Management Operation

Management and Operations
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1.0. Acknowledgment
First and foremost I would like to thank the Lord for the wisdom and skills that he had
given to me that enabled me to successfully complete this report to the best of my
abilities.
Secondly, I would like to thank my all lecturers of HND (M&O), especially Mrs.Thafani
Rasheed for her vital encouragement and support towards me in conducting my
research for this project. I would also like to extend my gratitude towards my family
and friends who helped in making the completion of this report a possibility.
Thank You,
S.Akshana.

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Table of Contents
1.0. Acknowledgment ............................................................................................ 1
2.0. List of Table & List of Figures.......................................................................... 4
3.0. Abbreviations.................................................................................................. 5
REPORT 01: Leaders & Managers Impact In the Organization ................................. 6
4.0. Introduction of the report................................................................................. 6
5.0. Cargills (Ceylon) Plc ....................................................................................... 7
5.1. Company Overview..................................................................................... 7
5.2. Cargills (Ceylon) Plc Management Structure............................................... 8
6.0. Leadership & Management in Cargills (Ceylon) Plc ...................................... 10
6.1. Overview of Leader and Manager ............................................................. 11
Leadership ....................................................................................................... 11
Manager........................................................................................................... 11
6.2. Roles and Functions of Leaders and Managers ........................................ 12
6.3. Key Differences between Leaders & Managers......................................... 14
7.0. Leadership Theories & Managerial Theories................................................. 15
7.1. Leadership Theories:................................................................................. 15
7.2. Managerial Theories:................................................................................. 17
8.0. Leader and Manager in Different Situational Contexts .................................. 19
8.1. Different Theories and Models of Approach & Strength and Weakness of
Different Approaches ........................................................................................... 20
9.0. Conclusion – Report 01 ................................................................................ 25
REPORT 02: External Business Factors That Impact upon Operational Management
and the Decisions of the Management Team Makes ............................................... 26
10.0. Introduction of the Report.......................................................................... 26
11.0. Cargills Quality Dairies (Pvt) Ltd................................................................ 27
11.1. Company Overview................................................................................ 27
12.0. Key Operations of Cargills (Ceylon) Plc..................................................... 28
12.1. Importance and Value of Operations Management in Achieving Business
Objectives............................................................................................................ 30
12.2. Key Operational Approaches to Operational Management..................... 31
Total Quality Management (TQM)................................................................ 31
Just in Time Inventory (JIT).......................................................................... 32
Six Sigma .................................................................................................... 32
Queueing Theory ......................................................................................... 32
13.0. Impact of External Environment factors that affect Decision Making.......... 33
Corporate Social Responsibility .................................................................... 33

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The Triple Bottom-line (TBL)......................................................................... 34
Business Ethics ............................................................................................ 34
14.0. Conclusion – Report 02............................................................................. 36
References.............................................................................................................. 37

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2.0. List of Table & List of Figures
Table 01 11
Table 02 12
Table 03 13
Table 04 15
Table 05 20
Table 06 21
Table 07 22
Table 08 23

Figure 01 07
Figure 02 07
Figure 03 08
Figure 04 08
Figure 05 16
Figure 06 19
Figure 07 33

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3.0. Abbreviations
 FMCG – Fast Moving Consumer Goods
 KFC – Kentucky Fried Chicken
 MBO – Management By Objectives
 KMP – Key Management Personnel
 CFC - Chlorofluorocarbons
 IFAD - International Fund for Agricultural Development
 GE - General Electric
 CSR – Corporate Social Responsibilities
 TBL – The Triple Bottom-line

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REPORT 01: Leaders & Managers Impact In the Organization
4.0. Introduction of the report
The Report 01 is about the Analysis of Cargills (Ceylon) Plc. In the beginning it’s
providing the Overview of the Organization & the Management Structure, Definition
and the Role of both Leader and Manager. Mid of the report is explaining about their
performances in different situations by applying the different Theories and models of
approach. Finally the report is assessing and evaluating the strength and weakness
of Different Approaches (Leaders & Managers).

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5.0. Cargills (Ceylon) Plc
5.1. Company Overview
Cargills (Ceylon) PLC is a Sri Lankan corporate Established in 1844 and build on a
strong foundation of values and ethics, guided by trusted leadership it spearheads
the sustainable development of food industry in Sri Lanka. Cargills (Ceylon) PLC is
mainly engaged within the producing of and mercantilism in food and beverage, and
distribution. The Company's segments embrace Retail, fast moving consumer goods
(FMCG) and restaurant. It conjointly operates a chain of stores under the brand
names, Food city and Food city express. it's conjointly engaged in producing and
distributing frozen dessert and alternative farm product below the complete names,
Cargills Magic, Heavenly and Kotmale; fruit-based product under Kist brand;
processed and fresh meat product below the brand names, Supremo, Finest, Goldi
and Sams, and biscuits below the name, Kist. The corporate conjointly operates a
chain of KFC and TGIF restaurants under franchise agreements. (Cargills Ceylon
(Pvt) Ltd, 2018)
It conjointly distributes international brands, like Kodak, Kraft, Cadbury, Bonlac, Oreo,
Tang and Toblerone. Its subsidiaries embrace Cargills Agrifoods limited, Cargills
Distributors (Private) limited and Cargills Frozen product (Private) limited. Cargills
moved into the production of processed meats in 1983, not only that in same year
Cargills invested in its first manufacturing faculty.
(Cargills Ceylon (Pvt) Ltd, 2018) (Cargills Ceylon Pvt Ltd, 2018)

