Impact of Leadership Style on the Performance of the employee

“ACI Group Limited”

Course Name: Business Leadership

Course Code: BUS1202
Submitted By
Name: Jarin Tasnim
Roll No: B4170B020
Batch: BBA 4
Section: B
Semester: 2nd

Supervisor
Mohammad Ali Rana
Lecturer

Bachelor of Business Administration

Army Institute of Business Administration
Savar Cantonment, Dhaka

Date of Submission: 27 November 2017

Letter of Transmittal

Date: 27/11/2017
To,
Mohammad Ali Rana
Lecturer
Army Institute of Business Administration
Savar Cantonment, Dhaka
Subject: Submission of a term paper on Impact of Leadership Style on the Performance
of the employee “ACI Group Limited”

Dear Sir,
I would like to present a Term Paper Report on “Impact of Leadership Style on the
Performance of the employee “ACI Group Limited”.To complete this Report Paper, I have
gathered information from various online sources. I also tried to understand how the company
works by talking to my closed ones who are employees at ACI Group Limited. The
remaining data I got from their own websites, Annual Report and previous term paper and
assignments done on this company. I really have learned a lot and gained valuable experience
while working and preparing this term paper.
If you need any further clarification for any part of this term paper, I am eagerly always ready
to provide any kinds of information regarding this term paper on ACI Group Limited.
Yours Sincerely,

_____________________________
Jarin Tasnim
B4170B020
AIBA, Savar

i
Acknowledgement

I sincerely acknowledge our debt to Mr. Mohammad Ali Rana, honorable faculty of Army
IBA for his valuable counseling towards the improvement of the report. Without his
encouragement, this would not have been possible.
Thankfully

_____________________________
Jarin Tasnim
B4170B020
AIBA, Savar

ii
Declaration
I hereby declare this term report were prepared by ourselves and was not previously
submitted to any other organizations.
The work does not breach any copyright.

_____________________________
Jarin Tasnim
B4170B020
AIBA, Savar

iii
Supervisor’s Certification

I hereby certify that this term paper has been given effort to make/has been made, as per
instructions provided.

_____________________________
Supervisor
Mohammad Ali Rana
Lecturer
AIBA, Savar

iv
 Executive Summary
A brief study on ACI Group and ACI Pharmaceutical

ACI Limited was established as the subsidiary of Imperial Chemical Industries (ICI) in 1968.
After independence, the company was incorporated in Bangladesh in 1973 as ICI Bangladesh
Manufacturers limited as a Public Limited Company. In 1992, the company was separated
from local management and the name of the company became Advanced Chemical Industries
(ACI) Limited. ACI is the first company in Bangladesh to achieve ISO S001 in 1995 for
quality management and also the first company to achieve ISO 14000 in 2000 for
environmental management system. ACI has three strategic business units along with 11
subsidiaries, 3 joint ventures and 1 associate. In pharmaceuticals ACI formulates and markets
a comprehensive range of more than 400 products covering all major therapeutic areas, in
form of tablet, capsule, powder, liquid, cream, ointment, gel, ophthalmic and injection.
Consumer brand is another major and important profit earning department of ACI. This
business segment has three major categories of product range- home care, air care and
hygiene care. Products under home care category include ACI Aerosol, ACI Mosquito Coil.
Under air care ACI has produced Angelic Fresh Air Freshener. This is the first ever locally
manufactured Air Freshener of this country. And under hygienic category it has Savlon
Liquid Antiseptic, Savlon Antiseptic cream, Savlon Family Protection Soap and Savlon
Femme Sanitary Napkin, Vanish Toilet Cleaner, Shinex floor cleaner etc. It has also in
agribusiness as well. Under Agribusiness, it has different kinds of product like Crop care &
Public health is dealing with all type of crop protection items, Seeds division is dealing with
hybrid rice, vegetable and maize seeds, Cropex is dealing with commodity buying, storing,
preserving and selling, animal health division is dealing with high quality nutritional,
veterinary, poultry medicine and vaccines.

