1.

INTRODUCTION

A multinational corporation or company is an institute doing business in additional than one

state. 'In further words, it is an institute or enterprise carrying on business in not only the state
wherever it is registered but also in some added nations. It may also be called an International
Corporation, a global massive, and transnational corporation. According to the United Nations, a
multinational corporation is "an enterprise which owns or controls production or service facilities
outdoor the country in which it is grounded". In the words of W H Moreland, "Multinational
Businesses or Companies are those enterprises whose organization, ownership and controls are
extents in additional than any overseas country". Thus a multinational company brings on
commercial tasks in two or further states. Its center of operations is positioned in one country but
its actions are spread over in other countries. Multinational companies' may involve in numerous
actions like exporting, importing, manufacturing in diverse countries. It may also provide its
patents, licenses as well as administrative facilities to organizations in host countries.

Characteristics of Multinational Companies (MNCs)

The distinct features of transnational companies are as follows.

1. Huge Size: A multinational company is in general big in magnitude. Some of the multinational
companies that possess and control possessions value billions of dollars. Their annual deal
turnover is more than the GDP of many small countries.

2. Global operations: A multinational corporation brings on business in more than one state.
Multinational corporations such as Coca-cola have divisions in as various as seventy countries
around the world.

3. International management: The managing of multinational companies is international. It

controls based on the best potential alternative existing anywhere in the world. Its local affiliates
are managed usually by the nationals of the host country. For example, the management of Sri
Lanka Unilever lies with Sri Lankans. The parental company Unilever is in The United States of
America.

4. Mobility of resources: The operation of the multinational company contains the mobility of
capital, technology, entrepreneurship, and other factors of production across the territories.
5. Integrated activities: A multinational company is usually a complete organization comprising
manufacturing, promoting, R & D, and other facilities.

6. Several forms: A multinational company may function in host countries in several ways that
are, divisions, affiliates, franchises, and joint ventures.

MULTINATIONAL COMPANIES IN SRI LANKA.

Multinational Companies in Sri Lanka have arisen along with a prolonged distance in the trade
divisions and corporate origins of Sri Lanka from the time when last few decades. Of course, all
these multinational companies in Sri Lanka are without a doubt highly praised, cherished,
valued, and helped with all sorts of rewards and benefits from the government. These are
frequently because of the huge economy of the country being covered by all these MNCs and
huge populations obtain job benefits and opening to build up their career. Generally, most of
these multinational companies established and incorporated in Sri Lanka do have corporate
possessions or can be specified as head subdivision office in some other part of the world or
simply named The Parental Country. Such companies have sufficient financial provision to buy
in prosperity and effort force to invest in numerous countries around the world to the extent their
brand, business, facility, and product to locals to type more profit. All these Multinational
Companies in Sri Lanka and other nations may have several branch offices and corporate houses
in various nations but generally, they have one sole central office named the head office that is
mainly initiated to organize global management.

Few Multinational Companies that are operating in Sri Lanka can be mentioned here as
examples, such as; some of the best Multinational Companies in Sri Lanka are given below:

John Keels Holdings.

Distilleries Company of Sri Lanka.

Sri Lanka Telecom.

Commercial Bank of Ceylon.

Ceylon Tobacco Company

Hayley's.

This assignment is based on the Applied Management of Commercial Bank of Ceylon.

COMMERCIAL BANK OF CEYLON PLC

Commercial Bank of Ceylon PLC is one of the foremost commercial banks in Sri Lanka with
more than 255 branches and 625 ATMs. Commercial Bank has the biggest single ATM linkage
in Sri Lanka. The bank extended the baking actions to the international market by beginning
banking operations in Bangladesh & Maldives. It has been ranked as the Best Bank in Sri Lanka
by "Global Finance" for the 14th successive year as well as also as the Bank of the Year by "The
Banker" Magazine on seven instances.

