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The new business leaders Sri Lanka needs
Dinesh Weerakkody
As the economic crisis spreads across and the world becomes one market. Sri Lanka needs a new bread of business leaders and managers who can articulate a clear vision and deliver sound policies. They must be businessmen and professionals who can react swiftly to and exploit the series of economic disturbances and opportunities that are sweeping the region. These men and women who will direct our private sector in the next millennium must embrace the fundamental change in business philosophy required to deal with these challenges. These giants of Sri Lankan business will be the people responsible for reshaping our private sector, our economic fortunes in the next century and even pull our nation together to cope with today's challenges in the absence of sound political leadership.Managerial Challenge
Whenever I speak to young senior managers for their views on management, the most reveling part comes after the discussion is over. Once senior managers have finished talking about their lives in the separate content, they are usually ready to chat on a personal level. They usually need no promoting to talk. Unhappy memories of their clashes with their old school bosses are often fresh in their minds. In most instances their bosses dont seem to recognise the changes taking place in the corporate world. They complain that their bosses are history, because techniques like participative management, management by objectives, management by teams, quality circles or any other form of behavioural involvement which are beginning to change the static face of business management have no relevance in their work ethic and due to that their firms are finding it hard to compete. Perhaps visionary management on the part of MDs could not only bring about important cultural change in organizations, but could also help them to live happier lives with fewer regrets.Modern management
In brief, the modern management philosophy is that you unleash the innate creativity of people at all levels of the organization by helping them to set attainable goals, give them what they need to achieve the goals, then get out of the way while the innovative sparks fly. For the organization, the results will be new ideas for products and services, better and more effective methods of generating greater productivity, higher quality at less cost, or whatever top management has determined before hand are the strategic goals for the business. On the other hand, for the employees, the pay off will be greater self fulfillment, a chance to progress and attain their personal goals, and a happier and smoother work place. It has been pointed out that, the goals which motivate people, in varying degrees and at varying times, are surprisingly few. Furthermore there are growth, achievement, wealth power, recognition, pleasure, creativity, love and health. When the business sets clear goals which the individual can attain and also provides the means of attaining them, the result can be enthusiasm, energy, excitement and creativity.Clear
The business entity must clarify the goals, priorities and strategies which are appropriate for the company's particular situation and the state of the economy. Perhaps, with this type of approach, people are set free to choose their own method of more because they are no longer bound by a stream of directives from head office. Of course, no part of the business can operate independently of the whole. The teams should act as integrating devices, passing information on customers, products, markets, etc. up and across the organization, in the same way that goals and strategies are passed down.Top down
Top down and bottom up approach is the familiar phrase these days. Further, meeting regularly in small groups, they define and brain storm emerging problems when the built in evaluation and feedback mechanisms show that something is not working. Reasonable job security is important element in getting the team concept to work. The overriding rule is people are more willing to take risks, to innovate and to learn new skills if they know they will not be out of work for creativity. The Japanese have proved this with their long range vision and their full employment policies. At the plant level as the famous Hawthorne Studies have shown, it is probable that the increased interest shown by management in the workers will result in considerable gains in productivity. Whether this is substantial or not will probably depend on how well basic security needs are met and initiative is rewarded.Development of Human Resources
Mr. Ken Balendran Chairman of JKH when asked, what do you consider JKH's major strength in relation to your competitors says, ''as I've always said firstly our people, secondly our people and thirdly our people. Simply it means that the key to business success: people, people, people.If a company is to show that they really mean it, they must begin by admitting that its people are its most important asset. In that context, the ability to recruit and hold on to key talented people would be the challenge all companies would have to face. Therefore, managers need to provide continuous feed back on results, recognizing individual strengths and applying them where they can do the most good. They have also to supply encouragement and advice, recommending appropriate education when it is needed.
By encouraging innovation, decentralization of authority and responsibility at the lowest possible level, business can create a new class of business leaders who may hold the key to the future. It seems the challenge of the future for our private sector would be to develop a core of business leaders.
Lastly, Companies in Sri Lanka must realize that the protective walls are tumbling down fast and companies in the region would seek to invade our territories looking for new business opportunities.
‘Lankan hoteliers forced to sell cheap packages abroad'
By Shirajiv Sirimane in Dambulla
Sri Lankan Hoteliers are forced to sell their packages abroad, at a very low rate, due to the Far Eastern economic crisis, said Chandra Wickramasinghe, Chairman, Connaissance Hotel ManagementSpeaking to the press on the fifth year celebrations of the founding of Culture Club Dambulla, he said that in addition to the Far Eastern crisis the local competition, too, has resulted in the hotel prices being very low.
''There are around 500 other hotel rooms around this area alone,'' he said.