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5.2. Cargills (Ceylon) Plc Management Structure
 Governance Structure: (Cargills Ceylon Pvt Ltd, 2017/18)
Figure: 01 (Management Structure)
 Group Structure: (Cargills Ceylon Pvt Ltd, 2017/18)
Figure: 02 (Retail Operation)

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Figure: 03 (FMCG Operation)
Figure: 04 (Restaurant Operation)

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6.0. Leadership & Management in Cargills (Ceylon) Plc
The role of Cargills Board of administrators includes setting the strategic direction of
the Team, providing sturdy leadership and reportage to the shareholders on its
stewardship of the team. The Board includes a clear governance framework with
outlined responsibilities and accountabilities. Their governance framework ensures
that policies and procedures set at Board level are effectively communicated across
the entire business. These are designed to safeguard long-run shareholder worth,
through strategic execution and business performance delivery. Their governance
framework supports integrated decision making and risk management.
The Board is to provide entrepreneurial leadership by undertaking responsibilities for:
∙ Strategy formulation & implementation
∙ Skills and succession of the key management personnel
∙ The integrity of information, internal controls, business continuity, and risk
management
∙ Compliance with laws, regulations and ethical standards
∙ Consideration of all stakeholder interests in decision making
∙ Sustainable business development
∙ Adopting appropriate accounting policies and compliance with financial
regulations
(Cargills Ceylon Pvt Ltd, 2017/18)

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6.1. Overview of Leader and Manager
Leadership and management is unit terms that usually used interchangeably within
the business world to depict someone who manages a team of individuals. In point of
fact Leadership vs. Management has terribly totally different meanings. To be a good
manager the person need to perceive what it takes to even be a good leader.
Leadership
When look at the characteristics of a leader. Once hear the term, leader, variety of
images could pop into our head. One phrase which will come back to mind is "he or
she could be a born leader”. The usually created idea is that leadership could be an
ability that individuals are born with. Whereas this will be true, additional usually
could be a competence that's achieved through expertise, self-development, and
practice. To prove characteristics of a leader one should be additional strategically
targeted and instead of guiding staff through tasks, they inspire and encourage staff
to drive themselves. Leaders are adept within the art of Emotional Intelligence and
apply it in a means that attains the most effective estimate of their people. While a
manager receives their authority supported their role, a leader's authority is innate in
their approach. Smart leadership skills area unit tough to learn as a result of they're
much more behavioral in nature than those skills required for management.
Manager
Let’s begin by breaking down some key characteristics of managers. The role in an
exceedingly typical company or organization can replicate someone whose primary
focus is on managing a team of individuals and their activities. The role can differ by
scope, varieties of roles, and might generally even be centered on efforts outside of
true individual’s management, for example project and process managers. One of the
key characteristics of a manager is extremely basic with the sense that they are
somebody who was given their authority by the character of their role. They
guarantee work gets done; concentrate on day to day tasks, and manage the
activities of others. Managers concentrate on plan of action activities and infrequently
times have an additional directive and dominant approach.
(George A. Bohoris, 2018)

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6.2. Roles and Functions of Leaders and Managers
(Table 01)List of Roles (American Management Association, 2018)
Leaders Managers
Supervisor: delegation of tasks,
observation of labor performance and
deadlines and communication before,
throughout and when work is
completed
Informational:
Monitor: Seek and Receive
Information, Scan periodicals and
reports, maintain personal contacts.
Coach: Selecting the proper sorts of
individuals for the correct work,
obtaining workers acclimated to the
work culture, coaching and developing
them to optimum levels of performance.
Disseminator: Forward information to
other organization members; send
memos and reports, male phone calls.
Decision Maker: The power to not
solely create sound selections,
however create them expeditiously,
and typically stressed, all relate to the
decision maker leadership role.
Spokesperson: Transmit information to
outsiders through speeches, reports,
memos
Visionary: must decide the objectives
and pathway to success
Interpersonal:
Figurehead: Perform ceremonial and
symbolic duties such as greeting
visitors, signing legal documents
Setting and Achieving Goals
Leader: Direct and motivate
subordinates; train, counsel, and
communicate with subordinates.
Integrity
Liaison: Maintain information links both
inside and outside organization; use
email, phone calls, meetings.
Motivational
Decisional:
Entrepreneur: Initiate improvement
projects, identify new ideas, and
delegate ideas responsibility to others.
Innovative
Disturbance Handler: Take corrective
action during disputes or crises;
resolve conflicts among subordinates;
adapt to environmental crises.
Collaborative
Resource Allocator: Decide who gets
resources; schedule, budget; set
priorities.
Advisor
Negotiator: Represent department
during negotiation of union contracts,
sales, purchase, budgets, represent
departmental interests.