Table of Contents

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 1. Letter of Transmittal I
2. Declaration II
3. Acknowledgement III
4. Supervisor’s Acknowledgement IV
5. Executive Summary V

6. Table of Contents VIII

7. List of Abbreviation
8. Chapter 1: Introduction 1
1.1: Introduction to the topic 1
1.2: Type of report 1
1.3: Origin of the study 1
1.4: Objective of the study 2
1.5: Scope of the study 2
1.6: Limitations of the study 2
9. Chapter 2: Organizational Profile 3
2.1: Brief History 4
2.1.1: Mission 4
2.1.2: Vision 5
2.2: Structure and Hierarchy of the Organization

2.3: ACI Pharmaceutical’s Market 6

2.3.1: Domestic Market 6
2.3.2: International Market 6
2.4: ACI Pharmaceutical Services 7

10. Chapter 3: Literature review of the study 8

11. Chapter 4: Methodology 9

12. Chapter 5: Organization Segments & Leadership style 10

analysis 10
5.1: HR Department 10
5.2: Financial & Planning 11
5.3: Distribution 11
5.4: Commercial Department 12
5.5: MIS Department 12
5.6: Analysis of ACI Pharmaceutical leadership style

Chapter 6: Conclusion 13
References 14

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 Chapter-One: Introduction

1.1 Introduction to the Topic

Leadership in business has been defined and re-defined in many ways. Gary Yukl, the author of
‘Leadership in Organizations; Global Edition’ has taken several definitions of leadership
from some well-known business scholars. 3 major definition which has been accepted by all the
modern business scholars are given below:
 Leadership is “the process of influencing the activities of an organized group toward goal
achievement” (Rauch & Behling, 1984)
 “Leadership is about articulating visions, embodying values, and creating the
environment within which things can be accomplished” (Richards & Engle, 1986)
 Leadership is “the ability of an individual to influence, motivate and enable others to
contribute toward the effectiveness and success of the organization” (House et al, 1999)

In this report, we’ve focused on the leadership style of ACI Pharmaceuticals which is a sister
concern of ACI Group Limited as well as the behavior and organization roles of the human
resource of entire company.

1.2 Type of Report

This report is exploratory in focusing on the leadership style and human resource analysis of the
particular organization.
1.3 Origin of the Study
The topic of our report is ‘The leadership style of ACI Group Limited’. Research is one of the
core component of higher studies and when it comes to business study, it’s considered to be one
of the most core skills of any business student. Apart that, submitting research paper are one of
the academic requirements of the BBA program of Army Institute of Business Administration.
For completing the research, we tried analyze the leadership roles, functions as well as
organization behavior of ACI Pharmaceuticals which is the sister concern of ACI Group. We
want acknowledge our honorable faculty member and academic supervisor Mohammad Ali Rana
for giving us constructive guidelines regarding the research paper.

1.4 Objective of the Study

The objective of the study is divided into two steps. These are given below –

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 1.4.1 Primary Objective

 The primary objective of preparing this report is to fulfill the requirement of the course
Business Leadership (BUS1202) of second semester of BBA program in Army Institute
of Business Administration to apply the theoretical knowledge gained from the
coursework of BUS1202 in a specific field.
1.4.2 Secondary Objective
• To know about the organization
• To know about the different leadership styles & roles of the organization.
• To know about the impact of leadership style.

1.5 Scope of the Study

The scope of this report is to cover how the leadership skill and role implies in the corporate
sector as well as what types of leadership traits has been holding the organization culture.

1.6 Limitations of the Study

The report faced some problems during its preparation, which has limited purpose of the report.
The limitations are:

 We wanted to research on the entire ACI Group, but due to time management issue we
were compelled to research on only one of their sister concerns.
 Since we’re first year students, so it was a bit difficult for us to make an approach to
such professional organization with proper communicating ettiqetes.

