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LM - leadership and management

hnd in business management (ESOFT Metro Campus)

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Higher Nationals
Internal verification of assessment decisions – BTEC (RQF)
INTERNAL VERIFICATION – ASSESSMENT DECISIONS
Programme title Pearson Higher Nationals in Business
Assessor MRS. Deepika Balasooriya Internal Verifier

Unit(s) Unit 4: Leadership and Management

Assignment title Understanding different types of leadership and management theories and
principals and their impact on the effectiveness and continuous improvement of
an organization.
Student’s name D.P.G Tilanka Doolwala

List which assessment Pass Merit Distinction

criteria the Assessor has
awarded.
INTERNAL VERIFIER CHECKLIST

Do the assessment criteria awarded

match those shown in the assignment Y/N
brief?

Is the Pass/Merit/Distinction grade

awarded justified by the assessor’s Y/N
comments on the student work?
Has the work been assessed
Y/N
accurately?
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Give details:

• Constructive?
Y/N
• Linked to relevant assessment
criteria? Y/N

• Identifying opportunities for

improved performance? Y/N

• Agreeing actions? Y/N

Does the assessment decision need
Y/N
amending?
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Higher Nationals - Summative Assignment Feedback Form

Student Name/ID D.P.G Tilanka Doolwala

Unit Title Unit 4: Leadership and Management

Assignment Number 01 Assessor MRS Deepika Balasooriya

Date Received 1st

Submission Date
submission
Date Received 2nd
Re-submission Date
submission
Assessor Feedback:
LO1 Examine leadership and management theories and principles, and their impact on the effectiveness of an organisation
Pass, Merit & Distinction P1 P2 M1 D1
Descripts

LO2 Review the influence of different leadership and management styles on the culture of organisations

Pass, Merit & Distinction P3 P4 M2 M3

Descripts
LO3 Develop a motivational strategy to optimise organisational performance

Pass, Merit & Distinction P5 M4 D2

Descripts
LO4 Apply leadership and management approaches to managing performance to ensure continuous
improvement.
Pass, Merit & Distinction P6 M5 D3
Descripts

Grade: Assessor Signature: Date:

Resubmission Feedback:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

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* Please note that grade decisions are provisional. They are only confirmed once internal and external moderation has taken place and grades
decisions have been agreed at the assessment board.

Assignment Feedback
Formative Feedback: Assessor to Student

Action Plan

Summative feedback

Feedback: Student to Assessor

Assessor signature Date

[email protected]
Student signature m Date

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Pearson
Higher Nationals in
Business
Unit 4: Leadership and Management
Name - Tilanka Doolwala
Institute – ESoft Metro Campus Kandy
Id - E129887

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Student Declaration

I hereby, declare that I know what plagiarism entails, namely to use another’s work and to present it as
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1. I know that plagiarism is a punishable offence because it constitutes theft.

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Higher National Certificate/Diploma in Business

Assignment Brief

Student Name /ID Number D.P.G Tilanka Doolwala

Unit Number and Title Unit 4: Leadership and Management

Academic Year 2022

Unit Tutor

Assignment Title Understanding different types of leadership and management

theories and principals and their impact on the effectiveness and
continuous improvement of an organization.

Issue Date

Submission Date

IV Name & Date

Submission format

Section A:
The submission should be in the form of a written report that includes Management and leadership theories and their
impact on effectiveness and influence on the culture of the selected organization. The key findings of the study need to
be presented in a 15minutes PowerPoint presentation. (5 minutes allocated for the questions). Presentation slides and
speaker notes should be attached to the appendix in the report. The recommended word count for the report is
1,000–,1500 words but learner will not be penalized for exceeding the total word limit.

The report is required to make effective use of signposting (numbered headings, bullet points and subsections) in- text
referencing as appropriate. Your research should be referenced using the Harvard referencing system. Please also
provide a reference list using the Harvard referencing system.

Section B:
The submission should be in the form of an individual written report written in a concise, formal business style using

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single spacing and font size 12. You are required to make use of headings, paragraphs,and subsections as appropriate,
and all work must be supported with research and referenced using Harvard referencing system (in-text and end-text
referencing). The recommended word count for the report is 4,000–4,500 words but learner will not be penalized
for exceeding the total word limit.

Unit Learning Outcomes:

LO1 Examine leadership and management theories and principles, and their impact on the
effectiveness of an organisation
LO2 Review the influence of different leadership and management styles on the culture of
organisations
LO3 Develop a motivational strategy to optimise organisational performance
LO4 Apply leadership and management approaches to managing performance to ensure continuous
improvement.

Learning Outcomes and Assessment Criteria

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Pass Merit Distinction

LO1 Examine leadership and management theories and LO1 and LO2
principles, and their impact on the effectiveness of an D1 Critically evaluate the impact of
organisation different approaches to leadership
and management.

P1 Discuss different M1 Analyse the impact of

theories of leadership in the application of
relation to the leadership and
management activities in management theories on
different organisations. the effectiveness of a large
P2 Explore different organisation.
theories of management in
relation to the
management and
leadership activities in
different organisations.

LO2 Review the influence of different leadership and

management styles on the culture of organisations

P3 Assess different M2 Compare the impact of

leadership and leadership and
management styles and management styles on
their application in a range decision making in
of business situations in different organisations.
different organisations. M3 Evaluate the
P4 Examine the factors importance of
that influence the organisational culture on
development of the the performance of
culture in organisations. different organisations.

LO3 Develop a motivational strategy to optimise organisational performance

P5 Produce a motivational M4 Produce a detailed D2 Produce a comprehensive

strategy for an motivational strategy for motivational strategy that effectively
organisation that supports an organisation that addresses all variables of motivation
optimal achievement of addresses intrinsic and to enhance organisational
organisational objectives. extrinsic motivation. performance.

LO4 Apply leadership and management approaches to managing performance to ensure

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continuous improvement.

P6 Apply to a range of M5 Assess how leadership D3 Make recommendations to

business situations, and management improve performance management
appropriate leadership, approaches for managing that will ensure continuous
and management performance supports improvement.
approaches for managing continuous improvement.
performance and
continuous improvement.

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Assignment Brief and Guidance:

Section A

Assume that you have been recruited as the Business Consultant for a well-known Sri
Lankan Firm. This firm is suffering a downgrowth in past few years. The top management
is requesting you to analyse the situation and compare the organizational situation with few
other organizations from the same industry. To achieve the above first, you need to explore
and discuss how different theories of leadership and management effecting practical
situations in chosen organizations. Then analyse how the application of leadership and
management theories impacting the effectiveness of those organizations.
Also, you need to identify an assess the application of different leadership and management
styles in selected business situations. You can compare your organization with selected
organizations differentiate the impact of leadership and management styles.
You need to examine the factors that influence the development of the culture in selected
organisations. Furthermore, evaluate how the organizational culture resulting on
performance of the selected organization. Your report also should include a critical
evaluation of the impact of different approaches that selected organizations practicing in
the leadership and management.

Section B

In this written report, you can select one organization out of the chosen organizations in
Section A. You must make a comprehensive motivational strategy and apply variety of
business situations for suitable leadership, and management approaches for managing
performance and continuous improvement.
Your strategy should include how this motivational strategy will support optimal
achievement of organizational objectives. Also, the motivational strategy should address
intrinsic and extrinsic motivation with regards to selected organization. Make sure to
effectively address all variables of motivation to uplift organizational performance.
You are required to suggest recommendations to improve performance management that
will ensure continuous improvement of the selected organization. To achieve above apply

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appropriate leadership and management approaches to managing performance in range of

business situations. Also, the recommendations should assess how leadership and
management approaches for managing performance supports continuous improvement of
the chosen organization.

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Grading Rubric

Grading Criteria Achieved Feedback

P1 Discuss different theories of leadership

in relation to the management activities in
different organisations.
P2 Explore different theories of
management in relation to the
management and leadership activities in
different organisations.
P3 Assess different leadership and
management styles and their application in
a range of business situations in different
organisations.
P4 Examine the factors that influence the
development of the culture in
organisations.
P5 Produce a motivational strategy for an
organisation that supports optimal
achievement of organisational objectives.
P6 Apply to a range of business situations,
appropriate leadership, and management
approaches for managing performance and
continuous improvement.
M1 Analyse the impact of the application
of leadership and management theories on
the effectiveness of a large organisation.
M2 Compare the impact of leadership and
management styles on decision making in
different organisations.
M3 Evaluate the importance of
organisational culture on the performance
of different organisations.
M4 Produce a detailed motivational
strategy for an organisation that addresses
intrinsic and extrinsic motivation.
M5 Assess how leadership and
management approaches for managing
performance supports continuous

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improvement.
D1 Critically evaluate the impact of
different approaches to leadership and
management.
D2 Produce a comprehensive motivational
strategy that effectively addresses all
variables of motivation to enhance
organisational performance.
D3 Make recommendations to improve
performance management that will ensure
continuous improvement.

OBSERVATION RECORD

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Learner name: D.P.G Tilanka Doolwala

Qualification: BTEC Level 4-HNC/HND Diploma (RQF)
Unit number & title: Unit 4: Leadership and Management
Description of activity undertaken

Assessment criteria targeted

How the activity covers the requirements of the assessment criteria (this does not confirm
achievement of assessment criteria or confer an assessment decision)

Learner name: D.P.G Tilanka Doolwala

[email protected]
Learner signature: Date:
m
Assessor name:
Assessor signature: Date:

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WITNESS STATEMENT

Learner name: D.P.G Tilanka Doolwala

Qualification: BTEC Level 4-HNC/HND Diploma (RQF)
Unit number & title: Unit 4: Leadership and Management
Description of activity undertaken (please be as specific as possible)

Assessment criteria (for which the activity provides evidence)

How the activity covers the requirements of the assessment criteria, including how and where the
activity took place (this does not confirm achievement of assessment criteria or confer an assessment
decision)

Witness name: Job role:

Witness signature: Date:
Learner name: D.P.G Tilanka Doolwala
Learner [email protected]
Date:
signature: m
Assessor name:
Assessor
Date:
signature:

Contents
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01.Section A – Presentation.......................................................................................19
2.) Introduction of AMW Capital Leasing......................................................................43
2.1) Competitive Firm 1 – SIYAPATHA FINANCE........................................................46
2.2) Competitive Firm 1 – LOLC FINANCE.................................................................50
3.1) Defining leadership............................................................................................54
3.2) Reasons to down growth AMW Capital Leasing....................................................59
3.3) Reasons to growth Siyapatha Finance and LOLC Finance......................................60
3.4) Advantages and Disadvantages of Transactional Leadership.................................61
4.1) Defining Management.........................................................................................63
4.2) What are management theories........................................................................64
4.3.1) Implication for Management Theory and Practical.............................................67
4.3.2) Reasons to down growth AMW Capital Leasing.................................................67
4.3.3) Reasons to growth Siyapatha Finance and LOLC Finance...................................67
4.3.4) Advantages and Disadvantages of Management Theory....................................68
5.1) Leadership and management effectiveness for Siyapatha........................................69
5.2) Advantages and disadvantages of transactional leadership theory.........................71
5.3) Advantages and disadvantages of scientific management theory...........................72
6.1) Leadership and Management Styles.....................................................................73
6.2) A comparison of the three leadership styles........................................................76
6.3) Leadership Style, Organizational Impact on gaining profits or loss for the business. 78
7.1) What is organizational culture?............................................................................79
7.2) How culture is impact for vision and mission.......................................................80
7.3.1) The cultures of the AMW finance....................................................................81
7.3.2) The cultures of the LOLC finance....................................................................81
7.3.3) The advantages of culture.............................................................................82
7.3.4) The disadvantages of culture.........................................................................82
8.1) What Is the Motivation?......................................................................................83
8.2) Importance of Motivation in an Organisation......................................................83
8.3.1) Current company objectives of the AMW finance..............................................84
8.3.2) Theories of motivation to produce a motivational strategy.................................84
9) Leadership Management Approaches.......................................................................87
10) Reference List....................................................................................................90

01.Section A – Presentation
Slide - 1

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Good morning, everyone I am Tilanka Doolwala now I am going to explain about Leadership
theories and leadership styles.

