Management Practices

Contents
DECLARATION ...........................................................................Error! Bookmark not defined.
ACKNOWLEDGEMENT .............................................................Error! Bookmark not defined.
SUMMARY OF REPORT ............................................................Error! Bookmark not defined.
CHAPTER 1 ................................................................................................................................... 2
1.1 INTRODUCTION .................................................................................................................... 3
1.1.1 Scope of Study .................................................................................................................... 3
1.1.2 Methodology ....................................................................................................................... 3
1.2 ORGANIZATION .................................................................................................................... 4
1.2.1 Organizational Background ................................................................................................ 4
1.2.2 Mission, Vision and Goals of the Organization ................................................................. 5
1.3 ORGANIZATIONAL MANAGEMENT ................................................................................. 6
1.3.1 Management Functions....................................................................................................... 6
1.3.1.1 Planning and Decision making..................................................................................... 6
1.3.1.2 Organizing .................................................................................................................... 6
1.3.1.3 Leading ......................................................................................................................... 7
1.3.1.4 Controlling ................................................................................................................... 7
CHAPTER 2 ................................................................................................................................... 8
2.1 MOTIVATION THEORY ........................................................................................................ 9
CHAPTER 3 ................................................................................................................................. 10
3.1 TRAINING AND DEVELOPMENT ..................................................................................... 11
CHAPTER 4 ................................................................................................................................. 13
4.1 SWOT ANALYSIS ................................................................................................................ 14
4.1.1 Strengths ........................................................................................................................... 14
4.1.2 Weaknesses ....................................................................................................................... 15
4.1.3 Opportunities .................................................................................................................... 15
4.1.4 Threats .............................................................................................................................. 15
4.2 RECOMMENDATIONS ........................................................................................................ 16
4.3 CONCLUSION ....................................................................................................................... 17

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CHAPTER 1

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1.1 INTRODUCTION

1.1.1 Scope of Study

Our project was mainly focused on the management practices followed by the DSI Bataduwa plant.
Our task was to identify how the organization has applied management functions to their business
practices, current practices related to the motivation theory of the organization, training and
development methods used within the organization and finally identify weak points in their
practices and recommend solutions and steps to be taken to avoid those weaknesses and to maintain
and develop a good business environment.

1.1.2 Methodology

We decided to choose the main plant of DSI Bataduwa as the company which we are going to do
our research for the management practices project. Then we paid a field visit to the plant after
getting the permission letter to do so from Mr. Dumithra Ranasinghe. Mr. D.K. Rajapaksa ,the
managing director of DSI factory supported us by guiding along the visit in order to collect the
required details of our project.

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1.2 ORGANIZATION

1.2.1 Organizational Background

DSI is a prominent rubber factory in Sri Lanka and a member of D Samson Group. It's a leading
manufacturer and exporter of footwear in Sri Lanka with ISO 9001:2008 Certification, D Samson
Industries (DSI), the first Shoe Manufacturing Plant in Sri Lanka was established in 1962. The
Company produces more than 60,000 pairs of footwear per day and has a workforce of 1,500
employees.

The Company manufactures high quality casual footwear by importing materials from Germany,
Italy, United Kingdom, United States, Taiwan and they export goods for Germany, Australia,
South Africa, New Zealand, France, Italy, India, Pakistan, Japan, United States, Canada for Gents,
Ladies, Infants and Children products as Flip-Flops, Sandals, Rubber Boots, Leather Shoes, School
Shoes, Industrial Shoes, Agricultural Boots, Indoor Slippers, Canvas Shoes. Those footwear
products are available over 175 DSI retail outlets and over 2,000 multi brand shops under the
brand names of ‘Ranpa’, ‘Waves’, ‘DSI cool’, ‘Saneepa’, ‘Marvel’, ‘Cuddle Kids’, ‘Samson’,
‘Reebok’, ‘Supersport’, ‘Sweet girl’, ‘U softo’, ‘Stranger’, ‘Red Tape’, ‘Liberty’, ‘Fila’, ‘Oriyent’,
‘wl’, ‘yclub’ and so on.