Commercial Bank Of Ceylon PLC has been working in Bangladesh since 2003. It delivers
Banking services to personalities and businesses. For individuals, it offers Savings, Deposits,
Cards, Current Accounts, and Loans Services. For businesses, it offers Corporate Banking, SME
Banking Services & Funds. The bank has 11 branches and about 220 employees currently in
Bangladesh.

Over the past 15 years of the actin Bangladesh, Commercial Bank Of Ceylon PLC has extended
its branch system to 11 branches, 2 specialized OBU divisions in Dhaka and Chittagong, and 6
SME centers in Dhaka, Unique products and services, superior service superiority and efficient
and customized resolutions to the necessities of corporate and single banking customers are signs
of the effective step of Commercial Bank of Ceylon in Bangladesh.

Having fixed a benchmark in banking in Sri Lanka Commercial Bank has established standards,
formed an identity, and forged an unsurpassable tendency. Recognized as a trendsetter,
Commercial Bank has retained their cultural uniqueness while providing a variety of products
and services. Powered by up-to-date technology and driven by a group of highly motivated,
dynamic personalities Commercial Bank has to turn into the leader in private banking in Sri
Lanka.

MANAGEMENT PRACTICE AND THEORY

VISION OF COMMERCIAL BANK

To be the best technologically advanced, groundbreaking, and customer-responsive financial
facilities Organization in Sri Lanka, poised for further enlargement in South Asia.

VISION STATEMENT

Expresses the anticipated or proposed future state of an organization or enterprise in expressions

of its strategic way. Vision is a longstanding view, from time to time describing how the
organization would like the world in which it operates to remain. It shows, to wherever to be
focused the organization. Also, it supports accomplishing the organization as a management tool.

MISSION OF COMMERCIAL BANK

Provided that reliable, pioneering, customer-friendly business services, make use of cutting edge
technology and aiming nonstop on productivity enhancement whilst developing staff and
obtaining needed proficiency to expand locally and regionally.

MISSION STATEMENT

The statement describes company tasks, markets, and competitive advantages through the short
transcribed statement of the business goals and philosophies. A mission statement states what an
organization is, why it exists, and its cause for being. At the least, the mission declaration should
define who the prime customers are, recognize the products and services produce, and describe
the geographical location in which the organization operates. These philosophies are applied in
the Commercial Bank of Ceylon PLC in their management practices. It delivers the following
proofs.

A Clear Mission Statement helps to; determines the Company Direction.

Smart business vendors use the declaration to remind their groups why their company exists
because this is what types the company successful. The mission statement works as a "North
Star" that possesses everybody clears on the trend of the organization and it states, "It's your
route, not your objective that determines endpoint." This leads to the second reason, which
focuses on the company's future.

Provides a template for Decision-Making

A clear mission sets important boundaries, which enable business owners to delegate both
responsibility and authority. It provides a framework for thinking throughout the organization. It
provides the boundaries and guardrails you need to stay on the path to your preferred future.
Forms the Basis for alignment when a new employee is hired, the newcomer must know what the
company does and where the company is going. The mission statement forms the basis for the
alignment of the entire team and organization for better effectiveness and efficiency.

Welcomes helpful Change

Many people are resistant to change because it causes them to feel insecure and sometimes out of
control. However, if the mission is clear, then team members are more likely to see the value of
the change and how it helps the organization accomplish the mission. This will create a culture
that welcomes change when warranted.

Shapes Strategy

Every business and business owner needs a strategy. But strategies must not be created in a
vacuum. Instead of looking at what's new or what competitors are doing and trying to copy them,
wise business owners create the most effective strategies possible to accomplish the mission their
company is set out to accomplish.

Facilitates Evaluation and Improvement

It has been said that "What you measure will be your mission." If you have a clear, written
statement of mission you will know exactly what to measure and how to measure it.

