Philosophy….….



Management principles inManagement principles inPracticePractice….….



Key Management practices implementedKey Management practices implemented….….

Well accepted organizational strategy

Robust communication process

Talent development philosophy Rewards Philosophy

Performance management process

Common Employee Relations Strategy



Communication ProcessCommunication Process

BAPSt.Plan

ValuedBusinessPartners

Stakeholder

s

EXCO /OPCO

DepartmentalTeam Briefings

Small GroupMeetings

COPLANCascade

AllEmployees



Cross Functional Project TeamsCross Functional Project Teams

Productivity Improvement teams KAIZEN teams Food committee EHS committee

CA team BCP steering committee etc.

D e m o

n s t r a

t e i n i

t i a t i v

e

Delivering CTCDelivering CTC



To be THEinspiration

for CorporateExcellence

Growth Productivity Responsibility

Winning Organization

Delivering CTCDelivering CTCPrioritiesPriorities

VISION

Strategies GDB Growth

TM focused S&DModel

CD aligned MarketingOrganization

Integrated andDemand driven SC

ProductivityAcceleration

Extended Supply Chainfrom “Seed to Retailers”

Shaperegulatoryenvironment

Enhance Reputation

Long term Excise Strategy

Developing Extraordinary People whilst Creating A Great Place o Work !



-EmployeeBrand

-RecruitmentStrategy

-On BoardingProcess

- Above MarketInitiatives

-Outsourcing

-

-

-

-

Strategy in Execution



Transforming the talent philosophyTransforming the talent philosophy

Build short termindividual competencies

Personal Development forcurrent role

Life time career within CTC& BAT by exception

Build long termorganisational capabilities

Personal Development forcurrent role, future career& external marketability

Clearly defined career pathsCTC. BAT & External

Conventional approach Transformation approach



The Leadership Pipeline

7 Drotter Human Resources, Inc.

Passage #1Passage #1


PassagePassage #3#3




E n t e r p r i s e

M a n a g e r

M a n a g e r o f

M a n a g e r

G r o u p M a n a g e r

F u n c t i o n a l M a n a g e r

M a n a g e O t h e r s M a n a g

e

S e l f

B u s i n e s s

M a n a g e r



Passage 3 : Manager of ManagersLeads a team of managers, who themselveslead people.

Passage 4 : Functional Manager Leads function, up to two leadership layers distant fromindividual contributor level, cross-functional view.

Time:--almost entirely about others- repeating the-instruction-performance-feedback cycle

Time:- participation in business meetings/ strategy sessionsworking with other functional managers-delegating of much of the functional concerns to directreports- benchmarking and networking

Values:- identify value-based resistance toleadership work- be prepared to return peopleto individual contributor work if they can’tmake the shift in values/ capabilities

Values:- understand and value ‘foreign’ work- value working as a team with individuals in other functions- managerial maturity – thinking/ acting as leader notmanager

Capabilities

:- pure leadershipselecting people to take passage oneassigning managerial and leadership workmeasuring and coaching managersthinking beyond function for the first timeholding first line managers accountable for managerial workmanaging the boundaries between own and

other units

Capabilities:

- communication through layers- managing areas outside own experience- report to multi-functional person- understand resourcing decisions across differentbusiness

requirements- strategist beyond function- longer term thinking

- delegate responsibility for overseeing functional tasks todirectreports

- driving state of the art functional strategies to gaincompetitive

advantage

Example : Leadership Passages



BAT CompetenciesBAT Competencies

BAT Leadership Capabilities Functional Capabilities

•Supply Chain•Marketing•Finance•CORA•HR•IT



TrainingTraining ProgrammesProgrammes

CommunicationSkills

InfluencingSkills

Resource MgtExecutive

DevelopmentCompanyInduction

7 Habits for Highly Effective

People

Are YouIn Control ?

CORAAppreciation

7 Habits for Managers

ProductKnowledge

Language of Finance

SCQuARENegotiation

SkillsPRINCE2 MDC

Change MgtSkills

ELPAssessor Training

Manage

Self

ManageSelf /Others

ManageOthers

ManageManagers



Total Reward ElementsTotal Reward Elements

Financial

Rewards

Base Pay

Variable Pay

(Cash bonuses)

Contingent Pay

For performance,

contribution

(Battle Field)

Benefits

+

Medical

Transport

Loans

Bungalows

Cigarettes

Self Study

Club Membership

ETC…….