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Slide – 2

Here is my selected company. It’s AMW capital Leasing. This company associated motorways
private limited, also known as AMW. On July 5, 2006, the company was incorporated as a
specialized leasing company under the name "AMW Capital Leasing Ltd." It was granted
'Finance Company' status by the Monetary Board of the Central Bank of Sri Lanka in November
2008, allowing it to accept public deposits. In July 2008, the Al-Futtaim group's wholly owned
subsidiary Al-Futtaim Engineering (AFE) acquired Associated Motorways (Private) Limited. The
Al-Futtaim group, which started out as a trading firm in the 1930s, currently has business
interests and ventures in Bahrain, Kuwait, Qatar, Oman, Saudi Arabia, Egypt, Syria, Sri Lanka,
Pakistan, Singapore, Europe, and other regions. With approximately 65 companies, the Al-
Futtaim group is a diverse corporate empire. It is regarded as a dynamic innovator that has
recognized and addressed the various demands of the United Arab Emirates, where generations
have grown up with an ingrained faith in the Al-Futtaim brand.

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Slide – 3

Ok next I am going to explain about chairman of AMW. He Is a tarvin fernandopulle. Senior

banker Tarvin Fernandopulle has been appointed chairman of AMW Capital Leasing and finance
plc. Trevine has been on the Board as an Independent Non-Executive Director since October
2016

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Slide – 4

here is you can see annual report of AMW 2018,2019 and 2022. now you see in this three year
the company was loss of profit. this is a down growth company because in 2019 profit is low
more than 2018 and 2020 profit low more than 2019. that’s why I select this company.

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Slide – 5

this is a competitor company I selected. Its siyapatha finance. Siyapatha Finance was established
in 2005 with the goal of providing innovative and excellent financial solutions to its consumers,
and it now strives to be one of Sri Lanka's best finance companies with an island wide presence.
Siyapatha Finance continues to provide significant value to its different stakeholders by gaining
industry expertise via 16 years of experience and a strong financial background. In order to serve
the SME / Retail customer market, Siyapatha Finance PLC, formerly known as Sampath Leasing
& Factoring Limited, was established in March 2005 as a specialized leasing company,
registered and governed by the Central Bank of Sri Lanka. Over the past 16 years, Siyapatha
Finance has developed into Sampath Bank's largest subsidiary. In September 2013, after
receiving a finance company license from the Monetary Board of the Central Bank of Sri Lanka
under the Finance Business Act No. 42 of 2011, the company changed its name to its current one.
The company's lending portfolio consists of leasing, personal loans, business loans, gold
financing, fixed deposits, savings, and factoring enterprises.

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Slide – 6

here is you can see annual report of Siyaptha 2019,2020 and 2021. now you see in these three
years the company was high of profit. this is a profit growth company because in 2020 profit is
high more than 2019 and 2021 profit high more than 2022.

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Slide – 7

Here is my other selected competitor firm. It’s LOLC. Thirty-four years ago, a company with a
keen sense of the future and the ability to accurately read the times opened its doors to provide
an enthusiastic market what was then Sri Lanka's first portfolio of leasing solutions. Lanka ORIX
Leasing Company was the name of the company. Ishara Chinthaka Nanayakkara is a
businesswoman and entrepreneur from Sri Lanka. He is the richest individual in Sri Lanka as of
December 2019. He is the deputy group chairman of LOLC Holdings at the moment. Because of
the strength of the LOLC Group, they establish a solid reputation in the market and guarantee
that all objectives, big or small, are achieved. Leading Sri Lankan licensed finance company
LOLC Financial PLC has a unique personality. As one of the LOLC Group's flagship companies,
established on the pillars of unwavering quality, complete customer satisfaction, and unmatched
financial competence, we have stayed committed to bridging the gap between desire and
achievement. Through clever alliances and audacious strategies, LOLC Financing has grown into
a beacon of empowerment for the general population, providing services to low-level

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entrepreneurs, the SME sector, and high-level corporate executives, beginning with Sri Lanka's
first portfolio of finance solutions.

Slide 8

here is you can see annual report of LOLC 2019,2020 and 2021. now you see in these three years
the company was high of profit. this is a profit growth company because in 2020 profit is high
more than 2019 and 2021 profit high more than 2022.

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Slide – 9

So, defining of leadership. The method by which an individual motivates others and mobilizes
resources to achieve a goal is known as leadership. Leadership is both a set of behaviours and a
set of characteristics that can be developed. The relationship between followers and those who
inspire and guide them is known as leadership. The purpose of leadership, according to Ralph
Nader, is to create more leaders rather than followers. This is referred to as transformational
leadership, where a leader can alter a follower's outlook on life or psychology and pique their
interest in becoming a leader themselves. This suggests that effective leadership should
ultimately be uplifting and motivating. In order to help their followers, become the people they
know they can be; leaders should challenge those they supervise to reach new heights. It's crucial
for leaders to understand and practice transformational leadership if they want to truly impact
and influence others. Different leadership theories emphasize creating leaders who are stronger
and more effective as well as inspiring followers to take on leadership roles.

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Slide – 10

What are the leadership theories? Leadership theories are schools of thought that attempt to
explain how and why people become leaders. The theories stress the characteristics and activities
that people can use to improve their leadership qualities. A leadership approach known as
"transformational leadership" has an impact on both people and social systems. In its ideal form,
it encourages beneficial and positive development in followers with the ultimate objective of
developing followers into leaders. In its purest form, transformational leadership enhances
followers' motivation, morale, and performance via a range of strategies. The transactional
leadership style was first introduced by Max Weber in 1947, and then by Bernard Bass in 1981.
The most common users of this style are managers. It focuses on the essential management
processes of organization, control, and short-term planning. Two well-known leaders who have
employed transactional strategies are McCarthy and de Gaulle. There is no one best leadership
style, according to Fiedler's Contingency Theory, also known as Fiedler's Contingency Model or
Fiedler's Theory of Leadership. Instead, a leadership approach that is adapted to the conditions is
the most effective in any given context.

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Slide – 11

Reasons for down growth amw and grow siyapatha and lolc. Firstly what are the reasons of
down growth AMW. Owner has not wish to maintain sustainable growth. Aim not to put financial
stability at risk Getting decisions individually Failure to provide significant training. What are the
reasons for growth of Siyapatha and LOLC New Markets, Competition and Innovation Give the
bonus for employers They are doing Increase stability better customer service better than
competitors Decisions not getting individually Doing motivation program.

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Slide – 12

Now I am going to Analyse transactional theory to amw. Organizational Transactional Analysis

is a discipline whose goal is to improve communication at all levels of a company. It examines
individual, team, department, and organizational development and change.

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Slide – 13

Now I am going to explain about. Management theories are a collection of ideas that suggest
broad guidelines for running a company or organization. Management theories look at how
managers put plans in place to achieve corporate goals and how they drive individuals to perform
at their best.

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Slide – 14

What are the management theory? traditional methods in order to increase production and
income in a firm, the traditional management strategy places an emphasis on centralized
authority, labour specialization, and incentives. Taylor's scientific perspective Taylor's approach
was founded on the concept that improving people's working methods was more effective than
making them work as hard as they could. The Principles of Scientific Management, written by
Taylor, was released in 1909. present-day management theories According to contemporary
management theory, employees work for a number of reasons, such as contentment, enjoyment,
and desired lifestyles. Using this concept, managers can devise strategies to cater to the needs
and habits of their staff while simultaneously fostering their long-term skill development. A
collection of concepts known as management theories provide general recommendations for
managing a business or organization. Management theories examine how managers implement
strategies to meet organizational objectives and how they encourage employees to give their best
efforts.

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Slide – 15

Implications for management theory and practical. The failure of most management theories to
achieve expectations highlights the need of early examination of integration chances. Planning
and implementation will be improved by addressing integration challenges at each stage of the
process. Suggestions for improving merger and acquisition integration and performance are not
guaranteed.

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Slide – 16

Analysis Taylors scientific for amw. Various management ideas have been implemented by
businesses throughout history. They have not only aided in increasing efficiency, but they have
also enhanced service quality. These management ideas, despite their age, aid in the creation of
interconnected work environments in which employees and employers collaborate. Systems
theory, contingency theory, Theory X and Theory Y, and scientific management theory are some
of the most widely used management theories today

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Slide – 17

Leadership has a direct cause and effect relationship upon organizations and their success.
Leaders determine values, culture, change tolerance and employee motivation. They shape
institutional strategies including their execution and effectiveness
According to management philosophy, finding the most efficient way to execute each work, no
matter how minor, is critical. Managers in the early 1900s would issue commands to their
employees with no instructions on how to carry them out.

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Slide – 18

Siyapatha Finance's High morale, employee retention, and long-term success are all results of
strong leadership and management. siyapatha finance has been successful. Only in a positive
way and can't see bad leadership be seen throughout the organization. That is why the Siypatha
company is constantly profitable

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Slide – 19

Autocratic Autocratic rule is the complete antithesis of democratic rule. In this leadership style,
the leader makes choices on their own, without consulting others who report to them. Democratic
leadership refers to decision-making that is based on the opinions of all team members. Even
though one employee makes the ultimate decision, they all have an equal voice in how the
project is run. Laissez-faire In a fledgling startup, for instance, you can run into a laissez-faire
firm founder who doesn't impose any significant office rules around work hours or deadlines.
They may focus on the overall business operations while having complete faith in their staff.

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Slide – 20

This is an elaborating and comparing AMW between siytapatha and LOLC.

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Slide – 21

Styles impact for profit and loss Democratic leadership style increases employee productivity,
decreases the need for control and formal rules and procedures, generates competent people
willing to give their all, and tends to develop subordinates who think for themselves and want
responsibility. Leaders who employ this style of leadership may find themselves in a risky
situation. They defer to their team for ideas rather than making a judgment. It is not always
possible to do so. Being a leader often entails making a decision that affects the entire team at the
time

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Slide – 22

Defining culture, the culture of a company determines how employees should conduct
themselves. Leaders build shared views and values, which are then conveyed and reinforced
through numerous techniques, influencing employee perceptions, behaviours, and understanding.
Organizational culture has an effect on all aspects of business, including timeliness, tone,
contract terms, and employee perks. When the workplace culture adheres to their preferences,
employees are more likely to feel comfortable, supported, and respected. Companies that
prioritize culture well can weather difficult situations and changes in the business environment
and come out stronger. Culture is a key competitive advantage when it comes to drawing
customers and outperforming the competition. Nearly 50% of employees would leave their
current firm for a position with a better culture, even if it paid less, and 77% of job searchers
consider a company's culture before applying.