Chapter-Two: Organizational Profile

2.1 Brief History

ACI is one of the largest Bangladeshi conglomerates. The company operates through three
reportable segments: Pharmaceuticals, Consumer Brands and Agribusiness. ACI established as

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the subsidiary of Imperial Chemical Industries (ICI) in 1968. It has been incorporated as ICI
Bangladesh Manufacturers Limited on 24 January 1973. The company was renamed as
Advanced Chemical Industries Limited (ACI Limited) on 5 May 1992. The company sold its
insect control, air care and toilet care brands to SC Johnson & Son in 2015.
Sister Concern of ACI Limited
• ACI Consumer Brands
• ACI Fertilizer
• ACI Formulations Ltd.
• ACI Agrochemicals
• Apex Leather-crafts Limited
• ACI Salt Limited
• ACI Pure Flour Limited
• ACI Foods Limited
• Premiaflex Plastics Limited
• Creative Communication Limited
• ACI Motors Limited
• ACI Logistics Limited
• ACI HealthCare Limited
• ACI consultants
• ACI Pharmaceuticals
• Swapno, Bangladesh's largest retail chain

List of joint venture companies

 ACI Godrej Agrovet Private Limited

 Tetley ACI (Bangladesh) Limited
 Asian Consumer Care (Pvt) Limited

2.1.1 Mission
ACI’s mission is to enrich the quality of life of people through responsible application of
knowledge, skills and technology. ACI is committed to the pursuit of excellence through world-

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class products, innovative processes and empowered employees to provide the highest level of
satisfaction to its customers.
2.1.2 Vision

 Endeavor to attain a position of leadership in each category of its businesses.

 Attain a high level of productivity in all its operations through effective and efficient use
of resources, adoption of appropriate technology and alignment with our core
competencies.
 Develop its employees by encouraging empowerment and rewarding innovation.
 Promote an environment for learning and personal growth of its employees.
 Provide products and services of high and consistent quality, ensuring value for money to
its customers.
 Encourage and assist in the qualitative improvement of the services of its suppliers and
distributors.
 Establish harmonious relationship with the community and promote greater
environmental responsibility within its sphere of influence

2.2 Structure and Hierarchy of the Organization

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 Figure: Board of Directors

2.3: ACI Pharmaceutical’s Market

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2.3.1: Domestic market
Being a developing country, the pharmaceutical market and at the same time, the pharmaceutical
industry of Bangladesh is growing. In this growing market, ACI has been able to maintain its
growth through its innovative marketing strategies.
In Bangladesh, ACI introduced the concept of quality management system by being the first
company to achieve ISO 9001 certification that reflects its commitment to quality in every aspect
of business.
ACI covers the health care community of whole Bangladesh based in both urban and rural
markets, through its 18 strategically located depots.

2.3.2: International market

To fuel the continuous growth of ACI, the company has started exploring international markets.
The quality of ACI products, strengthened by its ISO 9001 certification, has brought immediate
success in Sri Lanka, Yemen, Myanmar and Vietnam.
2.4: Services
Scientific seminars
ACI frequently arranges seminars and symposia covering a wide range of medical topics
attended by members of health care community. The faculty of these programs usually consists
of both reputed medical experts and experts from marketing team of ACI and its international
principals.
Continuing medical education of physicians and surgeons
ACI regularly arranges CME programs of both physicians and surgeons all over the country.
These programs cover medical problems frequently faced by the practitioners, update their
knowledge, and make them aware of the new therapies and medical technologies.
Clinical meetings
ACI arranges clinical meetings, covering case related medical problem faced by the physician in
their daily practice. Every meeting is being supported by audio-visual media.

Responding to doctors’ queries

It is the most regularly performed task of the marketing team of ACI. The company has
developed a postage paid business reply card attached to every literature in which the doctors

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usually send their queries. ACI tries to provide a comprehensive answer to the queries of the
physicians covering all the details.
Medical illustration and audiovisual aids
ACI is ready to assist in preparing presentation packages including computer slides,
transparencies and printed text whenever medical experts wish to share their experiences and
results of their research with the health care community.
Reprint services
ACI provides the doctors with reprints of selected publications on topics that can assist the
doctors in their professional practices.
Info Medicus
ACI publishes quarterly medical news letter for the physicians with current medical information
particularly emphasizing common diseases.