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(Table 02) List of Function (Lead2XL, 2018)
Leaders Managers
Help interpret the meaning of events
Planning: With reference to time and
implementation, planning should be
connected to and coordinated on totally
different levels.create alignment on objectives and
strategies
build task commitment and optimism
Organizing: Its involves assigning tasks,
grouping task into departments
delegating authority, and allocating
resources across the organization
build mutual trust and cooperation
strengthen collective identity Leading: it means creating a share
culture and values, communicating goals
to employees throughout the
organization, and infusing employees
with the desire to perform at high level.organize and coordinate activities
encourage and facilitate collective
learning Coordinating: When all activities are
harmonic, the organization can function
better. Positive influencing of workers
behavior is vital during this.obtain necessary resources and
support
develop and empower people Controlling: it means monitoring
employees activates, determining
whether the organization is on target
toward its goals and making corrections
as necessarypromote social justice and morality

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6.3. Key Differences between Leaders & Managers
(Table: 03) (Lead2XL, 2018)
Comparison Leader Manager
Meaning
A person who Influences his
Subordinates to Achieve a
Special Goals.
A person who Manage The
Organization and is
Responsible for Planning,
Directing, Coordinating and
Controlling.
Direction
Creating vision and strategy.
Keeping an eye on the
horizon.
Planning and Budgeting
Keeping an eye on the bottom
line.
Alignment
Creating shared culture and
values,
Helping others grow,
Reduce boundaries.
Organizing and staffing,
Directing and controlling,
Creating boundaries.
Outcome
Creates change, often
radical change
Maintain stability
Approach Sets Direction Plans Details
Attribute
Possesses the quality of
Foresightedness
Manager has the Intelligence
Subordinate Followers Employees
Style
Transformational Leadership
style
Transactional Leadership style
Decision Facilitates Decision Make Decision
Aim Growth and Development
Attainment of the Required
Result
Focus People Process and Procedure
Risk Leader Minimizes Risks Manager Takes Risks
Conflict Uses Conflict as an Assets Avoid Conflict
People Aligns People Organize People
Strives For Effectiveness For Efficiency

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7.0. Leadership Theories & Managerial Theories
7.1. Leadership Theories:
For decades, leadership theories are the supply of various studies. Actually
furthermore as in observe, several have tries to outline what permits authentic
leaders to square excluding the mass. Thence, there as a several theories on
leadership as there are philosopher, researchers and professors that have studied
and ultimately revealed their leadership theory. Theories are usually categorized by
that side is believed to define the leader the most. (Leadership Central.com, 2018)
The most widespread one’s are:
 Great Man Theory (1840’s)
The Great Man Theory evolved in middle 19th
century. Even supposing nobody was
able to identify with any scientific certainty, that human characteristic or combination
of were responsible for identifying great leaders. The great man theory assumes that
the traits of leadership are fundamental. That means great Leaders are with innate
qualities they’re not made.
 Trait Theory (1930’s – 1940’s)
The trait leadership theory believes that individuals are either born or are created
with special qualities, knowledge, skill and behavior that may create them stand out
in leadership roles. That is certain qualities like intelligence, sense of responsibility,
ability and alternative values puts anyone within the shoe of an honest leader.
 Behavioral Theory (1940’s – 1950’s)
When it became evident that effective leaders didn’t appear to possess a specific set
of identifying traits, researchers tried to review the behavioral aspects of effective
leaders. In different words, instead of attempt to find out who effective leaders are,
researchers tried to work out what effective leaders do, how they delegate tasks, how
they convey with and take a look at to encourage their followers or workers, how they
perform their tasks, and so on. According to this theory, people can learn to become
leaders through teaching and observation.
 Situational Leadership Theory (1970’s – 1980’s)
This theory suggests that totally different situation need different type of leadership.
That is, to be effective in leadership needs the power to adapt or modify one’s style
to the circumstances of things. The first factors that verify the way to adapt are an
assessment of the competency and commitment of a leader’s followers. The
assessment of those factors determines if a leader ought to use an additional
directive or supportive style.

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 Contingency Theory (1960’s)
The contingency Leadership theory argues that there is no single approach of
leading which each leadership style ought to be based on certain situations that
signifies that there are sure those that perform at the most level in certain places,
however at lowest performance once taken out of their component. To a particular
extent contingency leadership theories are an extension of the trait theory, in the
sense that human traits are associate with the situation during which the leaders
exercise their leadership. It’s usually accepted among the contingency theories that
leaders are additional doubtless to express their leadership once they feel that their
followers are going to be responsive.
 Fiedler’s Contingency Model – Situational Favorableness (Table 04)
Leader’s Position Power
Task Structure
Leader-Member Relations
 Transactional Leadership Theory (1970’s)
Transactional theories, additionally referred to as exchange theories of leadership,
are characterized by a transaction created between the leader and also the followers.
In fact, the theory values a positive and mutual benefit relationship. For the
transactional theories to be effective and as a result have motivational worth, the
leader should realize a method to align to adequately reward (or punish) his follower,
for performing leader-assigned task. In different words, transactional leaders are best
once they develop mutual reinforcing surroundings, that the individual and also the
organizational goals are in synchronized.
 Transformational Leadership Theory (1970’s)
The Transformational Leadership theory states that this process is by that an
individual interacts with others and is in a position to make a solid relationship that
leads to a high proportion of trust, that may later lead to a rise of motivation, each
intrinsic and adventitious, in each leaders and followers. The essence of
transformational theories is that leaders transform their followers through their
inventiveness nature and charismatic personalities. Rules and laws are versatile,
guided by team norms. These attributes offer a way of belonging for the followers as
they will simply determine with the leader and its purpose.
(Leadership Central.com, 2018)