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Slide – 23

Impact of culture to siyapatha finance. The structure of the AMW Leasing, the system and
processes by which work is performed, employee behavior and attitudes, the organization's
values and traditions, and the management and leadership styles used are all factors that can
influence AMW Leasing culture.
Because everyone can freely share their thoughts at meetings, the adhocracy culture encourages
freedom and creativity. Working in this culture is more informal, and social connection and
collaboration are valued more. AMW has made tremendous progress in fulfilling its corporate
social responsibility commitment to the neighborhood communities. Cultural, environmental,
social, health, and educational efforts have been carried out by AMW as a Corporate Citizen of
Sri Lanka. To boost the social, environmental, and financial sectors, they have several policies
and processes in place. The three main pillars of environment, education, and community are the

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focus of AMW's CSR initiatives. To organize its CSR projects and activities, AMW has a
specialized CSR team on staff. The business invests a sizable sum of money each year on the
cause it supports.

Slide – 24

I would be happy to answer any questions you may have now. okay thank you all

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2.) Introduction of AMW Capital Leasing

AMW Capital Leasing & Finance PLC was established in 2006 as the company's first foray into
financial services. On July 5, 2006, the company was incorporated as a specialized leasing
company under the name "AMW Capital Leasing Ltd." It was granted 'Finance Company' status
by the Monetary Board of the Central Bank of Sri Lanka in November 2008, allowing it to
accept public deposits. AMW Capital Leasing and Finance PLC was listed on the Colombo Stock
Exchange in August 2011 and became a publicly traded corporation.
Al-Futtaim Engineering (AFE), a wholly-owned subsidiary of the Al-Futtaim group, purchased
Associated Motorways (Private) Limited in July 2008. The Al-Futtaim group, which began as a
trade company in the 1930s, now includes corporate interests and activities throughout Bahrain,
Kuwait, Qatar, Oman, and Saudi Arabia, as well as Egypt, Syria, Sri Lanka, Pakistan, Singapore,
Europe, and beyond. The Al-Futtaim group is a diversified conglomerate of businesses with over
65 firms. It is considered as a dynamic innovator that has understood and responded to the
different needs of the UAE, where generations have grown up with implicit trust in the Al-
Futtaim brand.
With the trusted leadership of its parent company, Associated Motorways (Private) Limited, and
the Al-Futtaim Group's ownership, AMW Capital Leasing and Finance PLC is now ready to
assist with all of financial needs.

Vision
To be the most trusted, admired and profitable NBFI in Sri Lanka
Mission
 Consistently deliver best-in-class service experience to our clients.
 Attract and develop best-in-class professionals who are motivated to achieve the highest
level of service & performance.
 Provide a superior return to our shareholders and invest in the communities we serve.
Values
 Respect

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We have the utmost respect for everyone we interact with and for the environment in which we
operate. We humbly recognize that ideas can come from anywhere and are open to listen and
change our mind. We are able to admit to mistakes and are willing to learn from them.
 Integrity
We will always do the right thing and demonstrate consistency between our actions and our
words. We ensure honesty and fairness in all that we do. We think about the long term and build
enduring relationships.
 Collaboration
We actively build trusted partnerships with all the constituencies of our business-including
customers, principals, partners, communities, and colleagues. We harness the strengths of
individuals and teams, and we have an unyielding desire to win together. We work
collaboratively and we hold ourselves and each other accountable.
 Excellence
We have a passion to achieve extraordinary results by delighting our customers. We believe good
enough, is not good enough. We aspire to the highest global standards of service excellence. We
celebrate our successes but remain relentless in constantly improving.

Financial highlights of AMW

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(Annual report – AMW, 2020)

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(AMW CAPITAL LEASING AND FINANCE PLC, 2022)

2.1) Competitive Firm 1 – SIYAPATHA FINANCE

Introduction of Siyapatha Finance

Siyapatha Finance PLC, formerly known as Sampath Leasing & Factoring Limited, was founded
in March 2005 as a specialist leasing firm, registered and controlled by the Central Bank of Sri
Lanka (CBSL), to serve the SME / Retail customer market. Siyapatha Finance has grown into
Sampath Bank's largest subsidiary over the last 16 years, and the company was rebranded to its
current name in September 2013 after receiving a finance company license from the Monetary
Board of the Central Bank of Sri Lanka under the Finance Business Act No. 42 of 2011.
Leasing, personal loans, commercial loans, gold finance, fixed deposits, savings, and factoring
(debt financing) businesses make up the company's lending portfolio. Siyapatha Finance PLC is
a major player in the country's Non-Banking Financial Institutions industry, with 40 branches in
major cities and towns and an energetic team of 800 people.

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VISION
To be the most innovative and trusted premier financial services provider

MISSION
To provide flexible and creative solutions to customers and generate greater values to our
stakeholders while assuring corporate governance through an empowered professional team.

VALUES
 Loyalty
 Openness
 Trust
 Service Excellence

Mr. Sumith Cumaranatunga is a chairman of siyapatha finance. Mr. Cumaranatunga was the
Chairman and Managing Director of the David Pieris Group of Companies for 30 years and 9
months, having previously served as a Director and General Manager. He retired as Chairman on
March 31, 2016, after joining the company as an accountant on July 1, 1985. During his tenure,
the company grew from a relatively small business unit in a single location in 1985/86, with a
turnover of Rs. 43.3 million and a net profit of Rs. 311,000, to one of Sri Lanka's most profitable,
professionally managed conglomerates, with a turnover of Rs. 86.2 billion and a net profit of Rs.
11.1 billion in 2015/16, an island-wide reach, and a consistent track record of exceptional
performance, successfully overcoming numerous challenges. From 2011/12 to 2015/16, the
David Pieris Group of Companies was at the forefront of the automotive, financial services,
information technology, and logistics industries, with market leadership in numerous fields and
three times exceeding Rs. 10 billion in net profit. From October 12, 2010, until April 1, 2015, he
was Chairman of Asset line Leasing Company Limited, during which time the company was one
of the most lucrative in the finance leasing business. He is a Certified Practising Accountant
(CPA), a Chartered Management Accountant (ACMA CGMA), and a Member of the Chartered
Institute of Marketing (Dip MCIM).
(About us Siyapatha finance –
2022)

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Financial highlights of Siyapatha Finance

(Annual report – siyapatha finance,2021)

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(Annual report – siyapatha finance,2020)

(Siyapatha, 2022)

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2.2) Competitive Firm 1 – LOLC FINANCE

(Image, LOLC about

us.2022)

Introduction of LOLC Finance

Thirty-four years ago, a company with a clear sense of the future and the ability to precisely read
the times opened its doors to offer Sri Lanka's first portfolio of leasing solutions to an excited
market. The company's name was Lanka ORIX Leasing Company (LOLC) Ishara Chinthaka
Nanayakkara is a Sri Lankan businessman and entrepreneur. As of December 2019, he is the
wealthiest person in Sri Lanka. He is currently the deputy group chairman of LOLC Holdings’
Finance is known for providing creative and real-world financial solutions that fulfil the
demands of their consumers as Sri Lanka's largest non-banking financial institution. they become
a trusted name in the market, thanks to the LOLC Group's strength, ensuring that goals, no
matter how big or small, become a reality. LOLC Financial PLC is a leading Sri Lankan licensed
finance corporation with its own distinct character. We have remained focused on bridging the
gap between aspiration and achievement as one of the flagship businesses of the LOLC Group,
built on the foundation of uncompromising quality, total customer satisfaction, and unrivalled
financial competence.

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LOLC Financing has developed into a beacon of empowerment for the public, with services
reaching grassroots entrepreneurs, the SME sector, and high-level corporate executives through
smart alliances and bold approaches, starting with Sri Lanka's first portfolio of finance solutions.
The company has expanded into areas such as Islamic Finance, Auto and SME Finance, Working
Capital, and Foreign Currency Business as a result of its ability to adapt to changing
opportunities for growth, prosperity, and success.
LOLC Company today reflects the strength of a dynamic entity — a mainstay in Sri Lanka's
dynamically expanding banking industry. They aspire to be inventive in producing new products
and services as well as generating new markets, particularly in underserved regions of the
country, inspired by a goal to make a difference in the lives of the people of Sri Lanka. Because
they believe in delivering goods that better lives, make dreams come true, fulfil long-held
objectives, and empower communities, our company development is continually linked with
developing areas of growth using the experience of our people, alliances, and relationship with
LOLC.

VISION
We believe in an inclusive financial service that requires client advocacy and stewardship, a
passion for leading-edge solutions and the delivery of services that exceed customer
expectations.

MISSION
Our mission is to help set the industry standard in Non-Bank Financial Services. We reach out to
all Small and Medium Enterprises and provide them with affordable and convenient Financial
Services tailored to their specific needs

CORPORATE VALUES
We are committed to the highest standards of ethical conduct in all we do. We believe that
honesty and integrity engender trust, which is the cornerstone of our business. We abide by the
laws of the land and strive to be good citizens and take responsibility for our actions. We
recognise that our success as an enterprise depends on the talents, skills and expertise of our staff
and our ability to function as a closely integrated team. We appreciate our diversity and believe

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that respect – for our employees, customers, partners, regulators and all those with whom we
interact – is an essential element of all positive and productive business relationships. We
understand the importance of our mission and the trust our customers place in us. With this in
mind, we strive to excel in every aspect of our business and approach, every challenge with a
determination to succeed.
Financial highlights of Siyapatha Finance

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(Annual report – LOLC

finance,2020)

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(Annual report – LOLC

finance,2021)

(Finance Companies in Sri Lanka | LOLC Finance by LOLC Group,

2022)

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3.1) Defining leadership

For maximum efficiency, organizations require strong leadership. Leadership, as we all know, is
a quality that may be inherited as well as learned. Human psychology and expert methods are
both addressed in organizational leadership. Organizational leadership focuses on the
development of cross-organizational leadership skills and capacities. It refers to an individual's
ability to persevere through difficult times in the industry and thrive as a result. It clearly
distinguishes between the leaders and the managers. The leader should be capable of
commanding a group of people.
Leadership and other qualitative qualities of a firm can be harder to value compared to
quantitative indicators that are frequently tracked and much easier to compare amongst
companies. Leadership can also refer to a more comprehensive approach, such as the tone set by
a company's management, or the culture established by management.
Executive positions such as CEO (chief executive officer), COO (chief operating officer), CFO
(chief financial officer), president, and chair are frequently held by people with great leadership
qualities in the business world.
People who are very ambitious, have a high energy level, a desire to lead, self-confidence,
intelligence, a deep understanding of their profession, are honest, and adaptable are more likely
to thrive as organizational leaders. Individuals who study organizational leadership acquire
collaborative skills, effective communication skills, conflict resolution skills, and group problem
solving approaches. Organizational leaders clearly explain the firm's purpose, vision, and
policies; boost employee morale; and help people grow professionally and contribute positively
to the mission of the organization.
(Organizational Leadership,
2022)

 Definition of Leadership
Leadership is the “process of social influence in which one person can enlist the aid and support
of others in the accomplishment of a common task”.
(Martin Chemers-Jul 18, 2012)

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leadership is ultimately about creating a way for people to contribute to making something
extraordinary happen”
(Alan Keith-1928)

 What are the Leadership Theories?

