The Vallibel Finance journey of growth and excellence which began in 1974 made exceptional

strides over the last

40 years. A Company that was originally named Rupee Finance Company Ltd, realised its true
potential in 2005
when it became Vallibel Finance, after its acquisition by the prestigious Vallibel Investments
(Pvt) Ltd.
Company performance has been phenomenal, achieving year-on-year growth despite various
challenges faced in the
operating environment resulting in earning us multiple local and global accolades. The
Company’s success is
attributed to the precision in our strategic decision-making process led by a highly experienced
leadership team and
the dedication of the Company’s employees.
Business network of 54 branches spans cities and towns located in the Western, Central,
Sabaragamuwa, Southern,
North-Western, Uva, North Central Provinces, and Northern Provinces of Sri Lanka. 1,271
strong devoted
employees support the Company’s aim to always serve customers at the highest standards of
customer service levels.
The Company received the Best Finance Company 2022 award at the Global Economics Awards
2022 for the second
consecutive year; and the Best Auto Finance Company in Sri Lanka 2021 at the 11th Global
Banking & Finance
Awards. Being awarded these titles in the current economic context is a testament to the trust and
confidence placed
on Vallibel Finance by the stakeholders. The Company also believes that these awards must be
dedicated to the hard
work and commitment of the employees.
P1. Leadership theories
Leadership is the ability of an individual or a group of individuals to influence and guide
followers or other members
of an organization. Leadership involves making sound and sometimes difficult decisions,
creating and articulating a
clear vision, establishing achievable goals and providing followers with the knowledge and tools
necessary to
achieve those goals.
What are leadership theories?
Every company, no matter what industry they’re a part of or how big they are, needs good
leadership to be
successful. Good leaders are a vital part of effective business practices. And for most, being a
good leader doesn’t
come inherently.
In the world of leadership there are many theories about how leadership works, what makes good
leaders, and how
to be effective. There are many leadership styles that managers can employ and their impact
varies based on the
group they are leading and the industry they are in. These leadership theories explain how
leadership styles work
within a company to bring success. And to become a business leader or manager, it’s important
to understand these
different leadership theories and how they impact your leadership and management style.
1. Transformational leadership inspires positive changes in those led and are invested in the
success of every
single member involved in the process. Transformational leaders are full of energy, passion, and
drive. It’s not a
surprise that these qualities can be the things that can make or break an organization. This kind
of leadership is
very popular it can be seen in board rooms, hospitals, schools, and in the entertainment industry.
2. Transactional leadership theory has a basic framework that revolves around reward and
punishment. So, whenever
a team member achieves the target set out by the leader, they are rewarded, and vice-versa.
Generally, transactional
leadership theory focuses on achieving the business goal. In this theory, the manager and
employee do not share a
bond or connection. Mainly measured by evaluating PDR.
3. Contingency theory of leadership or the situational leadership theory, it is one of the versatile
leadership theories
that suggest that different leadership styles suit different situations. In these types of leadership
theories, leaders
must adapt their leadership style depending on their situation, which increases innovation and
effectiveness. The
leadership theory helps leaders become versatile and adapt to different situations easily. It makes
their transition
from one phase to another easy and also gives them the skills and knowledge required to tackle
difficult situations.
 Fiedler’s Contingency Theory, states that there is not one best style of leadership. Rather, the
most effective
leadership style for any given situation is one that aligns with the situation at hand. The theory
was
developed in the 1960s by Austrian psychologist, Professor Fred Fiedler. He studied leaders’
personalities
and characteristics and came to the conclusion that leadership style, since it is formed through
one’s life
experiences, is incredibly difficult, if not impossible, to change. For this reason, Fiedler believed
the right
leader must be chosen for each job based on their skill set and the requirements of the situation.
In order to
best match leaders with situations, each leader must first understand their natural leadership
style. Then, they
need to evaluate whether their leadership style is right for the situation
 The Vroom-Yetton-Jago Decision-making Model of Leadership focuses upon decision making
as how
successful leadership emerges and progresses. The parameters shaping a decision are quality,
commitment of
group or organization members, and time restrictions. There are a number of leadership styles
ranging from
authoritarian to highly participatory. In 1988, Vroom and Jago created a mathematical expert
system as a
decision-making device in their work Leadership and Decision Making. This addition of Jago
renamed the
original theory to the theory, with its variants being Vroom-Yetton, Vroom-Jago, and Vroom-
Yetton-Jago.
The theory states that there can be many styles of leadership and no one type fits all situations,
thus making
this a Contingency Theory. A leader sizes up a situation, assesses the situation facing the group,
determines
how much support the group will give to the effort, and then effect a style of leading. There is a
mechanical
process to do this involving seven questions and decision points. An interactive version of the
model is
provided below. I would however caution anyone who uses it to use good judgment with regards
to the
recommended style to use.
 Situational Leadership Theory is really the short form for "Hersey-Blanchard Situational
Leadership
Theory" and draws major views from contingency thinking. As the name implies, leadership
depends upon
each individual situation, and no single leadership style can be considered the best. For Hershey
and
Blanchard, tasks are different and each type of task requires a different leadership style. A good
leader will
be able to adapt her or his leadership to the goals or objectives to be accomplished. Goal setting,
capacity to
assume responsibility, education, and experience are main factors that make a leader successful.