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7.2. Managerial Theories:
(Figure: 05)
Historical theories of Management (Business.com, 2018)
 Scientific management theory (1890-1940)
The Scientific Management Theory is standard for its application of engineering
science at the assembly floor or the operational levels. The most important
contributor of this theory is Fredrick Winslow Taylor, and that’s why the scientific
management is commonly referred to as “Taylorism”. The scientific management
theory targeted on rising the potency of every individual within the organization. The
key stress is on increasing the assembly through the utilization of intensive
technology, and also the people in general are simply thought-about as adjuncts to
machines within the performance of routine tasks.
 Bureaucratic Management Theory (1930-1950)
The bureaucratic Theory is expounded to the structure and administrative method of
the organization and is given by max Weber, who is considered the father of
bureaucracy. The term bureaucracy means that the principles and laws, processes,
procedures, patterns, etc. that are developed to scale back the quality of
organization’s functioning. According to max Weber, the bureaucratic organization is
that the most rational means that to exercise an important management over the

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individual employees. A bureaucratic organization is one that includes a hierarchy of
authority, specialized workforce, standardized principles, rules and laws, trained
administrative personnel, etc.
 Human Relations Movement (1930-Present)
The human relations movement was founded by social scientist George Elton mayo
within the Nineteen Thirties following a series of experiments referred to as the
Hawthorne studies that targeted on exploring the link between worker satisfaction
and well-being and workplace productivity. Essentially the Hawthorne studies
concluded that once employers take an interest in employees and create decisions
supported their natural wants and psychological makeup, productivity will increase.
Contemporary Theories of Management (Business.com, 2018)
 Contingency View
Basically, contingency theory asserts that once managers make a call, they have to
take into consideration all aspects of the present scenario and act on those aspects
that are key to the situation at hand. Basically, it’s the approach that “it depends.”
 Systems Theory
System is a set of interrelated parts that function as a whole to achieve a common
purpose. A system functions by acquiring inputs from the external environment,
transforming them in some way, and discharging outputs back to the environment.

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8.0. Leader and Manager in Different Situational Contexts
 Situation 01: Outside experts, such as staff specialists or consultants are being
used to propose innovative ideas.
Experts as consultants and specialties have been working in the Cargills Food city
branches to propose to innovate ideas and it is the best way to follow to behavior
theory. Both specialist and consultant face many strategies of the branch and they
get rid of this strategy through implementing innovative concepts perfectly, accurately
and confidentially. Here it is essential to follow the behavior leadership theories as
well. The specialists who are staff from different branches have a lot of experience,
as well as free thinking and experimenting to come up with their individual ideas. For
this reason, the behavior (laizzes) faire leadership theory is being followed to
encourage an individual to be free of control and they create new ideas to implement
and obtain outcomes successfully. As a result of this, they get rid of this strategy by
implementing innovative concepts perfectly and accurately and confidently. Here it is
essential to adopt the behavior leadership theory (autocratic leadership style). The
specialists who are staff from different branches have a lot of experience, and free
thinking as well as experimenting to come up with their individual ideas. For this
reason, the behavior (laizze faire leadership style) is being followed to encourage
individuals to be free of control.
 Situation 02: in order to increase the Cargills company image in the market,
management has decided to focus on retaining their productive, efficient and
loyal employees and has asked the manager to motivate the employee.
The manager can apply the classical theory of management by explaining the task in
order to enhance the productivity and maximizing the efficiency of the organization
perspective as it is the valuable tool of the organization. In order to apply this theory,
the manager will carefully examine the task and also the skills of the team members
and match this carefully considering the suitable option. It is the form of managerial
supervision for enhancing the compliance within employees by rewards and
punishment to enhance the level of performances and increases the result. It
involves obstructing of the leader. Transactional leadership based on the
emphasized the effectiveness of the organization performance through the basis of
the compliance and the leadership attained for the basis of the rewards and
punishment. Applying transactional theory the management will identify the best
performance-related rewards and punishment.

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8.1. Different Theories and Models of Approach & Strength and
Weakness of Different Approaches
 Situational Leadership –
Situational leadership is the leadership style that has been developed by Kenneth
Blanchard and Paul Hersey. This refers to once the leader or manager of a company
should change his style to suit the development level of the followers he's making an
attempt to influence. With situational leadership, it's up to the leader to alter his style,
not the follower to adapt to the leader’s style. In this leadership, the design could
amendment frequently to fulfill the wants of others within the organization supported
the situation. (Educational Business Articles, 2018)
(Figure: 06) (The Center for Leadership Studies, 2018)
Telling & Directing- In telling and directing, the leader of the organization is that the
one creating the decisions and informing others within the organization of the
decision. This kind of leadership may be mentioned as micro-management because
the leader is incredibly concerned and closely supervises the people that are
operating. With this sort of leadership, it's a really top-down approach and also the
workers merely do specifically what they're told.
Selling & Coaching- With the selling and coaching type of leadership, the leader
continues to be terribly concerned within the regular activities. The decisions still