Leadership theories are explanations for how and why people rise to positions of power. They
concentrate on the qualities and actions that people might develop in order to improve their
leadership abilities. The following are some of the top qualities that leaders believe are essential
for effective leadership:
 Strong ethics and high moral standards
 Great self-organizational skills
 Efficient learner
 Nurtures growth in employees
 Fosters connection and belonging
Research shows that these traits are considered the most important to leaders around the world.
And leadership theories help explain how leaders’ harness and develop these traits. Recently
leadership theories have been more formalized, making them easier to understand, discuss, and
analyse in action.
Ralph Nader says, “The function of leadership is to produce more leaders, not followers.” This is
known as transformational leadership, in which a leader can change a follower's worldview or
psychology, inspiring them to desire to be a leader as well. This implies that leadership should, at
the end of the day, be elevating and inspirational. Leaders should push those they lead to new
heights, assisting them in developing into the individuals they know they can be. If leaders wish
to truly influence and impact others, transformational leadership is an important psychological
approach to know and comprehend. Different leadership theories focus on developing stronger
and more effective leadership, as well as encouraging followers to become leaders themselves.

Leadership theories
 Transformational theory
 Transactional theory
 Fiedler’s contingency model

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 Vroom-Yetton & Jago’s contingency model

 Hersey & Blanchard’s situational leadership theory
 Charismatic leadership
 Goleman’s leadership theory – 5 mains
Transformational theory -
The term "transformational leadership" refers to a leadership style that affects both individuals
and social systems. It promotes valuable and good change in followers in its ideal form, with the
eventual goal of growing followers into leaders. Transformational leadership, in its purest form,
improves followers' motivation, morale, and performance through a variety of techniques. These
include connecting a follower's sense of self to the organization's mission and collective identity;
inspiring followers by being a role model; challenging followers to take greater ownership of
their work; and understanding followers' strengths and weaknesses so the leader can assign tasks
that maximize their performance.

Transactional theory -
Max Weber initially described the transactional leadership style in 1947, followed by Bernard
Bass in 1981. Managers are the ones who use this style the most. It focuses on the control,
organization, and short-term planning processes that are fundamental to management. McCarthy
and de Gaulle are two well-known leaders who have used transactional techniques. Motivating
and directing followers through transactional leadership essentially requires appealing to their
own self-interest. Transactional leaders have official authority and responsibilities in the
organization, which gives them power. The basic purpose of the follower is to follow the leader's
directions. The style is also known as a'story-telling style.'

Fiedler’s contingency model -

Fiedler's Contingency Theory, often called Fiedler's Contingency Model or Fiedler's Theory of
Leadership, asserts that there is no single optimum leadership style. Rather, the most effective
leadership style for any particular situation is one that is tailored to the circumstances.
Professor Fred Fiedler, an Austrian psychologist, created the hypothesis in the 1960s. He
researched the personalities and qualities of leaders and came to the conclusion that, because
leadership style is established through one's life experiences, changing it is extremely difficult, if

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not impossible. As a result, Fiedler believed that the correct leader for each job should be picked
based on their skill set and the needs of the scenario. Each leader must first identify their natural
leadership style in order to effectively match leaders with situations. They must next assess
whether their leadership style is appropriate for the situation.
Vroom-Yetton & Jago’s contingency model –
Victor Vroom, in partnership with Phillip Yetton (1973) and later with Arthur Jago, created the
Vroom–Yetton contingency model, a situational leadership theory of industrial and
organizational psychology (1988). According to the situational hypothesis, the ideal leadership
style is dependent on the context. The Vroom-Yetton Decision Model, for example, is a
systematic method to decision making that helps you to bring consistency and order to a process
that could otherwise feel idiosyncratic and spontaneous. It can also assist you in determining the
most efficient method of arriving at a choice.

Hersey & Blanchard’s situational leadership theory –

According to the Hersey-Blanchard Model, no single leadership style is superior to another.
Rather than focusing on workplace conditions, the model advises that leaders tailor their
leadership approaches to the people they lead and their skills. Successful leadership, according to
the paradigm, is task- and relationship-relevant. It's an adaptable, flexible leadership style in
which leaders are encouraged to think about their followers—individuals or groups—then think
about the circumstances that influence the work environment before deciding how to lead. This
assures that they will achieve their objectives.

Charismatic leadership -
Charismatic management or leadership is a type of professional advice or management based on
excellent communication skills, persuasiveness, and perhaps even a little charm to assist them
get the most out of everyone who works for them. They're enthusiastic, charismatic (hence the
charismatic term), and have strong convictions and a deep connection to the task they're doing,
which inspires others to have the same commitment. Because of their passionate commitment to
their profession, charismatic leaders tend to elicit powerful emotions from their followers and
teams. This promotes commitment, action, and great problem-solving abilities.

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Transformational leadership is comparable to charismatic management and leadership. Managers

that use inspiring motivation and intellectual stimulation to encourage their people to perform
their best work are known as transformational leaders. The difference between the two
approaches is that charismatic leaders prefer to work inside the status quo to improve it rather
than forging a new route.
Goleman’s leadership theory
The six Goleman leadership styles reveal a basic truth: being the boss does not automatically
imply being the leader. Employees are more inclined to seek guidance from their co-workers in
settings where bosses are competent but lack interpersonal skills. The Goleman leadership styles
are named after Daniel Goleman, a psychologist and author who developed the six fundamental
leadership styles based on distinct characteristics of emotional intelligence. These include:
 Coercive Leadership Style
 Authoritative Leadership Style
 Affiliative Leadership Style
 Democratic Leadership Style
 Pacesetting Leadership Style
 Coaching Leadership Style
(Leadership: Achieving Goals, Tackling Competition, Inspiring Employees,
2022)

The Components of Effective Leadership

Character is an important aspect of effective leadership. Honesty, integrity, trustworthiness, and
ethics are displayed by leaders. Leaders operate in accordance with their words and earn the right
to be held accountable for the company's success.
Clear communication abilities are required for effective leadership. Leaders communicate with
and listen to employees, answer to inquiries and concerns, and demonstrate empathy. Effective
communication skills are used by leaders to propel the organization forward and to achieve new
levels of success.
True leadership knows where the company is going and devises a strategy for getting there.
Leaders must be able to see what is feasible, observe industry trends, and take risks in order to
build the company.

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Productive leadership exudes hope and energises the workforce. Good leaders are encouraging
and genuinely concerned about others' well-being. When things go wrong, leaders find solutions
to problems and reassure and motivate their employees. Leaders establish ways for employees to
collaborate and produce the best possible results in a timely and efficient manner.

3.2) Reasons to down growth AMW Capital Leasing

Organizational culture and morale often suffer when leaders are unable to provide direction,
coaching, and inspiration to their employees. The primary reason of significant personnel
turnover and productivity loss is poor leadership.

Poor leadership = higher costs = lower profit

The impact on organisational culture has a direct link to increasing business costs and reducing
profit in the following ways:
 AMW is not paying attention to the customer’s needs
Understanding customers and knowing what they require is critical to a company's success. If
firms lose touch with their customers and fail to recognize what they really need, planning is
pointless.

 Poor working conditions of the AMW

Poor working circumstances are one of the most significant, but often disregarded, concerns.
Employees must be pleased and comfortable in their work environments; otherwise, productivity
will suffer, and sales performance will suffer as a result.

 AMW is not paying attention to the competitors

AMW has so many competitors in this industry. AMW competitor might have just launched a
new product with great features that tops all current competitors yet had no idea this was
happening.
AMW need to know how their competitor moves at all times so that they can take immediate
action and develop strategies that can keep their business competitive in the marketplace.
 Lack of Vision

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Employees are at a lost if they don't have a clear direction. They have no idea what the
company's objectives are, or why they are working with specific processes. They will work
towards a single objective merely mechanically, not with any cognitive direction.
 Failure to meet goals
Employees that are not inspired to achieve their best performance and reach their full potential
are a result of inadequate leadership. Employees at all levels must be devoted to the organization
and to achieving financial and non-financial goals in order to get the best results. Financial goals
are likely to be missed if there isn't a supporting culture or a motivating manager.

3.3) Reasons to growth Siyapatha Finance and LOLC Finance

Turnover, customer satisfaction, sales, income, productivity, and other factors are all influenced
by leaders. Employee engagement and enthusiasm are fostered by good leadership, which leads
to increased levels of customer loyalty, service, innovation, and, eventually, revenues.

Good leadership = lower costs = higher profit

The impact of effective leadership on organizational performance is undeniable. Everyone in the

firm can have trust that they are in the capable hands of a skilled and experienced leader with
good leadership. It motivates people to try new things and improve their abilities.
Leaders of LOLC and Siyapatha assist their employees in feeling comfortable discussing any
topic. From delivering information to mentoring individuals, leaders must be able to
communicate in a variety of ways. They must also be able to listen and communicate with people
from a variety of social backgrounds. The effectiveness of an organization's strategy can be
influenced by the quality of its communication. Siyapatha and LOLC leaders are creating a safe
environment to explore new ideas and share information’s They are aware of the significance of
striking a work-life balance. They pledged their support. Their personnel will be effective leaders
who will ensure that their workers are engaged and respected. They are dedicated to cultivating a
culture of mutual respect and admiration inside their organization by exploring new ideas that are
aligned with company objectives.

The study's findings show that transactional leadership is the most common leadership style used
in the finance industry. Laissez-faire and transformative leadership behaviours have considerable

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beneficial effects on employee engagement after controlling for demographic and institutional
characteristics. Organizational Transactional Analysis is a discipline whose goal is to improve
communication at all levels of a company. It examines individual, team, department, and
organizational development and change

3.4) Advantages and Disadvantages of Transactional Leadership

Transactional leadership is a type of management that emphasizes structure and order in each
relationship. In major business contexts, international agreements, and military operations, it is
the most typical sort of leadership style. To achieve specified goals, transactional leadership
necessitates the application of certain rules or laws. It coordinates the movement of people and
resources so that particular outcomes can be achieved within a reasonable timeframe.
It's a management style that requires individuals to be self-motivated all the time. Team members
with a transactional leader must be able to function in a highly structured, directed setting. It
prioritizes achieving objectives over all else and encourages individuals to do so by providing
clear rewards or punishments.
Consider the following main advantages and pitfalls of transactional leadership.

List of the Advantages of Leadership Theories

 It can effectively motivate team members to maximize productivity.
People stay working because there is a monetary incentive for them to do so. Workers may be
enthusiastic about what they do. They might like working for a company that has a beneficial
impact on others' lives. Even something as simple as needing to earn a living to support their
family can be a major drive.
Specific rewards for accomplishment with well-established parameters are structured by
transactional leadership. Workers know when they'll get their reward and what they'll get when
they get there. Workers are also aware that their team leaders are monitoring them to ensure that
all outcomes, good or negative, are dispersed.

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 It creates achievable goals for individuals at all levels.

It can be tough to set realistic goals in a creative or inventive environment. A goal can only be
accomplished if it has a definite end point. As part of their broader organizational structure,
transactional leadership generates these end points. As a result, workers can gain confidence as
they work toward their objectives because each step is clearly laid out for them. That is why
transactional leadership fails in a creative setting. There is no space for error. Workers either
obey or ignore the mandated guidelines. At all times, people are expected to observe the rules.
 It eliminates confusion within the chain of command.
A transactional leadership style establishes a clear chain of command that the entire team can
follow. Within a team, structures are meticulously established. Before they start working,
everyone knows what is expected of them. They also understand their place in the organization
chart or command structure, allowing them to get in touch with the appropriate people if an issue
arises during the work phase. Workers are prevented from "going rogue" by attempting to
assume leadership responsibilities that they have not earned or to which they have not been
assigned in this type of structure.