CULTURAL STRATEGIC PREDISPOSITION TO MANAGE THE MNC

The mission of an organization is the major driving force to reach the expected destination of the
organization. To drive, there should be fuel and other necessary components that are dependent
on the business goals, objectives, and strategies. The Commercial Bank of Ceylon Plc. has
established the following key factors which are directly related to the business and the mission.
These factors indicate the predisposition of the bank to serve the customers and the sustainability
of the bank. These key factors are involved to manage the organization very smoothly and direct
the organization to the vision. The Key factors;
Customers: - Who are the bank's customers? Who comes to get products or services?

Products or services: -What are the bank's major products or services? What are the products or
services produce and give to customers?

Markets: - Where does the bank compete? Geographically, where are running the business
operations?

Technology: - What are the firm's basic technology and the current technology maintained by the
bank?

Concern for survival, growth, and profitability: -What is the bank's commitment towards
economic objectives? How does the commercial bank show its stability and developments?

Philosophy: -What are the basic beliefs, core values, aspirations, and philosophical priorities of
the bank?

Self-concept: -What are the firm's major strengths and competitive advantages? How the bank
capture the market by absorbing the competitive strategies?

Concern for public image: -What is the firm's public image? What is the reputation of the
organization?

Concern for employees: -What is the bank's attitude or orientation towards employees? Human
Resources policies?

Commercial Bank of Ceylon Plc. has established more appropriate answers for the above key
factors of questions.

Customers: - All types of customer (small, medium & Cooperate level)

Products or services: -Reliable, innovative, customer-friendly financial services

Markets: - Locally and regionally (In Sri Lanka & international market)

Technology: -By utilizing the latest financial technology.

Concern for survival, growth, and profitability: -By providing reliable, innovative & customer
friendly financial services, utilizing cutting edge technology towards productivity improvement

Philosophy: -Providing reliable, innovative, customer-friendly financial services & new financial

Technology

Self-concept: -Providing reliable, innovative, customer-friendly financial services, utilizing

cutting edge technology, and focusing continuously on productivity improvement

Concern for public image: -By providing reliable banking services

Concern for employees: - By developing our staff and acquiring the necessary expertise to give a
high standard service to customers.

CHANGE INTRODUCE TO MANAGEMENT PRACTICES BASED ON PREDISPOSITION

Step 1: Gather Information, Form a Planning Team

Agree on the membership of a planning team. Usually, the planning team will include
representation from the Board of Directors, Senior Management, and staff of the organization.
Sometimes, representatives from the organization's beneficiaries are also members. Before the
meeting, collect a copy of the organization's mission statement, if there is one, as well as
information about the organization's clients, products and services, and history.

Step 2: Define customer types, the Organization Serves

Since no organization is large enough to meet the diverse needs of everyone, the planning team
should specify who priority beneficiaries are by answering the question, "Who does this
organization serve?"

Step 3: Clarify or describe What the Organization Does or operate

Now the team needs to describe the purpose of the organization: what it does or if it is a new
organization, what it will do. Identify the needs of the populations served and specify what
products and services the organization offer to address those needs.

Step 4: Explain Why the Organization Does What it does

Next answer the question, "Why do we do what we do?" The answer generally describes a
response to a broad social problem. It also provides a basis for decisions concerning what the
organization does moving forward.

Step 5: Describe How the Organization Delivers Products and Services

In this optional step, define the strategies, means, and resources by which the organization
delivers services and meets the needs of its clients or beneficiaries. Look at organizations that
offer similar services and products for the same clients to determine how products and services
need to differ from those of competitors. Especially, need to develop and adopt new technology
for the banking sector to win the market.

Step 6: Analyze the Mission Statement

After gathering the information need to create a mission statement that indicates the "who,"
"what," "why" and "how" of the organization in a way that makes it stand out as unique among
competitors. Get feedback from everyone who participated in its development to ensure the
statement reflects a common understanding. It will guide the organization's work over the long
term, motivate its staff, and attract funders. According to the above process, creating a mission is
an easy target and we need to line with the same to develop and achieve organizational targets.