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ultimately lie with the leader, however, input is requested from the staff before the
decision is enforced. With this kind of situational leadership, workers are still
supervised however it's in additional of a coaching manner instead of a management
manner. This style usually works well with people who are inexperienced and still
learning. It involves direct praise to extend their confidence and self-esteem.
(Table: 05)
Situational Leadership
Strength Weakness
has been in the marketplace for a long
time well-known and used a lot to train
leaders in an organization
has only a few related research studies
conducted to justify assumptions and
propositions set forth by the approach
raising questions about its theoretical
basis
its practical, easy to understand,
intuitively sensible and can be easily
applied to different contexts
ambiguously conceptualizes the model
of subordinates development Levels
has prescriptive value by telling what
you should and shouldn't do in different
contexts
hard to define how commitment is
conceptualized according to this
leadership model
puts emphasis on leader flexibility
Unclear how this model matches leader
style with subordinate development
levels.
Reminds leaders to treat each
subordinate as an individual based on
the task at hand and seek opportunities
to help subordinates learn new skills
and become more confident in their
work.
the model fails to address how it deals
with how certain demographic
characteristics
 Systems Leadership –
Systems Leadership allows the leaders in a company to make the conditions
wherever individuals at all levels will work productively to their potential. It uses
sound principles concerning human behavior to form models of excellent leadership,
organizational strategy, systems style, and human process. It provides leaders with
tools that facilitate to predict people’s behavior in their organization. It additionally
helps to create effective systems that drive productive behavior and lead to a more
practical realization of the organization’s purpose. This theory of leadership helps in
promoting creative power and innovation within the organization and continually
encourages the workers to think otherwise whereas approaching the actual task. And
also the systems leadership theory also focuses on the welfare of the organization
not only the workers so as facilitate the expansion and therefore the development of
the organization. (Discover Thoughts, 2018)

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Table: 06
Systems Leadership
Strength Weakness
it provides a glossary of terms with
which researchers from different field
can be understood
the process is lengthy and complicated
in nature as it engages various
interrelated parameters in in
It provides framework for the
presentation and interpretation of
phenomenon and realities.
it’s not widely popular due to the
acceptances by less numbers of
leaders as it is comparatively a lesser
adapted approach with an element of
risk
Clarifies the thought on the complexity
and dynamism of the environment and
provides a framework for building ideas.
 Contingency Approach
An assumption that Number one theory or technique for business management will
apply to any or all businesses or to any circumstances. From a business perspective,
employing a contingency approach to problem-solving would indicate that problems
have to be understood and so addressed in within which depend upon the
surroundings and context in which they occur. The contingency theory of decision-
making argues that the effectiveness of a decision-making procedure depends on
several contingent factors surrounding the choice. Such factors include time
constraints, as an example. Usually speaking, the greater the time constraint, a lot of
blemished the decision-making method is going to be. Another vital contingency is
that the quantity of relevant data possessed by a decision-maker and his
subordinates. The bigger the quantity of data, a lot of sounds the decision ought to
be.

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 Chaos Theory
The chaos theory form the management point of view states that at certain points of
times the market undergo certain changes and disturbances which can be related to
global economic slowdown or change in customer changes or recession in the
market. It states that the company should be cable enough to adopt the changes as
quickly as possible to prevent losses arising from these situations.
In 1960s, the metrologist Edward Lorens, discovered the butterfly effect, in which he
asserted that a butterfly flapping its wings in Tokyo can impact weather patterns in
Chicago. Unstable forces because minuscule changes in the atmosphere to have a
major impact elsewhere. (Fractal Foundation, 2018)
(Table: 07)
Chaos Theory
Strength Weakness
free exchange of ideas between the
potential customers and the
organization
loss of the time as majority of the time is
consumed in adaptation process
easier to change as the organization
gets adaptable in nature
part of business can be neglected to
adapt according to the situation
bigger variety of ideas as there is
multiple number of options available to
the company
employees take advantage of free time
which in tur decrease their productivity
Able to adjust in various situations due
to the flexibility of the organization.
no clear overview of what change has
to be adapted with what time
 Management by Objectives
Management by Objectives (MBO) is a performance management approach in which
a balance is sought-after between the objectives of workers and also the objectives
of a company. The essence of Peter Drucker’s basic principle: Management by
Objectives is to work out joint objectives and to produce feedback on the results.
Setting difficult however possible objectives promotes motivation and authorization of
workers. By increasing commitment, managers are given the chance to target new
concepts and innovation that contribute to the development and objectives of
organizations. This MBO concept suggested that objectives mustn't be imposed on
subordinates however ought to be determined together by an involved with the
management. This provides widespread support to them and also the action of such
objectives becomes straightforward and fast. (Business Dictionary, 2018)

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(Table: 08)
MBO
Strength Weakness
MBO may be a result-oriented
method and focuses on setting and
controlling goals if encourages
managers to try to detailed
designing.
MBO will only succeed if it's the entire
support of the highest management
Both the manager and also the
subordinates recognize what's
expected of them and therefore
there's no role ambiguity or
confusion
MBO could also be resented by
subordinates. They’ll be struggling to induce
together with the management once setting
goals and objectives and these goals could
also be set unrealistically high.
The managers are needed to
determine measurable targets and
standards of performance and
priorities for these targets
There’s considerable work concerned and it
takes an excessive amount of-of the
manager’s time. Too several conferences
and too several reports add to the manager’s
responsibility and burden
It makes people a lot of conscious
of the corporate goals
The stress is a lot of on short-run goals.
Since the goals are mostly quantitative in
nature, it's tough to try to long-range planning
as a result of all the variables affecting the
method of planning can't be accurately
forecast because of the perpetually ever-
changing socio-economic and technological
surroundings that have an effect on the
stability of goals
MBO usually highlights the area
within which the staff wants any
coaching, leading to career
development
Most managers might not be sufficiently
trained in a social interaction like employment
and guidance, that is extensively needed

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9.0. Conclusion – Report 01
This Report is about the Cargills (Ceylon) Plc Leadership and Management. As a
author I have provided the Overview of the Organization & the Management
Structure, Definition and the Role of both Leader and Manager. In the mid of the
report I was explained about their performances in different situations by applying the
different Theories and models of approach. Finally I have assessed and evaluated
the strength and weakness of Different Approaches (Leaders & Managers).