List of the Disadvantages of Leadership Theories

 it eliminates individuality from the production process.
A set of tight norms and regulations characterize transactional leadership. For whatever cause,
there is no room to modify or breach these norms. They are thought to be the ideal practices for
the team to adhere to. Because creativity is frequently developed through freedom of movement,
people with a creative mindset find it difficult to produce under such a leadership system.
Violations of policies or refusal to follow orders might result in a worker's termination under this
leadership style. Workers are expected to carry out their responsibilities without complaining.
Because there is no flexibility without personality, this leadership style may fail under specific
circumstances.
 It limits the amount of innovation that is achievable
Leaders that are transactional are stiff and unyielding. They don't break the rules because the
regulations are in place for a reason - even if they don't know what that reason is. Because team

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members are focused on their allocated jobs, this mentality hinders innovation. Instead of
common-sense interactions with the regulations, structured policies dictate activities.
Regulated creativity does not provide the same results as free creative thought, even when it is
allowed inside a company's regulations. That is frequently why this arrangement fails.
Individuals find it challenging to be creative when their originality is forced upon them.

 It creates more followers than leaders.

When a company prioritizes transactional leadership over all else, it may face difficulties. If the
team leader quits, the rest of the team may be unsure on how to execute their next task. All
leadership tasks are delegated to the team leader in transactional leadership. It expects team
members to be followers, only contributing to the production process when encouraged to do so.
To address this problem, many teams designate a "helper" who fills in for the leader or manager
while he or she is unavailable. Even yet, the assistant is a follower rather than a leader. They
must obey the regulations' instructions. They must obey their supervisor's instructions.

4.1) Defining Management

Management is required to run all forms of management and is crucial for a well-organized life.
The backbone of any successful firm is good management. Managing one's life entails getting
things done in order to achieve one's goals, while managing an organization entails getting things
done with and through other people in order to achieve one's goals. The debate over whether
management is an art, or a science will continue. Most management thinkers, on the other hand,
agree that having a formal academic management background aids in successful management.
Almost every CEO is a university graduate. As a result, all academic institutions should provide
business degree programs. Management is a set of principles relating to the activities of
planning, organizing, directing, and controlling, as well as the application of these principles to
efficiently and effectively harness physical, financial, human, and informational resources to
achieve organizational goals.
(What is Management? | Management Study HQ,
2022)

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 Definition of Management
According to F.W. Taylor, ‘Management is +an art of knowing what to do when to do and see
that it is done in the best and cheapest way’
(F.W Taylor,2022)

According to Harold Koontz, ‘Management is an art of getting things done through and with the
people in formally organized groups. It is an art of creating an environment in which people can
perform and individuals and can co-operate towards attainment of group goals. ‘
(org. 2022. Harold Koontz)

4.2) What are management theories

Management theories are a collection of ideas that suggest broad guidelines for running a
company or organization. They look at how managers put strategies in place to achieve
organizational goals and how they drive employees to perform at their best.
Typically, executives combine ideas from many management theories to create a strategy that
best suits their workforce and corporate culture. Many management ideas were developed
centuries ago, yet they nevertheless provide useful frameworks for leading teams and running
enterprises today.

Types of management theories

 Taylor’s viewpoint – scientific

Frederick Taylor, one of the first to rigorously evaluate labour performance, applied a scientific
approach to management in the late 1800s. The scientific method, rather than the leader's
judgment or the personal discretion of team members, should be employed to complete duties in
the workplace, according to Taylor's principles.
To boost efficiency, Taylor suggested streamlining chores. Leaders should allocate team
members to duties that best match their strengths, teach them thoroughly, and manage them to
ensure they stay productive in their roles.
While his focus on maximizing workplace productivity by determining the best way to execute a
task was beneficial, it overlooked the individual's humanity. In its purest form, this idea is not

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widely used now, but it taught leaders the value of workplace efficiency, the need of ensuring
that team members had enough training, and the importance of supervisor-employee
collaboration.

 Fayol’s administrative theory – administrative

Managerial talents were referred to as "administration duties" by Fayol. He wrote about his
experiences managing a workforce in his 1916 book, "Administration Industrially et Générale."
Fayol's book, along with his 14 Principles of Management, contributed to the development of
Administrative Theory. It takes a top-down approach to the organization, laying out methods for
managers to get the most out of staff and operate a corporation efficiently.

What is Fayol's Five Functions of Management?

1. Planning – the need "to assess the future and make provision for it." That includes a
flexible action plan that considers a firm's resources, work in progress, and future market
trends.
2. Organizing – laying out lines of authority and responsibility for employees. This covers
recruitment and training, coordinating activities, and making employees' duties clear.
3. Commanding – getting the most from people. So, managers must know their employees'
skills, delegate to tap into these skill sets, and set a good example.
4. Coordinating – in a well-coordinated organization, departments know their
responsibilities, the needs of other teams, and their obligations to them.
5. Controlling – continually checking that rules, plans and processes are working as well as
they should be.

 Modern Management Theory

Employees are only motivated by money, according to Classical Management Theory. Modern
Management Theory was formed as a direct response to this theory. Workers are multifaceted,
and they have various reasons for wanting to succeed in their jobs, according to Modern
Management Theory. Modern Management Theory also argues that quickly evolving technology
can both generate and cure a variety of workplace issues.

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This theory combines mathematical analysis with a knowledge of human emotions and
motivation in order to produce a highly productive working environment. A manager that
employs the Modern Management Theory will utilize statistics to assess employee performance
and productivity, as well as try to figure out what makes people happy at work.
Quantitative Theory, Systems Theory, and Contingency Theory are the three management
theories that make up Modern Management Theory.

1. Quantitative Theory
During World War II, the need for managerial brilliance necessitated the development of this
theory based on efficiency and mathematical formulae. This is a straightforward number-based
approach that entails assessing the risks, advantages, and drawbacks of each action before to
taking it. This approach to business management employs statistics, computer simulations,
information models, and other quantitative tools. This notion is rarely utilized to run a company
on its own. To run a business, Quantitative Theory must be combined with more humanistic
theories.
2. Systems Theory
This idea treats businesses as if they were living organisms, with all of the pieces required for
survival. This idea, developed by Ludwig von Bertalanffy, asserts that for a corporation to exist,
all sections of the organization, from the CEO to the entry-level employee, must function in
harmony. Companies that follow this approach believe that departments and employees should
function as a team rather than as individuals. This philosophy emphasizes departmental synergy
and interdependence.
While striving for departmental harmony is crucial in a business, most businesses don't need to
rely on synergy for day-to-day operations. A small business's accounting department, for
example, does not need to be completely in sync with its human resources department.

3. Contingency Theory
According to the Contingency Management Theory, each scenario necessitates a unique
leadership style, and hence no single theory can be applied to an entire office. This theory,
developed in the 1960s by Fred Fiedler, asserts that it is up to a company's executives to assess a

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situation and employ the optimal leadership strategy. According to Fiedler, there are three
primary factors to consider when deciding which leadership strategy to apply: the size of the
business, the technology in use, and the company's overall leadership style.
This notion places a great deal of responsibility on a company's leaders. Fiedler believed that a
leader's personality attributes had a direct impact on how they managed others. This theory is
also more applicable to modern workplaces, as it recognizes that as technology and business
evolve, so must the theory and companies change, so must the leadership styles.

4.3.1) Implication for Management Theory and Practical

The failure of most management theories to meet expectations emphasizes the importance of
assessing integration prospects early on. Addressing integration difficulties at each stage of the
process will improve planning and implementation. It is not assured that suggestions for
increasing merger and acquisition integration and performance will be implemented.

4.3.2) Reasons to down growth AMW Capital Leasing

Various management ideas have been not implemented by AMW throughout history. They have
not only aided in decreasing efficiency, but they have also enhanced not service quality. These
management ideas, despite their age, aid in the creation of interconnected work environments in
which employees and employers collaborate. Systems theory, contingency theory, scientific
management theory is some of the most widely used management theories today. Employees will
be more productive if they feel valued. They will work harder and put in more effort if they feel
valued. Even more troubling is the fact that disgruntled employees are more inclined to engage in
anti-productive behaviour. This boss is not just self-centred, but also a poor role model for
managers. His team's work was treated as if it were his own, and this type of behaviour drove
team members to take desperate steps like sabotaging their leader
AMW management are not mostly using this management theory to develop to business. That is
the main reasons to this one. They make arbitrary decisions. When a financial institution fails to
keep up with the rest of the country's economic growth, it is considered to be in decline.

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Changing client tastes, technological advancements, and the availability of alternatives are all
key variables that could cause AMW to drop. Scientific management principles must be used to
stop this growth slowdown.

4.3.3) Reasons to growth Siyapatha Finance and LOLC Finance

These two companies are using scientific management theory. They know how to control
employees. Siyapatha Finance is aware of the situation. Successful managers know what their
employees need to work efficiently, stay productive, delight customers, and contribute to a happy
workplace. They do link individual and group activity to a higher goal. commit to having one
meaningful discussion with each team member once a week. LOLC employees recognize the
importance of knowing how their efforts affect the organization's objectives. They are aware of
the behaviours that should be avoided by a manager to promote effective employees. To unleash
human motivation, link employment to a person's intrinsic attributes. Recognize and recognize
exceptional performance. Employees' skills are recognized by Siyapatha finance management,
who assign them to jobs that are most suited to their abilities so that they can be as productive as
possible. Managers at LOLC set productivity objectives and reward high-performing staff who
routinely meet or surpass those goals with bonuses or raises. Assuring that each employee
understands what is expected of them and to whom they should report can aid in the
establishment of a workplace hierarchy. Employees who do not have supervisory responsibilities
report to their managers. Supervisors should report to the company's managers, who in turn
report to the board of directors. The manager's principal responsibility is to establish the work
process and spend time training, planning, and supervising work while employees follow the
manager's instructions and execute duties. above management theoretical things are reasons to
growth these two companies.

4.3.4) Advantages and Disadvantages of Management Theory

Advantages of Management Theory:

 Enhanced production

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Enhanced production is a result of scientific management theory, which focuses on constant

improvements in business operations. There is beneficial collaboration between managers and
employees, resulting in improved teamwork. The organization's production is aided by the
amicable interaction between management and workers.
 Ability to control
The nicest thing about scientific management theorists is that they allow managers to have good
control over output. Employees become specialists in their fields when they perform the same
task, making it easier for the boss to maintain control over them.
 Reduces inaccuracy
The idea based on experiment and observation for context-specific solutions reduced inaccuracy.
The precision achieved can be increased by better planning and decision-making.

Disadvantages of Management Theory:

 Reduces inaccuracy
The idea based on experiment and observation for context-specific solutions reduced inaccuracy.
The precision achieved can be increased by better planning and decision-making.
 Management assumes control
Management is solely responsible for the supervision and planning of workplace activities.
Managers lack innovation because they seize control of their staff; another reason is because they
repeat the same task, making their job meaningless, dull, and tedious, lowering employee
enthusiasm.
 Planning reduces productivity
Though the capacity to plan is advantageous, the disadvantage of planning is that it makes labour
inflexible and rigid, which can lead to carelessness and unhappiness. As a result, there was a
decrease in productivity.