Chapter 3: Literature Review of the Study

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Leading is a process of influencing and directing the activities of an organized group to
accomplish goals by communicating with them. Leadership is therefore premised on
interpersonal relationship; hence a leader must belong to a group. What this implies is the
leadership thrives in an organization. According to Adebakin and Gbadamosi organization
comprise of two or more people who exist on continuous basis with the intention of
accomplishing set goal(s). Every organization consists of three major elements, which must
interrelate effectively it’s the objectives and goals of leadership to be achieved. They are the
management, time people and task within an organization. Leadership is the management
function that is concerned with continuous search of the best way to influence subordinates to
accomplish goals and objective within the continuous process of coordinating man, money and
material. It involves the sum total of behavior of an executive in his direct relation with
subordinates. Management as the body of leadership determines policies, rules and procedures
guiding relationships and activities in an organization, which to an extent determines the
effectiveness in achieving the organization goals and objectives. Where two or more people
interact, the environment for the formation of a group is created. When individual in the group
coexist and associate for common purpose and when the group persists for a sufficient period of
time organization develops. The role of a leader in the group is to provide direction, coordinate
the activities of the individual members constituting the group and to ensure consistency. The
image of the leader and the quality of leadership is reflected through the organization and the
attitude of the subordinate in the performance of their task. Thus, the leader in the use of his
organizing power decides the pattern of work behavior, task operation and ethnic of
subordinates. Leadership is vital to employee performance and corporate excellence.
Consequently organization spends substantial sum of money in search of effective leadership in
training of their personnel in effective leadership behavior. There is also relative scarcity of
effective leadership and that is why organizations search constantly for it and lead them to effect,
design and develop all the effective leadership potentials possible in those who are associated
with corporate management.

Chapter 4: Methodology
We’ve made this research on the basis of primary & secondary data. The data collection method
we used to gather all this information is secondary data collection method. We have completed

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our research taking information from annual report, online journals, articles, magazines. Apart
that, we have also collected some internal information regarding ACI Group.

Chapter 5: Organization segments & Leadership style analysis

5.1 HR Department

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This is the statement of Mr. Moinul Islam, General Manager of ACI Pharmaceuticals regarding
the HR group
“ACI HR works with a vision for creating a work-environment to foster creativity, innovation
and productivity for achieving business excellence through dynamic and dedicated people.
We believe that Human Resources are the most important asset of the organization. We identify
the training needs and provide trainings accordingly to develop the knowledge and skills of our
human resources. Thought Leadership and Team Building meetings are conducted on a regular
basis. We provide an enabling working environment to unleash the full potential of the
employees and a performance based career progression.
We have a value based culture where dignity of the individual is the highest priority. We believe
in empowerment and delegation. We organize different social events like Family Day, Cricket
Tournament, Badminton Tournament etc with an objective to strengthen the bondage among the
employees.
We practice modern HR Policies and procedures for Recruitment & Selection, Manpower
Planning and succession planning. We use a combination of qualitative aspects and Balanced
Score Card for performance appraisal.
We have attractive policies regarding car loan, gratuity, provident fund and hospitalization. We
offer performance bonus, leave fare assistance, festival bonus and workers profit participation
fund during different times within a year.
ACI is a place to learn, grow and contribute for improving the quality of life of people.”
5.2 Finance & Planning
ACI Finance and Planning function is the nerve center of the conglomerate. Being the nature of
the structure, ACI Finance and Planning plays the centralized role in all kinds of financial and
accounting services. Meaning it handles financial and accounting matters of not only ACI
Limited but also of all of its subsidiaries supporting the mission and vision of the Group. The
major areas of its activities include:

 Corporate Finance
 Treasury
 Insurance and risk management
 Costing
 Credit Management
 Accounts payable management
 General accounting
 Taxation
 New business management