Not only is
the leadership style important for a successful leader-led situation but the ability or maturity of
those being
led is a critical factor, as well. Leadership techniques fall out of the leader pairing her or his
leadership style
to the maturity level of the group.
4. Charismatic leadership is defined by a leader who uses his or her communication skills,
persuasiveness, and charm
to influence others. Charismatic leaders, given their ability to connect with people on a deep
level, are especially
valuable within organizations that are facing a crisis or are struggling to move forward. The
charismatic leadership
style relies on the charm and persuasiveness of the leader. Charismatic leaders are driven by their
convictions and
commitment to their cause
5. Emotional Leadership.
Daniel Goleman, Richard Boyatzis, and Annie McKee described six distinct emotional
leadership styles in their
2002 book, "Primal Leadership." Each of these styles has a different effect on people's emotions,
and each has
strengths and weaknesses in different situations. Four of these styles (Authoritative, Coaching,
Affiliative, and
Democratic) promote harmony and positive outcomes, while two styles (Coercive and
Pacesetting) can create
tension, and should only be used in specific situations. Goleman and his co-authors say that no
one style should be
used all of the time. Instead, the six styles should be used interchangeably, depending on the
specific needs of the
situation and the people that you're dealing with.
What Are the Qualities of a Good Leader?
1. Honesty and Integrity: Leaders value virtuousness and honesty. They have people who believe
in them and
their vision.
2. Inspiration: Leaders are self-motivating, and this makes them great influencers. They are a
good inspiration to
their followers. They help others to understand their roles in a bigger context.
3. Communication skills: Leaders possess great communication skills. They are transparent with
their team and
share failures and successes with them.
4. Vision: Leaders are visionaries. They have a clear idea of what they want and how to achieve
it. Being good
communicators, leaders can share their vision with the team successfully.
5. Never give-up spirit: Leaders challenge the status quo. Hence, they never give up easily. They
also have unique
ways to solve a problem.
6. Intuitive: Leadership coach Hortense le Gentil believes that leaders should rely on intuition for
making hard
decisions. Especially because intuition heavily relies on a person’s existing knowledge and life
learnings, which
proves to be more useful in complex situations.
7. Empathy: A leader should be an emotional and empathetic fellow because it will help them in
developing a
strong bond with their team. Furthermore, these qualities will help a leader in addressing the
problems,
complaints, and aspirations of his team members.
8. Objective: Although empathy is an important quality a leader must imbibe, getting clouded by
emotions while
making an important business decision is not advisable. Hence, a good leader should be
objective.
9. Intelligence: A good leader must be intelligent enough to arrive at business solutions to
difficult problems.
Furthermore, a leader should be analytical and should weigh the pros and cons before making a
decision.
10. Open-mindedness and creativity: A good leader is someone who is open to new ideas,
possibilities, and
perspectives. Being a good leader means understanding that there is no right way to do things.
Therefore, a good
leader is always ready to listen, observe, and be willing to change. They are also out-of-the-box
thinkers and
encourage their teams to do so.
11. Patient: A good leader understands that a business strategy takes time to develop and bear
results. Additionally,
they also believe that ‘continuous improvement and patient’ leads to success.
12. Flexible: Since leaders understand the concept of “continuous improvement”, they also know
that being
adaptable will lead them to success. Nothing goes as per plan. Hence, being flexible and intuitive
helps a
manager to hold his ground during complex situation
Based on leadership theories
 Reasons Kingsbury Hotel to gain a loss
So as the P&L report in 2021, there have been a loss of almost Rs. 85,000,000. As per the
statement in the Annual
report of MD Mr. Rohan Karr, covid 19 has affected for the above loss in the hotel. The cessation
of international
tourist arrivals, enforcement of curfew and general uncertainty had a negative knock-on effect.
With lower room
occupancy and reduced footfall in restaurants and bars, revenues declined of the hotel. But with
the help of the
parent company Hayleys Plc, the hotel could remain buoyant through the pandemic.
2022 2021
Revenue (Rs.000) 2,021,666 777,923
Cost of sales 1,544,454 76.4% 862,849
Admin Ex 801,228 702,414
Finance ex 135,750 82,717
 The management has not conceded the above factors during the financial year. As the revenue
had dropped
the cost of sales 76.4%, admin expenditure and finance expenditure has not been controlled.
 And as cost management measures the management has implemented of no pay cuts for the
staff during the
pandemic. This definitely would have triggered mutual workship among management and staff.
Due to no
pay cuts, there will be decrease in confidence, motivation, sabotage the company, talk bad
behind, efficiency,
savings of products and energy etc.
 Towards the end of the year the hotel has opened and authentic Japanese restaurant with a
master chef flown
down from Japan and have recruited a foreign executive chef. This would increase in expenditure
in the P&L
as the payment for the Japanese and executive chef also is higher than normal payment. Plus, this
will
discourage the current staff of the hotel.
 Reasons Vallibel Finance to gain profit.
 The NPL ratio from 5.01 in 2019/2020 to 2.73 2021/2022.
 Staff satisfaction. Remuneration, training and development, retention ratio.
 Monitoring paper usage (15% decrees)
 Opened 8 new outlets.
 Investment on IT