5.1) Leadership and management effectiveness for Siyapatha

Two distinct business talents are required for management and leadership. Managers who are
effective set a clear course for their companies. They make sure that everything runs smoothly on
a daily basis. Organizations must be able to do both functions in order to be successful. In their
writing, speaking, and presenting, they effectively express goals. Successful managers accurately

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assess a situation before acting to achieve a positive outcome, for as through analysing data to
identify problems or opportunities in most commercial scenarios, transformational leadership
and scientific theory management is the most effective style to adopt. Organizational success and
leadership have a direct cause and effect relationship. Values, culture, change tolerance, and
employee motivation are all determined by leaders. They influence institutional strategies, as
well as their implementation and efficacy.
Finding the most effective way to complete any task, no matter how trivial, is vital, according to
management philosophy. In the early 1900s, managers would give orders to their subordinates
without providing instructions on how to carry them out. Effective leaders, on the other hand,
keep people under control and steer them according to policies and procedures. These leaders
excite and inspire their subordinates to act, and they facilitate transitions and changes. Rather
than just providing orders, a successful leader engages his or her employees in two-way
communication, asking for their input. Followers are not encouraged to be innovative or come up
with fresh ways to solve problems. Transactional leadership has been proven to be most effective
in instances when challenges are straightforward and clearly stated, according to research

Starting With Vision of siyapatha finance

Effective leaders at Siyapatha define their vision and encourage subordinates to adopt it,
frequently through meetings, training sessions, and newsletters. To effectively lead people,
siyapatha leaders demonstrate honesty, empathy, assertiveness, and good decision-making skills.
Once subordinates have agreed to the future plan, a successful manager is needed to carry it out
by allocating resources and executing tasks. Good management skills involve ensuring that staff
have the necessary training, expertise, and capabilities to complete their tasks.

Specific Planning Steps of Siyapatha Finance's

Goals are established by effective leaders for their organizations. They come up with a long-term
plan. Siyapatha's executives evaluate managers' work and offer funding for initiatives. Leaders
approve resource allocation, allowing managers to hire and fire personnel as well as spend
money.
To fulfil the strategic goals, Siyapatha's must originate, plan, execute, monitor, and close
projects. Their strategic efforts ensure that high-quality goods and services are delivered on time

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and on budget. While leaders and managers have different roles in the business, they both
contribute to a company's long-term success.

Transactional theory can also be useful in times of crisis, when the attention must be on
completing certain tasks. Leaders can ensure that tasks are completed by giving clearly defined
responsibilities to certain individual.
Transactional leaders are concerned with maintaining the Siyapatha financial structure. They are
in charge of explaining what is expected of group members, communicating the benefits of
completing jobs successfully, describing the penalties of failure, and providing feedback to keep
workers on target. While transactional leadership has its place in some contexts, it is often
regarded as insufficient and may inhibit both leaders and followers from reaching their full
potential.

This Sri Lankan company has adopted the management style by Siyapatha who furthered
Taylor’s ideas. Siyapatha said believed that the profitability of the business organization could be
improved by having every employee working according to an assembly line. The procedure is
divided into several steps. This promotes production by increasing efficiency and improving
product quality. The finance department, which has a welcome office, is another institution that
uses scientific management.

5.2) Advantages and disadvantages of transactional leadership theory

Advantages of Transactional Leadership
 It reduces costs while improving productivity levels.
Transactional leaders are usually focused on improving output while implementing cost-cutting
strategies. Consider it a "lean and mean" approach. When employees are given short-term,
attainable goals, they are more likely to work harder. When they achieve a goal, they receive
internal benefits such as a sense of confidence, which motivates them to continue the process.
Motivators are frequently employed to promote high productivity. Workplaces that come up with
novel strategies to do their work in less time are rewarded. Various incentives are also embedded
into the system to encourage top achievers to keep producing at their highest levels.
 It is a simple process to implement

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Transactional leadership is easy and straightforward. It does not necessitate considerable

training, high emotional intelligence, or special personal leadership characteristics in a manager.
In this type of workplace, all a manager has to do is enforce the rules. That means there's no need
to try to balance the varied needs of a diverse workforce with a compelling and inspiring leader.
It necessitates someone who is willing to face non-conformists and remove those who are unable
to complete their jobs.

Disadvantages of Transactional Leadership

 It places success within the hands of the leadership only
Transactional leadership can only be successful when a team is led by an experienced leader. The
transactional style must be understood by the leader. They must also feel at ease using this
approach with each of their direct reports. The majority of people who can succeed in this
capacity have dynamic personalities who are unconcerned about their team's culture or the
company's mission.
 It makes leadership incompetence difficult to counter.
It doesn't matter with transactional leaders. Companies place a higher value on a worker's
productivity than on a leader's effectiveness. Because of this problem, high-skill individuals
frequently avoid transactional environments, as their performance is ultimately determined by
their supervisor's competence.

5.3) Advantages and disadvantages of scientific management theory

Advantages of scientific management theory

 Efficiency increased:
They follow early working techniques and control, and a management system for training,
selecting, and closely overseeing them has been devised. Because scientific selection and
training procedures are used, the best workforce is produced, which increases efficiency.
Standardization of procedures, tools, equipment, and materials boosted efficiency as well.
Workers profit from development and scientific training since it allows them to improve their
skills and knowledge.
 Best resource utilization and development:

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When scientific procedures are used, resources are better utilized, which leads to higher
productivity. The philosophy eliminates waste and inefficiency in all means. It also leads to
technical advancement with the support of scientific research. They also use additional
quantitative methodologies and are based on contemporary studies.

Disadvantages of scientific management theory

 Work division:
There is a separation of labour when scientific management theory is applied, such as in planning
and executing any function. Workers' roles in rigorous and adherence procedures where the
workers have no idea have shrunk as a result of management taking full control.
 Stress:
Managerial decisions cause managers to be strict and stressed because they are responsible for
having complete control over the workplace. Workers are also subjected to pressure in the
workplace as a result of this.
Productivity and profitability are prioritized, which leads to employee exploitation and the
formation of trade unions. Employees and management become distrustful of one other as a
result of this.
 Unemployment:
When this idea is applied, men are replaced by machines, resulting in unemployment. As a
result, fewer staff are required, and many are laid off.

6.1) Leadership and Management Styles

What is the Leadership styles?

A leader's characteristic characteristics when directing, motivating, guiding, and managing
groups of people are referred to as their leadership style. Political movements and social
transformation can be sparked by great leaders. They can also inspire others to create, invent, and
perform.
When start thinking about some of the people believe to be outstanding leaders, you'll notice that
their leadership styles are often vastly different. Fortunately, scholars have produced many ideas
and frameworks that help us better recognize and comprehend these various leadership styles.

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Leadership styles are classifications of how a person behaves while leading a group. Lewyn's
leadership styles are authoritarian (autocratic), participative (democratic), and delegative
(laissez-faire)

Lewin's Leadership Styles

A group of academics led by psychologist Kurt Lewin set out in 1939 to uncover various
leadership styles. While subsequent research has since revealed more unique varieties of
leadership, this early study was extremely helpful in establishing three basic leadership styles,
which have served as a springboard for more defined leadership theories.
In Lewin's experiment, students were divided into three groups, each led by an authoritarian,
democratic, or laissez-faire leader. The children were then taken through an arts and crafts
project while researchers monitored their behaviour in response to various leadership styles. The
researchers discovered that democratic leadership was the most successful in motivating
followers to do their best.

Authoritarian Leadership (Autocratic)

Authoritarian leaders, also known as autocratic leaders, set clear expectations for what must be
accomplished, when it must be accomplished, and how it must be accomplished. This leadership
style places a great emphasis on both the leader's command and the followers' control. A
significant distinction exists between the leader and the members. Leaders that are authoritarian
make choices on their own, with little or no involvement from the rest of the group.
Under authoritarian leadership, researchers discovered that decision-making was less creative.
Lewin also determined that transitioning from an authoritarian to a democratic approach is more
difficult than the reverse. Abuse of this strategy is sometimes perceived as dominating, bossy, or
dictatorial.
When there is minimal time for collaborative decision-making or the leader is the most
knowledgeable member of the group, authoritarian leadership is most effective. When a crisis
necessitates quick choices and decisive measures, the autocratic style might be beneficial.
However, it frequently pits followers against the overbearing leader, resulting in dysfunctional
and even hostile workplaces.

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Participative Leadership (Democratic)

Participative leadership, also known as democratic leadership, was determined to be the most
effective leadership style in Lewin's research. Democratic leaders provide direction to group
members while also participating in the group and allowing feedback from others. Children in
this group were less prolific than those in the authoritarian group in Lewin's study, but their
contributions were of higher quality.
Leaders that encourage group participation while maintaining control over the decision-making
process are known as participatory leaders. Members of the group are more driven and
innovative since they are more involved in the process. Democratic leaders have a tendency to
make followers feel that they are an important part of the team, which encourages devotion to the
group's goals.

Delegative Leadership (Laissez-Faire)

Delegative leadership, sometimes known as laissez-faire leadership, was shown to be the least
productive of the three groups by Lewin. This set of kids also put more pressure on the leader,
exhibited little teamwork, and couldn't work independently.
Delegative leaders provide little or no guidance to group members and let them make their own
decisions. While this approach can be beneficial in instances when highly competent
professionals are involved, it frequently results in ill-defined roles and a lack of driverless-faire
leadership, according to Lewin, leads to disorganized organizations with members who blame
each other for mistakes, fail to accept personal responsibility, make slower progress, and
generate less work.

What is a Management Style?

A management style is a technique in which a manager works to attain their aims. Management
style involves the way that a manager plans, organizes, makes decisions, delegates, and
supervises their workforce. It can vary considerably based on the firm, level of management,
industry, nation, and culture, as well as the person themself.

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An effective manager is someone who can adapt their management style in response to diverse
conditions while retaining their focus on effectively accomplishing target

Autocratic Management Styles

This form of management follows a top-down strategy, with one-way communication from
leaders to employees. This is the most controlling of the three management types, with the
management making all workplace decisions and holding all of the power. Employees are
viewed like drones, to be monitored closely as they execute inside clearly defined perimeters.
Employees are not encouraged to raise questions, submit ideas, or express their thoughts on
improving systems, and are in some circumstances deliberately discouraged from doing so. the
subtypes of autocratic management style are authoritative, persuasive, and paternalistic

Democratic Management Styles

In this model, managers encourage employees to contribute input during the decision-making
process but are ultimately responsible for the final decision. Communication goes both ways,
top-down and bottom-up, and team cohesiveness is improved. This technique allows for varied
viewpoints, skills, and ideas to inform decisions

Laissez-Faire Management Styles

cIn this technique, management adopts a hands-off attitude to leadership. Staff is trusted to
execute their task without supervision, and they are left to control their decision making and
problem-solving. Management is present at the delegation and delivery stages of work, but
otherwise steps back and offers personnel the flexibility to determine their workflow and
outcomes. Management is only involved during the process if the personnel want their aid.

6.2) A comparison of the three leadership styles

in the workplace, management styles have decisive influences on everyday working life and are
a key contributor to a firm that operates well. Good leadership is very vital for encouraging

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employees. It is no secret that contented employees who enjoy their job also produce higher
achievements. As a manager, you should be clear about your personal management style.
Essentially, every larger company needs both good managers who can secure the business and
have the organization under control, and leader who can lead different teams, promote initiative
and innovation and keep the organization of managers in mind, as well as experts with the
necessary know-how to implement ideas
Types of guides and their special features
Manager Leader Expert
Scheduling Vision Knowledge
Procedures Communication Duties
Structure Initiative Self-made
Organization Innovation Sharing duties with the boss
Rules Changes Quality
Resources Employees Implementing your own ideas

Each of these three forms of leadership necessitates a unique set of skills. Leadership styles
influence how employees are communicated with. A manager is often organized and maintains a
close check on everything. A leader must be able to lead and develop a group of people. The
expert, on the other hand, should add value to the firm by sharing their expertise and providing
advice to managers, leaders, and their teams. ( comparing-different-leadership-

styles-202)

Laissez-Faire Management Styles is a using style in siyapatha finance.