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REPORT 02: External Business Factors That Impact upon Operational
Management and the Decisions of the Management Team Makes
10.0. Introduction of the Report
The Report 02 is about the Analysis of Cargills Qualities Dairies Pvt Ltd from the
Factory Visit. In the beginning it’s providing the Overview of the Organization & Key
Operations of the Organization, and their Importance and Values in achieving
Business Objectives. After that the report is explaining about and Roles and
Responsibilities of managers in the Key operations and the Key operational
Approaches to Operations Management.

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11.0. Cargills Quality Dairies (Pvt) Ltd
11.1. Company Overview
Cargills (Ceylon) PLC is a Sri Lankan corporate Established in 1844 and build on a
strong foundation of values and ethics, guided by trusted leadership it spearheads
the sustainable development of food industry in Sri Lanka. Cargills (Ceylon) PLC is
mainly engaged within the producing of and mercantilism in food and beverage, and
distribution. The Company's segments embrace Retail, fast moving consumer goods
(FMCG) and restaurant. It conjointly operates a chain of stores under the brand
names, Food city and Food city express. it's conjointly engaged in producing and
distributing frozen dessert and alternative farm product below the complete names,
Cargills Magic, Heavenly and Kotmale; fruit-based product under Kist brand;
processed and fresh meat product below the brand names, Supremo, Finest, Goldi
and Sams, and biscuits below the name, Kist. The corporate conjointly operates a
chain of KFC and TGIF restaurants under franchise agreements. (Cargills Ceylon
(Pvt) Ltd, 2018)
It conjointly distributes international brands, like Kodak, Kraft, Cadbury, Bonlac, Oreo,
Tang and Toblerone. Its subsidiaries embrace Cargills Agrifoods limited, Cargills
Distributors (Private) limited and Cargills Frozen product (Private) limited. Cargills
moved into the production of processed meats in 1983, not only that in same year
Cargills invested in its first manufacturing faculty.
Subsidiary Companies
 Cargills Foods Company (Private) Limited
 Cargills Quality Foods Limited
 Ceylon Agro Development Company (Private) Limited
 Cargills Quality Dairies (Private) Limited
 Cargills Agrifoods Limited
 C P C (Lanka) Limited
 Millers Limited
 Cargills Quality Confectionaries (Private) Limited
 Cargills Food Processors (Private) Limited
 Kotmale Holdings PLC
 Cargills Food Services (Private) Limited
(Cargills Ceylon Pvt Ltd, 2017/18)

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12.0. Key Operations of Cargills (Ceylon) Plc
Commonly Operation Management concern with the conversion of inputs into
outputs, using physical resources, o as to provide the desired utilities to the customer
while meeting the other organizational objectives of effectiveness, efficiency and
adoptability. It distinguishes itself from other functions such as personnel, marketing,
finance, etc. By its primary concern for ‘conversion by using physical resources’.
 Location of Facilities: At the heart of the Cargills culture is that they want to
embrace our variations and create connections across business units, at each
location in each district across the island - in order that every worker will reach
their full potential. Company philosophy work surroundings are heat and
equitable making certain that every member of Cargills team is valued for his or
her capabilities and revered for who they're. Cargills attempt to form a cheerful
and targeted work atmosphere that celebrates the team and encourages
innovation. Their goal is to supply a workplace wherever all workers will thrive
and grow and feel enclosed, safe and are given the opportunities to create
valuable contributions to Cargills and thereby partner the progress of Sri Lanka.
 Plant Layouts and Materials Handling: Each year, Cargills works directly with
thousands of farmers and small-scale entrepreneurs to assist increase their
productivity, thereby serving to boost their standard of living and increase our
access to quality raw materials. Company producing businesses particularly the
dairy farm sector is extremely obsessed on an uninterrupted provide of raw
materials. Nowadays they were a worldwide role model in corporate-driven rural
development. Cargills totally committed to making sure that customers will create
wise decisions regarding health and nutrition. Additionally its approach to food
safety and quality is comprehensive, preventive, and proactive.
 Product Design: The distributor delivers full product accessibility across all
product classes and across all retailers, through an integrated renewal system.
The FMCG sectors of the team additionally reach intent on a huge population of
Sri Lankans through an obsessive distributor network, who are partners of the
Cargills group and support the FMCG brands to succeed in intent on over Fifty
Thousand General Trade retailers. Having invested within an exceeding sales
department Automation system for secondary distribution, and has designed up
vital analytical capabilities, the Group’s sales groups have vital visibility over the
performance of retailers across the country.