As an outstanding company in today's marketing sector, it has won many awards as Presidential
Export Awards - since 2006 to 2009, NCE Export Awards from year 2009 to 2012 continuously,
National Business Excellence Awards – 2013, CNCL Achiever of Industrial Excellence – 2010,
Akimoto 5S Awards – 2006, Industrial Excellence Award – 2010, Sri Lankan Entrepreneur of the
Year – 2008, National Awards for Export Excellence - 2003 and National Safety Award most
recently.

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1.2.2 Mission, Vision and Goals of the Organization

Vision

To be the leading contributor to the socio-economic development of Sri Lanka.

Mission

To invest in manufacturing and services, meeting highest international standards to our

global customers in conventional and niche markets.

Goals

In all our activities and dealings we shall be guided by the humanistic approach of our
founder. We stand committed to the highest ethical standards and the cultural heritage of values
pursued and cherished by him. We treat the community at large as our stakeholder with a deep
sense of social responsibility, sharing with them the benefits we reap.

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1.3 ORGANIZATIONAL MANAGEMENT

1.3.1 Management Functions

1.3.1.1 Planning and Decision making

The organization we chose has a clear mission. Managers, employees work with immense effort
to achieve the goals.
Managers are involved in decision making and planning and they decide on what to be achieved
and identify what are the boundary conditions and challenges to be faced and plan to reduce the
hindrances

1. They have planned to export their footwear items and extend their business.
2. They have planned import good materials to invent products.
3. They opened island wide branches.
4. Divided in to sections to increase productivity.
5. Besides the typical products that they produce new creative things to get more profit and
attraction to the product.
6. Use of new machinery and technology.

1.3.1.2 Organizing

Manager hire the staff by considering the qualifications need to work in DSI factory and according
to the talents and skills of the non-managerial staff, they are allocated to get a specific work done.
Middle level managers and the human resource management (HRM) engage in planning on how
to allocate the resources and staff throughout the organization.

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1.3.1.3 Leading

Staff is the core component of an organization and a great attention is paid for their desires. They
have to be motivated so it would help the organization to improvise itself and the for the employees
who work for the benefit of the organization.
Employee turnover, insecurities, job dissatisfaction are reduced and increase of efficiency,
productivity can be seen this organization.

1.3.1.4 Controlling

Human Resource management (HRM) department of the organization keep track of every task that
is carried out in the organization and they provide a detailed report to the manager and the
observations are done by the manager.
These observations make the management aware of any undesired, intentional / unintentional
errors caused by the employees.
To control the behavior of the employees, management has applied some rules and regulations to
be followed by the employees.

1. Employees who work with rubber, chemicals or machines inside the DSI factory should
wear safety costumes and should wear a cap to cover the head.
2. Smoking and alcohol inside the factory is prohibited.
3. Maintain self-hygiene.
4. Make a prior notice before taking any leave.
5. All the employees should be reported to the factory before 9 a.m.
6. Transport supplied by company.

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CHAPTER 2

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2.1 MOTIVATION THEORY

Management of this organization has been following strategies to motivate the employees of the
organization. Hygiene factors as well as motivation factors can be clearly seem in this
organization these factors are implemented on the staff. Mainly we can see hygiene factors like.
• Attractive salaries for the employees
• Active and quality supervision is provided for the employees to get the work done
effectively and in an efficient way
• Creative and positive working environment is provided by considering the likes and
dislikes of the employees
• Job security and satisfaction

Motivational factors like

• Handing over responsibilities of the factory and make the employees realize of their
trustworthiness
• Promotions
• Opportunities are provided to enhance one’s personal skills and talents.

Other strategies like

• Setting a clear mission to achieve
• Share profits of the sales among all the employees
• Establish welfare activities for the wellbeing of the employees

Main reasons behind motivating the employees are to make them happy, reduce employee
turnover, and organization towards success and the above mentioned factors are accomplished by
the DSI company.
This organization uses these strategies not only for the wellbeing of the employees but also for
the betterment of the organization. Motivation could help the management to lead the
organization towards its success.

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CHAPTER 3

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3.1 TRAINING AND DEVELOPMENT

This organization utilizes those training theories to train its’ employees in order to develop their
status.

1. Analysis of needs

Recognition of required skills, accessing training needs and development of the

objectives are done in this phase. This is done in two ways which varies on the type of
employees considered.