Characteristics
Laissez-faire leadership is characterized by the following:
 Hands-off approach
 Leaders provide all training and support
 Decisions are left to employees
 Comfort with mistakes
 Accountability falls to the leader

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While "laissez-faire" implies a completely hands-off approach, many leaders still remain open
and available to group members for consultation and feedback. They might provide direction at
the beginning of a project, but then allow group members to do their jobs with little oversight.

Benefits
Laissez-faire leadership, like other styles of leadership, has its benefits.

It promotes personal development Employees have the opportunity to be hands-on because

leaders are so hands-off. This leadership style fosters an environment that encourages personal
and professional development.
It promotes creativity Employees that are given more freedom may be more creative and
innovative.
It enables quicker decision-making Employees under laissez-faire leadership have the
authority to make their own decisions because there is no micromanagement. They can make
swift decisions without having to wait weeks for approval.

Certain prerequisites must be met in order to take use of these benefits. This strategy might work
if your team is made up of highly skilled and experienced individuals who are capable of
working alone. Because the members of this group are experts with the knowledge and skills to
operate independently, they are capable of completing tasks with minimal supervision.

Elaborate and compare its suitability and success towards the company
management/Leadership AMW finance LOLC finance Siyapatha finance
style
Democratic/leadership Develops plans to help Encourages Allows employees to
style employees evaluate employees to grow establish goals and

their own performance on the job and be recognizes and

encourages achievement
promoted

Laissez-faire style Power is transferred to The leader is Decision making is

the team members responsible for done by the team
providing resources members

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6.3) Leadership Style, Organizational Impact on gaining profits or loss for the
business

Leadership and the success of an organization are directly related. Leaders decide on values,
culture, openness to change, and employee motivation. They have an impact on institutional
initiatives, especially how effectively they are carried out. Not just in management, but at every
level of an organization, there are leaders. On the other hand, effective leaders have a common
quality. In order to make the most of the organization's resources, notably its most priceless and
expensive asset: its people, they exercise influence over those around them. Like companies,
governments, and non-profit organizations, libraries also need leadership. Whether it is a public,
special, or academic library, the directors directly affect everything from the user experience to
the accomplishment of stated purposes, including resource allocation, services offered, and
collection growth projects. Leaders and their influence really do have a lot of influence. Current
leadership theories categorize leaders according to their personality traits or how they use their
position of authority and influence to achieve their objectives. When using trait-based
descriptors, leaders can be categorised as autocratic, democratic, bureaucratic, or charismatic.
Depending on how authority is transferred and used to achieve desired outcomes, leaders can be
situational, transactional, or transformative. Knowing the many tropes gives discourse a common
vocabulary that can result in meaningful and desired consequences. It's critical to keep in mind
that not all leaders are created equal, and that levels of leadership excellence can differ
significantly between industries or even within the same business. Determining a person's
leadership style is also essential for evaluating leadership effectiveness and quality, especially in
connection to organizational goals. Here is a brief list of the most common ones.

7.1) What is organizational culture?

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All team members' behaviour is influenced and guided by the values, expectations, and practices
that make up the organization's culture. Consider it as the assortment of characteristics that
define your business. While a dysfunctional workplace culture brings out tendencies that can
impede even the most successful firms, a great workplace culture showcases beneficial features
that result in enhanced performance.
Despite the fact that both can assist define it, organizational goals and a mission statement should
not be confused with culture. Press releases or policy statements don't build culture; consistent
and genuine behavior does. When you observe how a CEO handles a crisis, how a team adjusts
to changing client needs, or how a management corrects an employee who makes a mistake, you
can observe business culture in action.
(Organizational culture: Definition, importance, and development - Achievers,
2022)

Definitions for culture

Culture is the way of life which is transmitted from generation to generation (John beattee)

E. B. Taylor defined culture as that complex whole, including knowledge, belief, art, law,
morals, customs, and any other capabilities and habits acquired by man as a member of society.

7.2) How culture is impact for vision and mission

A vision or mission statement serves as the cornerstone of a great culture. These straightforward
expressions offer meaning to a company's beliefs and serve as references to them. As a result,
this goal informs every decision that personnel make. When truly true and extensively shown,
good vision statements can even help to orient customers, suppliers, and other stakeholders. The
vision statements of non-profits are renowned for being compelling and concise. The Alzheimer's
Association, for instance, wants to see "a world without Alzheimer's." The goal of Oxfam is a

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"fair world free of poverty." It's simple, but a vision statement is a crucial part of culture. AMW
has made great efforts to fulfill its corporate social responsibility in the neighbourhood. Cultural,
environmental, social, health, and educational efforts have been carried out by AMW as a
Corporate Citizen of Sri Lanka. To boost the social, environmental, and financial sectors, they
have several policies and processes in place. Activities related to AMW are carried out under the
three main headings of Environment, Education, and Community. To organize its CSR initiatives
and events, AMW maintains a dedicated Corporate team. The business invests a sizable sum of
money each year on the cause it supports.

(Harvard Business Publishing: Higher)

How culture is impact for values

A company's ideals form the foundation of its culture. While a company's vision articulates its
objective, its values offer a set of suggestions for the behaviours and attitudes necessary to carry
out that mission. For instance, McKinsey & Company has a set of firmly defined values that are
widely displayed to all employees and include the company's dedication to serving clients,
treating employees with respect, and upholding professional standards. Google's motto, "Don't be
evil," may be the finest way to sum up their values. However, they are listed as one of the "10
facts we know to be true" in their list. While many businesses base their values on a handful of
straightforward concepts (employees, clients, professionalism, etc.), the distinctiveness of those
tenets is less important than their sincerity.

(Harvard Business Publishing:

Higher)

Why culture need for an organization

All facets of business, including timeliness, tone, contract conditions, and employee benefits, are
impacted by organizational culture. Employees are more likely to feel at ease, supported, and
valued when workplace culture matches their preferences. Companies that place a strong
emphasis on culture can endure challenging times and changes in the business environment and
emerge stronger. When it comes to luring people and exceeding the competition, culture is a
crucial edge. Nearly half of workers would quit their current position for a lower-paying position

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at a business with a superior culture, and 77 percent of job seekers think about a company's
culture before applying. Nearly two-thirds (65%) of employees stay at their jobs for various
reasons, and one of the top markers of employee happiness is an organization's culture.
(Organizational culture: Definition, importance, and development - Achievers,
2022)

7.3.1) The cultures of the AMW finance

We are all connected by our culture, which is the foundation of their institution. We hope to
create a long-lasting innovation culture through the use of an effective strategy and an energetic
workforce. A typical position at AMW Finance is more than just that. By being a member of their
fiercely loyal team, they will not only have access to benefits and opportunities for professional
growth, but they will also be contributing to the improvement of Sri Lanka. AMW only hires the
best because their staff is so crucial to maximizing their company's potential. They believe that
extraordinary things can be accomplished by the right people in extraordinary circumstances, and
it is their goal to see that this happens. In order to develop the ideal culture for a long-term
commitment, their recruitment strategy also incorporates the most recent training We are looking
for outstanding people to join their team.
(Annual report of AMW finance 2020)

7.3.2) The cultures of the LOLC finance

Our company's business approach may be characterized as the most innovative in Sri Lanka,
with a strong push into every region of the nation and a performance that is as loud and clear as a
drumbeat for a broader audience. Our passion to be ONE is fuelled by an innovative culture that
pushes us to provide ground-breaking product and service innovations to the market and excel in
our chosen fields. Only then will we be able to give our shareholders and customers, two of our
most important stakeholders, everything we have. We will keep expanding the range of goods
and services we offer so that our devoted customers can continue to count on LOLC to satisfy
their rising financial needs. We provide all regional businesses with preferred financial product
providers since we have faith in Sri Lanka and its people. We offer international expertise to
support local firms' success. We are committed to the growth and development of our personnel
because we value them. We believe that investing in our people will yield the best results.

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(LOLC finance annual report

2019)

7.3.3) The advantages of culture

Easy hiring and a better onboarding procedure led to higher retention, more productivity, and
clearly stated goals that strengthened the company's brand. Strong corporate cultures promote
better communication among staff members, providing your business an edge over rivals. When
there is a strong culture at work, employees feel valued, empowered, and that they have more
control over their work.

7.3.4) The disadvantages of culture

In many ways, diversity is a major advantage of a developed society. Diversity is advantageous
to first-world countries because it provides labour resources and cultural vitality, which would
otherwise be severely harmed by aging populations. This does not, however, imply that issues
related to diversity are absent. Some of the most obvious negative effects of cultural diversity
include language barriers, interpersonal conflict, and civic apathy. These are not reasons to reject
diversity; rather, they are things to think about as society progresses toward a more diverse
future.

7.4) impact on culture development, including vision, mission, values, and

rules and regulations.

A vision is much more than a goal; it is a declaration of what an organization hopes to

accomplish in the future. People can be motivated and brought together by a shared vision. An
effective vision can aid in decision-making and direct personnel in their day-to-day activities.
Strong company cultures have many advantages, which are both common sense and are backed
by social science. When compared to competitors who are "culturally unremarkable," James L.
Heskett claims that culture "may account for 20–30 percent of the differential in corporate
success." Additionally, HBR writers have provided guidance on a variety of themes, including

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navigating various geographic cultures, choosing employment based on culture, changing

cultures, and providing feedback across cultures.
How does a culture come to be? Since there are so many different factors involved, every culture
is distinct. Building a distinct culture and a long-lasting organization might start with isolating
those components.

How vision and mission impact for AMW culture

A vision or mission statement is the foundation of any successful culture. These straightforward
expressions serve to direct AMW Leasing's vision and give it direction. Every choice that
employees make is thus guided by that mission. Good vision statements can even aid in directing
clients, vendors, and other stakeholders when they are deeply authentic and widely expressed.
Non-profits frequently thrive at creating clear, appealing vision statements. An easy-to-
understand but crucial component of culture is a vision statement.

How values impact for AMW culture

The foundation of AMW Leasing's culture is its set of values. While a company's purpose is
expressed in its vision, its values provide a set of guidance on the actions and perspectives
required to realize that vision. For instance, AMW & AMW Mortars has a clearly stated set of
principles that are openly presented to all employees and include the company's commitment to
serving clients, treating employees with respect, and upholding industry standards. The "things
we know to be true" are also a part of them. And while many businesses discover that their
values center on a few straightforward ideas (workers, clients, professionalism, etc.), their
novelty is less significant than their sincerity.

Different approaches of management

Management strategies are techniques for leading and managing a company. An organization or a
person might adopt them as a part of their managerial style. One of the most popular
management techniques is task-oriented management. Relationships come in second place as the
focus is on getting things done. This manager likes to tell others what to do and has a "my way or
the highway" mentality. Relationship-oriented (or relationship-focused) leadership is a

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behavioural style in which the team's members' happiness, motivation, and general well-being
are given priority.
(22 Approaches to Management - Simplicable Guide /jan2
2020)

8.1) What Is the Motivation?