The relation between Mission Statement & Management purposes

According to the mission statement of Commercial Bank, the banks' main mission is to provide
reliable, innovative, customer-friendly financial services, utilizing cutting-edge technology and
focusing continuously on productivity improvement whilst developing our staff and acquiring
the necessary expertise to expand locally and regionally. It's mean the bank expects to develop
the market share by absorbing the new technology to the financial sector which helps to provide
reliable and good service to customers. Considering the future trends, need to provide the best
customer service through technology. At present, technology is the main advantage of the
banking sector and the banking sector depends on the same. Through the new technology
developments, Commercial Bank expects to enhance their business operations throughout Sri
Lanka and also international market by capturing the market of South Asia. According to the
mission statement of the bank, they expect to enhance their banking empire as the best bank in
South Asia. As a step for the same, the bank enhanced its banking operations in Bangladesh,
Maldives, and Myanmar. Also, they have introduced a fully automated account operating
platform named "Flash Account". Hence, continually, the bank develops financial technology. In
addition to that improver the customer service and relationship, most of the time, they conduct
training programs and weakness programs. Considering the above factors, Commercial bank
already started their foundation activities towards their mission statement and they need to
develop more to comply with the present market strategies.

SUCCESS OF MANAGEMENT PRACTICES

Commercial bank aligns the HR function to the organization's business strategy. The HR
alignment process is often driven by workforce composition issues. When the HR strategic
planning team has fully evaluated the current situation, Commercial Bank of Ceylon PLC
considers what the ideal future would look like from an organizational perspective. The question
"Where do we want to be?" can be answered and clearly articulated by creating statements of
vision, mission, and values. A vision statement describes what an organization wants to become
or hopes to accomplish in the future.

Commercial Bank of Ceylon PLC uses 4 different perspectives such as:

i. Financial Perspective: Use of revenue, expense, net income & cash flow measures

ii. Customer Perspective: They use customer satisfaction, brand strength & customer retention.

iii. Internal Process Perspective: In this term, they use resource allocation & cycle time.

iv. Learning or Growth Perspective: For the learning perspective they use employee satisfaction,
employee skill, and employee turnover & employee education.

To achieve strategic goals of the organization and to satisfy the bank's Mission, Vision along
with maximizing mutual benefit and develop human resource management, Commercial Bank
Of Ceylon PLC's Human Resource Department has adopted the following policies;

• Ensure a fair and consistent wage policy

• Manage talent effectively to maximize the employee's potential

• Staff training and development

• Retain the bank's position as 'most preferred' employer

Human Resource Planning is a systematic process of forecasting both the prospective demand
for and supply of manpower and employment of skills with the objectives of the organization.
Human Resource planning involves anticipating the need for labor and the supply of labor.
Planning the programs is important to ensure that the organization will have the right mix of
employees and skills when and where they are needed. Commercial Bank of Ceylon is very
careful in its Human Resource planning. They generally use trend analysis. They set a goal first
and after that, they plan for the recruitment. For this, they need to find out how many positions
they need and the number of people they need. They generally recruit through:

Requirement or need basis:

They analyze the need of the employee. They recruit their employee based on their needs.

Performance basis:

They also recruit on a performance basis. They also recruit employees from the intern students
based on their performance.

Internal and External Candidates: Commercial Bank of Ceylon PLC recruits their candidates
from both internal and external sources. For top managers, use internal recruitment and follow a
personnel replacement chart. By this, they can easily get the current performance of employees
and chances of their portability. For the mid-level candidates, they use a manual system to track
employee qualification and also they use Intranets and bulletin boards. For the external
recruitment process, they use the jobs website and sometimes the national daily newspapers.

Centralized recruitment: Commercial Bank of Ceylon PLC follows the centralized recruitment
system. They make their recruitments decisions centrally. Since it is cost and time-efficient; they
have a fewer amount of branches compared to other banks so this decreases redundancy.