Page | 29
 Process Design: The portfolio developed under their dairy brands ‘Kotmale’ and
‘Magic’ is comprehensive meeting aspirations of nutrition also as innovation. The
strategic decision created to take a position in enhancing sourcing and process
capacities has reaped the due dividends in terms of our farmer partners, the
corporate and also the business as an entire. The FMCG segment of the group
led by dedicated Operational Heads holds eight production units and one primary
process facility together with twenty-two collection centers for the sourcing of
recent milk. The Group’s FMCG Brands are mostly distributed among Sri Lanka
with limited exports to India, The Maldives, and therefore the Middle East. The
manufacture sourced through assortment Centres transported to the Cargills
Vegetable process Unit and therefore the Cargills Fruit processing Unit, each of
that are centralized units that facilitate the consolidation process, and dispatch of
manufacture to Cargills Food city retailers across Sri Lanka and different sectors
of the Group.
 Product and Planning Control: The planning process in place considers all
stakeholders in goal setting and aims at effective use of resources so as to
optimize the deliverables to any or all stakeholders concerned. Risk taking, in an
acceptable manner, is, therefore, an elementary a part of the Group’s business
activity and an important element of its planning process. In line with LKAS 24 -
"Related Party Disclosures", KMP are those having authority and responsibility
for planning, directing, controlling the activities of the entity. Consequently, the
administrators of the corporate and its parent (including executive and non-
executive directors) are classified as KMP of the group.
 Quality Control: Cargills fresh manufacture range is championed by our strong
base of small farmers that give customers with the foremost reliable benchmark
of quality and freshness. CFC’s seafood vary has gained tremendous acceptance
among customers with the section seeing double-digit growth over last year.
They were targeted on providing customers with quality, reasonable nutrition
choices that additionally harness local industries whereby seafood will play a
larger role across regions and markets. Addressing quality and productivity
lapses among smallholder farmers poses a considerable challenge to the local
process trade that should contend with cheaper foreign milk powder. In response,
the corporate initiated a partnership with IFAD and also the Presidential
Secretariat in line with the national policy of taking Sri Lanka towards self-
sufficiency in milk.
(Cargills Ceylon Pvt Ltd, 2017)

Page | 30
12.1. Importance and Value of Operations Management in Achieving
Business Objectives
The common belief amongst the individuals was to believe that the operations
management was necessary only within the producing business. the assumption was
supported with the actual fact that the producing business had to require care of
additional variety of processes and operations ranging from getting the raw materials
until the products are sold and additionally in several cases when sales assistance
was additionally was considered thence making the idea that the operations manager
is very important to the producing business. just in case of the service business they
need numerous amounts of method concerned ranging from understanding the
customer has to get a feedback on the service and thence at some purpose the
service business tells the manufacturing industry what they need and thence to
manage operations among the service industry is as vital as managing the
operations inside the producing industry. Whenever an organization is providing a
product or a service then that company needs to confirm that the customers’ wants
and demands are met in the least time. This can be a really necessary method and
thence the promoting team plays a significant role in understanding what customers’
need and the way to satisfy it.
The promoting team collects details from the customers’ and uses it because of the
input for the planning of product and services. Therefore any operations
management involves similar management tasks regardless of what trade or
business one operates. It involves planning, Staffing, controlling, Directing,
Motivating and Organizing. Regardless of the business, the operations management
ranges across the organization as a part of strategic and plan of action operations.
(MDP Business School Digital Library, 2018)

Page | 31
12.2. Key Operational Approaches to Operational Management
An operations manager fills an important role in an exceedingly business,
government or different organization. The precise tasks of an operations manager
rely in massive half upon the character and size of the enterprise, however, she
wants a large vary of business and social skills to succeed. In general, operations
manager plans oversees and smooths communication. Operations managers play a
number one role in managing each raw materials and personnel.
 Total Quality Management (TQM)
Total quality management (TQM) is the process of embracing a quality conscious
philosophy or culture within an organization, it aims toward standards of near
perfection and continuous improvement. Total Quality Management could be a
management framework supported the assumption that a company will build long-
term success by having all its members, from low-level employees to its highest
ranking executives, target quality improvement and, thus, delivering customer
satisfaction. Total Quality Management that is often better known by its descriptor
TQM needs organizations to specialize in continuous improvement or kaizen. It
focuses on process enhancements over the future, instead of merely emphasizing
short-term financial gains.
Principles of TQM:
TQM prescribes a series of the way for organizations to accomplish this, with the
pathway to successful continuous improvement targeted on the use of strategy,
information and effective communication to instill a discipline of quality into the
organization's culture and processes. Additional specifically, TQM puts a spotlight on
the processes that organizations use to provide their product, and it demands
organizations to outline those processes, unendingly monitor and measure their
performance, and use that performance information to drive enhancements. What is
more, it involves all workers, also as all organizational departments, to be a part of
this process. TQM's objectives are to eliminate waste and increase efficiencies by
making certain that the assembly of the organization's product (or service) is
completed right the primary time. This management framework was at the start
applied to companies within the producing sector, but, over the decades,
organizations in different sectors have adopted it, as well.
(iSixSigma, 2018)