How do firms achieve success? What constitutes the foundation of a successful and productive
workforce? How do we make sure a company is operating as efficiently as possible? Why do
employees comply with requests? These are important inquiries that demand responses. To all of
these questions, many people can and probably will have a single response. The general response
that it is effective management may be true. Although the response is correct, queries like these
call for more depth and detail. One may respond to supervision on a deeper level. Although it
may be difficult to admit that something is incorrect, it is not difficult to provide any equally
strong response to these queries. Motivation is the solution.
Inspiring someone to act or move is motivation. It is the process of persuading an organization's
personnel to behave in a predetermined preferred manner in order to accomplish corporate goals.
Three significant sub-concepts are at the center of this concept. They go by the names Motive,
Motivator, and Motive.
The term "motive" describes the internal mental state that drives and regulates action toward
professional objectives. They perfectly fit each person's requirements. Understanding employee
requirements and exploiting their motivations is the process of motivating action. The motivator
is a tactic used to encourage employees, including cash bonuses and promotions.
(Importance of Motivation in an Organisation - Management Study HQ,
2022)

8.2) Importance of Motivation in an Organisation

In any business or non-profit organization, the process of motivating is crucial. The process of
motivation, which cultivates in an employee's mind the desire to work in the manager's preferred
direction, is what drives the managerial process of direction. The following aspects may be
considered under this head:
 Increases Productivity
 Ensures Organisational Efficiency

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 Ensures Loyal Workforce

 Ensures a Reactive Workforce
 Facilitates Direction
(Importance of Motivation in an Organisation - Management Study HQ,
2022)

8.3.1) Current company objectives of the AMW finance

AMW consistently outperforms consumer expectations as it works toward becoming the best
corporate entity in the nation. Vision to be the most dependable, esteemed, and successful NBFI
in Sri Lanka, performing steadily, conducting business responsibly, continually outperforming
their competitors, and exceeding customers' expectations via excellence in supplying cutting-
edge goods. While providing a dynamic and demanding work environment for their workers and
long-term value for AMW shareholders, AMW actively promotes a learning culture.
(Annual report of AMW finance
2020)

8.3.2) Using motivation theories to create a motivational strategy

In order to attain desired goals, a person needs to be motivated, which is a state of mind
characterized by vigour and excitement. Even when things are against them, motivation propels
people to work with a high level of devotion and focus. Motivation causes people to act in
particular ways. In a nutshell, motivation is what propels people to take certain acts. Our motives
are guided and controlled by a wide variety of forces. To achieve the greatest project
management course goals, it is crucial to make sure that every team member in an organization is
driven. Numerous psychologists have examined human behaviour and structured their findings
as distinct motivational theories. Understanding how individuals act and what motivates them is
possible thanks to these motivational theories.
A person's motivation and how it affects their conduct, whether for personal or professional
reasons, are examined through the lens of motivation theory. Every sector of society should
consider it, but business and management should in particular. Employee motivation is the secret
to more profitable workers since motivated workers are more productive.

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Maslow’s Theory of Hierarchical Needs

Abraham Maslow argued that motivation only occurs when all of a person's needs are met.
People labour for contributions and the opportunity to apply their abilities, not for security or
financial gain. In order to illustrate how motivation works, he built a pyramid and said that one
CANNOT ASCEND TO THE NEXT LEVEL UNLESS LOWER-LEVEL NEEDS ARE
FULFILLED. Basic needs are the needs at the base of the pyramid, and until these requirements
are met, people do not consider working to meet the wants at the top.

The following is a list of needs in order of importance:

 Physiological needs: are basic needs for survival such as air, sleep, food, water, clothing,
sex, and shelter.
 Safety needs: Protection from threats, deprivation, and other dangers (e.g., health, secure
employment, and property)
 Social (belongingness and love) needs: The need for association, affiliation, friendship,
and so on.
 Self-esteem needs: The need for respect and recognition.
 Self-actualization needs: The opportunity for personal development, learning, and
fun/creative/challenging work. Self-actualization is the highest-level need to which a
human being can aspire.

The team's leader will need to be aware of the current skill level of the team members in order to
identify their individual needs and try to meet them. The team members will work more
effectively as a result, and the project will advance. Additionally, once their requirements are
met, team members will start working until they begin to consider meeting the next higher
degree of need, as indicated by the pyramid.

Hertzberg’s two-factor Theory

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Hertzberg divided the requirements into two groups, motivational reasons and hygienic elements:
While fixing them in most cases won't increase team enthusiasm, poor hygiene variables can
derail motivation. Only hygienic aspects won't drive individuals; motivational factors are also
necessary.

Influenced by Hygiene Improving motivator factors Influenced by motivator

Factors (Dis-satisfiers) increases job satisfaction factors (Satisfiers)

 Working condition Improving the hygiene  Achievements

 Coworker relations factors decreases job  Recognition
 Policies & rules dissatisfaction  Responsibility
 Supervisor quality  Work itself
 Personal growth

McClelland’s Theory of Needs

We all possess three motivational factors, according to McClelland, and these factors are
independent of our gender or age. We shall act mostly in accordance with one of these drives.
Our life experiences affect our dominating urge.

The three motivators are:

 Achievement: a desire to complete tasks and show off one's abilities. High achievers
favor assignments that let them take personal responsibility and produce outcomes based
on their own efforts. They also desire prompt acknowledgement of their
accomplishments.

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 Affiliation: a need for affection, community, and approval from others. Being liked and
accepted by other people is motivating for people with a high need for affiliation. They
frequently participate in social events and may find disagreement uncomfortable.
 Power: a desire to exert control over one's own or other people's work. People with
strong power needs seek for circumstances where they can exert their authority and
control over others. They tend to be more focused on their level of influence than on good
work performance and seek to hold positions of status and power.
(knowledgehut.com)

8.3.3) with the backing of theories, an appropriate motivational approach for

the AMW
The motivation and superior value propositions we continually provide to all of their
stakeholders in all of their interactions with us have been the foundation of AMW's strategic and
sustained expansion throughout the years. This is so that both the recipients and the donor can
receive the desired results. AMW views their offer as a "present of incentive," carefully chosen
and charmingly packaged. AMW data demonstrate that we offer a valuable proposal, which is
supported by our variety of goods and services, excellent returns, a favorable work environment,
and a dedication to governance, risk management, and corporate responsibility.

9) Leadership Management Approaches

The way managers exert their authority at work and make sure their goals are met is known as
their management or leadership style. It discusses how managers organize and plan work in their
respective domains, with a focus on how they relate to and work with their team members and
coworkers.
Attitudes and behaviours, such as what a manager says and how they say it, the example they set,
their body language, and their overall conduct and demeanour, are the main elements of
management and leadership style.
In recent years, the phrase "management style" has largely been supplanted by the term
"leadership style" in the work of management theorists. The difference between the two is
frequently ambiguous. There is ongoing discussion concerning the notions of management and

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leadership, with some considering them as unique and distinct from one another and others
seeing leadership as a component of management that can be used by anyone in their area of
responsibility.
(Management And Leadership Styles - CMI,
2022)
the benefits and drawbacks of various management techniques, such as relationship orientation
and task orientation.
the benefits and drawbacks of various leadership styles, such as inspiring, transformational, and
situational.
Applying communication techniques and methods in various business contexts, such as handling
conflict, overcoming resistance to change, and being mindful of cultural differences
defining characteristics and competencies for a transformational environment, such as
intercultural viewpoints, coaching and mentoring, and alignment with shifting business
objectives.

 Transformational Leadership
These powerful individuals act as role models for others. According to leadership studies experts
Bruce Avolio and Bernard Bass, this leadership style entails connecting with team members'
senses of identity and the collective identity of the firm in order to boost their motivation and
work performance. A visionary who inspires others and promotes creativity and critical thinking
is a transformative leader. Political visionaries like Jackmar and business pioneers like Narendra
Shah Modi are examples of transformational leaders.
 Situational Leadership
Business strategist and best-selling author Ken Blanchard collaborated with behavioural scientist
Paul Hersey to create this model. It provides a framework for leaders to align their actions with
the requirements of the people they are trying to affect in terms of performance. Situational
leaders need to be able to, according to the Center for Leadership Studies:

 Determine whether a person is capable of completing a particular task.

 Adapt your leadership style considering the diagnosis

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 Share an influence strategy in a way that your audience will both comprehend and accept
it.
 Moving toward higher performance will help you advance.

 Task-Oriented
Leadership that is relationship-focused is frequently contrasted with task-oriented leadership.
One puts an emphasis on the activities required to accomplish goals, while the other on the
connections needed to maintain people' job satisfaction.
The task-oriented style fits the definition of a manager, whereas the people-oriented approach
concentrates on the traits of a leader, as leadership students will discover. The manager's
responsibility is to plan, organize, and coordinate, according to the Center for Leadership
Development. It is the role of the leader to inspire and encourage

 Relationship
Communication, conflict resolution, and people skills are all important components of effective
relationship management, just as are the technical facets of a given organization or industry. In
addition to having an undergraduate or graduate degree in business, professionals in this position
may additionally have a postgraduate degree in marketing or communications.
Better relationships with clients and other partners require strong coordination and
communication abilities. Relationship managers frequently collaborate closely with staff who
interact directly with customers to better understand their needs and inspire them to deliver the
best caliber of service.
Relationship managers require strong analytical abilities in addition to communication skills to
gain a comprehensive understanding of the goods or services being marketed, the markets in
which they are being sold, and larger industry trends. They will be able to communicate with
clients or partners more effectively and efficiently as well as assist staff in meeting clients' or
partners' needs if they have a deeper understanding of the technical components of the firm.

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 Inspirational
Depending on the circumstances, an inspiring leader may potentially adopt several leadership
philosophies without ever forsaking the inspirational component of their approach. It involves
applying the appropriate techniques at the appropriate times and taking into account the wants
and desires of the people you are leading.
Finding ways to maximize the potential of people you lead in a way that benefits them is the
essence of inspirational leadership, as is motivating others to push themselves further,
accomplish more, and realize their own potential. The ways this is accomplished vary from
person to person and company to company, but the end result is always the same: people gain
more confidence in what they can accomplish and use this confidence to advance the
organization they work for.

9.2) Examples for business situations such as introduction of new products to

the market, meeting company targets, dealing with conflicts, organizational
expansions, company structural changes.

Business situations Leadership/Management How does it impact towards

Approach the managing company
performance and
continuous improvement

introduction of new products Transformational Leadership A transformative leader is a

to the market visionary who encourages
others to be creative and
critical thinkers.
Meeting the company Task oriented – key features One focuses on the tasks
objectives necessary to achieve goals,
while the other emphasizes
the relationships required to
keep individuals happy at
their jobs.
dealing with conflicts Relationship Like the technical aspects of
a specific business or
industry, communication,
conflict resolution, and
people skills are all crucial
elements of good relationship
management. Additionally,

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they must be well-versed in

the products or services being
advertised as well as the
markets in which they are
offered.
organizational expansions Inspirational Inspirational leadership
involves finding ways to
maximize the potential of
people you lead in a way
that benefits them. It
involves applying the
appropriate techniques at
the appropriate times and
taking into account the
wants and desires of the
people you are leading. The
ways this is accomplished
vary from person to person
and leader to leader.

Thank You,

Tilanka Doolwala.

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