• Task analysis is reserved for new employees and identification of proper job requirements,
specific skills, job description and person specification are handled in this methodology.
• Current employees are subjected to performance analysis and it’s a process of determining
each and every employee’s performance comparatively. If a deficiency seems in anyone’s
progress, that person may corrected through training or some other way. This process can
be done through performance appraisals and observations of supervisors.

2. Designing the training program

This may vary according to the job roles which the organization possesses. Final design
of the program will generate as an output of a series of works like allocating budgets after
having instructional objectives about the program which is going to be implemented.

3. Implementing the training program

Most prominently applied training method within the organization is “on the job
training method”. It means assigning the current employees for trainings while doing their jobs.
This is mostly applied for low level employees through an informal training method which
they will have to train by observing the works of other employees by the daily basis
collaboration with their colleagues. Computer based trainings and audiovisual trainings are
most commonly given to high level employees like managers.

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4. Evaluation

As the final step, the training program is evaluating in order to obtain a well-qualified employee
force for the organization. The success of the training program can be measured through reactions
of employees, on-the-job behaviors and testing them in the duties they assigned etc.

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CHAPTER 4

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4.1 SWOT ANALYSIS

The observations that have been done according to the SWOT analysis depicts certain strengths,
weaknesses, opportunities and threats could be identified within the organization.

4.1.1 Strengths

• DSI is a family group so stability in Sri Lanka business market with more than 20 sub
companies of Samson group.
• Well-known brand name with high recognition and reputation.
• The massive, skilled and committed workforce.
• Strong infrastructure with having sanitary facilities.
• Aggressive advertising and promotions.
• Expanded services and competitive edge.
• High growth rate.
• Experienced business units.
• Superior management talent.
• Abundant financial resources with high profitability and revenue.
• Better marketing skills.
• Having branches around the country.
• Technology Innovation.
• Achievement such as ISO 90001 2008 certification
• Cross collaboration with the suppliers, sales officers at the customer’s door steps
• Can invent better products the cause they import the row martials from foreign
countries

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4.1.2 Weaknesses

• Centralization in decision making function

• The difficulty to match IQ levels so making them understand the thing
sometimes is very difficult
• High investments in research and development

4.1.3 Opportunities

• Contribution rendered for massive social services activities through sponsorship

• Can go business diversification
• New products and services
• Service expansion
• Growing economy
• Government deregulation
• Rapid market growth
• Fire distinguishes

4.1.4 Threats

• Other competitors
• Growing competition and lower profitability
• Constant changes in technology
• High inflation level in the country

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4.2 RECOMMENDATIONS

The following recommendations are provided so they could follow them for the betterment of the
organization and increase the efficiency.
1. Follow a proper selection/recruitment method for selecting low level employees
• A selection method is necessary in selecting employees. Though they conduct
an interview it is not in a standard form so they could follow an interview which
in a standard and professional in manner.

2. Provide training programs for the employees before they assign to the work places
• By providing a proper training to the employees of the factory, the knowledge
and the skills of the employees could be enhanced and the efficiency can be
increased.
• Develop skills needed to perform the allocated tasks to the employees.
• Helping the employees in getting to know the new technology and how to use
new machinery.

3. Reduce the initial cost in order to reduce the price of the products while
maintaining the quality. This can be done with importing raw materials cheaply
and use new technologies such as robots and Nano technology.

4. Design innovative products in order to compete with other brands.

5. Start researches on their chemical usages in order to reduce health issues and
provide safety.
6. As the Information Technology rapidly develops usage of E-commerce should
takes a place allowing the customers for online purchases. It will leads for an
incensement of the sales.
7. Improve eco-friendly production

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4.3 CONCLUSION

The DSI group of companies stand as a successful trademark in today’s business market by
following good management, motivation and training theories along its’ way.
As they are experiencing 50 years of corporate excellence, able to become the leading local
footwear manufacture in Sri Lanka. They use the location advantage in order to get the raw
materials easily and provide job opportunities for large number of people. Usage of modern
machineries in order to reduce the labor cost can be seen. Overall DSI is conducting a better
management process in order to archive their goals and objectives. The Benefits are not only
gained by the company but also by the society as they do many social services. But DSI should do
more researches on health and safety and degree of the ecological issues. Usage of E-commerce
should apply in their business in order to widen their market. Above recommendations will be
helpful in order to minimize their errors and the content of this report is observer biased.

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