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5.3 Distribution
Distribution department maintains strategically located twenty six distribution centers across the
country. ACI pharmaceutical is continuously expanding its distribution network with a view to
providing better services to its customers.
Distribution maintains trained delivery persons over 500 and a large fleet of over 150 vehicles.
The distribution system is capable of handling continuing volume of diverse range of products
from the various businesses.
The company's distribution centers are highly streamlined, computerized and automated. ACI
uses state of the art equipment for its specialized range of cold chain products such as vaccines
and insulin. The combination of this advanced function and multidimensional capabilities made
it possible to handle hundreds of products efficiently. ACI strictly follows ISO 9001-2008
Quality Management System (QMS) in all aspects of its Distribution System.
5.4 Commercial Department
Commercial Department of ACI Pharmaceutical is one of the most vital functional departments
of the Company which deals with the supply chain activities of ACI. In order to keep all the
businesses running flawlessly, the dedicated and hard working employees of this department
maintain a good liaison with the customers, both national and international. The Commercial
Department is consistently achieving the best prices for the products that we purchase, ensuring
enormous amount of cost savings for the company. It offers invincible professionalism and
expertise in the entire commercial activities of ACI.
5.5 MIS Department
MIS department of ACI Pharmaceutical ensures the overall IT related supports for the company.
This department manages a smooth operation of software's, hardware trouble shooting and
business databases related to sales and inventory. The MIS department consists of
knowledgeable and skilled programmers and software developers. MIS provides customized
report and data analysis to the management to facilitate effective decision making.
5.6 Analysis of ACI Pharmaceutical Leadership style:
In the top level management of ACI group, what we’ve found that the head of departments as
well as the CEO of company believes in consultative leadership. They believe in acknowledging
their employees rather than using any kind of quadsitic power. But in case of emergencies,
they’re always ready to call for the action. They constructively consult with their employees
under the management as well as give them the work freedom to bring out the best out of
themselves. There’s also a nice way to acknowledge the employees by giving them some
financial reward with the “Best Performer of The Month” award. But since it’s a pharmaceutical
group, there’s also been shown participative leadership when it comes to launching any new
medicine or coming up with any new drug formula.

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In the middle level management, comparatively slow growth has been noticed due to some
internal problem of ACI Pharmaceuticals. For that, the market share has been at a slowdown fall,
but still employees are working heart & soul to recover and position themselves good in the
market. Maybe the reason behind the slow growth is for autocratic leadership & manner of the
middle level managers since they are the ones who convey tasks to lower level management.
However, ACI has strictly looked upon the matter and things are getting sorted out by more
intensive relationship between the middle level managers with theirs’ under employees.
The lower level management works over Free-rain leadership where the executives are bound to
listen to their hierarchy. But there’s a good understanding between all the employees for which
there’s less turnover in this management level. However, they are always bound to follow the
orders, but fortunately the management process has given them enough work freedom to grow in
their own way. Precisely, their performance have been always admirable since they are used to
follow. But it also comes to a point, will they be able to improve their leadership skill in order to
shine bright in their career. The answer is still unpredictable.

Chapter 6: Conclusion
At the end of the research, what we’ve found ACI pharmaceuticals to be one of the most
prominent sister concern of ACI group which comes up with diplomatic, neutral and logical
leading manner. The growth of ACI has been quite admirable in regards of their human resources
with proper skills. It’s a great opportunity for someone to upgrade their leadership skill in an
effective way if they’re associated with such amazing organization.

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 References
1. https://en.wikipedia.org/wiki/ACI_(conglomerate)
2. www.aci-bd.com
3. http://www.aci-bd.com/finance/aci/annual/ACIAnnualReport2015-2016.pdf
4. http://www.pharmamirror.com/knowledge-base/company-profile/advanced-
chemical-industries-aci-limited/
5. http://www.aci-bd.com/corporate.php
6. http://www.thedailystar.net/business/commercial-papers-set-become-hot-cakes-
aci-73995
7. https://www.bloomberg.com/research/stocks/private/snapshot.asp?
privcapId=110188749

Performance Box

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Id No Name Percentage of Performance

B4170B014 Suva Karmaker 33.33%

B4170B022 Iftekhar Abedin khan 33.33%

B4170B020 Jarin Tasnim 33.33%

Total 100%

Marks Distribution
Id No Name Slide& Argument Question Term Total

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 Appearanc (2) (1) Paper (10)
e (2) (5)
B4170B014 Suva Karmaker
B4170B022 Iftekhar Abedin
khan
B4170B020 Jarin Tasnim

15