Page | 32
 Just in Time Inventory (JIT)
The JIT philosophy requires that products should only be produced if there is an
internal or external customer waiting for them. It aims ideally for zero stock. This
means cash is not tied up unnecessarily within raw material, work in progress or
finished good stock, allowing more effective cash flow management for the
organization. JIT is an example of chase demand strategy for balancing capacity
(supply) and demand. One way to know JIT is from a supermarket analogy. At a food
market, customers will get what they have after they want it and only get the amount
they have at the instant. Similarly, a JIT process only requests elements from a
preceding producing process or from inventory once it wants them, and only within
the amount required at the time. Because it has gained traction, JIT has been
enforced in numerous industries, not simply by automobile makers. It’s used by
laptop makers, fast-food restaurants and even on-demand publishing. It’s typically
used as an element of the lean producing approach to business operations.
(Accounting Tools, 2018)
 Six Sigma
Six Sigma could be a disciplined, statistical-based, data-driven approach and
continuous improvement methodology for eliminating defects in a product, process or
service. It had been developed by Motorola in early to middle 1980’s supported
quality management fundamentals, then became a preferred management approach
at General Electric (GE) within the early 1990’s. Sigma represents the population
standard deviation that could be a measure of the variation in an information set
collected regarding the process. If a defect is outlined by specification limits
separating sensible from unhealthy outcomes of a method, then a six sigma method
includes a process mean (average) that's six customary deviations from the closest
specification limit. This provides enough buffer between the process natural variation
and also the specification limits.
(iSixSigma, 2018)
 Queueing Theory
Queueing theory deals with one of the most unpleasant experiences of life, waiting.
Queueing is quite common in many fields, for example in telephone exchange, in
supermarket, at a petrol station, at computer systems, etc. The first problems of
queening theory was raised by calls and Erlang (1990) was the first who treated
congestion problems in the beginning of 20th
century. His works inspired engineers,
mathematicians to deal with queening problems using probabilistic methods.

Page | 33
13.0. Impact of External Environment factors that affect Decision
Making
 Corporate Social Responsibility
Corporate social responsibility (CSR) is a concept which has become dominant
business reporting. Every corporate has a policy concerning CSR and produces a
report annually detailing its activity. The broadest definition of corporate social
responsibility is concerned with what is - or should be – the relationship between
global corporations, governments of countries and individual citizens. More locally
the definition is concerned with the relationship between corporations and the local
society in which it resides or operates. Another definition is concerned with the
relationship between corporations and its stakeholders.
The Principles of CSR:
Sustainability:
This is concerned with the effect which action taken in the present has upon the
options available in the future if resources are utilized in the present then they are no
longer available for use in the future, and this is of particular concern if the resources
are infinite in quantity.
Thus raw materials of an extractive nature, such as coal, iron or oil, are infinite in
quantity and once used are not available for future use. At some point in the future
therefore alternatives will be needed to fulfill the functions currently provided by these
resources. This may be at some point in the relatively distant future but of more
immediate concern is the fact that as resources become depleted that the cost of
acquiring the remaining resources tends to increase, and hence the operational costs
of organizations tend to increase.
Accountability:
This is concerned with an organization recognizing that its actions affect the external
environment, and therefore assuming responsibility for the effects of its actions. This
concept therefore implies a qualification of the effects of action taken, both internal to
the organization and externally. More specifically the concept implies a reporting of
those qualifications to all parties affected by those actions. This implies a reporting to
external stakeholders of the effects of actions taken by the organization and how they
are affecting those stakeholders.
Alongside this acceptance of responsibility therefore must be a recognition that those
external stakeholders have the power to affect the way in which those actions of the
organization are taken and a role in deciding whether or not such actions can be
justified, and if so at what cost to the organization and to other stakeholders.

Page | 34
Transparency:
Transparency, as a principle, means that the external impact of the actions of the
organization can be ascertained from that organization’s reporting and pertinent facts
are not disguised within that reporting. Thus all the effects of the actions of the
organization, including external impacts, should be apparent to all from using the
information provided by the organization’s reporting mechanisms.
(Damithendra, 2018)
 The Triple Bottom-line (TBL)
(Figure 07) ( (Google, 2018)
Social Sustainability - Social variables consult with social dimensions of a community
or region and will embrace measurements of education, equity and access to social
resources, health and well-being, quality of life, and social capital.
Environmental Sustainability - Environmental variables ought to represent
measurements of natural resources and replicate potential influences to its viability. It
might incorporate air and water quality, energy consumption, natural resources, solid
and toxic waste, and land use/land cover. Ideally, having long-range trends offered
for each of the environmental variables would facilitate organizations determine the
impacts a project or policy would wear the place.
Economic Sustainability - Economic variables need to be variables that contend with
the bottom line and also the flow of cash. It might look into financial gain or
expenditures, taxes, business climate factors, employment, and business diversity
factors.
 Business Ethics
Business ethics have developed into standards of ethical and ethical responsibility,
not only within Sri Lanka however also around the world. The demand for ethical and
moral behavior altogether aspects of domestic and international business

Page | 35
communications and partnerships has inspired the development and evolution of
business ethics.
The field of business ethics isn't easy to define. The big selection of industries and
areas of social behavior that exist between any business and also the consumer or
general public complicate the sector of business ethics. Business ethics is practiced
in company offices, likewise as native mom-and-pop grocery stores. It’s to do with
social responsibility and company compliance, also as an employer and worker
rights. The sector of ethics addresses, morality, responsibility, decisions, and actions
taken by any company or business from the grassroots level to the very best
positions in local or national governments.

Page | 36
14.0. Conclusion – Report 02
The Report 02 is provided the Analysis of Cargills Qualities Dairies Pvt Ltd from the
Factory Visit. In the beginning it’s provided the Overview of the Organization & Key
Operations of the Organization, and their Importance and Values in achieving
Business Objectives. After that the report is explained about and Roles and
Responsibilities of managers in the Key operations and the Key operational
Approaches to Operations Management.

Page | 37
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