''If the tourists take a group package tour we have to bear the GST as well; he added.
Wickramasinghe welcoming the Euro currency, said:
"This is good since markets will not be dominated by the us dollar".
Airing his views on hotel occupancy he said that the year 1998 had been their best year so far. "We had an average occupancy of around 70% of which 40% were French. "This year we are trying to attract the Indian and Russian markets", he said.
S. Senaratne, Managing Director Connaissance said that Culture Club was number one in the Cultural Triangle", we did not want to put up just another hotel. So we went for a resort.
"Situated in the heart of Sri Lanka's Cultural Triangle, Culture Club Resorts commenced operation in 1994 with 68 luxury chalets, further in 1996, 24 chalets were added.
"92 luxury chalets, spread on 12 hectares of lushgreen vegetation, is one of the pioneer theme resorts is still a popular holiday destination among Sri Lankans and foreigners,'' he said.
''Sustainable development at Culture Club Resorts is evolved around offering the very best of Sri Lanka's culture and heritage to its visitor,'' he added.
The Connaissance, a public quoted company since 1981 owns La Kandan and markets Unawatuna Beach, Dickwella Beach Resort and Kothmale Pahala Walawwa.
+ Exchange Rates The Central Bank's Spot Rates for transactions with Commercial Banks announced on the morning of January 21th, 1999 were as follows:
Buying Selling 100 US Dollars Rs. 67.3299 Rs. 68.6901 The approximate middle exchange rates of following currencies calculated on the basis of cross rates quoted by Gulf International Bank, Bahrain as it appeared in Reuters Financial Information System
Saudi Arabia Riyal Rs. 18.12 Bahrain Dinar Rs. 180.41 Kuwait Dinar Rs. 225.61 Qatar Riyal Rs. 18.69 UAE Dirham Rs. 18.52 Oman Riyal Rs. 176.66 Average rates at which the following currencies were quoted by Commercial Banks in Colombo for Telegraphic Transfers
Buying Selling US Dollars Rs. 68.4120 Rs. 68.7620 Sterling Pounds Rs. 112.2948 Rs. 113.6418 Euro Rs. 78.5982 Rs. 79.8907 Swiss Franc Rs. 48.9118 Rs. 49.7638 Japanese Yen Rs. 0.6006 Rs. 0.6117 The European Commission Locking Rates of 11 member countries that came into existence from January 1st, 1999 are as follows:
Belgium Franc 40.339900 Spanish Peseta 166.386000 Irish Punt 0.787564 Luxembourg Franc 40.339900 Austrian Schiling 13.760300 Finish Markka 5.945730 German deutsche Mark 1.95583 French Franc 6.55957 Italian Lire 1936.27000 Dutch Guilder 2.20371 Portuguese Escudo 200.48200 The maximum and minimum Average Weighted Prime Lending Rate (AWPLR) during the week ended January 14th, 1999 by all commercial banks were 14.4 per cent and 12.5 per cent respectively.
The Average Weighted Deposit Rate (AWDR) of Commercial Banks for the month ended December 31st, 1998 was 9.2 per cent.
* Unit Trust Prices
Comtrust Equity Fund
Manager's Selling Price Rs. 5.36 (per unit) Managers Buying Price Rs. 5.02 (per unit) Eagle Gilt Edged Fund
Manager's Selling Price Rs. 11.22 Managers Buying Price More than one year Rs. 11.21 Less than one year Rs. 10.10* Eagle Income Fund
Manager's Selling Price Rs. 11.20 Managers Buying Price More than one year Rs. 11.19 Less than one year Rs. 11.08* Eagle Growth Fund
Manager's Selling Price Rs. 8.76 Managers Buying Price More than one year Rs. 8.40* Less than one year Rs. 8.31* * After deducting exit fees applicable
National Equity Fund
Manager's Selling Price Rs. 8.10 (per unit) Managers Buying Price Rs. 7.60 (per unit)
Namal Growth Fund
Manager's Selling Price Rs. 9.40 (per unit) Managers Buying Price Rs. 8.79 (per unit)
Namal Income Fund
Manager's Selling Price Rs. 10.68 (per unit) Managers Buying Price Rs. 10.56* (per unit) Rs. 10.67** Note: *After deducting exit fees
**Without deducting exit fees
Pyramid Unit Trust
Manager's Selling Price Rs. 6.03 (per unit) Managers Buying Price Rs. 5.62 (per unit)
Ceybank Unit Trust
Manager's Selling Price Rs. 6.04 (per unit) Managers Buying Price Rs. 5.65 (per unit)
Ceybank Century Growth Fund
Manager's Selling Price Rs. 8.57 (per unit) Managers Buying Price Rs. 8.41 (per unit)
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