TOTAL

REM +NON

FINANCIAL

REWRADS

Recognition

Responsibility

Autonomy

Learning & Devp

Career

Opportunities

Work

Environment

Quality of

Work

Work-Life

Balance

International

Exposure

P d i i R l d B



Productivity Related Bonuses

Profit sharing

Team work agreements –§Tech-Operator concept

§BE recommendations

§

Company PerformanceMeasures

Weightage Company Bonus Allocation based on overall companyperformance (months of salary)Threshold Target Normal Max Extra Max

Operating Profit 20% - 0.2 0.4 0.6

Volume Share 20% - 0.2 0.4 0.6

Cash Flow 20% - 0.2 0.4 0.6

GDB Volume 20% - 0.2 0.4 0.6

Net Turnover 20% - 0.2 0.4 0.6

Total 100% - 0.2 0.4 0.6

PerformanceIndicators

Sub Element Stage 1 Stage 2 Stage 3 Stage 4

Productivi ty Modular Output T1 Rs.900 T2 Rs.990 T3 Rs.1,080 T4 Rs.1,200

Manu.AccuracyDashboard (%)

Quality All Brands

MQI CMB



PerformancePlanning

EnablingPerformance

PerformanceReview

FEEDBACK

Beginning of Year

15 Feb

During Year

On going

Mid Year Review –July

End of Year

31 Jan

TheThe PerformancePerformance CycleCycle



Common FacilitiesCommon Facilities

Canteen

Car Park

Time Entry

Open OfficeSearch

Procedure

R e m o v i

n g h i e

r a r c h i c a l

b a r r i e r

s



Union official cascading the CoPlan

C r e a t i n

g o w n e r s

h i p



Union Representation

Suppliers briefed

Responsibility towards society

S HA R I N

G L EA R N I N

G S W I T

H T H E

W I D E R

C O M M U N I T

Y R e c o g n

i t i o n & o p p o r t

u n i t i e s

f o r u n

i o n

l e a d e r s h i p



Children's PartyChildren's Party

P r o m

o t i n g a

f a m i l y c

u l t u r e



Annual excursions…Annual excursions…

B u i l d i

n g r e l a

t i o n s h i p s

w i t h a

l l



CTCCTC Sports day …Sports day …

E n e r g

i z i n g t h

e o r g a n i z a

t i o n



Critical Evaluation of Critical Evaluation of Management principles inManagement principles inPracticePractice….….



Critical Evaluation …Positives…Critical Evaluation …Positives…

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



Critical Evaluation …Negatives…Critical Evaluation …Negatives…

Los of employment due to periodicrestructuring (1800 300)

Aging work force creating a life time

employment ( Non management) Standardize global management decisionsnot applicable to local environment

Employment principles for senior

management disrespecting social values



Conclusion….Conclusion….



Our ObservationsOur Observations….….

During our study research we have found that CTC;

In the past went thru many difficulties due to dominantmanagement & employee behaviours.

After the change management process CTC went thru for two decades and the implementation of the currentmanagement principles the organization has achieved itsoperational excellence giving high share holder returns andglobal recognition. A good simple example that can prove our statement here is the share value from Rs.15/- then toRs.365/- today (within a decade of time).

A hi t



-RPII 1-RPII 1 stt n the World to n the World to–e certified in V5 All–e certified in V5 All

hapters hapters

“ ” &Gold Zero Accident Award The“ ”Gold EHS Merit Award

WORLDAWARE Award for SALTProject

Achievements

A hi t



First Corporate Social

Responsibility

Award,

Awarded by ICASL

Achievements…..

A hi t



Category 1 –

“CSR in Employee Relations”

• Category 2 –

“Being in the top ten Companies

for the Best Corporate Citizen”

Achievements…..



on the

ward for the

est Trade Unionpromoting mployeeInvolvement

&n Quality

Productivity

11stst

PRIZEPRIZE



ational HRM

ward

• -inner Most nnovative

R PracticesAward•

•

• -inner Large

anufacturing ector Award



Critical Evaluation …Positives…Critical Evaluation …Positives…

2006 2009 Growth

Profits 10 30 33%

Turnover 33 56 59%

Market Share 94 97 3%Productivity 410 299 137%

Illicit Cigarettes 45Mn 74Mn 60%

Talent Export 8 People 30 People 27%

CSR Spent 2 MN GBP 7Mn GBP 28%



- 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

-

-

-

Bibiliography

http://en.wikipedia.org/wiki/Management

http://hbr.org/

http://www.hbrsolutions.com/itofferings.html

http://www.hbrsolutions.com/itofferings.html

http://hbr.org/

http://en.wikipedia.org/wiki/Management



A big thank to HR Team at theCeylon Tobacco Plc



B’sB’s



Thank You…..Thank You…..

assignment 05 - people organization- ctc 2

Documents